Football's Magic Money Tree

[randomclaret2]

I certainly hope so

[Chester Perry]

Leeds United, have reset the possibilities of what is commercially possible in the Championship and they look to be swiftly moving forward on what they can do in the Premier League - firstly by ditching their kit supplier - Kappa.

Leeds have announced a 5 year record breaking kit deal with Adidas

https://www.yorkshireeveningpost.co.uk/ ... as-2920237

[Chester Perry]

Surprising claim in the Telegraph that the Saudi's exclusivity clause has expired and leaves Ashley to talk to other bidders and one of them at least is still very keen and apparently ready to move forward

Saudi-led consortium's rival bidder plans to keep hold of Newcastle manager Steve Bruce
LUKE EDWARDS JULY 21, 2020

Henry Mauriss has stepped up his attempts to buy Newcastle United and is planning to give Steve Bruce a chance to prove he should remain as manager should his group complete a takeover before the start of next season.

As revealed by Telegraph Sport in early June, a detailed project plan has been drawn up by the team working for Mauriss, which includes the injection of extra funds to improve the first team squad.

As things stand, Newcastle will have around £30 million to spend this summer, plus whatever is raised through player sales, as the transfer kitty, that should have been roughly £65m, has been slashed because of losses caused by the Covid-19 pandemic.

The Premier League continues to stall over whether a Saudi-led consortium is given the green light to take ownership of Newcastle.

That decision has been pending for months, which has opened a window of opportunity for Mauriss, who is leading the rival bid by Clear TV as the company’s chief executive.

Contracts signed by the Saudi group no longer give them exclusivity and current owner Mike Ashley is free to negotiate with other interested parties.

Those behind the Saudi bid remain confident they will complete a takeover.

However, lawyers for BeIN Sports, commercial partners of the Premier League, believe the Saudi state’s link to piracy, and the decision to block the Qatar-based firm broadcasting in Saudi Arabia last week, make it impossible for the deal to go through.

As things stand, it is impossible to legally watch Premier League matches in the Kingdom of Saudi Arabia.

[Chester Perry]

It has been known for some time that CFG have been looking for a French team to add to their stable, for the last few months that was assumed to be Nancy, but a new contender has emerged - Troyes - from SportsProMedia

Report: City Football Group turns attention to Troyes
€14m AS Nancy takeover off with rival Ligue 2 outfit now the focus.

Posted: July 14 2020By: Tom Bassam

- Troyes were valued between €7m and €10m in recent audit
- Club president Daniel Masoni reportedly open to a deal
- Manchester City owners keen to add tenth club to portfolio

City Football Group (CFG), the Abu Dhabi soccer investment company which owns English giants Manchester City, is in talks to acquire French second-tier side Troyes AC, according to L’Est-Eclair.

Looking to further expand its portfolio of clubs, CFG had been in talks with another Ligue 2 outfit, AS Nancy. The group insisted back in May that it was still interested in a deal but it appears as if Troyes are now the focus of attention.

According to the French regional news outlet, CFG has approached Troyes president Daniel Masoni about an acquisition and the club are open to a deal.

Troyes were valued at between €7 million (US$7.97 million) and €10 million (US$11.39 million) after their most recent audit with the DCNG, French soccer’s financial body. The deal for Nancy was reported to be worth €14 million (US$15.2 million), making Troyes a significantly cheaper investment despite a more recent spell in the top-flight Ligue 1 and finishing the last two seasons inside the top four of the second tier.

CFG recently added Belgian second-tier club SK Lommel to its roster of clubs. Should a deal with Troyes be completed, the French outfit would become the ownership group’s tenth acquisition.

[Chester Perry]

Everton become the latest club to secure a new secured credit facility - probably an overdraft, given it is from their existing bankers, but cannot say for certain.

https://twitter.com/theesk/status/1285850132538433537

[Chester Perry]

Two more ways of making money from Football's Magic Money Tree courtesy of Training Ground Guru.

First up the pain coach https://trainingground.guru/articles/do ... pain-coach

Second up Psychology and Well Being https://trainingground.guru/articles/be ... t-brighton

[Royboyclaret]

Thanks Roy, that's very kind of you!

The photo is a player called Sam Chedgzoy who played for us before and after WWI.

Regarding broadcasting revenues if next season is played behind closed doors I would expect considerable discounts to be negotiated (even though domestic viewing figures would increase). I also suspect several of the current licence holders overseas will go out of business or at least be unable to meet their commitments. I'd suggest a reduction of 15-20% overall.

Looking forwards to 2022, I haven't had time to do a full analysis yet but in total I wouldn't be surprised if rights fell by 25%. A lot will depend on the extent and length of the global recession

second part of my article will be out over the weekend!

Something that might be of interest to The esk.......Burnley signed a player from Everton in May 1933 by the name of Sydney Chedgzoy. He played just a handful of games here before moving to Millwall a year later.

Perhaps Sydney has to be the son of the great Sam Chedgzoy that played at Goodison before and after WW1 ?.....His photo figured prominently in The esk's "Football Shorts - part 1".

[The esk]

Something that might be of interest to The esk.......Burnley signed a player from Everton in May 1933 by the name of Sydney Chedgzoy. He played just a handful of games here before moving to Millwall a year later.

Perhaps Sydney has to be the son of the great Sam Chedgzoy that played at Goodison before and after WW1 ?.....His photo figured prominently in The esk's "Football Shorts - part 1".

Thanks for this - I asked one of our heritage guys and this was his reply:

"Yes, Syd was Sam's son. He was on Everton's books but never made the first team. He made his FL debut for Burnley and also played for the likes of Swansea Town. Sam was living in Canada by then so probably never saw him play professionally. After the war he was a tram conductor in Liverpool."

Thanks again

[The esk]

Everton become the latest club to secure a new secured credit facility - probably an overdraft, given it is from their existing bankers, but cannot say for certain.

https://twitter.com/theesk/status/1285850132538433537

It is an overdraft Chester "payable on demand " in the fine print!

[Chester Perry]

The ongoing efforts by Relevant (organisers of the International Challenge Cup - the psuedo summer Champions League) to get domestic League games played in other countries has been stalled yet again, this time by a US Federal Judge - from SportsBusiness.com

Federal judge dismisses Relevent Sports’ antitrust claim against US Soccer
Bob Williams, US office - July 22, 2020

United States-based international soccer promoters Relevent Sports has suffered yet another damaging blow in its repeated attempts to stage official international league matches on US soil.

Relevent is looking to put on official LaLiga matches in the US following a long-term partnership with the Spanish soccer league. A planned match between FC Barcelona and Girona at Miami’s Hard Rock Stadium in January 2019 was cancelled after widespread opposition from various stakeholders.

In April 2019, US Soccer also denied Relevent’s application to host a match between two Ecuadorian clubs.

Last September, Relevent Sports filed an antitrust lawsuit against the United States Soccer Federation in the Southern District of New York, alleging that the federation had conspired with global governing body Fifa and Soccer United Marketing – the commercial arm of Major League Soccer – to block official matches from foreign clubs being held in the States.

However, US District Judge Valerie Caproni has dismissed the antitrust claim against US Soccer, which was defended by international law firm Latham & Watkins LLP.

“Plaintiff alleges no facts to support the inference that, in adhering to the Fifa directive, USSF actually entered an agreement with Fifa to restrict output,” Caproni wrote.

Relevent now has until September 1 to amend its complaint.

“We are evaluating the decision, which gives us the option to refile the antitrust case and go forward, as well as pursue the tort claim in arbitration,” Relevent said in a statement. “We’re considering what our options are.”

It is the latest blow for Relevent and LaLiga on this issue. Last November, a Madrid court opted not to grant permission for a match between Villarreal and Atlético Madrid to be held in Miami.

In February, Fifa’s Stakeholders Committee recommended that soccer’s world governing body should formally ban teams from playing official league matches outside of their home territories.

In March, meanwhile, a Madrid court dismissed an appeal from LaLiga against the Spanish Football Federation’s (RFEF) decision not to authorize the Girona-FC Barcelona game in Miami. The Magistrate of Madrid’s Commercial Court No.12 ruled that the RFEF did not engage in unlawful conduct by not facilitating the match.

It is also the latest legal victory for US Soccer this year. In February, the Court of Arbitration for Sport ruled that Fifa was not legally required to enforce promotion and relegation in the US soccer pyramid.

