Football's Magic Money Tree

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Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Oct 10, 2020 5:34 pm

Chester Perry wrote:
Fri Oct 09, 2020 1:25 pm
It is being suggested that the Premier League have a plan for broadcasting all behind closed door games - it just won't be on TV - from the Sun and being repeated by the Times - personally think leads into the hands of the big clubs as they will use the data gathered to argue that their share should increase - it is a very slippery road the game is on at the moment as the EFL tribulations with ifollow show (even in it's current modified revenue distribution period)

APPY DAYS Premier League to show every single match – but the extra games will only be available on Sky and BT apps and NOT on TV
EXCLUSIVE
Martin Lipton 9 Oct 2020, 11:03Updated: 9 Oct 2020, 12:27

PREM clubs are today poised to agree to non-televised matches being available to all fans.

But the games will NOT be on TV and supporters will have to access matches on their personal devices through BT and Sky apps.

Ever since the Prem’s restart in June, all matches have been available through one of the Prem’s four broadcast partners - Sky, BT, Amazon prime and the BBC.

With fans locked out, the clubs felt they had no option to ensure supporters were able to watch their teams in action.

But there are concerns that the two main broadcasters’ patience over the loss of their prized exclusivity is not boundless and that there could be a knock-on impact with the companies demanding a further rebate.

Prem clubs already face having to pay back £330m over the next two seasons as a result of the pandemic and a further cut in income would be a savage blow.

Frustration with the Government over its refusal to sanction a re-opening of turnstiles has grown in recent weeks.

And now the clubs are set to decide to take things into their own hands by agreeing a new, short-term, broadcast model.

A meeting of the 20 “shareholder” clubs to discuss the proposed solution will be held this morning.

SunSport can reveal the idea, backed by the Big Six and which is understood to have been accepted by the necessary 14 club majority of clubs.

Last week, Prem chiefs announced that five matches in each of the three remaining October fixture weekends would be moved for TV purposes, screened on Sky and BT.

But that left the other five games still nominally due to be played in the traditional Saturday 3pm slot.

While some clubs wanted to use their own in-house websites and TV channels to make the matches available to season ticket holders only, other clubs felt that this would be seen as divisive.

Instead, the likely compromise being discussed around the virtual table will see all fans wanting to watch being able to pay to access the games - as if they were paying at the gate.

It is not yet entirely clear how the new system will work and Prem sources dismissed the belief of some clubs that a special app was being created to provide the service.

But more details and clarity are due to emerge after today’s meeting.

There is the expectation that a detailed fixture schedule and explanations of how to watch the games that are not on BT or Sky will then be available by the start of next week.
Following yesterday's news on the behind closed door games no longer being free to air in the domestic market and the PPV pricing of £14.95 per game which has upset an awful lot of fans - here is an interesting thread on how the competition authorities conspired unwittingly to dive up the value of Premier League broadcast packages and how that PPV price is at a level where it should avoid serious scrutiny by those authorities now

https://twitter.com/LegalManFlan/status ... 5491812354

what was it that Greg Dyke said yesterday
Terry Cochrane wrote:
Sat Oct 10, 2020 7:23 am
"If you look at the Premier League, it's a cartel - 20 clubs coming together to sell their television rights," he added. "By anybody's standards that's a cartel. It needs proper regulation. I don't think anyone's going to do it. But that's what it needs." To unlock this mess, football needs a miracle of Leicester proportions”
That paper referred to in the thread - http://usir.salford.ac.uk/id/eprint/213 ... _james.pdf

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Oct 10, 2020 7:09 pm

Lars-Christer Olsson is to step down from his roles at the head of the European Leagues and UEFA's Executive committee early next year - it will be very interesting to see who replaces this this shrewd operator in these roles as discussions on the post 2024 calendar come to a head in the next 18 months. - from the Associated Press

Veteran UEFA soccer executive Olsson to step down
yesterday

STOCKHOLM, Sweden (AP) — Veteran soccer executive Lars-Christer Olsson will step down in March and relinquish his place as a member of the UEFA executive committee, the Swede said Friday.

Olsson helped modernize the Champions League from 2000-07 as a senior UEFA official and then its general secretary under then-president Lennart Johansson.

As chairman of the 29-nation European Leagues group, Olsson has helped resist moves led by top clubs to limit entry paths to the Champions League.

“I do not think you should sit for too long in different positions,” Olsson said in a statement, “but it is good with rotation and new blood at regular intervals.”

Olsson returned to international soccer politics in 2016 to lead the network of European leagues. Two years later, he joined the UEFA executive committee when a seat was allocated to the leagues.

Olsson’s mandate at UEFA expires in March, when he would be 71 and beyond the European soccer body’s age limit of 70 for election or re-election to the top committee.

In his final months in office, Olsson is due to take part in talks UEFA will re-open to examine possible changes for its club competitions. They would take effect in the 2024-25 season.

Olsson has argued for teams earning entry to the Champions League only by a high placing in a national league, or by winning a UEFA competition, and that places should remain open to mid- and lower-ranked leagues.

GodIsADeeJay81
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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Sun Oct 11, 2020 12:18 pm

Jump to navigation
World exclusive: Man Utd and Liverpool driving 'Project Big Picture' - football’s biggest shake-up in a generation
18-team Premier League, increased EFL funding and axing of League Cup among raft of proposals in 'Revitalisation' document seen by Telegraph

By
Sam Wallace,
CHIEF FOOTBALL WRITER
11 October 2020 • 11:45am
Under radical new proposals, the Premier League would be reduced to 18 teams

Manchester United and Liverpool are the driving force behind the biggest changes to English football in a generation and an extraordinary overhaul of the Premier League, The Daily Telegraph can reveal.

The two clubs have worked together on a radical set of proposals – called “Project Big Picture” - that will reshape the finances of the game. The Premier League, the most lucrative sports league in the world, would see a reduction to 18 teams, and controlling power in the hands of the biggest clubs.

In return for tearing up many of the rules that have governed the game since the Premier League’s inception in 1992 there will be £250 million rescue package to the Football League to see them through the Covid crisis.

The Daily Telegraph can reveal the details of the working document “Revitalisation” authored by Liverpool’s American ownership Fenway Sports Group with support from United. It anticipates the backing of the other members of the so-called big six, Manchester City, Arsenal, Chelsea and Tottenham Hotspur.

Advertisement

In a remarkable set of proposals, which will send shockwaves through the game, 25 per cent of the Premier League’s annual revenue will go to the EFL clubs with £250 million paid up front to see them through the current crisis. There would also be a gift of £100 million to sustain the Football Association.

However, there would be an abolition of the one-club, one-vote principle that has sustained the Premier League since its inception as well as the abolition of the threshold of 14 votes to pass any decision or regulation change.

Under the new proposals, the Community Shield would be abolished
Under the new proposals, the Community Shield would be abolished CREDIT: Shutterstock
Under the new proposals, the League Cup and the Community Shield would be abolished. There have been additional discussions that the League Cup would survive but without the participation of the clubs in Europe.

There would be two automatic promotion places for Championship clubs, but the third, fourth and fifth placed clubs would be in a play-off tournament with the 16th placed Premier League club.

The nine clubs who have been in the Premier League for the longest - which includes the big six - would dictate its running in every aspect and would be free to play more games in the expanded Champions League that is anticipated from the 2024-2025 season onwards.

As well as the Premier League dropping from 20 clubs to 18, there would be 24 in each of the Championship, League One and League Two making a total of 90.

The plan is supported by the EFL chairman Rick Parry who has held talks with Liverpool’s principal owner, the American investor John W Henry, and shareholder and director Mike Gordon. In addition, Parry has spoken to the Glazer family, who own United.

The plan is supported by the EFL chairman Rick Parry
The plan is supported by the EFL chairman Rick Parry CREDIT: AP
The talks began in 2017 but have been accelerated since the coronavirus pandemic has thrust football into the grip of crisis with no fans in stadiums until March at the earliest. Liverpool and United are prepared for a fierce debate over their proposals but they want them implemented as soon as possible.

The Revitalisation document calls for immediate action to cut dramatically what it calls the “revenue chasm” in earnings from television contracts between the Premier League and the EFL. In order to discourage Championship clubs from gambling recklessly on promotion, the parachute payments system would be abolished in favour of the 25 per cent share of Premier League revenue being shared more equitably among EFL clubs.

Under proposals for the new model of distribution of television revenue in the Premier League, Fenway, the driving force behind the document, insist there would be no greater share for the top six. Their stated aim is to eliminate the huge gap in earnings between Premier League and EFL clubs while in return having a greater control of the decisions made by the Premier League.

The document says: “A reset of the economics and governance of the English football pyramid is long overdue”.

The proposals also rewrite the Premier League’s 20-club democracy in favour of placing huge power in the hands of the nine clubs with the longest continual stay in the division. As things stand that is the big six, as well as Everton, Southampton and West Ham. Those nine clubs afforded “long-term shareholder status” would have unprecedented power, with the votes of just six of them required to make sweeping changes. These clubs would even be able to veto a new owner taking over a rival club.

The power would move into the hands of the nine clubs with the longest continual stay in the division - which includes West Ham CREDIT: Getty Images
In an exclusive interview with The Daily Telegraph, Parry said that he had the support of many of his 72 members, many currently facing financial ruin, to go ahead with the plan. He said: “What do we do? Leave it exactly as it is and allow the smaller clubs to wither? Or do we do something about it? And you can’t do something about it without something changing. And the view of our clubs is if the [big] six get some benefits but the 72 also do, we are up for it.”

He accepted there would be opposition from the Premier League clubs outside the big six who would see it as detrimental to their financial prospects with less money and two fewer places in the top flight.

“It is definitely going to be challenging and it is an enormous change so that won’t be without some pain,” Parry said: “Do I genuinely think it’s for the greater good of the game as a whole? Absolutely. And if the [big] six are deriving some benefit then why shouldn’t they. Why wouldn’t they put their names to this otherwise?”

The proposals include:

£250 million immediately to the EFL to compensate its clubs for lost matchday revenue, deducted from future television revenue earnings and financed by a loan taken out by the Premier League
Special status for the nine longest serving clubs – and the vote of only six of those “long-term shareholders” required to make major changes, including amending rules and regulations, agreeing contracts, removal of the chief executive, and a wide-ranging veto including on club ownership
Premier League to go to 18 clubs from 20
£100 million one-off gift to the FA to cover its coronavirus losses, the non-league game, the women’s game, the grassroots
8.5 per cent of annual net Premier League revenue to go on operating costs and “good causes” including the FA
From the remainder, 25 per cent of all combined Premier League and Football League revenues to go to the EFL clubs
Six per cent of Premier League gross revenues to pay for stadium improvements across the top four divisions, calculated at £100 per seat
New rules for the distribution of Premier League television income, overseas and domestic, including proposals that base one portion on performance over three years in the league
The abolition of the League Cup and the Community Shield
24 clubs each in the Championship, League One and League Two reducing the professional game overall from 92 clubs to 90
A women's professional league independent of the Premier League or the FA
Two sides automatically relegated from the Premier League every season and the top two Championship teams promoted. The 16th place Premier League club in a play-off tournament with the Championship’s third, fourth and fifth placed teams.
Financial fair play regulations in line with Uefa, and full access for Premier League executive to club accounts
A fan charter including capping of away tickets at £20, away travel subsidised, a focus on a return to safe standing, a minimum away allocation of eight per cent capacity
Later Premier League start in August to give greater scope for pre-season friendlies, and requirement for all clubs to compete once every five years in a summer Premier League tournament
Huge changes to loan system allowing clubs to have 15 players out on loan domestically at any one time and up to four at a single club in England

randomclaret2
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Re: Football's Magic Money Tree

Post by randomclaret2 » Sun Oct 11, 2020 12:34 pm

Good to see West Ham potentially being given a bigger say in the running of the game that their tremendously succesful history fully merits.

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Re: Football's Magic Money Tree

Post by Stevie2112 » Sun Oct 11, 2020 12:35 pm

Some of the proposals are fine,others as random says are just ludicrous.

GodIsADeeJay81
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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Sun Oct 11, 2020 12:36 pm

I'm surprised they didn't include Leeds, maybe at the end of the season if they avoid relegation.
This user liked this post: randomclaret2

TVC15
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Re: Football's Magic Money Tree

Post by TVC15 » Sun Oct 11, 2020 12:43 pm

Might explain why Dyche was against the proposal of helping out the lower leagues. Maybe he knew about the rest of the proposals.
Any truth in this and it’s the beginning of the end or the end of the beginning !

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Re: Football's Magic Money Tree

Post by Royboyclaret » Sun Oct 11, 2020 1:30 pm

Radical changes, indeed, but frankly no great surprise. This has been coming for some time.

Crazy as it sounds we are not that far outside the "big nine" as some people might think. Certainly ahead of the likes of Villa, Fulham, Brighton, Leeds, Newcastle, Sheff Utd, West Brom & Wolves.

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Re: Football's Magic Money Tree

Post by Goalposts » Sun Oct 11, 2020 1:38 pm

What’s needed is a govt oversight to put the prem in its place with the integrity of the pyramid structure as the number 1 priority.

If the big six under this proposal wanted to play 10 games a season in Asia the states are were ever they want they can,

It’s self interest of the highest order

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Re: Football's Magic Money Tree

Post by AndrewJB » Sun Oct 11, 2020 2:23 pm

It’s just the franchisation of football. As soon as Liverpool or Man Utd won fans outside of the country, they ceased to belong solely to the places they were founded in. Contrast that approach with the thoughts of Arsène Wenger:

https://www.theguardian.com/football/20 ... r-football

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Re: Football's Magic Money Tree

Post by claretblue » Sun Oct 11, 2020 2:32 pm


Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 3:04 pm

No surprise that the American owners are behind this plan - read the Vysyble blog piece I posted earlier in the week (it is something they have been predicting for a while) - also interesting to note that 18 teams was the original number in the Alex Flynn plan (that became the Premier League) from the early 80's.