In May, a federal judge dismissed key parts of the US women’s national team’s wage discrimination lawsuit against the federation. This bitter lawsuit has since been appealed by the players, though it appears that a settlement will be sought between the two parties.

Another legal battle with the US Soccer Foundation over trademarks was settled in May.

[Chester Perry]

An interesting perspective on the outcomes of the Sheffield Wednesday and Derby cases that have been brought by the EFL from the Football Law - are the authorities about to lose again?

https://www.footballlaw.co.uk/articles/ ... d-the-rams

[Chester Perry]

The DCMS has published it's report into Football Governance - some predictable stuff

This article in the Mail gives you a general feel for it

MPs call for football to undergo financial 'reset' as damning report blasts 'unsustainable' economic model... before branding Premier League clubs' use of Government furlough scheme 'deplorable'
- A Government report has blasted football's economic model as 'unsustainable'
- The DCMS said that initial use of Government furlough scheme was 'deplorable'
- The report also calls for football to undergo a 'financial reset' moving forwards
- It also said women's football was underfunded compared to the men's game

By MIKE KEEGAN FOR THE DAILY MAIL - PUBLISHED: 22:45, 22 July 2020 | UPDATED: 22:45, 22 July 2020

Football needs a financial 'reset', according to an explosive report from MPs which has branded the initial decision by some Premier League clubs to use the Government's furlough system 'deplorable'.

The damning document, released on Thursday, also states that the Covid crisis has demonstrated that the game's financial model is 'unsustainable', that more clubs are set to follow Bury out of existence unless the top flight steps in with help, and that parachute payments 'must become a thing of the past'.

With few punches pulled, the Department for Digital, Culture, Media and Sport Committee's dissection of the impact of the virus on their sector claims there is 'a culture of unfair pay' in football. It also slates a lack of progress on tackling homophobia within the game, and says targets for board members from black, Asian and minority ethnic backgrounds must be brought in.

'We firmly believe that football must use its response to the Covid-19 crisis to reset,' the report says. 'The crisis has shone a light on the culture of unfair pay in football.

'The decision by some Premier League clubs to furlough non-playing staff was deplorable. Parachute payments must become a thing of the past, and considerable work must be done to advance work on salary caps.'

It also highlighted what it found was a 'disproportionate impact on women's elite sport, consistently underfunded compared to men's'.

[Chester Perry]

More on that DCMS report that is released tomorrow - this time from the Telegraph - must say I hate the fact that the press get advanced copies - must say I think they have no chance of introducing a salary cap in the Premier League - The Premier League competes directly with La Liga, Bundesliga, Serie A, Ligue 1 even the Chinese Super League and MSL, just why would/how could you shackle the Premier League

English football needs 'a reset' say MPs as calls for a salary cap grow louder
TOM MORGAN JULY 23, 2020

The Premier League and English Football League must introduce a salary cap, according to an influential Westminster committee, which is demanding a dramatic "reset" after Covid-19 "shone a stark light" on financial turmoil in the game.

After hearing from leading figures across domestic sport, the Digital, Culture, Media and Sport Committee warned Government that "the current football business model is not sustainable". In a wide-ranging report, the committee of MPs also launched a fresh attack on the "deplorable" decision by some top tier clubs to furlough non-playing staff.

The big clubs, earning hundreds of millions in TV money, were singled out for particular criticism after MPs agreed with Rick Parry, the EFL chairman, who called for an "overdue and necessary" restructuring of football finances in England. Salary caps were described as an "essential” option to replace parachute payments as wages in the Championship now amount to 106 per cent of average club turnover.

"The Covid-19 crisis has shone a stark light on the financial issues within football, specifically in the leagues below the Premier League," MPs concluded, citing the collapse of Bury FC prior to lockdown. "The Premier League is the main income generator of English football. If it does not step up to help the English Football League, many more clubs will follow in Bury FC’s footsteps. The EFL needs also to ensure it develops a more sustainable financial model."

The MPs added that it was "no surprise to us that some clubs—particularly Liverpool, the world’s seventh richest football club—faced fierce backlash" after furloughing non-playing staff while continuing to pay players’ wages in full. Liverpool and Tottenham reversed their involvement in the scheme following the outcry.

"The crisis has shone a light on the culture of unfair pay in football," the committee added. "The decision by some Premier League clubs to furlough non-playing staff was deplorable, and we welcomed its reversal."

The current parachute payments for clubs in the lower tiers "must become a thing of the past, and considerable work must be done to advance work on salary caps", the committee concluded.

The Government "should engage with the Premier League and the EFL to learn lessons from abroad on policies such as salary caps, which may seem radical to those inside UK football, but seem to work well elsewhere", the MPs added.

As part of the inquiry, the MPs also scrutinised a recent Telegraph investigation which disclosed how just three per cent of board members of taxpayer-funded national governing bodies (NGBs) are black.

"Football must also become more representative," the committee ruled.

"The fact that no Premier League club and virtually no English Football League club has a black owner, chair or chief executive, is a fundamental inequality at the heart of the game.

"We do not believe that the voluntary initiative proposed by the FA will motivate clubs to act with sufficient speed. Instead, we recommend that DCMS revises the Code for Sport Governance, adding targets for BAME representation on boards."

The MPs added that 'we also wish to record our dismay at the slow progress in kicking out homophobia from football", saying parliament must fast-track plans to introduce legislation outlawing homophobic chanting at matches.

"It is essential that steps are taken to understand what barriers stand in the way of gay footballers, and how much of the responsibility lies with clubs and how much with fans," the MPs add.

The recommendations for football were made as part of a wide-ranging report which concluded the Government had been "too slow" to respond to the needs of the sporting, tourism and cultural sectors during the Covid-19 outbreak, with many organisations facing an “existential threat” to their survival.

Julian Knight MP, the DCMS Committee chairman, said the industries had been treated as a "Cinderella" by ministers, adding: “We are witnessing the biggest threat to our cultural landscape in a generation. The failure of the government to act quickly has jeopardised the future of institutions that are part of our national life and the livelihoods of those who work for them."

[huw.Y.WattfromWare]

Minnies cure for EFL pain.
1) scrap loans. Hopefully younger players will sign for lower league sides to do their apprenticeship instead of taking the megabucks to play in the stiffs
2) all transfer fees paid in full at month end. Or player goes back.
3) pay what you can afford.

I feel for all the fans with bad owners but if a business goes bust your bust. No wages being paid by the PFA.

[Vegas Claret]

More on that DCMS report that is released tomorrow - this time from the Telegraph - must say I hate the fact that the press get advanced copies - must say I think they have no chance of introducing a salary cap in the Premier League - The Premier League competes directly with La Liga, Bundesliga, Serie A, Ligue 1 even the Chinese Super League and MSL, just why would/how could you shackle the Premier League

English football needs 'a reset' say MPs as calls for a salary cap grow louder
TOM MORGAN JULY 23, 2020

The Premier League and English Football League must introduce a salary cap, according to an influential Westminster committee, which is demanding a dramatic "reset" after Covid-19 "shone a stark light" on financial turmoil in the game.

After hearing from leading figures across domestic sport, the Digital, Culture, Media and Sport Committee warned Government that "the current football business model is not sustainable". In a wide-ranging report, the committee of MPs also launched a fresh attack on the "deplorable" decision by some top tier clubs to furlough non-playing staff.

The big clubs, earning hundreds of millions in TV money, were singled out for particular criticism after MPs agreed with Rick Parry, the EFL chairman, who called for an "overdue and necessary" restructuring of football finances in England. Salary caps were described as an "essential” option to replace parachute payments as wages in the Championship now amount to 106 per cent of average club turnover.

"The Covid-19 crisis has shone a stark light on the financial issues within football, specifically in the leagues below the Premier League," MPs concluded, citing the collapse of Bury FC prior to lockdown. "The Premier League is the main income generator of English football. If it does not step up to help the English Football League, many more clubs will follow in Bury FC’s footsteps. The EFL needs also to ensure it develops a more sustainable financial model."

The MPs added that it was "no surprise to us that some clubs—particularly Liverpool, the world’s seventh richest football club—faced fierce backlash" after furloughing non-playing staff while continuing to pay players’ wages in full. Liverpool and Tottenham reversed their involvement in the scheme following the outcry.