The cash distribution to the EFL is also close to what the Premier League started with in 1992 and shared negotiation of EFL and Premier League rights is what the EFL turned down in around 1997

On the subject of American owners and Alex Flynn plans, there has been significant American investment in the Italian and French Leagues to, don't be surprised to see the post 2024 UEFA competition's coming under greater pressure from the ECA, into more of a League format (for qualification) at the Top end (Champions League) which will be closer to the Alex Flynn concept from the late 80's

I will also add the sop to Everton, West Ham and Southampton is all about getting votes or at least not getting out-voted by the necessary 14 votes for the big 6.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 3:24 pm

The Telegraph with a section highlighting the key elements of project "Big Picture"

Project Big Picture: The key proposals of Premier League overhaul revealed
JEREMY WILSON OCTOBER 11, 2020
Rescue Fund
An immediate rescue fund of £350,000,000 to the English Football League and Football Association for lost revenues of 2019/20 and 2020/21

For the EFL:

£50,000,000 to cover 2019/20 EFL matchday losses;

Up to £200,000,000 available to cover 2020/21 EFL matchday losses;

Money will be advanced to the EFL from increased future revenues.

For the FA:

£100,000,000 in grants, made up of £55,000,000 to cover operational losses, £25,000,000 for clubs below the EFL, £10,000,000 for the Women’s Super League and Championship, £10,000,000 for grassroots

Funds to be made available by the Premier League through loans guaranteed by the clubs.

Infrastructure Plan
Infrastructure funding of 6% of Premier League gross revenues to be distributed annually to the top four divisions.

Each club will receive £100 per seat annually.

Infrastructure funding can only be used for stadia and fan experiences.

Fan Charter
A cap of £20 on Premier League away ticketing (adjusted every 3 years for inflation)

Subsidised Premier League away travel

Safe-standing sections at the discretion of each club, subject to government permission.

Away sections must provide at least 3,000 or 8% of capacity, whichever is higher.

Annual Good Causes
An increase of 66% in annual contributions to good causes in England.

A total of 5% of Premier League gross income to be contributed annually to good causes and grassroots football, to include focus on combatting racism and discrimination.

Redistribution of Media & Sponsorship Revenues (three possible options)
Option A: 50% equal, 25% current-year merit, 25% previous 3-year merit

A greater emphasis will be placed on merit in both the Premier League and the Championship with half of payments reflecting positions over the past four years.

Option B: Current Premier League distribution scheme (50% equal, 25% by merit and 25% by facility fees) but newly promoted clubs must holdback £25m of first two years in the Premier League to mitigate risk of relegation.

Option C: Current Premier League distribution scheme, but newly promoted clubs receive 25% of their allocated Facility Fees for first 3 years in league.

For all above options:
Excluding parachute payments and including new infrastructure payments, solidarity from the Premier League to the English Football League would increase from 4% to 25%.

Premier League and English Football League domestic and international media rights will be collectively sold by the Premier League.

Compensation payments to The EFL and FA, infrastructure monies and related borrowings are deducted prior to determination of distributable revenues.

Pyramid structure
The Premier League, originally formed to house 18 clubs,would be reduced from 20 to 18 clubs.

This would free up the calendar and, with fewer teams and an end to parachute payments, provide additional resources to the EFL.

Reduction from 38 to 34 rounds of matches will also aid the national team.

Championships, League One and League Two to all be made up of 24 clubs

Promotion and relegation
Premier League relegation: At least two clubs automatically relegated annually

Championship promotion: 1st and 2nd automatically promoted.

Club finishing 16th in the Premier League to join four-team Championship play-off tournament for final Premier League place, with teams who finish 3rd, 4th and 5th in the Championships. Semi-finals would be 16th place Premier League team vs 5th place Championship team and 3rd place Championship team vs 4th place Championship team.

Championship: Relegation of three clubs

League One: Promotion of three clubs. Relegation of four clubs

League Two: Promotion of four clubs. Relegation of four clubs

Club media
All Premier League clubs have the exclusive rights to sell eight live matches a season directly to fans via their own digital platforms in all international territories.

All Premier League and Championship clubs allowed to show limited in-match highlights on their own digital platforms.

No more than 27 games per club will be shown live in UK per season

Saturday 3pm broadcast blackouts remain to help protect EFL attendance

Other competitions
League Cup and Community Shield discontinued;

Establishment of a new independent league for the Women’s professional game, not to be owned by the Premier League or The Football Association;

FA Cup replays retained but there will be no replays in the winter break;

Premier League begins later in August and pre-season friendlies extended;

No more than two weeks between the end of the Premier League and the Champions League final;

Premier League clubs must participate at least once every five years in the Premier League summer tournament.

Other structural changes
Elite Player Performance Plan funding is included in the revenue received by EFL clubs;

Clubs in League One and below are no longer required to have an academy;

Clubs permitted to have up to 15 players out on loan domestically at any time, including up to four in a single English club. Introduction of one month loans for players under 23, an ability to recall loanees in the event of managerial change, incentivise loanee clubs through payments based on future performance or sale of loaned players;

Remove the scholarship clause permitting players to terminate at any stage;

No restrictions on loans in;

Player contracts: Lump sums permitted to be payable from the start of employment. Force majeure provisions to be added to protect against clubs' insolvency.

Cost Controls & Related Party Income
Financial Fair Play rules that align with Uefa to ensure English clubs are not at a disadvantage in Europe;

A £50 million cap per annum on all related party transactions and a more stringent ‘related party’ definition;

Premier League executive provided with full access to clubs accounting information to investigate cost control

A joint Premier League and Championship body will monitor cost controls.

The English Football League will introduce hard salary caps.

Governance
All material matters relating to the business of the Premier League will require shareholder approval, except that the Board will decide whether to approve a new owner;

All votes will require more than two-thirds majority to be approved;

All other votes for the operation of the Premier League will be one-club, one-vote except those provided for under ‘Special Voting Rights’

Special Voting Rights
Each of the nine clubs who, at any time of determination, have been members of the Premier League continuously for more seasons than other clubs will be considered a ‘Long-Term Shareholder’.

Two-thirds of the long-term shareholders can cause to be adopted without approval from the other clubs:

i) the election or removal of the CEO and/or a member of the board;

ii) amendments to cost control rules and regulations;

iii) contracts for the sale of league broadcasting and media rights

Two-thirds of the long-term shareholders can prevent from being adopted resolutions to:

i) change the distribution rights of the sponsorship, commercial and broadcasting rights sold

centrally;

ii) change the distribution to clubs from other PL centralised rights or assets

c) alter in a material way the nature of the competition

Two-thirds of the long-term shareholders can veto the Premier League board’s approval of a proposed new owner.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 3:29 pm

The Telegraph with an interview with EFL Chair Rick Parry talking about project Big Picture - It was Parry (then Chief Exec at the Premier League) who offered to negotiate broadcast deals for the EFL in the late 90's

Rick Parry exclusive interview: 'New proposals will finally bridge financial gap between Premier League and Championship'
SAM WALLACE OCTOBER 11, 2020

He was the chief executive of the Premier League when its breakaway from the Football League reshaped English football in the early 1990s, and now Rick Parry is adamant that fundamental change is necessary again to save the professional game gripped by the coronavirus crisis.

Speaking exclusively to The Telegraph, Parry, now chairman of the Football League (EFL), said that new changes proposed in a radical document authored and endorsed Liverpool and Manchester United were “as big as the formation of the Premier League”.

The proposals would, Parry said, finally bridge the financial gap between the Premier League and the Championship and discourage reckless spending by clubs seeking promotion. He believes the proposals will also save the EFL from the looming financial oblivion that is being hastened by the Covid crisis.

On the other side of the fence now from the Premier League, Parry has been working on a plan with Liverpool and United for the last three years - even before he took up his role at the EFL. His ambition is to close what he sees as the “unbridgeable gap” between the Premier League and the EFL but he also knows that in order to do so concessions will have to be offered to the game’s most powerful clubs.

A former chief executive of Liverpool, Parry says that his 72 EFL clubs will only have a future under these new plans and that many of them who have been sounded out support them wholeheartedly.

The details, revealed today by The Telegraph, are startling. A £250 million bailout of the EFL and 25 per cent of all annual Premier League future revenues paid to the EFL. A £100 million one-off gift to the Football Association. A reduction of the number of top-flight clubs from 20 to 18. Sweeping changes to the governance of the Premier League that would see power concentrated in the longest-serving, and biggest clubs. Potentially the end of the League Cup. Changes to the three-up, three down promotion and relegation structure.

Parry said that the changes were crucial for the long-term health of the professional game in England and would have been so even without the pandemic that has prevented clubs from having paying fans in stadiums. He has the backing of the owners of both Liverpool and United. Parry will be the public face of the new proposals that will face fierce competition from many quarters – especially the Premier League itself and the 14 clubs outside the so-called big six.

For United and Liverpool, the pay-off is not a greater share of the revenue from the Premier League’s television deal – they are insistent that will not happen. Instead they want the power, along with the other members of the elite - Manchester City, Chelsea, Arsenal and Tottenham Hotspur – to shape the rules of the league and also to have more matchdays to compete in a potentially expanded Champions League.

Under the new rules the nine longest-serving clubs in the division would have huge powers. With just a two-thirds majority, they could remove the Premier League chief executive, change regulations governing cost controls and approve television rights contracts. They could change the distribution model of sponsorship and commercial rights and even the rules of the competition. Remarkably they would also be able to block new owners from buying clubs.

Parry said: “The fact that our two greatest clubs are showing leadership at a time when the game is crying out for it is fantastic. For me that’s a great part of the story. We should be looking at our great clubs at times like this and they should be stepping up to the plate. They are. Clearly I have had an input because all of this will come as something as a surprise to our clubs [in the EFL]. I am hoping they will be receptive but it is subject to their approval.”

“For me this addresses the three biggest challenges the EFL faces. This started pre-Covid – it addressed the gulf between top and bottom and the long-term survival of our smaller clubs. You cannot do this without a major rethink. It is as big as the formation of the Premier League. It is a coming-together and clearly it’s a great story for all of our 72 [EFL] clubs.”

On the question of what leverage the likes of Liverpool and United would have to force change, Parry said they would be “bitterly disappointed” if the proposals were rejected. He maintained that the new proposals had to be implemented swiftly to save those EFL clubs who were on the financial precipice without gate receipts. He added that the “toing and froing and nickel and dimeing” with the Premier League had not moved the EFL clubs any closer to the bailout they needed.

Parry said: “They [Liverpool and United] are not making threats about European super leagues as far as I know. In the event it doesn’t happen and they are bitterly disappointed then as to what might then happen anybody can speculate. At the moment it is presented for what it is a really genuinely bold plan for the future of English football.

“Yes, there are bits that people won’t like. All your points about the 14 [other clubs] and about competitive balance are absolutely valid. What do we do? Leave it exactly as it is and allow the smaller clubs to wither? Recognise we have an enormous gap, recognise we have a structure that depends [in the EFL] on owner funding? Or do we do something about it? And you can’t do something about it without something changing. And the view of our clubs is if the [big] six get some benefits but the 72 also do, then we are up for it.”

Parry said that the proposals, chiefly authored by Liverpool’s American ownership group Fenway Sports, based in Boston, were a work in progress. They are already on their 17th draft. He said that as things stand the League Cup, a cornerstone of the EFL, will be abolished but that there had been some discussion about keeping it – albeit without the participation of clubs in Europe.

The likelihood is that there will be huge changes by Uefa or others to the Champions League and Europa League after 2024 when current broadcast contracts expire. A radical expansion is being pushed by leading European clubs, led by the Juventus chairman Andrea Agnelli, and the Premier League’s top clubs want more matchdays free for greater participation in Europe.

Parry said: “Who knows what changes will be to European competition after 2024 and obviously we are anticipating there will be a major shift in games. We are realistic. We know that things have to give. We know that second domestic cup competitions [League Cup] are an anathema to Uefa. It’s only us and France [who have one] and we know theirs is going. Even in the last few days clubs in the big six are ‘Saying why are you getting rid of it [the League Cup]? If you know clubs in Europe aren’t going to take part then why shouldn’t we keep it?’”

The current model in the EFL is unsustainable, Parry says, with owners funding £380 million from their own pocket in the Championship alone last season, at an average of £16 million a club. That total of owner funding rises to £440 million throughout the totality of the EFL. The parachute payments, he says, which came in under his watch at the Premier League are no longer sustainable and distort competition. Last season parachute payments made up 30 per cent of the total turnover of the Championship despite being paid to just seven clubs.

As EFL chairman, Parry wants an end to the huge difference in earnings between clubs relegated back to the Championship, and the beneficiaries of parachute payments, and those who are already there subsisting on much more meagre resources. “The fact that two seasons ago you have Huddersfield earning £97 million and Leeds £8 million – it’s not bridgeable,” Parry said. “You have heard my views on parachute payments and the massive distorting impact they have [to a Parliamentary select group hearing]. [Owning a Championship club] is the most expensive lottery ticket on the planet. It’s nonsensical. It can’t be right.

“That is not the right structure going forwards. Why do you need parachute payments, you only need them because of the size of the gap [between the Premier League and the Championship] … it’s a total distortion.”

Asked what the reaction of Liverpool and United might be to a rejection of their proposals, Parry said: “I would phrase it diplomatically in that, ‘Isn’t this the thing that’s going to prevent them from doing that [leaving the Premier League] and make it more likely they are committed to the future of English football?’ They have thrown their lot in with a very bold plan to save the English pyramid.”

He said that the era in which all Premier League clubs had one-vote and a majority of 14 was needed for any major rule changes had served the league “brilliantly” but that change was now required. He said Liverpool and Manchester United had been particularly frustrated that the interim rule to allow five substitutes last season had been voted down for this season. Premier League clubs voted 11-9 against it. The rest of Uefa had adopted it permanently.