"The crisis has shone a light on the culture of unfair pay in football," the committee added. "The decision by some Premier League clubs to furlough non-playing staff was deplorable, and we welcomed its reversal."

The current parachute payments for clubs in the lower tiers "must become a thing of the past, and considerable work must be done to advance work on salary caps", the committee concluded.

The Government "should engage with the Premier League and the EFL to learn lessons from abroad on policies such as salary caps, which may seem radical to those inside UK football, but seem to work well elsewhere", the MPs added.

As part of the inquiry, the MPs also scrutinised a recent Telegraph investigation which disclosed how just three per cent of board members of taxpayer-funded national governing bodies (NGBs) are black.

"Football must also become more representative," the committee ruled.

"The fact that no Premier League club and virtually no English Football League club has a black owner, chair or chief executive, is a fundamental inequality at the heart of the game.

"We do not believe that the voluntary initiative proposed by the FA will motivate clubs to act with sufficient speed. Instead, we recommend that DCMS revises the Code for Sport Governance, adding targets for BAME representation on boards."

The MPs added that 'we also wish to record our dismay at the slow progress in kicking out homophobia from football", saying parliament must fast-track plans to introduce legislation outlawing homophobic chanting at matches.

"It is essential that steps are taken to understand what barriers stand in the way of gay footballers, and how much of the responsibility lies with clubs and how much with fans," the MPs add.

The recommendations for football were made as part of a wide-ranging report which concluded the Government had been "too slow" to respond to the needs of the sporting, tourism and cultural sectors during the Covid-19 outbreak, with many organisations facing an “existential threat” to their survival.

Julian Knight MP, the DCMS Committee chairman, said the industries had been treated as a "Cinderella" by ministers, adding: “We are witnessing the biggest threat to our cultural landscape in a generation. The failure of the government to act quickly has jeopardised the future of institutions that are part of our national life and the livelihoods of those who work for them."

bring in a wage cap, they'll get around it with bonuses etc

[Chester Perry]

The BBC's article on the DCMS report

Coronavirus pandemic 'shone light on unfair pay' in football, says DCMS committee report

The Premier League was suspended for 96 days because of the coronavirus pandemic
Football must "reset" after the coronavirus pandemic "shone a light on the culture of unfair pay" in the sport, says a parliamentary report.

The Digital, Culture, Media and Sport (DCMS) committee's stark report said "the current football business model is not sustainable," and called on the Premier League to "step up" and help the English Football League (EFL).

In the report, the committee - chaired by Conservative MP Julian Knight - also said:

- payments "must become a thing of the past";
- Football must become more representative of black, Asian and minority ethnic (BAME) groups and outlaw homophobic chanting;
- The lack of women's elite sport "risks undoing work to improve funding";
- It supports calls for the government to continue financial assistance to sports until fans are able to return;
- The government should fund advertisements to encourage a return to recreational sport "without fear".
- One in five clubs on a watchlist'

During the pandemic, Championship side Wigan Athletic entered administration and EFL chairman Rick Parry told the committee that clubs face a "£200m hole" from lost revenue.

It came just months after Bury were expelled from the EFL because of financial difficulties.

Several Premier League clubs put non-playing staff on furlough during the pandemic despite continuing to pay players' wages in full, decisions - some of which were later reversed - the committee said were "deplorable".

Knight told the Press Association there were "10 to 15 EFL clubs on a watchlist right now in terms of whether they go bust".

Parry, in evidence to the DCMS committee in May, said it was "difficult to answer" how many clubs could go out of business as a result of the pandemic. He said a "complete reset" was needed, suggesting a redistribution of revenue in the sport.

Parry also told the committee that parachute payments - given to clubs relegated from the Premier League to soften the financial blow - are "an evil that need to be eradicated".

Six clubs in the 2019-20 Championship received parachute payments averaging £40m, while the remaining 18 clubs received £4.5m in 'solidarity payments'.

The committee said: "Parachute payments must become a thing of the past, and considerable work must be done to advance work on salary caps."

It added: "The Premier League is the main income generator of English football. If it does not step up to help the English Football League, many more clubs will follow in Bury FC's footsteps. The EFL needs also to ensure it develops a more sustainable financial model."

In response, Premier League chief executive Richard Masters told the committee its annual £200m funding to the EFL - as "big supporters of the pyramid" - was paid prior to the pandemic and would continue "despite significant losses" to the league and its clubs.

He also said there has been "no specific approach" from the EFL about any rescue package.

Masters explained that "safety net" parachute payments allow newly promoted clubs to "invest and be competitive" in the top flight.

A DCMS spokesperson said: "We have been clear that finances from the resumption of the sport at the top level must support the wider football family, and we continue to have discussions with the football authorities on how the game can ensure that it is sustainable.

"Last week we outlined plans to help sports begin to safely reopen their doors to fans in the coming months. We have also committed to a review of football governance, with input from fans, which will also include consideration of the owners' and directors' test. Further details on this will be announced in due course."

'Football must become more representative'
The DCMS committee report also said football must become "more representative" of the BAME population.

It said the virtual absence of black club owners and chief executives is a "fundamental inequality at the heart of the game".

At present there only five BAME managers across the top flight and EFL.

In July, the Football Association asked for clubs to voluntarily sign up for an 'Equality In Football Leadership' code, to increase diversity, and "ensuring that their boardrooms and backroom staff better reflect the communities they serve".

But the report said that initiative would not "motivate clubs to act with sufficient speed".

"Instead, we recommend that DCMS revises the code for sport governance, adding targets for BAME representation on boards," it said.

The committee also said it would "continue to pursue opportunities in this parliament to introduce legislation outlawing homophobic chanting at matches".

Women's sport 'disproportionately affected'
The report also looked at the impact of coronavirus on women's sport, saying it had been "disproportionately affected".

It said the consistent underfunding of women's sport had been "highlighted, and in some cases even exacerbated" by the pandemic.

In football, the Premier League resumed but Chelsea were named WSL champions on 5 June after the league was curtailed.

In rugby union, the men's Premiership plans to return on 15 August, long after the women's Premier 15s season was declared null and void.

England's male cricketers are hosting West Indies in a three-Test series, but England's women are not set to play until 1 September at the earliest.

In May, sports minister Nigel Huddleston said the government is "fully committed to helping them recover so we don't lose any of the great momentum that has built up".

The report said: "The government should outline how it intends to support women's sport post-crisis and ensure that, going forward, men's elite sports are not further prioritised at the expense of the women's game."

Short presentational grey line
Analysis
BBC sports editor Dan Roan

This report will be a sobering reality check for the football authorities in particular, amid the relief and pride being felt as the season is finally completed, and more widely as restrictions on sport are slowly lifted.

Although the committee does not have any power to dictate policy, it is influential, and the report paints a stark picture of the profound financial challenges that remain across both elite and community sport as a result of the Covid-19 crisis.

At a time when almost half of the country's public leisure centres and a fifth of swimming pools face closure, it will certainly add pressure on the government to step in, given the many jobs, health and community benefits at stake.

And it will reinforce those who argue that, in football, the Premier League now needs to do more to help clubs lower down the ladder.

Short presentational grey line
'Government must extend financial assistance to sport'
The DCMS committee says it supports calls from sport governing bodies for the government to extend its financial assistance until fans can return to watch live sport.

Mass gatherings are currently banned under coronavirus guidelines meaning sport has been held behind closed doors since its resumption.

However, Prime Minister Boris Johnson said last week spectators could be able to return to stadiums in England from October, with pilot projects set to take place in the interim.

The Rugby Football Union told the committee it does not expect to recover financially for "four to five years".

RFU chief executive Bill Sweeney said: "If the autumn internationals go ahead, we will still lose something like £32m in revenue through to the end of the next financial year.

"If the internationals go ahead but are behind closed doors, that will be a negative impact of £85m. If the games are cancelled entirely, that will be £107m on top of the £15m we have already lost."

In addition, the England and Wales Cricket Board says it may lose as much as £380m through lost income while the British Horseracing Authority estimates that racing will lose about £100m.

'Fear of close proximity' a limiting factor in return to recreational sport
With regards to recreational sport, the committee said it is concerned "a lack of confidence, and a fear of being in close proximity with people from outside their own household" will negatively affect a return to group sports.