Parry said: “[Under these proposals] They [big clubs] have more space and the calendar isn’t that cluttered. That is a major benefit for them. There are governance changes in there where they want a greater say. They are frustrated that they get outvoted ... how can Huddersfield have the same vote as Man United? How can Blackpool come up and abuse their one stay in the Premier League [and yet] have the same vote as Man United and Liverpool.”

The big losers will undoubtedly be those clubs outside the big six of the Premier League who will have two fewer places and less revenue. Persuading them will be the greatest challenge facing Parry as well as Liverpool and United. Parry claims that those clubs are in an “arms race” with one another for the same players. He says the 14 spend more collectively on salaries than the total wage bills of either the Bundesliga, Spain’s Liga or Italy’s Serie A.

Asked whether the new proposals would affect the competitiveness of those 14 clubs, Parry argued they could assemble the same squads on a lower budget. “It’s all about the supply of money,” he said. “The money goes to the players and less money will go to the same group of players. I don’t think, for example, Brighton’s squad will be any different. It means Brighton’s players will be earning a bit less.

“I don’t have an issue with our top clubs being successful in Europe and hiring the best players in the world because they generate the revenues. To have them winning Champions Leagues and bringing in the best talent on the planet is best for English football and great for media values. We want them competing with Real Madrid and others. There is no problem at all with that. The challenge we have is the imbalance between frankly the 14 and our clubs [in the EFL].”

Parry said that under the new proposals, the Premier League would continue to run the top division but taking charge of all negotiations for television rights for the Football League as well as its own. From that total, 25 per cent would go to the EFL. Currently the 14 Premier League clubs outside the top six are in receipt of what Parry estimates is 11 times the television revenue of the 24 Championship clubs. They earn around £8 million each with £5 million of that a solidarity payment from the Premier League. “How is that right? How is that fair?” Parry said.

“This isn’t about throwing money at player wages,” he said, “it is absolutely about making all of our clubs sustainable. This is a plan for the next 25 years. A fundamental reset. The thing that has to shine through is the passion that Liverpool and Manchester United have shown for preserving the pyramid and the relevance if Leagues One and League Two is for the most rewarding aspect of all of this.”

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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Sun Oct 11, 2020 3:38 pm

An end to parachute payments and clubs to hold money in the bank incase of relegation?
Interesting.

So I assume as and when West ham get relegated again, for example, another club takes their place in the group of 9?

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 3:41 pm

This article for Forbes.com over 2 years ago outlines much of what Vysyble saw and they put in their 3rd Edition of "we're so Rich it's unbelievable" that year report

Aug 7, 2018,05:53am EDT
Why A Soccer European Super League Is 'Closer Than Ever'
Robert Kidd

This article is more than 2 years old.

Increasing influence from US investors and uncertainty over future TV rights deals mean a breakaway European Super League in soccer is “closer than ever”.

That is the verdict of Vysyble, a consultancy that examines the financial performance of soccer clubs.

“Three of the top 6 clubs by revenue in the Premier League are owned by US individuals and their investment vehicles (Manchester United, Liverpool and Arsenal). All three also own sporting franchises within the US,” Vysyble’s Roger Bell and John Purcell told me.

“The American thread that is increasingly running through the fabric of the English game and into Europe will change the top echelons of European club football (soccer) into a mirror image of what is familiar and what has been proven to work.”

Their comments come as American Stan Kroenke, the 183rd richest person in the world, launches a £1.8 billion ($2.3b) bid to take full control of Arsenal.

Bell and Purcell pointed to growing interest from US investors and media companies in the third edition of their annual report analyzing the financial performance of English Premier League clubs, “We’re So Rich It’s Unbelievable!”. They suggested this would hasten the arrival of an “NFL-style European Super League”, where the continent’s top clubs play each other weekly and teams cannot be relegated.

“It is clear to us that American thinking has generated significant levels of success for franchise owners across a number of sports i.e. NFL, NHL, NBA, MLB, etcetera. Unfortunately, the conservative and cautious European football model has hitherto been less successful,” Bell and Purcell said.

A European Super League has long been talked about as a way for the biggest clubs to maximize television revenue. The Premier League’s “top six” – Manchester United, Manchester City, Liverpool, Tottenham Hotspur, Arsenal and Chelsea – have already successfully argued for a bigger share of international TV rights.

In May, former Arsenal manager Arsene Wenger said the demands of big clubs for an even larger share would make a European Super League “inevitable”, with Premier League matches moving to midweek.

Premier League clubs generated collective revenue of £26.1 billion ($33.8b) between 2009-17, but achieved economic losses of £1.9 billion ($2.4b), according to Vysyble. Their calculations are based on the “economic profit” measure, a more demanding accounting principle preferred by some economists as a way of judging performance.

Based on operating profit (profit before deducting interest and taxed), Premier League clubs made more than £1 billion ($1.3b) from a record £4.5 billion ($5.8b) revenue in 2016/17, according to Deloitte.

“The EPL (English Premier League) retains the gambler’s main enemy – risk. The top six clubs are dominating proceedings in a way that points towards a desire to further reduce their risk, to the point of dispensing with the current EPL altogether,” Bell said.

“In any other industry, such consistent economic losses would result in structural change, mergers and acquisitions. In English football, the process as we see it has already started.”

The next Premier League UK broadcast deal, covering 2019-2022, was sold for £4.4 billion ($5.7b), a drop of £5.1 billion ($6.6b) from the previous deal. Vysyble believe that, as the domestic TV market becomes less lucrative for top clubs, a Super League naturally becomes more appealing.

“What is certain is that we are closer to it happening than ever before,” Bell and Purcell said.

“An NFL-type management structure with caps on player costs and a revamped player transfer system would be an attractive proposition for club owners as a way of increasing revenues and reducing costs and which also provides for a more competitive and evenly matched competition.

“To put it simply, there has to be a better way to make a profit.”

Robert Kidd

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 3:44 pm

GodIsADeeJay81 wrote:
Sun Oct 11, 2020 3:38 pm
An end to parachute payments and clubs to hold money in the bank incase of relegation?
Interesting.

So I assume as and when West ham get relegated again, for example, another club takes their place in the group of 9?
yes, looks like the count starts from last promotion

Seasons spent in Premier League

28 – Man Utd, Chelsea, Arsenal, Liverpool, Tottenham, Everton
25 – Aston Villa, Newcastle
24 – West Ham
23 – Man City
21 – Southampton
18 – Blackburn
16 – Sunderland
15 – Middlesbrough
14 – Fulham, Leicester
13 – Bolton
12 – Leeds, West Brom
10 – Stoke

Years since last Promotion to Premier League

28 – Man Utd, Chelsea, Arsenal, Liverpool, Tottenham, Everton
19 - Manchester City
9 - Southampton, West Ham
8 - Crystal Palace
7 - Leicester
5 - Burnley
4 - Brighton. Newcastle United
3 - Wolves
2 - Aston Villa, Sheffield United
1 - Fulham, Leeds, West Brom
Last edited by Chester Perry on Sun Oct 11, 2020 4:00 pm, edited 3 times in total.

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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Sun Oct 11, 2020 3:53 pm

Didn't City hit league 1

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 4:01 pm

GodIsADeeJay81 wrote:
Sun Oct 11, 2020 3:53 pm
Didn't City hit league 1
yes they did - edit out that bit now as was irrelevant to what I wanted to post

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 4:28 pm

@TheEsk comes up with a very interesting suggestion for the cost of games on the Sky/BT apps

https://twitter.com/theesk/status/1315226105616371714

not sure all the 140+ remaining games could:
- generate enough money to it a worth-while proposition
- that Sky/BT would be happy at the prospect of losing so much potential advertising for it's own paid for matches
- sponsors of smaller clubs who may have more games on these platforms would want to keep paying for as many as 10 - 14 home games
- key sponsors (like LoveBet) whose target market is the Far East or North America would want to sponsor domestic broadcasts

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 5:34 pm

The Independent suggest that the Premier League is not happy that the news of the "Big Project" has broken - they never like to see anything in public that has not been formally been approved by it's members

Premier League downplays reports of ‘damaging’ plans to restructure football in England
Reports today suggested Liverpool and Manchester United were leading calls for drastic changes as part of a plan known as ‘Project Big Picture’

Jack Rathborn - Assistant Sports Editor - 2 hours ago


The Premier League has downplayed reports of “damaging” proposals to drastically change the structure of English football.

As first reported in the Telegraph today suggested Liverpool and Manchester United were driving a revolutionary plan labelled "Project Big Picture”.

The main concepts would include reducing the number of teams in the Premier League to 18 and increasing the power held by the biggest clubs.

But the Premier League has now downplayed reports and criticised EFL chairman Rick Parry for supporting the plan on the record.

"We have seen media reports today regarding a plan to restructure football in this country," read an official Premier League statement.

"English football is the world’s most watched, and has a vibrant, dynamic and competitive league structure that drives interest around the globe. To maintain this position, it is important that we all work together. Both the Premier League and The FA support a wide-ranging discussion on the future of the game, including its competition structures, calendar and overall financing particularly in light of the effects of COVID-19.

"Football has many stakeholders, therefore this work should be carried out through the proper channels enabling all clubs and stakeholders the opportunity to contribute.

"In the Premier League’s view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, Chair of the EFL, has given his on-the-record support.

“The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for COVID-19 rescue funding. This work will continue.”

Further reported details of 'Project Big Picture’ would see the Premier League agreeing to give 25 per cent of its future TV deals to the EFL and bringing an end to parachute payments.

The Championship play-offs would include the 16th-placed Premier League side, who would then compete to stay up with three teams from the second tier.

In return for increased financial security, the Premier League’s voting structure would be ended, changing away from one club, one vote and a majority of 14 required to pass new rules, to a new system with “long-term shareholder status”, held by the nine longest-serving teams in the league.

The big six would be joined by Everton, Southampton and West Ham United and only six of these nine would be required to push through changes.

The League Cup and Community Shield would be scrapped, while there could be a new “Premier League summer tournament”.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 8:00 pm

AC Milan join the list of European Clubs in announcing enormous financial losses for the 2019/20 season

https://www.rossoneriblog.com/2020/10/0 ... -the-club/

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 8:26 pm

@UglyGame with a thread about "Project Big Picture" as you would expect he is somewhat sceptical of it and the intentions of the Big 6

https://twitter.com/uglygame/status/1315368788905414656

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Re: Football's Magic Money Tree

Post by Royboyclaret » Sun Oct 11, 2020 8:35 pm

Chester Perry wrote:
Sun Oct 11, 2020 8:00 pm
AC Milan join the list of European Clubs in announcing enormous financial losses for the 2019/20 season

https://www.rossoneriblog.com/2020/10/0 ... -the-club/
A Net Loss of Euros 195m is scary even for a club the size of AC Milan. Not sure that Covid-19 is entirely responsible for such a hefty figure and it would be interesting to see some detail behind that headline figure.

Without doubt we at Burnley will report a Loss for our extended financial year but nothing of the level of that at AC Milan.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 8:40 pm

Royboyclaret wrote:
Sun Oct 11, 2020 8:35 pm
Without doubt we at Burnley will report a Loss for our extended financial year but nothing of the level of that at AC Milan.
Still not convinced by that Roy - I have said all along if full Central Distribution monies are paid in 2019/20 then we will post a profit, and record revenues

Unless, you tell me that provisions for the rebates we know are coming this season and next season can affect the 2019/20 results

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 8:45 pm

The FSA with a statement on Project Big Picture


FSA Statement: Response to media reports on “Project Big Picture”
Posted on 11th October 2020

Earlier today it was reported that clubs at the top of the Premier League had been planning in secret to pursue a wide-ranging restructure of the English footballing pyramid named “Project Big Picture”. Below is an initial statement of response from the Football Supporters’ Association.

We will be providing further updates on the issue in the coming weeks once we have had the chance to digest the details of these proposals further:

“The Football Supporters’ Association notes with grave concern today’s press reports of proposals for a major restructure of the Premier League, with far-reaching consequences for the whole of domestic football.

“Once again it appears that big decisions in football are apparently being stitched up behind our backs by billionaire club owners who continue to treat football as their personal fiefdom. Football is far more than a business to be carved up; it is part of our communities and our heritage, and football fans are its lifeblood. As football’s most important stakeholders, it is crucial that fans are consulted and involved in the game’s decision-making.

“We have welcomed the government’s commitment to a ‘fan-led review of the governance of football’; we would argue that today’s revelations have made that process even more relevant and urgent.

“We will of course study the detail of the new proposals, we remain open-minded to any suggestions for the improvement of the governance and organisation of the game, whatever their source, and we will continue to engage constructively in all discussions around reform. We would however emphasise that in our discussions so far, very few of our members have ever expressed the view that what football really needs is a greater concentration of power in the hands of the big six billionaire-owned clubs.”

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Re: Football's Magic Money Tree

Post by Royboyclaret » Sun Oct 11, 2020 8:46 pm

Chester Perry wrote:
Sun Oct 11, 2020 8:40 pm
Still not convinced by that Roy - I have said all along if full Central Distribution monies are paid in 2019/20 then we will post a profit, and record revenues

Unless, you tell me that provisions for the rebates we know are coming this season and next season can affect the 2019/20 results
Like to think I've been consistent all along with my thoughts on this, Chester. If I were Financial Accountant at Turf Moor then all such rebates that relate to last season MUST be provided for in the accounts irrespective of when those rebates will be settled. If for no other reason than even heftier broadcast rebates can be anticipated this season and beyond.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 8:48 pm

The Premier League with a statement on Project Big Picture

https://www.premierleague.com/news/1860125

Premier League statement
11 Oct 2020

League urges football's stakeholders to work together for the good of the game

We have seen media reports today regarding a plan to restructure football in this country.

English football is the world's most watched, and has a vibrant, dynamic and competitive league structure that drives interest around the globe.

To maintain this position, it is important that we all work together.

Both the Premier League and The FA support a wide-ranging discussion on the future of the game, including its competition structures, calendar and overall financing particularly in light of the effects of COVID-19.

Football has many stakeholders, therefore this work should be carried out through the proper channels enabling all clubs and stakeholders the opportunity to contribute.

In the Premier League's view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, Chair of the EFL, has given his on-the-record support.

The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for COVID-19 rescue funding.

This work will continue.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 9:21 pm

Some interesting nuances picked up by @TariqPanja in his piece in the New York Times regarding Project Big Picture

Premier League Reform Plan Seeks to Reshape English Soccer
A proposal engineered by Liverpool and Manchester United would yield an 18-team Premier League and hundreds of millions of dollars in payments to lower leagues. But key players are not on board.

By Tariq Panja - Oct. 11, 2020 - Updated 12:56 p.m. ET

Taken together, the proposals amount to the biggest changes in English soccer in more than a quarter of a century. An 18-team Premier League. Hundreds of millions of dollars in extra payments from Premier League clubs to their poorer rivals. And an end of direct payment to clubs relegated from the top division.

The reform plan — the brainchild of the American owners of England’s two biggest and most successful clubs, Manchester United and Liverpool — would remake the structure that governs English soccer’s four professional leagues and replace it with what those behind the idea have pitched as a more sustainable model.

The biggest changes would be that the Premier League shrink to 18 teams from its current 20, perhaps as soon as 2022, and transfer critical decision-making power in the league from the consensus-driven model that has been at its core for three decades to one in which a handful of the richest teams get a bigger say.

The details were first reported by The Daily Telegraph and later confirmed by the English Football League, the organization that represents the 72 clubs below the Premier League.

Liverpool and Manchester United did not respond to requests for comment. But Rick Parry, the chairman of the E.F.L., who had been involved in the talks, gave a full-throated endorsement to the proposals.

Although senior officials from Liverpool and Manchester United had discussed ideas in secret for several years before putting together a tentative proposal, other leading clubs and the Premier League were brought into the talks only recently. Some executives and administrators learned about them only late last week, and others found out on Sunday after reports in the news media.

The Premier League reacted with frustration on Sunday, saying in a statement that the talks should have been carried out in a more open and inclusive manner, even as it said it supported “a wide-ranging discussion on the future of the game, including its competition structures, calendar and overall financing.”

Still, it said, “in the Premier League’s view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, chair of the E.F.L., has given his on-the-record support.”

The British government also expressed its displeasure, accusing the clubs behind the plan of cooking up “back room deals” that would, according to a spokesman for the department responsible for sports, “create a closed shop at the very top of the game.”

The government’s apparent rejection of the idea comes amid complaints that it has done little to support the ailing sports sector.

John W. Henry, the billionaire owner of Liverpool, and his Manchester United counterpart, Joel Glazer, are hoping to seize on the chaos wrought on professional soccer in England by the coronavirus, which has caused millions of dollars of losses for the top teams and threatened the financial viability of some smaller ones, to crystallize their ideas and push through the changes they seek.

The current plan promises 250 million pounds ($326 million) in emergency funding from the Premier League to the three professional divisions immediately below it, and includes a pledge that those leagues would receive 25 percent of the total income of the Premier League from the first season under the new framework, which the reform plan’s backers hope would be as early as the 2022-23 season.

The Premier League currently requires the consent of 14 of its 20 clubs to approve decisions large and small, a setup that has strained the bond between the biggest teams and the rest. Under the reform proposal, a group of as many as nine of the longest serving members of the Premier League would have greater say over how it is run, including the right to veto new owners from buying control of clubs in the league.

To sweeten the deal, the plan also promises to share money with another key stakeholder: England’s Football Association. To secure its approval, or at least fend off its opposition, the F.A., which governs the sport in England, would receive a one-time payment of 100 million pounds ($130 million) to help mitigate the damage inflicted on its finances by the coronavirus pandemic.

That Liverpool and Manchester United are at the heart of the reform movement immediately led to criticism on social media, with fans and commentators suggesting that the two clubs are looking to further entrench their interests and positions atop global soccer.

The push to reduce the league to 18 teams mirrors the views of Andrea Agnelli, the chairman of the Italian champion Juventus and the leader of the influential European Club Association, a lobby group for top division teams. Agnelli has said that he favors reducing the size of domestic leagues to create space for more meaningful games between Europe’s elite teams, but he has also been one of the biggest proponents of shifting power in European soccer to the clubs that dominate it.

One of the drivers behind the Premier League proposal, beyond increasing the power of the wealthiest teams, is to reduce cases of risk-taking by clubs in the second-tier Championship as they try to win promotion to the Premier League. Access can bring huge rewards, in the form of television and sponsorship revenues and even so-called parachute payments — worth tens of millions of dollars for years — if they are relegated back to the Championship.

The problem, English soccer has found, is eager teams have at times piled up huge losses in the hope of building a squad capable of reaching the Premier League or competing with rivals who have, reaped that windfall, and then returned.

Under the reform proposal, parachute payments would be scrapped and the annual riches provided by the Premier League would be shared more equitably with the teams in the second tier. Clubs in the next two divisions would benefit as well, with about 25 percent of the total shared by the Premier League reserved for them.

The proposal also calls for the abolition of the League Cup, a cup competition reserved for professional teams that has long lost its luster among elite clubs, and the Community Shield, the traditional curtain raiser to the league season, which matches the previous campaign’s Premier League champion against the F.A. Cup holder.

It also discusses financing for a women’s professional league independent of the Premier League and the Football Association. And perhaps fearful of a fan backlash, those behind the proposals have added elements aimed at winning the support of match-going spectators, including a cap of $26 on ticket prices for visiting fans, a commitment to introducing safe standing areas in stadiums and subsidized travel for supporters who attend away matches.

The changes outlined in the reform plan in England come at a moment of wider discussion in global soccer about the future of the game, with representatives at FIFA, the game’s global governing body, and UEFA, its counterpart in Europe, plotting their own road maps for the future. Some of the top English teams have expressed interest in playing in a larger, restructured Champions League, the elite European club tournament that will be reformed for the 2024 season.

Parry, the E.F.L. chairman, suggested that change was inevitable, and that he would support the proposal because the clubs he represents would benefit from it.

“This is a huge idea,” he told reporters on Sunday during a conference call. “It’s not going to be popular with everybody, but there’s enough in this that’s worth fighting for.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 9:29 pm

Royboyclaret wrote:
Sun Oct 11, 2020 8:46 pm
Like to think I've been consistent all along with my thoughts on this, Chester. If I were Financial Accountant at Turf Moor then all such rebates that relate to last season MUST be provided for in the accounts irrespective of when those rebates will be settled. If for no other reason than even heftier broadcast rebates can be anticipated this season and beyond.
You have been consistent Roy and if the rebates are included as you suggest (your accountancy knowledge being far far greater than mine is ever likely to be) then I can agree that is is likely we will post a loss for 2019/20.

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Re: Football's Magic Money Tree

Post by Royboyclaret » Sun Oct 11, 2020 10:12 pm

Chester Perry wrote:
Sun Oct 11, 2020 9:29 pm
You have been consistent Roy and if the rebates are included as you suggest (your accountancy knowledge being far far greater than mine is ever likely to be) then I can agree that is is likely we will post a loss for 2019/20.
What wouldn't we give to have a sneak look at our financial accounts to July'20. Unlike clubs like AC Milan and even Hull City ( in the last few days ), our BoD will insist on secrecy until April of next year, even though I'm well aware they not only have been completed but also audited.

2019/20 was an exceptional year for our Club in terms of financial accounting made even moreso with the unique decision to extend the financial year by one month to July'20 for effectively a 13 month financial year. Be interesting to see how that pans out particularly with the Profit & Loss account, but nevertheless one thing we know for sure is that certain costs which will reduce our broadcast Income related clearly within the timeframe of the accounts.

One in particular (and I recollect that you referred to others) was the Suning PPTV broadcast amount of some £14m that failed to materialise in March and in itself is sufficient to convert any potential Profit into a Loss for the year, even though (as you rightly stated) we were on course for a potential highest-ever Turnover figure. I guess patience is going to be necessary for six months or so, if we can wait that long.

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Re: Football's Magic Money Tree

Post by TVC15 » Sun Oct 11, 2020 10:24 pm

I’m estimating a wage bill of £95m in our 2020 accounts and a reported loss of between £15m and £20m. Though would not be surprised to see a higher loss to be honest.
The higher wage bill is just really a rough extrapolation of the previous years 12 month number. We know our actual wage bill now with the out of contract players leaving will probably be nearer to £80m.

I’m sure the chairman will already have some draft year end accounts which will be pretty accurate. Whilst of course he cannot divulge any of this it would be really useful if we could get an updated statement from Garlick on the clubs financial position now he knows some of the risks he mentioned earlier in the year have now crystallised and others have gone away with project restart last season etc.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 10:28 pm

TVC15 wrote:
Sun Oct 11, 2020 10:24 pm
I’m estimating a wage bill of £95m in our 2020 accounts and a reported loss of between £15m and £20m. Though would not be surprised to see a higher loss to be honest.
The higher wage bill is just really a rough extrapolation of the previous years 12 month number. We know our actual wage bill now with the out of contract players leaving will probably be nearer to £80m.

I’m sure the chairman will already have some draft year end accounts which will be pretty accurate. Whilst of course he cannot divulge any of this it would be really useful if we could get an updated statement from Garlick on the clubs financial position now he knows some of the risks he mentioned earlier in the year have now crystallised and others have gone away with project restart last season etc.
I think 2019/20 wages will be closer to £100m - new deals, probably even more staff in the backroom and Academy and that bonus for 10th

If we stay up this season the circa £80m for wages should be about right

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Re: Football's Magic Money Tree

Post by TVC15 » Sun Oct 11, 2020 10:36 pm

You could well be right there CP.
What’s your estimate on the losses we will post ?

We can compare our guesses when the results are out !!

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 10:45 pm

Chester Perry wrote:
Thu Oct 08, 2020 8:03 pm
I have been trawling back through historical podcasts, at Unofficial Partner and came across this with Alex Fynn who initially came up with the concept that became the Premier League (he wanted a proper pyramid not a single distinct entity) he also came up with the idea that was watered down as the Champions League but which in it's purer form is what the ECA and Andrea Angelli wants to implement - It is a fascinating podcast and a real insight into history and how intentions are distorted

https://blubrry.com/unofficialpartnerpo ... alex-fynn/
If you have looked at Project Big Picture and though that some of that looks really good and should be implemented, yet some of it should be avoided at all costs - Then I would suggest that all the good parts are strikingly reminiscent of what Alex Flynn proposed to Irving Scholar in the early 1980's and that all the bad parts are everything he says are bad for the game, and he was saying they were bad for the game all the way back then.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Oct 11, 2020 11:40 pm

TVC15 wrote:
Sun Oct 11, 2020 10:36 pm
You could well be right there CP.
What’s your estimate on the losses we will post ?

We can compare our guesses when the results are out !!
The hard things to estimate are (in order of difficulty) the size of the rebates to be accounted for, how much was lost in commercial income (particularly advertisers and sponsors) and the amortisation for the year.

For the rebates do you take the £13.4m in the handbook or the whole share of what is still owed to BT and SKY. Would you also treat a share of the missing £160m from PPTV as a loss (adding it back at a later date, if it ever materialises as a result of the pending court case).

In a year we were expecting to see yet more growth (think 50% in shirt sponsorship) sponsorship is still likely to have not dropped even with the impact of covid, advertising, retail sales and event Income at the turf will have fallen by anything up to as much as 30% I would suggest

Amortisation had around £8m added to it for the singings of Jay Rod, Brownhill, Peacock-Farrell and Pieters, but the extensions for Wood and Barnes and the sale of Wells would have taken some off also - I think this will still be around £47m+ for 13months

for Income I would be expecting us to break £150m for the first time given the £124.4 m central payment
Last edited by Chester Perry on Mon Oct 12, 2020 12:18 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 12:12 am

A couple of interesting takes on Project Big Picture - first up Jason Burt in the Telegraph

Premier League 'Project Big Picture' is a brazen power grab, a hostile takeover spun as a rescue package
JASON BURT OCTOBER 11, 2020

What is so stunning about 'Project Big Picture' is its complete lack of perspective. There are some apparently good ideas sugar-coating a poison pill that would surrender control of English football to a small number of big clubs. This is what a cartel looks like. Make no mistake it is a hostile takeover dressed up as a rescue.

Apparently the insistence from its driving forces, Liverpool and Manchester United (and the fact both have American owners will not be lost on the other clubs), that the pay-off for the radical changes revealed by The Telegraph is not a greater share of revenue for themselves but more authority is in itself remarkable and not least because power obviously equates to money.

It also does not add up. The claim appears pretty dubious – big clubs will unquestionably get more given the method of distribution - while the spin that the plan will redistribute money more fairly is nonsense given it is other clubs' cash that they are proposing to give away in the first place. The ‘Big Six’ are not digging into their own pockets.

“The fact that our two greatest clubs are showing leadership at a time when the game is crying out for it is fantastic,” says Rick Parry, the chairman of the English Football League but is this the kind of leadership we need? A leadership in which the ‘Big Six’ clubs can effectively do what they like, even block the takeover of other clubs and hire and fire the Premier League chief executive, enforcing their will on the game?

There are some interesting ideas – as there often are in the most sinister of projects. It seems even those behind it realise it is so brazen that there have to be some juicy carrots to entice the desperate into agreement. Although how they would try to push these changes through beyond threatening to break away remains unclear. But, unequivocally, it is a naked power grab and follows years of dancing around the subject with side meetings and veiled threats from Manchester United, Liverpool, Manchester City, Arsenal, Tottenham and Chelsea. Winter is coming. Yet we did not quite expect this.

First the good news: yes, to the redistribution of money, the additional cash proposed for ‘good causes’ including the Football Association, the bail-out for the EFL, the finance for stadium improvements, the women’s professional league independent of the Premier League and the FA, and a fan charter. They are fantastic proposals. Go for them all now.