It highlighted indoor sports, contact sports and sports requiring extended periods of close proximity with others as being particularly at risk of negative perceptions.

It said the DCMS should "fund advertisements" that use "realistic content about how to get back to exercise without fear" - similar to those used in the This Girl Can campaign - and establish a fund to invest specifically in helping people whose activity levels have been negatively impacted during the pandemic, such as older people and those from BAME backgrounds.

After warnings from UKActive chief executive Huw Edwards about the future of public leisure facilities, the committee said that "it is essential that leisure facilities are protected" and "urgency" is required to put in place necessary funding to preserve them, through the government working with local councils.

[Chester Perry]

The actual report from the DCMS can be found here

https://publications.parliament.uk/pa/c ... /29102.htm

and the key sections from a football perspective are here

https://publications.parliament.uk/pa/c ... tAnchor020

[Chester Perry]

Meanwhile Southend get another adjournment on their winding up petition

https://www.bbc.co.uk/sport/football/53501901

[Chester Perry]

The "When Sky invented Football" podcast talks to two regular features on this thread (and Middlesbrough fans) John Nicholson and Simon Chadwick about English football's China crisis

https://tunein.com/podcasts/Sports--Rec ... =155853452

Quite the bombshell from China last night - in apparent retaliation for the change in UK Gov's stance on relationship - China announced last night that they would cease airing of all Premier League games as of today

https://twitter.com/Prof_Chadwick/statu ... 4137906176

[frankinwales]

Thanks Chester.............maybe that will impact on Chinese ownership.?........not much point owning if one cannot use the advertising benefits.

Up the Clarets.......

[Chester Perry]

Thanks Chester.............maybe that will impact on Chinese ownership.?........not much point owning if one cannot use the advertising benefits.

Up the Clarets.......

Listen to the Pod linked fascinating discussion as to how a change in interpretation of Chinese government policy can affect the fortunes of a European club

[Chester Perry]

Aberdeen - possibly the only club in the world to have pandemic insurance (the insurer refused to renew the policy in June) have announced £1m in pay cuts it might not sound much - Phil Bardsley reportedly earns more in a year - but it equates to about 20% off everybody own earns more than £30k pa at the club, and that really brings it home to us punters

https://www.bbc.co.uk/sport/football/53514353

[Chester Perry]

For the first time Vysyble have made their "We're so rich it's unbelievable" report available for free (previous editions cost several hundred pounds) The 5th edition was released last night and is available here

https://www.dropbox.com/s/qtukq9pa6u258 ... n.pdf?dl=0

[Chester Perry]

A really interesting thread on the state of football's finances since the last time Leeds were in the top flight

https://twitter.com/niallpfc/status/1286269688654299137

[Chester Perry]

The FT looks at the Private Equity funds wanting a share of Serie A

https://outline.com/srhxaR

[Hipper]

Going back to the DCMS report:

1. What are the examples of salary caps abroad 'which may seem radical to those inside UK football, but seem to work well elsewhere'?

2. Aren't clubs that end up in financial difficulties usually guilty of over stretching themselves, or due to some dubious practice. Surely Bury is an example of the latter. Wigan is an odd case I understand. But above all, the people who run these clubs should run them like any other business. That they don't is the issue more then player wage caps, FFP etc.. We have the wrong people running clubs. The Fair Play rules should either be enforced, or, if they have been deliberately made unworkable, corrected to make them do their job.

3. I cannot see any 'reset' at the top as long as the top clubs get what they want. If they don't get it they will move on.

[Chester Perry]

The Football Today asks "Is Valencia a club in crisis" it has certainly been a madcap few years there

https://www.footballtodaypodcast.com/po ... -in-crisis

[Chester Perry]

Everton become the latest club to secure a new secured credit facility - probably an overdraft, given it is from their existing bankers, but cannot say for certain.

https://twitter.com/theesk/status/1285850132538433537

following the news that Everton had secured an overdraft they have registered another credit facility which is either a renewal or extension of an existing deal

https://twitter.com/theesk/status/1286246360220602368

the need for access to cash is apparent (they are far from being alone in this) in a period where tickets are not being sold and earnings from the Premier League are going to be less than budgeted (and not just as a result of Covid19) as they finish outside the top 10

[Royboyclaret]

For the first time Vysyble have made their "We're so rich it's unbelievable" report available for free (previous editions cost several hundred pounds) The 5th edition was released last night and is available here

https://www.dropbox.com/s/qtukq9pa6u258 ... n.pdf?dl=0

A fascinating little section (from page 70) on Burnley, although it includes a couple of inaccuracies in terms of seasons when we were promoted/relegated. A couple of classics that made reading that particular piece of the article worthwhile :-

"So, let us start with the northern financial powerhouse otherwise known as Burnley Football Club."

"However, Burnley's resurgence over the last decade is all the more remarkable given that it has been achieved with all the financial acumen of a perfectly weighted Martin Dobson through-ball."

Beautifully worded and certainly made me smile on a dismal Thursday afternoon.

[Chester Perry]

Beautifully worded and certainly made me smile on a dismal Thursday afternoon.

How wonderful - so very glad you enjoyed it , not read it myself yet but will do

[Chester Perry]

Going back to the DCMS report:

1. What are the examples of salary caps abroad 'which may seem radical to those inside UK football, but seem to work well elsewhere'?

2. Aren't clubs that end up in financial difficulties usually guilty of over stretching themselves, or due to some dubious practice. Surely Bury is an example of the latter. Wigan is an odd case I understand. But above all, the people who run these clubs should run them like any other business. That they don't is the issue more then player wage caps, FFP etc.. We have the wrong people running clubs. The Fair Play rules should either be enforced, or, if they have been deliberately made unworkable, corrected to make them do their job.

3. I cannot see any 'reset' at the top as long as the top clubs get what they want. If they don't get it they will move on.

The idiotic positioning in this report will be based on a naive understanding of American sports including the absolute crisis that is going on in collegiate sports where athletes are not allowed to make incomes or have personal endorsements that do not fund the colleges

I thought this was a great retort from a left wing academic, which found support across the political spectrum

https://twitter.com/Fire_and_Skill/stat ... 8478962688

not read the document linked in the thread yet but it should prove interesting

[Chester Perry]

That linked article from Ryan McKnight who is the Chief Executive of the North of England Football Academy https://uk.linkedin.com/in/ryanmcknight ... 49372cf86f

Football must rally to repel prospect of Government involvement in industry.
Published on June 2, 2020

Ryan McKnight

This period of lockdown has produced some astonishing comment and action from our political leaders. However, MP for Folkstone and Hythe, Damian Collins’s ‘A Way forward for Football’ ( https://damiancollins.com/a-way-forward-for-football/ ) made me want to test my resolve for existence by attempting a thirty-minute drive to Barnard Castle whilst blindfolded.

I’ve agonised over writing something about this but the scope and presumption around the ‘solutions’ Collins puts forward are so extreme that I believe them to be dangerous to the governing dynamics of the industry itself.

You see, football is not treated as an industry, in its own right. The mantra of ‘it’s a game of opinions’ has sadly spun from ‘who should play at left back today’ to politicians with zero experience of working within the industry pontificating on how best to strategize the future structures of an industry that contributes billions into our economy. Like all industries it has its own drivers, expertise and nuances that should be respected but are not.

I ask you, dear reader, would he attempt to offer a similar letter for the future reorganisation of the health service or perhaps bio-sciences? Of course not. But football’s greatest strength of being the people’s game also, often, works against it. It is a taboo within the industry that is growing thinner to stay silent on by the week.

I’m not going to bore everyone with a rehash of football’s financial problems – we all know the issues – most clubs are technically insolvent, reliant on owners’ cash and the laws/rules there to protect them are treated (and policed) with the same regard as government staff have for lockdown rules.

What we never ask (and certainly have never evidenced) are what have been the fundamental drivers of this. Fear not reader this question is exactly the research I am currently involved in. Whilst that is not the topic of this post it is important to state that the villains portrayed and suggested by Collins and indeed the wider media and masses are, in fact, the symptomatic issues of a deeper, more fundamental issue (but that’s for another time).

The focus of this post is that literally every scenario available to the UK football industry and its clubs is preferential to the concept of Collins’s ‘Football Finance Authority’ (FFA). Who is betting there has already been a logo drawn up by some fancy London design agency at the cost of a five bedroom detached house with sea views in Saltburn? God, I hope not.