It is hard to disagree with the argument that the current funding model is not working although the irony will not be lost on many people in football that Parry was the first chief executive of the Premier League who oversaw the disproportionate distribution of wealth in the first place. The Premier League has been a good thing; it has been an incredible, resounding success; one of the UK’s greatest exports. It needs to re-examine how the wealth is distributed. But not at the cost being demanded.

As for other ideas: the toss can be argued over changing the mechanism for promotion and relegation, even reducing the Premier League to 18 clubs and at the price of losing two from the EFL. We can debate scrapping the League Cup and the Community Shield although surely not to simply allow the ‘Big Six’ to embark on longer and more lucrative pre-season tours.

Then there is the rub, the important stuff: abolish the principle of one-club, one vote with huge power placed in the hands of nine clubs - the ‘Big Six’ as well as Everton, Southampton and West Ham who will be afforded “long-term shareholder status”.

But even that, in fact, is window-dressing as only six votes would be needed to effect change. The ‘Big Six’ would be firmly in control, then.

Those six clubs would be able to take over football. They would take charge of broadcasting contracts and financial controls; they could kill the competition. They would own the Premier League.

Is it a coincidence that the plan is being pushed after the champions Liverpool were beaten 7-2 away by Aston Villa? The Premier League has sold itself as the most competitive in the world – and the TV deals have come on the back of that – because shock results like this happen which is why the viewing figures are so extraordinary.

This plan kills that, harms the product and, therefore, future revenues. It also kills Leicester City's chances of winning the league or even getting into Europe. It may seem to help out the EFL but it will make it almost impossible for clubs such as Wolverhampton Wanderers and Leeds United to win promotion and challenge. The EFL may get more money but where will their clubs go with it?

It is not a rescue plan. It is an anti-competitive takeover born of self-interest.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 12:15 am

Perhaps the most surprising Project Big Picture response I have come across to date is this from David Conn in the Guardian

Plan to mend football pyramid's great crack should not be swept off table
David Conn

Liverpool and Manchester United have infuriated the Premier League, which was kept in the dark, but the premise of their proposal to reunite with the EFL is sound

Sun 11 Oct 2020 20.35 BST Last modified on Sun 11 Oct 2020 23.45 BST

There are so many extraordinary elements in the Liverpool and Manchester United proposals to reshape English football, and so much understandable scepticism, that the historic move at the heart of it is in danger of being missed.

So, for clarity, it really is true that the US owners of these two fabulously rich football corporations have produced an offer that has not been forthcoming and never seemed possible from any Premier League leadership figures for 28 years.

There are, undoubtedly, some self-serving elements to their prospectus but by far the most significant is the proposal that the Premier League should share a net 25% of its future TV deals with the English Football League, and provide £250m immediately to help the 72 EFL clubs through their financial crisis.

That is an offer, finally after a generation, to rejoin the top division with the three below and repair the vast, calamitous financial gap caused by the breakaway of the First Division from the Football League to form the Premier League in 1992.

The wholly negative reaction of the government to this plan for huge financial reparations, which also includes increased money for the FA and grassroots good causes – approximately 8.5% of annual net Premier League TV money – seems bizarre.

For months throughout this pandemic and its financial crisis for the game and its cherished pyramid, the culture secretary, Oliver Dowden, has been urging the Premier League to use its financial might to help the “football family”.

The Premier League has dithered, delayed and produced nothing solid, despite being told in the spring the EFL had an immediate £250m hole and that many clubs face ruin through a Covid-19 winter of matches in empty grounds. Steve Parish, the chairman of Crystal Palace, recently argued that “Premier League clubs are being unfairly singled out” and should not have to share their money.

“No other industry is asking firms to bail out competitors,” Parish wrote in the Sunday Times before offering some comparisons. “The supermarkets aren’t instructed to help the corner shops. Deliveroo aren’t bailing out your local cafe.”

Quite apart from the assumption that Selhurst Park counts as a supermarket among corner shops, these are dreary arguments that do not merit earnest engagement. It is the kind of reasoning, for the maintenance of inequality, that also makes it more difficult for the Premier League’s middling clubs to be outraged about Liverpool, United and the rest of the big six looking to cement their own power.

With these proposals, United and Liverpool, whose majority owner, John W Henry, is said to have been contemplating the great crack in the English football pyramid for years, have thumped through the last months of stagnation and presented a coming together that has not seemed possible for 25 years.

The idea of the EFL having anything like a 25% share of Premier League TV deals last disappeared in the dust in 1995, when with Rick Parry as the chief executive, the top flight did offer 20% but the Football League board, to the fury of many clubs, rejected it.

When Parry took on the chairmanship of the EFL only one extremely long year ago, he appreciated that the root cause of the 72 clubs’ various financial agonies is the eye-watering gap with the Premier League and the parachute payments that further distort the landscape in the Championship.

When he has spoken up and made that plain, including calling parachute payments “an evil that needs to be eradicated”, he has generally been patronised. The Premier League’s administrators and smaller clubs seem to have been proceeding on the basis they would not be seriously pressured into sharing their money more equitably, as they haven’t for the past quarter-century.

To be fair, nobody except Parry seems to have been aware that Henry, across the Atlantic, was informing himself about all of this, apparently becoming more knowledgeable about the bitter 1992 breakaway than many English football people who really should know that history better. And of all people who could be expected to support the idea of putting the game back together, it turns out to be Joel Glazer, of the family whose £525m debt-loading, 2005 takeover of United has been such a burden at Old Trafford and caused so much rancour and unhappiness.

Of course it is also true this proposal does not come without some pain but that Henry and Glazer do not envisage feeling any of it themselves. There is a planned consolidation of voting power within the Premier League of the big six plus the three outside clubs that have been in the top flight longest, Everton, Southampton and West Ham, and that is simply not a good look. The 25% for the EFL is mostly to be found by reducing the Premier League to 18 clubs – the original 1990 FA proposal that was never implemented – and scrapping parachute payments, rather than ceding the money out of Old Trafford or Anfield revenues.

United and Liverpool envisage their time being freed for more Champions League matches, which will happen anyway from 2024 when Uefa’s competition is inevitably expanded, and lucrative pre-season tours. They insist their proposals are not an effort to seize more of the Premier League TV money but it is likely other Premier League clubs will get less. It will make it more difficult to break into the top six; the more even competition will be created in the relegation zone.

So, quite rightly, there should be a battle over the detail of these proposals. If the other 14 Premier League clubs want to fight for the maintenance of the one club, one vote system that is understandable; most football people would agree with it.

But the heart of the plan should not be swept off the table, which is for the Premier League to finally reconnect with the EFL, mend the gap and ease the senseless worry that loved and historic clubs will go bust in the time of football’s greatest boom.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 12:25 am

An recent survey has looked into what the effects a gambling orientated shirt sponsor has on intended purchases of team shirts - from the Guardian - The question boardroom figures would ask is - would the impact on shirt sales make up for the likely loss of sponsorship income from a non-gambling orientated sponsor, especially as the increase in sales is hypothetical and the sponsorship money is more of a certainty

Third of UK football fans put off buying kit if it has betting sponsor
Survey reveals support for disentangling sport’s ties to gambling industry

Rob Davies - Sun 11 Oct 2020 15.19 BST Last modified on Sun 11 Oct 2020 19.17 BST
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A third of football supporters are put off spending money on their team’s shirt if it has a betting sponsor, according to a survey that reveals widespread support among fans for disentangling the sport’s ties to the gambling industry.

Of the 44 top teams in English football, 26 have a gambling company logo on their chest, as betting firms vie for visibility during games broadcast to billions of people around the world.

But fans in the UK have grown tired of the industry’s strategy of targeting the world’s most popular clubs, according to a poll by Survation, shared with the Guardian.

The survey of more than 1,000 football fans found that a third said they would rather not buy their club’s kit if it has a gambling sponsor.

Nearly half support a ban on shirts emblazoned with gambling company logos, a measure that was proposed by the former Labour deputy leader Tom Watson, who has since taken a job with Flutter, the world’s largest online gambling company.

The Betting and Gaming Council – led by Watson’s close friend and former Labour MP Michael Dugher – said the industry’s “whistle-to-whistle ban” on ads during sport shown before 9pm had reduced commercials during those times by 97%.

But the survey shows two-thirds of fans feel the measure has not done much to reduce the overall level of advertising, with the same number saying betting and online casino or slot machine firms advertise too much to football supporters.

The survey was commissioned by the campaign group Clean Up Gambling as part of the launch of a new coalition against gambling adverts. The partnership brings together multiple groups including the football-focused pressure group the Big Step and Gambling With Lives, set up by Liz and Charles Ritchie after their son Jack took his own life following a gambling addiction.

The director of Clean Up Gambling, Matt Zarb-Cousin, said: “The government would have the backing of football fans if it decided to move against gambling ads, and clubs would benefit from an increase in shirt sales.”

A spokesperson for the BGC said: “While betting helps to provide sports such as football with funding, it also enables TV channels to broadcast more sport than would otherwise be possible and plays a vital role in differentiating legally licensed operators from those in the black market who have none of the safety protections in place with UK operators.

“The BGC has introduced tough new measures to further prevent under-18s viewing betting ads online and our members have agreed that at least 20% of their TV and radio adverts must be safer gambling messages.

“The BGC is determined to drive up standards across the betting and gaming industry and looks forward to working with the government on its forthcoming gambling review to do just that.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 12:45 am

The chaps at Vysyble with a thread looking at the big 6 and why Project Big Picture is attractive to them

https://twitter.com/vysyble/status/1315302308146810883

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 1:11 am

TwoHundredPercent.com run the rule over Project Big Picture and are not choosing to mince their words on the matter

Rick Parry & The Megaclubs: Best Buddies Forever
by Ian | Oct 11, 2020

Credit where it’s due, it’s sly. A thin veneer of togetherness draped over the greatest power grab that association football has ever seen. But Project Big Picture, the now-leaked plans for how the longest-standing members of the Premier League intend to exchange putting much-needed money into the EFL now for seizing control of the professional game in perpetuity, should be seen for what it truly is. It’s the mother of all land grabs, a flagrant plan to perpetually tilt the scales still further towards preserving the positions of the currently wealthiest clubs.

It’s not implausible that prior awareness of the leaking of this document might even have been behind the Premier League’s counter-intuitive stupid decision to announce on Friday that they would be making matches pay-per-view at £15 a match. Perhaps the stink from that would obscure the stink from this. This, however, is far from a bad smell. This is, in short, a declaration of invasion, and this would be problematic enough were it not for the fact that it is believed that the chairman of the EFL are on board with the idea.

Let’s have a look at those proposals in a little more detail, though:

- £250 million immediately to the EFL to compensate its clubs for lost matchday revenue, deducted from future television revenue earnings and financed by a loan taken out by the Premier League. That is about the annual television and prize money for two and a bit clubs. For one season. Just in case you were wondering exactly how little they would actually be paying, here.

- Special status for the nine longest serving clubs – and the vote of only six of those “long-term shareholders” required to make major changes, including amending rules and regulations, agreeing contracts, removal of the chief executive, and a wide-ranging veto including on club ownership. -
- So the “Top Six” (Arsenal, Chelsea, Manchester United, Liverpool, Manchester City and Spurs) and three others will get to decide who the CEO is, what the league rules are, and who can and can’t own a club?

- Premier League to go to 18 clubs from 20. In order to free the biggest clubs to pursue even more money through what is expected to be an expanded Champions League or European Super League.

- £100 million one-off gift to the FA to cover its coronavirus losses, the non-league game, the women’s game, the grassroots. This is one-seventeenth the annual value of the current domestic television contracts.

- 8.5 per cent of annual net Premier League revenue to go on operating costs and “good causes” including the FA. Because with this proposal the reduction of the FA is to just being “those people who run the FA Cup and the men’s national team.”

- From the remainder, 25 per cent of all combined Premier League and Football League revenues to go to the EFL clubs. So in this brave new world 75% of television revenues got to 20% of clubs, then. And we can likely expect there to be an asterisk next to that 25% which will make it more likely to go down than up in the future.

- Six per cent of Premier League gross revenues to pay for stadium improvements across the top four divisions, calculated at £100 per seat. Welcome, but financially sustainable clubs in the both the Premier League and the EFL should be able to carry ground improvements as part of their normal operating costs.

- New rules for the distribution of Premier League television income, overseas and domestic, including proposals that base one portion on performance over three years in the league. Ripping up the relatively equal television contract conventions to pay a greater proportion to… you guessed it, the biggest clubs.

- The abolition of the League Cup and the Community Shield. Because who cares about winning trophies when there’s money to be made by finishing 13th in the table every year in perpetuity?

- 24 clubs each in the Championship, League One and League Two reducing the professional game overall from 92 clubs to 90. Trickledown economics, Premier League-style: this will press down and down through the divisions.

- A women’s professional league independent of the Premier League or the FA. The rationale for this probably needs to be explained. Since the biggest clubs have spent a relatively small amount of money buying up the places at the top of the Women’s Super League, should we assume that they also want to run the women’s game with no oversight?

- Two sides automatically relegated from the Premier League every season and the top two Championship teams promoted. The 16th place Premier League club will enter the play-offs with the Championship’s third, fourth and fifth placed teams. So that’s two and a quarter relegation places from the Premier League. And we can only wonder how long it will be before the “and a quarter” vanishes from that.

- Financial fair play regulations in line with Uefa, and full access for Premier League executives to club accounts.
- A fan charter including capping of away tickets at £20, away travel subsidised, a focus on a return to safe standing, a minimum away allocation of eight per cent capacity. Again, this will cost them next to nothing. And they should have been strongly supporting safe standing for the last ten years.

- Later Premier League start in August to give greater scope for pre-season friendlies, and requirement for all clubs to compete once every five years in a summer Premier League tournament. The introduction of a Premier League summer tournament speaks volumes about the amount of bad faith on display when anyone within the game has ever complained about “fixture congestion” in the past.

- Huge changes to loan system allowing clubs to have 15 players out on loan domestically at any one time and up to four at a single club in England. Sounds like Premier League B teams by the back door, to me. Indeed, such a rule change looks exactly the sort of thing you introduce when you expect to be able to expect to be able to ride roughshod over it at an unspecified date in the future.

Obviously, the small number of changes that would benefit the EFL – 25% of cumulative television contract money, for example – would be good things in and of themselves, but we should make no mistake that these would be scraps from the table in comparison with what the biggest clubs would take from it all. These nine clubs would control who could own any of their rivals. They could decide any further rule changes between themselves without even needing to consult with anybody else. They’d get fewer Premier League matches per season, opening up a little more space to pursue their European ambitions and, of course, with other rule changes there’d be no-one to get in the way of them pursuing a European Super League whilst playing B teams in the domestic league.

Parry, who presumably must be aware of how all of this will go down with the supporters of many clubs, seems to have chosen this as his hill to die upon:

What do we do? Leave it exactly as it is and allow the smaller clubs to wither? Or do we do something about it? And you can’t do something about it without something changing. And the view of our clubs is if the six get some benefits but the 72 also do, we are up for it.

Well, the big issue here is that it isn’t a binary question. All of this has been going on without any consultation with supporters, which should give us all some idea of where we stand in this overall food chain, but the idea that this power grab is only conceivable alternative to the EFL withering on the vine is preposterous.We can only reiterate that the government should be doing more to help clubs in League One and League Two, which are on the whole far more similar to clubs in the National League than they are to those in the Premier League, than merely standing back and barking, “the Premier League should be paying for it.” Presumably, were the EFL to vote against it, they would step in with funding on the basis that “no deal is better than a bad deal”, something of which they’ve been regularly reminding us for the last four or five years.

Indeed, the proposal that has been leaked, if anything, makes the EFL look somewhat redundant. If television money is being pooled between the two, then why not just give all control of the entire 92 (soon to be revised down to 90) to the Premier League? “It is definitely going to be challenging and it is an enormous change so that won’t be without some pain”, Parry told the Telegraph, presumably secure in the belief that he won’t be experiencing any of this pain himself. He may change his tune, should it be decided that the EFL is surplus to requirements in five years time. Or perhaps he might be working for the Premier League again by then. After all, he was the Premier League’s first CEO and a former CEO of Liverpool, one of the two big clubs reported as being behind these proposals.

The Premier League has already issued a statement seeking to play down the proposals:

We have seen media reports today regarding a plan to restructure football in this country. English football is the world’s most watched, and has a vibrant, dynamic and competitive league structure that drives interest around the globe. To maintain this position, it is important that we all work together.

Both the Premier League and The FA support a wide-ranging discussion on the future of the game, including its competition structures, calendar and overall financing particularly in light of the effects of COVID-19.

Football has many stakeholders, therefore this work should be carried out through the proper channels enabling all clubs and stakeholders the opportunity to contribute. In the Premier League’s view, a number of the individual proposals in the plan published today could have a damaging impact on the whole game and we are disappointed to see that Rick Parry, Chair of the EFL, has given his on-the-record support.

The Premier League has been working in good faith with its clubs and the EFL to seek a resolution to the requirement for COVID-19 rescue funding.

This work will continue.

It’s difficult to find any way of looking at this that doesn’t conclude with the word “extortion”, though. Premier League clubs have told us all exactly what they think of us, over the last few days. The fact that these conversations have been going on since 2017 with no supporter consultation – because hey, we’re only the people who pay for this whole carousel to keep spinning in the first place – speaks volumes, especially when coupled with their decision to charge supporters, including season ticket holders, the extortionate – that word again! – price of £15 per match to watch matches on TV while stadiums stay closed.

But if Rick Parry wants to hand English football to the biggest clubs in the Premier League, then perhaps he should go and work for one of those clubs rather than leading an organisation which will, frankly, become irrelevant should the plans that he is championing go through. The price of a small donation from the Premier League to the EFL will be for the EFL to surrender itself to English football’s biggest clubs, for good. And we should be clear that, whilst there are good things in the proposal, it should be absolutely clear to anybody reading this that none of those have a cat in hell’s chance of proceeding unless all the worst things are also included, and that all of the good things could easily get watered down in the future.

Should this ever come to fruition, the EFL will have ceased to hold any relevance beyond its name. And at that point it might even be worth smaller clubs wondering whether it’s even worth continuing to throw their lot it with others who will not be happy until all clubs are wholly-owned subsidiaries of the biggest and shiniest, and who will continue to tilt the scales against them until this eventuality. And for supporters, who’ve been looking at forlorn pictures of empty grounds for the last seven months, there is a similar question – at what point does this simply become not worth the effort any more?

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 1:20 am

It is that time of year when Gazetta dello Sport released the findings for Serie A wages in the current season (not that I can find it on their web pages), here is a thread including a run down by player and team

https://twitter.com/Lu_Class_/status/13 ... 3165803522

they do the same thing for managers too - what is startling is just how low managers/coaches salaries are in contrast to the Premier League, where our Sean doesn't make the top 10 but would be highly placed over there - again I cannot find it in Gazetta dello Sport

https://sempremilan.com/gds-serie-a-man ... are-shocks

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 1:36 am

The EFL's statement on Project Big Picture - https://www.efl.com/news/2020/october/e ... g-picture/

EFL statement: Project Big Picture
8 Hours ago

The English Football League today confirms that it has been working on an innovative proposal titled ‘Project Big Picture’ with a number of Clubs in the Premier League that looks to reset the economics and governance across the English football pyramid and in the process, protect the game in both the short and long term.

EFL Chair Rick Parry said:

“The need for a complete rethinking regarding the funding of English professional football predates the Covid-19 crisis. Discussion and planning around ‘Project Big Picture’ has been ongoing for quite some time, unrelated to the current pandemic but now has an urgency that simply cannot be denied.

“The revenues flowing from the investment and work of our top clubs has been largely limited to the top division creating a sort of lottery, while Championship clubs struggle to behave prudently and Leagues One and Two are financially stretched despite enormous revenues English football generates. This plan devised by our top clubs and the English Football League puts an end to all of that.

“The gap between the Premier League and the English Football League has become a chasm which has become unbridgeable for Clubs transitioning between the EFL and Premier League. In 2018/19, Championship clubs received £146 million in EFL distributions and Premier League solidarity payments. This compares with £1.58 billion received by the bottom 14 Premier League clubs - 11 times as much.

“At the same time, Parachute Payments received by the eight recently relegated clubs totalled £246 million. This represents one-third of the total Championship turnover and creates a major distortion that impacts the League annually.

“In an effort to achieve promotion from very small media monies in the Championship to extraordinary sums at the bottom of the Premier League, Championship clubs spent 107% of their income on wages last season, a figure that is unsustainable by any analysis but by no means a new phenomenon. The figure has been 99% or above in each of the last four seasons. Consequently, our Clubs incurred operating losses of £382 million last season.

“In the last 12 months, owners have had to inject some £384 million in capital – all before a pandemic created the current financial crisis and impacted Clubs, alongside many of the businesses that help fund them.

“Project Big Picture takes a huge step by sharing 25% of Premier League media net revenues with the EFL in order to correct this imbalance going forward. Coupled with the introduction of strict cost controls, Clubs at every level of the EFL will become properly sustainable even in the face of a major crisis – and more importantly – beyond.

“Just as importantly, the financial gap between the bottom of the Premier League and the top of the Championship will be substantially reduced. This will create a much softer landing for relegated clubs. The elimination of Parachute Payments will create fairer competition and discourage irrational behaviour.

“The creation of a short-term rescue fund of £250 million to replace lost match day revenue this season and last will enable every Club to plan to continue to play and move forward with certainty. As an advance against increased, future revenues this is not a loan and therefore does not need to be repaid. It could never have been repaid under the existing terms and revenue of the English pyramid.

“Now is the time to address both the long-term health of the game and the most challenging short- term crisis it has ever faced. Project Big Picture provides a new beginning which will revitalise the football pyramid at all levels. This new beginning will reinvigorate clubs in the lower leagues and the communities in which they are based.

“The whole of English football has been negatively impacted by this pandemic and the English football pyramid as a whole is only as healthy as those at its base. Through this proposed restructuring we aim to strengthen those who need it most at a time when they need it most. This is about building on what is good and making the most of what works well in order to benefit the game as a whole, while simultaneously tackling those issues which trouble all of us. This is a blueprint for the future of English football and for everyone who cherishes it.”
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The key to me on this is that like the Premier League the EFL is effectively run and owned by it's members, yet Project Big Picture has not be discussed with them before this statement, it is one thing discussing plans (though that is questionable when it wasn't directly with the Premier League) quite another to effectively endorse them before talking to the members, whatever the member representatives on the EFL board may argue - it came as no surprise that Fleetwood's Andy Pilley was up for it

https://twitter.com/capboy70/status/1315286631671386118

@AndyhHolt was significantly less convinced though

https://twitter.com/AndyhHolt/status/13 ... 7974173696
https://twitter.com/AndyhHolt/status/13 ... 1572054017
https://twitter.com/AndyhHolt/status/13 ... 2501066752
https://twitter.com/AndyhHolt/status/13 ... 1953239050
https://twitter.com/AndyhHolt/status/13 ... 2127887361

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 1:51 am

The Mail's Martin Samuel scathing - it is fair to say - of Project Big Picture

MARTIN SAMUEL: Manchester United and Liverpool's Project Big Picture is nothing but a disgusting Big Six power grab... Rick Parry is Faust in a Mickey Mouse tie and he thinks we're STUPID
- Liverpool and Manchester United are trying to push through 'Project Big Picture'
- It would see changes such as the reduction from 20 top-flight teams to 18 clubs
- The League Cup and Community Shield would also be scrapped in the scheme
- £250million would be given to the EFL while £100m would go to the FA
- EFL chairman Rick Parry has given his support to the new proposals in England
By MARTIN SAMUEL FOR THE DAILY MAIL

PUBLISHED: 22:32, 11 October 2020 | UPDATED: 23:23, 11 October 2020

Rick Parry helped destroy the fabric of English football once, and now he’s going for it again.

His alliance with Manchester United, Liverpool and any fellow travellers within the Big Six is the most flagrant, abusive and ruinous power grab the domestic game has seen since the formation of the Premier League with Parry as its chief executive close to 30 years ago. That put the power in the hands of 20 clubs.

Now Parry and the elite want this narrowed down to a cabal of six. They are promising all kinds of bungs and sweeteners to get their way, painting themselves as the saviours of the game, the friends of the little folk, but do not believe a single word of it.

This is about six clubs controlling the wealth and seizing the power, right down to deciding who gets into their competition. This is about closed shop protectionism that will end the Premier League as a vibrant competition. This is about getting your round in with another man’s money.

This is, in essence, every rotten, contemptuous, self-serving, destructive idea the likes of Manchester United and Liverpool have come up with across the last two decades, repurposed as a rescue package.

Project Big Picture? Far from saving our game, all it would do is reduce. Reduce what makes football fun. Reduce its unpredictability, reduce the excitement, reduce the chances for Wolves or Leicester or Aston Villa. Reduce the hope of a change of ownership at Newcastle. Reduce your chances of promotion. Reduce your hopes of success if you get there. Reduce, reduce, reduce.

Of course Parry supports it. He has no idea how to address the financial crisis in the EFL, so will cling to any lifebelt tossed his way. If it means selling out the League Cup, the Community Shield, 14 current Premier League clubs and any in the Championship with ambition, he’ll do it.

That is how desperate he is. He’s Faust, in a Mickey Mouse tie. And he thinks we’re stupid. They all do.

Take the proposed new superpowers, the nine longest-serving clubs in the Premier League, whose votes would count for more than the rest. That’s the big six, plus Everton, Southampton and West Ham.

Those nine clubs are to be afforded ‘long-term shareholder status’, would have unprecedented power, even able to veto new owners at other Premier League clubs, decide on the chief executive and amend rules and regulations. And maybe the six think the three will be flattered to be included.

Depends whether they can handle basic arithmetic. For what would be needed for vetoes and changes to processes is a two-thirds majority of long-term shareholders.

Ooh, what’s two-thirds of nine? Wouldn’t be six by any chance, would it? Everton, Southampton and West Ham wouldn’t be privileged members. They would be ridiculous patsies, carved up and cynically outvoted at every turn.

That is what Project Big Picture is. One big carve-up. Take wealth distribution, 50 per cent of which would now be divided on merit, rather than equally. But not real merit.

Some of the cut would be calculated over the last three years so if Manchester United or Liverpool had a bad season, it wouldn’t matter as much because other, more successful years would be taken into account.

At the moment central income ratio is capped at 1.7 to 1 between big and small; this might see it reach 4:1. And what’s fairer than a league in which the wealthiest get four times as much basic income as their rivals lower down?

The same with television revenue with clubs permitted to sell eight games on their own platforms. This would greatly harm the broadcast deal, with the loss of exclusivity, and that money could only be recouped if the PPV packages were hugely successful. And who is likelier to benefit there: Manchester United and Liverpool again, or Burnley and West Brom?

So, again, the elite clubs lose nothing, the smallest clubs get squeezed. The only time they are all treated the same is when handing out bungs to the EFL and FA to make it happen.

Paying £250million to the EFL and £100m to the FA, the clubs are equal. When voting, sharing television revenue, creaming off the profits of PPV, they are not.

The donations, the good causes, the infrastructure, they are all the sheep’s clothing, disguising the wolf. Everything here benefits the elite. Small clubs would lose two games’ revenue in an 18-team competition, plus the odd bonus League Cup fixture.

The elite? Nothing. Those gaps in revenue would quickly be filled by expanded European competitions and the revamped Club World Cup, the gulf growing ever wider.

This plan is not to be trusted — even the charitable aspects.