Before I get into the specifics of why it is such a non-starter let me pose this notion. What faction of government gives rise to the hope that a new quango (the FFA) will perform any less abhorrently than what the vast majority of government departments currently do?

As a great football coach (Roger Wilkinson) once said to me: “They are failing to hit the incredibly low standards they have set for themselves”.

Further government involvement in any area of our lives or industries should be treated like Covid-19 itself. Here are a few facts:

- Amongst the 28 EU countries life expectancy of UK males is 10/28 and 17/28 for UK females

- The OECD’s Programme for International Student Assessments (PISA) ranks the UK 27th globally in Maths attainment of children behind countries such as Estonia and Vietnam.

- The UK mortality rate for all cancers combined (excluding non-melanoma skin cancer) is ranked higher than two-thirds of the world (rank 63 of 185)

- Despite the form of transport itself being invented here, our rail network now no longer even occupies a spot in the ‘European Railway Performance Index’ top tier. Now a Tier 2 nation for railway the ERPI describes our network as “low quality of service” and “high fares and the relatively low punctuality of regional trains”.

Any Government involvement should terrify us. I’m not bothered if it is positioning the Football Association as the go between. If the FFA has its way, it will be running the EFL.

It was telling wasn’t it that the Premier League were not subject to this (what I am taking as a direct threat to clubs). Yes, Premier League clubs seem set not to be included in the FFA’s scope. This is despite 29 ex Premier League clubs playing in the EFL. The finances of a lot of those clubs are wholly dependant on being in the Premier League and whilst I agree with Mr Collins that the rules and the enforcement of those rules are not good enough for the existing and new clubs (including those being relegated from the Premier League) why a Government department would have oversight of EFL teams and not the PL teams seems very strange especially when the titled of the paper was 'A way forward for Football' not 'A way forward for the EFL'.

The answer, of course, is that the PL won’t stand for it, their owners won’t, the agents won’t and as a result, the players won’t. Good on them I say.

The EFL is an easy shot for what is nothing short of political opportunism.

Yes, EFL clubs may need a government grant/loan – which industry doesn’t at the moment. Are the government forcing the airline into massive structural change as a part of any bailout? Of course not.

Yes, football finances are a mess.

However, unless the government is planning to impose a mass part nationalising of every industry and company within those that it offer financial aid to…….let football live and die by the rules that govern every other company in this land.

Football, by the way, is very good at surviving and extremely good at remaining in business even with technically insolvent organisations. It is why most of our clubs have a lineage right back to their original form and have existed for well over one hundred years (there is such a value in that). Football does possess qualities that make it irrefutably robust to economic changes. The financial crash of 2008 showed that.

I am not suggesting for a second that this isn’t different and that the prospect of no fans through the gates won’t pose unprecedented challenges.

Whilst (as I made reference to at the start) decision makers treat the symptoms as the principle causes then another layer of bureaucracy (even with an efficient organisation) is a complete waste of time.

Traditionally (before Covid) football has had the luxury of choosing its losses. For those of us that follow the finances of the game the losses are (as Collins rightly identifies) overwhelmingly centre around playing costs.

The question therefore is one for supporters; what do you hold more dear, an expensive team or a club in existence?
Collins offers a six point plan to turn the EFL (not the PL, not the National League not the rest of the pyramid – just the EFL) around.

1. Football Finance Authority (FFA) should be created.

Think I’ve covered that

2. Funds should be provided by the FFA to allow clubs to meet their short-term liabilities and provide them enough breathing space to restructure their finances, but couldn’t be used to invest in recruiting new players or improving the club’s infrastructure. Rather than being offered as loans these funds would instead be exchanged for a minority shareholding in the club, of between 10% to 49% depending on the level of investment required and the value of the club.

Do we really feel comfortable with an artificial vehicle to force shareholder changes in businesses. Do they realise the impact that this will have on inwards investment? If the Saudi Royal family end up taking over Newcastle and perhaps find themselves in the Championship one day with huge losses are they going to allow the FFA to gobble up 49% of their investment? Really? Seriously?

3. Independent directors would be appointed to the boards of clubs as representatives for this minority shareholding. These directors can be nominated by either a registered Supporters Trust or by the relevant local government authority, but they must be non-political and subject to approval as Fit and Proper by the FFA.

LOCAL GOVERNMENT AUTHORITY!!!!! Oh my days. Let’s hope Birmingham City, Walsall or Villa don’t end up in that predicament otherwise they’ll have the financial geniuses from Birmingham City Council running the shop. Yeah, the ones who owe other councils £200m. Luckily Thurrock doesn’t currently offer an EFL team but does offer a LA that is £1bn in debt. https://www.expressandstar.com/news/loc ... 200m-plus/

4. These Independent Directors shall have real time access to the financial records of their club and can report their concerns back to the FFA. Clubs that continue to trade outside the rules of the EFL would be put into a form of administration by the FFA, where a credible plan would be implemented by independent auditors to bring the financial affairs of the club back in line with the League’s rules.

What industry experience should these independent directors have? Who will judge if it’s relevant? Clubs getting into financial difficulty is the symptomatic evidence of issues and not the principle cause.

5. Either a recognised Supporters Trust or a local authority can subsequently acquire the FFA shareholding in their club at a discount to market value, and funds raised in this way would be returned to the government to help repay the public investment in this scheme.

The Supporters Trust movement is a progressive one and one I have, in large, supported. It is, however, still embryonic, and as such to label Supporters’ Trusts as a white labelled antidote to a club’s financial issues is not credible. There has been, after all, clubs operated by Supporters’ Trusts that have ended up in administration.

6. The EFL’s financial regulations should be set and enforced by the FFA, the governing body of which should include representation from the EFL, the Professional Footballers Association (PFA), the Football Supporters Association (FSA) and the clubs themselves, but with an independent majority.

Argh the coup de grâce. Did anyone else recognise that absolute hypocrisy in this proposed formation by a current government MP. He is effectively asking for a bipartisan, cross party coalition to run a department. Why not the same for Education, Mr Collins? Or Defence? Or the Treasury? Keir Starmer in all COBR meetings? I thought not.

The likelihood of the organisations mentioned there forming an effective governing body, putting their self interests aside is about as likely as Liverpool throwing away the league title from here.

They should not be put in that position. It is not fair on them. They each represent their own stakeholders in an existing hierarchical structure. Of course, at least one of those groups would be massively in favour of that scenario but the impending Armageddon that would follow is something to write about another time (answers on a postcard).

Our entire football pyramid is an industry triumph, admired globally. It is robust. It is fuelled by millions of supporters who deserve a better experience of fandom than the one we are currently serving up.

Investors domestically and from all around the world STILL actively want to join it and develop it. When they get it right, places are transformed for the better and the social nature clubs play is amplified. Clubs need to be healthy/healthier financial organisations to achieve that on a more frequent basis.

The structures and tools are already there to achieve that (with some tweaking). We must protect the industry away from government interference. Rugby League has had a £16m grant/loan but there are no specific future conditions being presented for those guys. This is populist, this is dangerous and those interested in football thriving in this country should repel it.

Collins does make some relevant points. The Salary Cap Management Protocol (SCMP) that sees League 1 and 2 only allowed to spend only a % of their turnover on wages is poorly policed and also allows a loop hole to include ‘football fortune’ and new investor cash not to be included. This clearly must be changed, fortified, extended into the Championship and the loophole tightened to fit into existing FFP rules. This, in my view, would benefit the industry as a whole but it is up to the market (as in club owners) to decide.

The American economist John Nash’s approach of doing ‘what’s best for me AND my competitors’ has always felt the most natural position for football to try and find itself in, at the end of the day, unlike other industries we actually need our competitors otherwise who would we play! It’s time we accepted this in a more meaningful manner.

This isn’t just a rant piece though. Here are three ways Damian Collins could use his fantastic position to really help football clubs:

1. The Sporting Events (Control of Alcohol etc) Act 1985

The same people that Mr Collins feels are suitable to part own football clubs are currently not allowed to drink alcohol in sight of the football pitch. Despite numerous efforts to change this government policy appears to remain that a beer in the hand of a football fan (not Rugby fans though – they are not subject to this law) can only lead to the return of hooliganism, violence in grounds and general disorder. A long overdue repeal in this Act would see revenues in this area.