When Parry helped set up the Premier League, it was ostensibly to aid the England team. Soon, everyone knew the truth. Do not be fooled by this, either. Do not be fooled by the grassroots talk, the money for the women’s game, the £20 tickets for away fans — this is a power grab dressed up as reform, the closed shop reworked as opened-armed generosity.

And they want to tie the Premier League to UEFA’s financial fair play rules, too. Of course they do. They are stricter and unyielding.

If Manchester United and Liverpool can usher in UEFA’s FFP — attached to revenue streams only available to the biggest and richest clubs — then that truly is the end for the likes of Leicester or Wolves challenging the status quo. And that is what terrifies them.

Not that another club like lovely Macclesfield might go bust. Aston Villa 7 Liverpool 2. Manchester United 1 Tottenham 6. That’s the waking nightmare, and it always has been. That they won’t be good enough to sustain their status.

That, like AC Milan in Italy, they will slip from relevance. So they want it all: the money and the control. They want to make the rules, shape the game, decide who gets what, who gets in. And Parry, once again, is their willing accomplice.

Just as he was in 1992 when, as chief executive of the fledgling Premier League, he helped alter a system that awarded 50 per cent of broadcast revenue to clubs outside the top tier — the second tier got 25 per cent, those below 12.5 per cent each — to one that benefited a small group and placed football on its road to ruin.

Only fools could not see through this, but in many ways, it is almost a positive. Project Big Picture is so transparent in its aims, so repulsively skewed towards the richest, so disgustedly naked in its protectionism that the howl of rejection and outrage should be deafening.

Under the guise of improving the economic outlook for all, it delivers the bulk of its money into the greasy mitts of an over-privileged, over-entitled elite. It fixes the game in favour of six clubs, while shifting the financial burden to the 14 straining every sinew to remain competitive.

It is a disgrace, the opposite of a solution, and deserves a pauper’s grave.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 2:23 am

The news articles on Jorge Mendes keep on flowing - there is this from Adam Crafton in the Athletic https://theathletic.co.uk/2118700/2020/ ... m-ronaldo/ but it is behind a paywall. The Mail though have this which starts by looking into how he started as an agent

Jorge Mendes started with one client he picked up in a bar... now he's completed nearly £200m worth of Premier League transfers (and pocketed £18m personally) this summer as his influence over English football grows even stronger
- Jorge Mendes was football's first 'super-agent' and his influence is only growing
- Cristiano Ronaldo's trusted advisor is expanding his Premier League portfolio
- Mendes is an advisor at Wolves, where his first ever client is the manager
- Ruben Dias' club-record £64m move to Man City had Mendes as the middle man
- His Gestifute agency now manages the affairs of 21 Premier League players
By KIERAN JACKSON FOR MAILONLINE

PUBLISHED: 22:01, 11 October 2020 | UPDATED: 22:57, 11 October 2020

At the beginning of Cristiano Ronaldo's 2015 film, Jorge Mendes is in a restaurant reeling off the clubs who were interested in the then-baby faced Sporting Lisbon teenager. There were no shortage of takers.

'Juventus, Inter Milan, Milan, Real Madrid, Barcelona, Valencia - everybody wanted Cristiano. Thank god, Sir Alex Ferguson came to me and said "Jorge leave it with me." This is the story. Nothing is impossible my friend. Nothing. Nothing. Nothing, believe me, trust me, trust me, nothing is impossible. Nothing. Nothing. Nothing!'

That may as well be the case for Mendes, who not only remains Ronaldo's trusted ally and genuine friend amid his global stardom, but has also seen his influence across big-money transfers worldwide skyrocket in the past two decades.

Football's first ever 'super-agent' no less, Mendes runs the Portuguese agency group Gestifute, which is responsible for the services of 122 players and managers worldwide, according to Forbes. That, in itself, is an influence and control abnormally high.

Everyone starts somewhere though. Having failed in his own pursuit of playing professional football, Mendes was a nightclub owner in Portugal when he bumped into Nuno Espirito Santo in 1996, a fledgling goalkeeper attempting to carve a career out of nothing.

A conversation materialised. An agreement was reached. A deal to top-division side Vitoria de Guimaraes orchestrated. And with that, his first client, Mendes began his ascent to the top of the agency food-chain.

Yet for a man now 54 years of age, there's no signs of slowing down. This summer, Mendes has expanded his ever-growing Premier League portfolio, with Tottenham's imminent loan-to-buy deal for Benfica hitman Carlos Vinicius the seventh move over the line.

Furthermore, whilst his clients' needs come first, Mendes doesn't half reap the benefits. According to Portuguese newspaper The Ball, Mendes has collected up to £18.1m (€20m) of commissions already this summer.

Manchester City's club-record acquisition, Ruben Dias from Benfica for £64.3million, was brokered by Mendes (he received a reported cut of £6.1m), as was Diogo Jota's surprise £41million move to Liverpool.

But these don't even scratch the surface. That's the thing with Mendes: in a traditionally unpopular profession, his reputation and affability go a long way.

With Portugal's rising stars and senior professionals nearly all under his control, Mendes' network at the top of English football shows no sign of stagnating.

WOLVES - SEVEN PLAYERS, ONE MANAGER

Unsurprisingly, Mendes' control is most keenly felt at Molineux, where his first client Nuno is now the head coach. The pair are incredibly close.

A staggering total of 10 Portuguese players are now in the Wolves squad, with seven managed by Gestifute.

Ruben Neves, Daniel Podence, Rui Patricio, Pedro Neto and Joao Moutinho are five Wolves stalwarts whose affairs are all controlled by Mendes.

What started as an ambitious project when Nuno was hired three years ago has turned into a mass Portuguese overhaul - and Mendes has played his part.

Officially, Mendes' role at Wolves is simply advisory. The club's former managing director, Laurie Dalrymple, said in 2017: '[He is] someone, because of the friendship with the owners, that we take opinions and advice from.'

This year, Nelson Semedo's club-record £37million move from Barcelona had Mendes as the middle man. 20-year-old midfielder Vitinha, who joined on loan from Porto, is also managed by the super-agent.

Even summer outgoings, of which Wolves have had a fair few despite two years of continued success, had Mendes at the heart of deals.

Diogo Jota, Matt Doherty and Helder Costa all departed the club in the past few months, bringing in a combined total of £72million in transfer fees of which a substantial amount has been redistributed into improving the playing squad.

Gestifute have control of all three players, with Doherty a notable anomaly in his Irish nationality differing from the norm. Mendes took responsibility for the right back last year, with his prominence amongst the first-team dressing room no doubt spreading.

Don't be surprised if Mendes' role at Wolves continues to rise, as the team and club continues to grow exponentially worldwide.


MANCHESTER CITY - FOUR PLAYERS

One of the biggest deals of the summer, centre back Dias' move to City this week broke the club's transfer-record, at £64.3million.

At 23 and the now former Benfica captain, Dias is a player who represents the exact mould of a classic Mendes client: young, enormous potential and Portuguese, obviously.

Gestifute also controls the affairs of Portuguese internationals Bernardo Silva and Joao Cancelo, as well as Brazilian goalkeeper Ederson, who also moved to the Etihad from Benfica.


LIVERPOOL - TWO PLAYERS

Mendes would no doubt have been a satisfied and somewhat proud spectator when Jota scored on his home debut for Liverpool in the 3-1 win against Arsenal on Monday night.

The 23-year-old Portuguese attacker is managed by the Gestifute chief, and his surprise £41m move was facilitated as a result of Mendes' close relationship with the board at Molineux.

Gestifute also manage the affairs of Fabinho, who moved to Anfield for £32m in 2018 from Monaco and has become an integral member of Jurgen Klopp's trophy-winning juggernaut.

TOTTENHAM - TWO PLAYERS, ONE MANAGER

Alongside Ronaldo, Mendes' most famous client is none other than serial trophy winner Jose Mourinho, who is now in charge of his third Premier League club in Tottenham.

Interestingly though, Mourinho's move to Spurs last November was not led by Mendes, with the Spurs gaffer thought to be unhappy with Mendes releasing a statement in December 2018 declaring Manchester United were happy with their manager.

Mourinho was sacked 11 days later.

Nevertheless, Mourinho is still listed as a Gestifute client and having played a role in all of Mourinho's European moves in the last 20 years, Mendes has had a significant influence on many of the players his clubs have signed over the years.

This summer, Doherty's move down south was orchestrated by the 54-year-old, while Vinicius' incoming loan with an option-to-buy deal from Benfica will see Mendes' influence at Spurs grow - even if Mendes' relationship with Mourinho is perhaps not what it once was.


EVERTON - ONE PLAYER

It's early doors, but one of the most mouthwatering purchases of the summer was Everton landing Real Madrid playmaker James Rodriguez. A statement signing, if ever there was one.

Rodriguez was frozen out under Zinedine Zidane at the Bernabeu and despite links to a host of clubs across Europe, the Colombian's relationship with Carlo Ancelotti was seen as pivotal - a factor which will not have been lost on Mendes.

One of the most famous stars in Colombia has Mendes managing his affairs, both on the pitch and off the pitch in the world of sponsorship and endless marketability.

LEICESTER - ONE PLAYER

Signed from Porto two years ago, Ricardo Pereira overcome a few early struggles to become one of the Premier League's star right backs last season, particularly when Leicester were challenging at the very top of the table.

The 26-year-old Portuguese international, who has seven caps for his country, is managed by Gestifute, with the trend once again obvious.

A Portuguese player in his early-20s, at one of the Primeira Liga's top clubs, securing a big-money move to England.

LEEDS - ONE PLAYER

Helder Costa is slightly different in his trajectory since arriving in England, but Mendes' influence in his career shows clear parallels with his other clients.

Under contract with Benfica until 2017, Costa thrived at Monaco and then Wolves before securing a permanent move to Molineux for £13million three years ago.

However, he flourished on loan again at Leeds last season and made his stay at Elland Road permanent in July, signing a four-year deal.

ASTON VILLA - ONE PLAYER

Like Doherty, Mendes' sole representative at Villa Park breaks the mould.

Dutch winger Anwar El Ghazi joined Aston Villa permanently from Lille last summer for £8million.

A regular in the starting XI last season as Villa stayed up on the final day, the 25-year-old's affairs are managed by Gestifute.

FULHAM - ONE PLAYER

Fulham's free-kick specialist Ivan Cavaleiro played a key role in Scott Parker's side achieving promotion to the Premier League, even if their start in recent weeks does not bode well for the rest of the campaign.

Cavaleiro, like plenty of Mendes' clients before him, followed the Benfica-England route, with a stint at Monaco in 2015-16 in-between.

He did actually play regularly for Wolves in their Championship-winning season and their first year in the Premier League but amid the influx of Portuguese stars, the 26-year-old trickster was one player cast aside by Nuno.

WEST HAM - ONE PLAYER

Signed by the Hammers last summer from Boavista, Goncalo Cardoso is yet to make his first-team debut.

A 19-year-old centre back, he played regularly in the 2019-20 campaign for the club's Under-23 side.

Cardoso has also played five times for Portugal's Under-20 team and is another Portuguese teenager snapped up by Mendes. As a result, the sky should be the limit.

AND HIS INVOLVEMENT DOES NOT END THERE...

With all that and more on his plate with Gestifute, you would be forgiven for thinking Mendes' influence stopped there. But it does not.

The Portuguese agent often acts as an intermediary between clubs and players unassociated with Gestifute, and he is known for having a very close relationship with Manchester United despite no clients under his official stewardship playing at Old Trafford.

A partnership that is reportedly so close to an extent that Ed Woodward jumped up in a state of joy when Mendes called him in front of a group of journalists five years ago. Mendes, as you would expect, knows those in charge of the purse-strings very well.

He is involved in ongoing talks regarding Jadon Sancho's potential move from Borussia Dortmund to Manchester United, while he was reportedly paid £6.4million from Porto after Fabio Silva joined Wolves - even though he is not even the striker's agent!

All in all, if there's a big European deal brewing, Mendes is very likely to be involved. With Ronaldo coming towards the end of his career, the super-agent is already planning for life post-Cristiano.

And it seems English football will be associated with Mendes and his team for many more years to come.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 10:40 am

The Telegraoh with some of the background to Project Big Picture or is it "Revitalisation" now

Project Big Picture: the inside story of Liverpool, Man Utd and EFL plan to 'revitalise' professional game
SAM WALLACE OCTOBER 12, 2020

The Premier League was created, back in the early 1990s, out of the flames of the conflict between the Football Association and the Football League – a forgotten grudge which feels like ancient history now but dominated much of 20th-century English football.

The biggest clubs in the English game played off the FA against the Football League to get what they wanted. Famously, Greg Dyke, then negotiating on behalf of the broadcaster ITV, recalled later in his years as FA chairman that the governing body’s priority in 1992 was to inflict maximum damage on the Football League instead of securing the guarantees that were theirs for the taking.

In the early 1990s it was the big five of the era who led the breakaway - the two Merseyside clubs, the two North London rivals and Manchester United.

Thirty years on and attempts to re-mould that same Premier League – now the most powerful, and the most lucrative, sport league in the world – has echoes of the way in which it was created. The Premier League’s executive and all but its two most famous clubs, Manchester United and Liverpool in conjunction with the EFL chairman Rick Parry, have been bypassed.

But for Parry this is a scheme 25 years in the making. Three years after the Premier League began, in 1995, the Football League board spurned a second opportunity, backed by all bar one of its clubs, to share in the riches of its much more profitable sibling when, as Premier League chief executive, Parry offered to take over the negotiations for the Football League’s television rights and give a percentage of their combined income in return.

When, in 1995, the proposal was put to the 72 Football League clubs, 71 voted in favour of throwing their lot in with the Premier League. But the Football League board rejected it and insisted on negotiating alone.

Now the same offer forms part of these proposals. The EFL clubs themselves were mostly unaware of the strategy being pursued – many of them finding out when The Telegraph revealed the plans at lunchtime on Sunday. Before then Parry says that he has, at different times, alluded to the plan he had in mind, arguing that systemic problems mean clubs are not able to respond properly to the Covid crisis.