2. Review on the cost of Policing for Football Clubs

Again, a long-term issue at clubs is the often crippling cost of policing and then the added frustration at seeing other clubs pay a fraction for the same service. Clubs have proven beyond doubt their ability to effectively manage supporters within their grounds but are still often burdened by rules taking decisions out of their hands…..but not the cost.

3. Support the transition to Safe Standing

With the government’s own review into Safe Standing not fully complete there is a great opportunity now to get the topic back into the discussion. The possibility of changing large sections of existing stadia into ‘Safe Standing’ areas offers up huge opportunities to grow the game again. It is, rightly, a delicate issue that many politicians have been fearful of putting their name to in the past. Safe Standing is not a return to terraces though and is a market led progressive step to getting football back to what it used to be in a safe way. Given Mr Collins’s experience as Chair of DCMS he is potentially the exactly right person to take a lead and push this forward with the same passion and determination.

Working in football is tough (I know this as well as anyone). The rules of engagement and action are not the same as in most other industries. The drivers in the game are largely ego and paranoia rather than evidence and reason.

The fundamental issue we must tackle (and as mentioned this is something I am endeavouring in) is to understand how best to serve the lifetime of fandom that supporters commit to whilst accepting that having your club (in its original existence) to take your kids/grandkids to is perhaps more valuable than that new striker or a change of manager here and now.

Government has generally stayed away from football (as FIFA likes it) and I implore Mr Collins to put his efforts into existing government policies that negatively impact football.

I believe Rick Parry will do a fantastic job for the EFL and he does not require this added dimension in order to tackle the clear and visible immediate issues.

Thank you for reading - hope you and your loved ones are safe and well.

[Chester Perry]

A fascinating little section (from page 70) on Burnley, although it includes a couple of inaccuracies in terms of seasons when we were promoted/relegated. A couple of classics that made reading that particular piece of the article worthwhile :-

"So, let us start with the northern financial powerhouse otherwise known as Burnley Football Club."

"However, Burnley's resurgence over the last decade is all the more remarkable given that it has been achieved with all the financial acumen of a perfectly weighted Martin Dobson through-ball."

Beautifully worded and certainly made me smile on a dismal Thursday afternoon.

This from page 50 shows how they consider us a benchmark of good practice

Despite the struggle for survival in the Premier League, Burnley’s business model is able to deliver results on the balance sheet. The club would appear to have adopted a very pragmatic approach to relegation without the financial panic exhibited by certain other clubs (eg Aston Villa, Sunderland etc). However, the club also achieved a modest economic loss of £2.49m in 2018-19 which is the first economic loss in 5 seasons of Premier League football since 2009. If Burnley is achieving an economic loss in the top flight, then things must be bad elsewhere...

[Chester Perry]

It is not a conventional (or even legal way) to try and make money from Magical Footballful Dosh Bush (cheers Rowls) but some would say others are stealing a living from it too - from the Mail

Report reveal hackers came close to stealing £1m from Premier League club and blocked a Football League side's turnstiles as sport is warned about growing dangers of cyber crime
- The email address of a Premier League club's managing director was hacked
- The hacking occurred during transfer negotiations with a club for a player
- An intervention from the bank prevented the club from losing £1m to hackers
- A host of other hacking incidents have compromised various different sports

By ALEC FENN FOR MAILONLINE - PUBLISHED: 15:18, 23 July 2020 | UPDATED: 16:00, 23 July 2020

A Premier League club came close to losing £1m to cyber hackers, according to a report published by the National Cyber Security Centre (NCSC).

The report reveals that a manager director of a Premier League club saw his email address hacked during transfer negotiations.

The bank then had to intervene to prevent hackers from stealing £1m, in one of a growing number of cases of cyber hacking within professional sport.

The NCSC also revealed that a Football League team almost had to postpone a fixture because hackers use ransomware to attack security systems and block the club's turnstiles.

Those are just two cases amongst a multitude of daily instances of cybercrime within the sporting world, with the NCSC warning that professional sport has become a key target for cyber criminals.

Paul Chichester, director of operations at the NCSC, said: 'Sport is a pillar of many of our lives and we're eagerly anticipating the return to full stadiums and a busy sporting calendar.

'While cybersecurity might not be an obvious consideration for the sports sector as it thinks about its return, our findings show the impact of cybercriminals cashing in on this industry is very real.

'I would urge sporting bodies to use this time to look at where they can improve their cybersecurity - doing so now will help protect them and millions of fans from the consequences of cybercrime.'

The report revealed that the biggest single financial loss to cybercrime was £4m, while 30% of incidents caused direct financial damage at an average of £10,000 per crime.

Over 70% of businesses also revealed that they had been targeted by cyber hackers over the past 12 months, while a staggering 30% of those surveyed had suffered more than five cyber attacks during that period.

Sir Hugh Robertson, chair of the British Olympic Association said in the report: 'Improving cybersecurity across the sports sector is critical.

'The British Olympic Association sees this report as a crucial first step, helping sports organisations to better understand the threat and highlighting practical steps that organisation should take to improve cybersecurity practices.'

[Chester Perry]

that Vysyble report has this to say about the DCMS - 24 hours before the DCMS published their own report

".....calls from the Chair of the Digital, Culture, Media & Sport Parliamentary Committee that the Premier League clubs should somehow further subsidise those within the Championship and beyond do make us wonder if the politicians of the day really want to understand the true economics of the sport. We have tried. In fact, we have written to the respective Chairs on at least four occasions over the last three years, without reply. Make of that what you will.

As we have publicly stated more than once, we do find it difficult to see how a group of economic loss-making clubs can further subsidise a group of economic loss-making clubs."

[Chester Perry]

Quite the bombshell from China last night - in apparent retaliation for the change in UK Gov's stance on relationship - China announced last night that they would cease airing of all Premier League games as of today

https://twitter.com/Prof_Chadwick/statu ... 4137906176

more strangeness from China last night - match blocked from State TV, the actual Chinese rights holder puts it on the internet, yet doesn't put a regional block on it so it is effectively pirating the broadcast in other territories (hard to tell if this was purposefully done or not) - I am left wondering what the Premier League will do

https://twitter.com/sportingintel/statu ... 2891908097

[Chester Perry]

Some may be surprised by just how big the value of sponsorship is in football, this study reveals the numbers in Europe's big 5 leagues this season - from SportsProMedia.com

Study: Europe’s ‘big five’ leagues rake in €3.3bn sponsorship revenue in 2020
Front-of-shirt and kit deals alone bring in close to €2bn.

Posted: July 22 2020By: Sam Carp

- Premier League shirt and kit deals bring in double amount of nearest rival La Liga
- Study shows growing correlation between sponsorship value and social media following
- Middle East companies spend most on European shirt sponsorships

The total value of sponsorship deals across Europe’s ‘big five’ soccer leagues in 2020 stands at more than €3.3 billion (US$3.8 billion), according to KPMG.

The professional services firm’s Football Benchmark team says that front-of-shirt sponsorship deals make up almost a third of that total revenue figure, which takes into account partnerships across England’s Premier League, La Liga in Spain, Germany’s Bundesliga, Serie A in Italy and Ligue 1 in France.

The study shows that Premier League clubs are well out in front, generating a combined €832 million (US$955 million) per year from their shirt sponsorship and kit supply deals, which is almost double the €436 million (US$500 million) generated by teams in La Liga.

Shirt sponsorship and kit supply contracts in the Bundesliga bring in €289 million (US$332 million) annually, compared to €248 million (US$285 million) in Serie A and €148 million (US$170 million) in Ligue 1.

The study also highlighted the growing disparity between the amount elite and smaller clubs receive from their sponsorship deals.

In the Premier League, the ‘big six’ sides – Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur – account for 83 per cent of the total annual shirt and kit sponsorship value. Meanwhile, in La Liga, champions Real Madrid and el clásico rivals Barcelona receive 80 per cent of the €436 million generated each year.

In terms of where the money comes from, the study found that companies in the Middle East spend the most on shirt sponsorship deals in Europe’s big five leagues, with an annual spend of €200 million (US$230 million) spread across just six partnerships. That next biggest spenders are firms from the US, Germany, Japan and the United Kingdom.

Perhaps unsurprisingly, the study showed a growing correlation between the value of a team’s sponsorship deals and the size of their social media following. Real Madrid, whose shirt deal with Emirates and kit supply agreement with Adidas bring in a table-topping €190 million (US$218 million) each year, also have the largest social media following, with 241 million followers across Facebook, Instagram, Twitter and YouTube.

Despite the ever-increasing value of sponsorship deals in European soccer, the European Club Association (ECA) recently warned that clubs across the continent’s top leagues are facing combined revenue losses of €4 billion (US$4.5 billion) by the end of the 2020/21 season as a result of the Covid-19 pandemic.

[Chester Perry]

the report that previous article was based on is found here

https://footballbenchmark.com/library/t ... key_trends

[Chester Perry]

the vultures are at the door continued - there is a new entrant in the factoring market - trying to dress up what they are offering as a means of supporting the return of live entertainment/sport - the example of financing quoted in this article from SportsProMedia.com is 15% off the top (not quite loan shark territory but given the relative security involved it seems sharp practice) level of interest on a short term secured loan, which is more than 2 times higher than clubs were being offered last year.

Opinion | How to make the most of the commercial (comeback) factor
US-based Endorser, Inc. has built its business on providing debt-free financing to live events operators in return for commercial-related income. Founder Paul Linden explains how the company’s cashflow solutions can help sports organisations regroup and rebound during and after the Covid-19 crisis.

Posted: July 23 2020By: Paul Linden

Covid-19 brought the live events industry to its knees with alarming speed and thoroughness that few thought possible.

To date, we’ve witnessed leaders of sport and entertainment fall as a result, including the upstart US professional football league, the XFL, as well as the national governing body of rugby union in the US, USA Rugby, and Cirque du Soleil, the largest contemporary circus producer in the world. The global live events economy has been rocked so severely that no one knows when the negative consequences will end.

Unfortunately, it appears the situation may only worsen, as more athletes and team personnel test positive for Covid-19. During the initial phase of the crisis, many live events had enough cash to continue operating in the short term. But as the pandemic stretches on, live events are running out of money.

Yet, three months into the global pandemic, the consequences across the business are only beginning to come into focus.

US-based Endorser has emerged as one of the leaders assisting the global live event industry on its path of sustainability and recovery with its cash solutions. Its business is built around providing debt-free financing to live events operators for commercial-related income invoices. Endorser can provide cash advances ranging from UK£20,000 (US$25,000) to more than UK£80 million (US$100 million), depending on the value of those commercial agreements.

“We have sat in the curator’s seat,” says Endorser’s founder, Paul Linden, “and know the pain they are facing. We want to be part of the solution of allowing live events to come back as soon as possible.”

Endorser has built a business on providing solutions for the financial health of live events The commercial (comeback) factor to not have to wait on their revenue partners to pay when they need the money now.

“Say you have a sponsor that is scheduled to pay their UK£800,000 (US$1 million) sponsorship in six months, but you know your franchise doesn’t have the cash reserves to last that long,” says Linden. “You can assign that commercial agreement to us to collect upon, and we will provide you up to UK£680,000 (US$850,000) tomorrow.”

Flashback to the 2008 financial crisis, which saw live events scramble to increase cashflow even as consumer spending dropped. Some live events closed, while others retooled the aspects of their operations that had become irrelevant. Those that were willing to adapt made it through that crisis. Today, companies who apply that same adaptive spirit will survive this crisis - provided they have the right roadmap of cash reserves, payment terms, debt ratios, working capital, and more.

“International sport over the past decade has experienced unlimited growth, unrestrained spending and unwavering popularity,” says Linden. “This boom has also fuelled too many key players and franchises in the industry with massively high debt ratios and others with limited cash reserves. Thankfully, we are not at the point yet to see another Phoenix Coyotes go bankrupt, as it did in 2008, but I am sure we are closer than most people know.”

What does a 60-day delay mean to your cashflow? It could be the final nail in your coffin.

When the Covid-19 crisis started, the natural first call for many operators was to contact their depository financial institutions to discuss options regarding weathering any prolonged closures.

“The unfortunate reply that most received from their financial institutions was that they did not fit the low-risk profile that banks view as their sweet spot,” says Linden. “Times of financial uncertainty have routinely shown that banks do not have an obligation and/or desire to serve the needs of our industry beyond depository activities.”

An exception occurred recently with the UK£175 million (US$218 million) loan Premier League soccer club Tottenham Hotspur secured from the Bank of England at a 0.5 per cent interest rate. Elsewhere, US-based Blackstone was linked with a €100 million (US$112 million) short-term loan to help clubs in Italy’s Serie A mitigate against the financial impact of the ongoing pandemic, while the league has also been in talks over an equity sale to Luxembourg-based CVC Capital Partners and London-based Cinven.

Yet others feeling the cash crunch have not been so lucky to secure debt financing. In May, Endeavor Group secured a US$260 million emergency loan after selling some of its minority stake in Fortnite publisher Epic Games. The following month, the National Football League’s (NFL) Pittsburgh Steelers sold an estimated five per cent minority stake to private equity investors Joshua Harris and David Blitzer, while McLaren Group, which owns McLaren Racing, pocketed a UK£150 million (US$185 million) loan from the National Bank of Bahrain (NBB) after initially considering selling a minority stake in its Formula One team.

Linden suggests there are other potential paths to consider. “Dilution doesn’t have to be the solution, neither does the sale of assets or even debt,” he says.

“Our leadership has deep roots as operators of global-scale events, so we understand what our peers are experiencing right now. We launched by asking the question: what if we advanced US$8 million on your US$10 million title sponsorship agreement? Could this help ease the cashflow financial burden everyone is currently experiencing?”

In early July, it was reported that Learfield IMG College was asking US schools for 60-day delays on payments for their radio, marketing, and sponsorship rights deals. The requests also included a proposal to restructure deals to reduce or eliminate guaranteed rights fees.

“What does a 60-day delay mean to your cashflow?” Linden asks. “It could be the final nail in your coffin.”

Going forward, what is certain is that cash is king and without it, live event operators will be forced to close and never reopen.

[huw.Y.WattfromWare]

Re: the transfer hack.
Would an FA transfer clearing house not put a stop to this, internally at least?

[Chester Perry]

Re: the transfer hack.
Would an FA transfer clearing house not put a stop to this, internally at least?

a funds transfer still has to be activated, I read it as a diversion on funds to a different bank account, which is definitely in the banks sphere of influence not a a holding house like the FA one you suggest. Incidentally the proposed FIFA clearing house for international transfers is about visibility of transfer payments (including to agents) to the authorities rather than about such theft mechanisms.

[Chester Perry]

Another Italian club sells to a foreign investor - Parma is being sold to a Qatari Businessman - don't confuse it with the PSG owners

https://twitter.com/IFTVofficial/status ... 5243909122

[Chester Perry]

more strangeness from China last night - match blocked from State TV, the actual Chinese rights holder puts it on the internet, yet doesn't put a regional block on it so it is effectively pirating the broadcast in other territories (hard to tell if this was purposefully done or not) - I am left wondering what the Premier League will do

https://twitter.com/sportingintel/statu ... 2891908097

The South China Morning Post had this take on the sudden Premier League blackout

Is the English Premier League facing being blown off course by its own NBA-style China row?
The NBA’s ongoing row with the Chinese government has cost the organisation up to US$400 million
The English Premier League will be hoping to avoid a similar fate that could cost it much needed revenue

Paul Ryding - Published: 6:05pm, 23 Jul, 2020

New English Premier League chief executive Richard Masters awkwardly fist-bumped and hand-slapped a number of Liverpool’s back room and playing staff – he just blanked others – as he handed over League winners’ medals at a lavish trophy presentation at Anfield on Wednesday night. He didn’t appear to be enjoying his first coronation, but he would have been forgiven for having more pressing matters on his mind.

Masters was handed the wheel to the good ship EPL in December last year and immediately sought to navigate a lucrative course into the riches of China.

In one of his earliest manoeuvres as chief, Masters oversaw the Premier League launching its three-year, US$700 million deal with Chinese broadcaster PP Sports, a subsidiary of retail giant Suning, at last year’s (increasingly erstwhile) Premier League Asia Trophy in Shanghai.
That day, optimism abounded as Masters spoke of a bright future for the Premier League in China.

“We look forward to working closely with PP Sports for the next three years to bring Premier League football to our growing fan base in China,” he said.