Indeed, talks have been ongoing for three years involving some of the most powerful owners in the Premier League. Among them was the American billionaire John W Henry, Liverpool’s principal owner and a key figure in what would become “Project Big Picture” and later the “Revitalisation” document.

So too Mike Gordon, another in Liverpool’s Fenway Sports Group, and one of those credited with the club’s recent transformation into European and then English champions. Parry was also speaking to Joel Glazer who has overseen a rather less successful ownership of Manchester United since his late father, Malcolm, bought the club in 2005.

Why did those billionaire investors, who control the most powerful clubs in the English game, choose Parry to help them restructure the sport? Among other things, he is regarded as a man who – as his interview The Telegraph reveals – is prepared to say the things that other figures in the game may believe privately but fear to utter. With Parry in charge of the EFL, United and Liverpool also believe that he can deliver consensus from his 72 very different members.

But this is a major gamble. Over the course of the three years, Parry worked in secret with the two biggest Premier League clubs to come up with a plan. He cares less about the power it will give the wealthiest clubs and more about the 25 per cent annually of Premier League revenue that will flow to his impecunious members. Others may be more conflicted but Parry regards this is an unprecedented concession and he is not afraid to say so. In the meantime he has secured agreements from his members for salary caps which he says will be an end to the ruinous spending of years gone by.

For United and Liverpool, the pay-off is not a greater share of the revenue from the Premier League’s television deal – they are insistent that will not happen. Instead those two clubs say they want the power, along with the other members of the elite to shape the rules of the league and also to have more matchdays to compete in a potentially expanded Champions League. Those who oppose them are much more dubious that it will not deliver a greater share.

The authors of “Revitalisation” are on their 17th draft already. Optimistically they want to see it in place for the 2022-2023 season. On the question of how the Premier League would come down from 20 clubs to 18, there is no firm proposal yet. The league’s original reduction from 22 clubs to 20 took three years because the Football League was not ready to accommodate the extra clubs until 1995-96.

Parry has shared his plans with just a few close confidants, including the Stoke chairman, John Coates, and his Middlesbrough counterpart, Steve Gibson. “They are 100 per cent supportive because it is for the greater good,” Parry said. “Those two are genuinely up for it. They are excited, and passionate about it. In a time when everyone is panicking how we will emerge from it you need a long-term vision and you need hope.”
Last edited by Chester Perry on Mon Oct 12, 2020 12:20 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 10:59 am

The Independent also looks at the background of Project Big Picture - It is a little eerie how some of my posts over the last few months speculating about how the big clubs want the Premier League to look, now look in the cold light of Revitalisation

Project Big Picture: Why sooner or later English football needs to change
Rick Parry’s controversial proposal may not necessarily be the answer but as distress calls sound across the game, a new vision for English football’s sustainable future is undoubtedly needed

Tony Evans - 41 minutes ago

Rick Parry was at home when the phone rang. John W Henry was on the line. Liverpool’s principal owner was watching a documentary in Boston and a familiar face came on the screen.

The programme was about the laboured birth of the Premier League in 1992. Parry was the organisation’s founding chief executive. Henry made the call. The American sounded surprised. Was Parry really the man who helped create the monster? Henry said they needed to talk.

The conversation amused the man who would become chairman of the EFL. Of course Henry knew about Parry’s past. The two men have had a relationship since the Boston-based billionaire bought Liverpool a decade ago. Parry, as a former chief executive at Anfield, had provided advice, local intelligence and the benefit of his knowledge to the new owners. Henry had just forgotten. Get over to the States, Fenway Sports Group’s leader said. We need to talk.

The conversation – which never actually took place during Parry’s subsequent whirlwind trip to New England – was about a restructuring of the economy of the domestic game. Henry had been pondering football’s finances for more than half a decade. His exasperation was palpable.

Project Big Picture is the fruit of that frustration. As early as 2012, Henry was telling acquaintances that the sport’s fiscal basis was fundamentally flawed. It annoyed the 71-year-old that little more than a handful of clubs in the Premier League drew global interest. The Big Four, Five or Six – it changed over a decade - paid the bills. It was hard to see the point of the likes of Blackburn Rovers, Blackpool, Wigan Athletic, Birmingham City, Stoke City and half a dozen other clubs who came and went from the top flight. In American terms, the division was stacked with minor league clubs playing in the majors.

What Henry found particularly annoying was that teams in the bottom half of the table seemed to have little more ambition than avoiding relegation and pocketing the television cash. Parachute payments fostered a ‘bare minimum’ ethos and warped competition in the Championship, too.

The flip side of this is that a 20-team league of doughty battlers who fight tooth and nail to stay up means life is exacting for the teams in the Champions League places. Playing English football, even against the ‘lesser’ sides, is demanding. The elite, Henry figured, were getting the worst of both worlds.

The battleground manifested itself in the argument over overseas broadcast rights. The big clubs felt sharing the money equally was unfair and began a campaign against it. There were clandestine meetings in New York to discuss strategy but the fellow malcontents – Manchester United, Manchester City, Arsenal, Chelsea and Tottenham Hotspur - had narrower aspirations than Henry. He did not want a bigger slice of the money. Revolution has been on his mind for a long time.

Those more familiar with English football’s past – with Parry at the forefront – explained that there was an element of Groundhog Day in Henry’s thinking. Yet the Boston Red Sox owner would not let it go.

He was talking about handing 25 per cent of the Premier League’s annual revenue to the EFL eight years ago. The money would ease the fears of the top-flight’s bottom dwellers and make the Championship less about the biggest spenders. At least in theory.

When Parry became EFL chairman last year, the 65-year-old’s prime objective was to restore some financial sanity to the lower leagues. With his vast experience of football administration, Parry planned to curtail the worst excesses, especially in the second tier, and introduce a salary cap. Then Covid-19 hit the game hard.

The pandemic presented an opportunity. Since March, the EFL chairman has talked about this being a chance to assess the direction of the sport and ask whether there is a better way. Henry’s thinking dovetailed. Both men have had massive input in Project Big Picture.

Joel Glazer also believes in the concept. The United co-owner has stridently supported the idea and even tried to convince other Big Six executives that the pyramid is crucial to English football’s future. The thought of a Glazer being the flagbearer for the game’s infrastructure is mindboggling. Cynics see this as an opportunist attempt to use the pandemic to grab power. Even the elite clubs have mixed feelings.

Spurs are broadly supportive. Arsenal, Chelsea and City have concerns. The Premier League clubs threatened with the removal of the one-club, one-vote system are furious.

Henry and Parry – and Glazer, too, no doubt – genuinely believe that they are proposing the best deal for English football. Parry fears that Coronavirus will hasten the decline of smaller clubs and have an adverse impact on communities across the country. Henry thinks an 18-team Premier League and a wider dissolution of broadcast revenue would benefit all parties. The quid pro quo is that those with the most financial muscle want the most influence.

The situation is so desperate in the EFL that the majority of clubs would take the £250 million short-term bailout money and, with reservations, accept a quarter of the Premier League’s annual income.

The top-flight clubs who would lose their voting power are less inclined to agree. The public are suspicious of change. No wonder, after a week where pay-per-view raised its ugly head and fans feel they are being railroaded into spending £14.95 to watch individual televised games that are played behind closed doors, on top of their hefty Sky and BT subscriptions.

Project Big Picture was leaked and its authors were not ready to make their case. That put Parry in the line of fire. With hindsight, Henry and Glazer might have been more proactive and announced these ideas in a staged setting rather than let it seep out in the media. Nevertheless, Henry and – in particular – Parry have the game’s interests at heart.

Revitalisation may not be the way forward but the sport cannot continue to operate blithely in its pre-Covid dreamland. Change needs to happen. Sooner rather than later.

Liverpool, United and the EFL have attempted to bypass the inertia and provide a roadmap for the future. It is flawed but is a basis for dialogue. Those who object need to offer their own vision of a sustainable future.

Distress calls are going off across the game. The crisis can no longer be ignored.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 11:03 am

The government today have reiterated their view that Project Big Picture is just a Power grab and are insistent that if there is no unconditional aid given by the Premier League then they will go ahead with their fan led review of the game. Pf course the Premier League is fully aware that the said review is an election manifesto promise so was going to happen anyway

Premier League warned football faces government review if EFL rescue package cannot be agreed
JEREMY WILSON OCTOBER 12, 2020

The government has warned that a review of football governance will be immediately enacted if the Premier League cannot agree a rescue package with the English football League.

Speaking on Monday morning, culture secretary Oliver Dowden condemned a plan drawn up by Liverpool and Manchester United that would see a £250 million bailout paid to the EFL, as well as an increase to 25 per cent of future Premier League revenues, in return for sweeping new powers for English football’s biggest clubs.

This would include even a two-thirds veto for the nine longest servest members of the Premier League over future ownership changes at any of their rivals.

Despite support from the EFL and some of the biggest clubs, the plan has prompted outrage from elsewhere in the Premier League, with other clubs fearing that it is an attempt to safeguard the competitive dominance of the so-called ‘big six’.

Dowden called it a “backroom deal” and said that it was the wrong time to be mixing discussions over financial support with radical governance reform.

“The challenge facing football now is ensuring particularly the EFL has the resources to enable its clubs to survive,” he told the BBC.

“This deal does not command support throughout the Premier League at all, so rather than do backroom deals to try to reform football at this critical moment, I would rather they are working together to ensure the future of football.

“I know that these conversations have ensured they won’t allow a club to go to the wall but we do need a more comprehensive package. I have to say that if they can’t get together to work this out, we will have to return to what we promised in our manifesto which is a fan-led review of football governance. I think many fans will be concerned about what they are reading.”

Dowden also reinforced the government view that the Premier League does have the resources to safeguard the rest of the professional pyramid. “If you look at the Premier League, I believe during the last transfer over £1 billion was spent. That is more than the four largest clubs in Europe, after the Premier League, put together. There are the resources.”

Dowden also stressed that there was little immediate prospect of fans returning to football matches.

“Ultimately against this backdrop of rapidly rising infections, I think you will appreciate that now is not the time to do that and add to the risk of infection spreading,” he said.

Asked later on Monday by Sky if it was a "good plan to protect smaller clubs, or a power grab by some of the major Premier League clubs", Dowden said: “I fear it’s the latter. If we keep having these backroom deals we will have to look at the underlying governance of football. The events that I have seen in the last few weeks have made this seem more urgent. They have got the money to ensure support for the game in this difficult time. It does raise genuine questions about the governance of the sport.”

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 11:06 am

Meanwhile the Telegraph's Luke Edwards joins the list of commentators against the Project Big Picture plans

Project Big Picture is a disgusting idea - a power-grabbing new low for English football
LUKE EDWARDS OCTOBER 12, 2020

Trying to explain what I think about 'Project Big Picture' without resorting to swear words and name calling is a challenge in itself - for me, it is disgusting. To launch a cynical and blatant power grab in the middle of a global pandemic, while dangling a supposed rescue package in front of EFL clubs who are facing financial ruin, is a new low for English football.

It should be stressed that the financial package would be most welcome and there are some good ideas amid the proposal. But at the core, in this form, is a desire for the Big Six clubs to seize control of the Premier League and bend it to their will in the future. There is no reason why the rescue package could not be offered without these stipulations. People need to remember that.

What the Big Six want is to end the one-club, one-vote system and to create a cartel. Strip the window dressing away and this is what you are left with. It is so brazen. It seems to insult our intelligence to spin it any other way.

The first question we should always ask ourselves of those who want to reduce democratic constraints and increase their power to such a level that they will have absolute control of the decision-making process is: 'Why?' Once you do that here, it reveals the need for it to be rejected.

As with all power grabs, spotting it is one thing, stopping it is another. There would be no checks and balances, and that is incredibly dangerous moving forward.

Absolute power in the hands of a tiny elite should be resisted. They will assure us they only want what is best for English football as a whole, that they will not abuse their power, that they want a truly competitive Premier League, and they want to help the smaller clubs. Of course, every dictator says the same thing about the nation he or she is about to subject.

Some will believe them and view it as a price worth paying for this extra money for lower league clubs, but the elephant in the room is this – once they have their power, what will they do with it? What in the track record of the Big Six clubs suggests they are interested in anything but themselves?

For example, below are some of the things they could change and get away with if this is allowed to happen.

- The share of the broadcast television deal each club receives, seizing the majority for themselves and widening the financial gulf. They could impose a salary cap in relation to turnover, ensuring their own wage bills dwarf the rest of the top-flight making it easier for them to sign all the best players.

- They could, in the future, order specific League One and Two clubs to accept their players on loan, creating B-teams through the back door, in order for the money they give the league as a whole to continue.

- They could change the relegation and promotion plan to one club up, one club down. Or even scrap it all together.

- They could continue to trim the size of the Premier League, taking it down to 16 or even 14 teams so they can focus on the construction of a new European Super League and move into that without having to completely split with their domestic football markets.

- Gradually reduce the money they pay to the EFL clubs over time as there would be nothing to stop them renegotiating. This is what supermarkets have done to local suppliers in the past, getting them to rely on the income paid out from themselves and then renegotiating the contracts once they are, so they squeeze the suppliers and raise their own profit margins.

- Stop Premier League clubs playing in the FA Cup to create a Premier League Cup competition instead.
They might not do these things, but the point is they could, and nobody would be able to stop them.

The Big Six would run the Premier League and if you think they would do that to benefit English football as a whole, you are sadly deluded. They would run it to benefit themselves, to strengthen their power, not weaken it.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Oct 12, 2020 11:09 am

@SwissRamble with a thread looking at the recent 2019/20 financial results announced across Europe and how they have been affected by the covid pandemic

https://twitter.com/SwissRamble/status/ ... 5358038016
Last edited by Chester Perry on Mon Oct 12, 2020 12:21 pm, edited 1 time in total.

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