Oh, the Premier League Asia Trophy. That now looks further from our shores than ever, but I digress.

Spare a thought for Masters; his predecessor Richard Scudamore oversaw the League for 10 years through a veritable boom only pockmarked by the odd bung inquiry and various misdeeds of players. The league went from strength to strength under his stewardship and revenues were higher than ever. Masters, meanwhile, has endured a tempestuous ascension to the EPL hot seat.

He has been rightly credited for his efforts to get the Premier League back under way after a lengthy pause following the outbreak of Covid-19. Britain has been badly affected by the pandemic and getting the competition up and running again was a triumph in itself. But now, just weeks after riding that wave, a potentially more dangerous one is swelling.

here are early indications that the Chinese government will attempt to hobble the UK’s most successful entertainment export in a manner similar to how it did with America’s NBA last year in the fallout from the Daryl Morey saga.

A quick recap if you missed that one: the Houston Rockets general manager spoke out on Twitter in support of Hong Kong pro-democracy protesters soon before an NBA exhibition trip to China. China reacted angrily to the “interference” and the long-planned exhibition games on the mainland were pulled from TV schedules at the eleventh hour. China blocked broadcasts of games involving the Rockets (the former team of Chinese basketball legend Yao Ming) after NBA chief Adam Silver refused to offer up Morey as a sacrificial lamb for the misstep. Silver’s determination to defend the free speech of the NBA’s personnel led to China enacting a full blackout of the NBA in October last year. Silver said recently the whole episode has inflicted “substantial” losses of around US$400 million on his organisation.

Now, nine months on from the start of the NBA-China row, state broadcaster CCTV remains resolute in its stance towards the organisation and said there would be no imminent easing of the blackout on NBA games. “China Central Television refutes rumours that it would restore streaming NBA games, reiterating its consistent stance on national sovereignty,” it reiterated in May.

If that is how China responds to an errant and very short-lived (Morey removed the tweet hours later) social media-sized slight, how it will react to the UK government backtracking and pulling out of a multibillion-dollar trade agreement, apparently at the behest of the United States, is anybody’s guess.

after some mildly threatening rhetoric, it looks like China will opt to hit the Premier League in the pocket.

Reports circulated on social media on Wednesday that China had pulled planned coverage of the Liverpool vs Chelsea Premier League match at short notice, and that the remaining round of the League season on Sunday would not be broadcast.

In the event, the Liverpool-Chelsea match was shown on CCTV, but it was shunted to the less viewed CCTV5+ at short notice. And the channel’s weekend schedule still appears to indicate that it will broadcast live coverage of Leicester City against Manchester United on Sunday.

Primary broadcasters PP Sports and Suning appear insulated from the whims of the Chinese government, to a point. They were made to fall in line with a directive from the foreign ministry in December when it hastily pulled a match between Arsenal and Manchester City from its schedule, and limited subsequent coverage of the North London club in reaction to comments made by Arsenal midfielder Mesut Ozil in relation to China’s treatment of its Muslim Uygur minority.

However, perhaps we shouldn’t look too much into the broadcast scheduling, which is prone to being changed at a moment’s notice in China, and rather should pay attention to the voices in China strongly suggesting something is afoot.

The last-minute shunting was likely a shot across the bow. How long before China’s all powerful General Administration of Sport dictates that PP Sports cease its Premier League broadcasts?

Aside from the potential damage for the Premier League’s bottom line if the fallout goes on, the greater, more imminent threat is to its members.
Could the row spread as far as individual sponsorship deals clubs have with Chinese entities? Most clubs have aggressively sought to expand into the Asian market, with Chinese audiences a primary target.

A sudden, Chinese state-mandated withdrawal of financial support to English clubs – many of whom are engaged in long-term sponsorship deals and commercial partnerships with Chinese companies, some who are owned outright – could be catastrophic for clubs at a hugely precarious time in the current economy.

If loose lips have managed to force the mighty NBA off its course in China, Masters must be fearing that the waves made by the UK government could yet sink the Premier League’s operations there.

[Chester Perry]

There have been a few updates from Simon Chadwick today on the China/Premier League issue

https://twitter.com/Prof_Chadwick/statu ... 7734939648

https://twitter.com/Prof_Chadwick/statu ... 5797537792

https://twitter.com/Prof_Chadwick/statu ... 9207073792

[claretandy]

Swiss ramble thinks we will get 16m more than last year, if we finish 9th, each place is now worth 2.7m after the rebate.

https://twitter.com/SwissRamble/status/ ... 33569?s=19

[randomclaret2]

Looks like we may see the biggest increase, as compared with last season, of any club in the League

[Royboyclaret]

Swiss ramble thinks we will get 16m more than last year, if we finish 9th, each place is now worth 2.7m after the rebate.

https://twitter.com/SwissRamble/status/ ... 33569?s=19

All of which as outlined on pureclaret's "Premier League position money" thread some ten days ago (if someone would kindly link the thread on here), except I had us finishing 10th at £127m less £17m broadcast rebates compared to Swiss Ramble's 9th and £130m less rebates.

Interestingly the potential £17m in rights holders rebates can be pretty much offset by our other Income ( adjusted match-day receipts, catering, retail and sponsorship) bringing us back to a potential £130m in Total Income. If that materialises then only a reduction of some £8m in Turnover from the previous financial year which should ensure we just about break even for the year.

A considerably better financial position than many other Premier League clubs will discover themselves in.

[Chester Perry]

All of which as outlined on pureclaret's "Premier League position money" thread some ten days ago (if someone would kindly link the thread on here), except I had us finishing 10th at £127m less £17m broadcast rebates compared to Swiss Ramble's 9th and £130m less rebates.

Interestingly the potential £17m in rights holders rebates can be pretty much offset by our other Income ( adjusted match-day receipts, catering, retail and sponsorship) bringing us back to a potential £130m in Total Income. If that materialises then only a reduction of some £8m in Turnover from the previous financial year which should ensure we just about break even for the year.

A considerably better financial position than many other Premier League clubs will discover themselves in.

here you go Roy

viewtopic.php?f=2&t=48539

A note on that Swiss Ramble piece about a few things that struck me:

- The even application of rebate impact is what the big clubs want, but that was off the top not from the merit pot, which is what the clubs at the bottom would prefer;
- There is no accounting in the pots for all the extra payments (above the pro rata distribution set out at the start of the season) especially the advance of a lot of next seasons solidarity payments;
- Taking all the rebates from the merit pots just does not follow the Premier Leagues own distribution rules (though the members can vote to change)
- There is a logic to retaining the equal payments (it means the relegated clubs maximise their income this year and that solidarity/parachute payments are not affected from those promised to the EFL at the start of the season) The Premier League's absorption of this hit is never considered by the likes of the DCMS
- if merit payments are being hit why not TV appearances as well - possibly because facilities fees include a base level equal payment
- The math does not quite add up - the known rebate is £330m - merit payments are split into 210 equal shares and paid pro rata- 210 x 0.5 i= 105, 105 x 3 = 315, It is possible that the rest would come from reserves.
- while it is logical to spread the pain over 3 seasons to allow for both the minimising of impact and even distribution, why no contingency for a season that is starting 6 weeks late and when rights holders have been making noises about additional rebates.

*** I think I said at the start of this in March that we could still turn a profit this season - if @SwissRamble's view play's out I could be right, it is possible that we may even post record revenues for a season - not that we will ever see them reported in the accounts that way as year end passed 25 days back - that thin squad just may have brought us £10.8m in additional revenue in that time

[Royboyclaret]

Looks like we may see the biggest increase, as compared with last season, of any club in the League

Clearly the potential £17.3m broadcast rebate will cause some pain in Burnley's boardroom, but just to emphasise how favourably we should come out of this situation in relation to other PL clubs, let's do a direct comparison with say Arsenal.

We lose the £17.3m and say another £1.2m in matchday-receipts, but gain £16.5m in additional prize money. So, a net deficit of some £2m.

Arsenal lose £16.8m and a further £19m in matchday receipts (one fifth of £96m) and lose a further £13.3m for finishing 10th from 5th. So, a net deficit of some £50m.

[randomclaret2]

Makes our incredible performances since lockdown all the more lucrative Roy, and certainly answers those who talked about "meaningless" games and called for untried youngsters to be played.