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 » Thu Jul 02, 2020 1:22 pm

@SwissRamble looks at how Liverpool's Finances have developed since the arrival of Jurgen Klopp

https://twitter.com/SwissRamble/status/ ... 2563662848

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 1:27 pm

The Football Today Podcast asks - how could a broadcast rights deal scupper the Saudi takeover of Newcastle United?

https://www.footballtodaypodcast.com/po ... keover-bid

EDIT there is a lot of good discussion here about piracy as well as the relationships that are built between broadcasters and rights owners
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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 2:48 pm

And TwoHundredPercent.net looks at the Impossible choice for the Premier League re the Newcastle takeover by the Saudi PIF

https://twohundredpercent.net/newcastle ... le-choice/

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 2:50 pm

TwoHundredPercent.net also neatly summarise the Wigan Administration story

https://twohundredpercent.net/wigan-ath ... d-quickly/

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 2:53 pm

It is no surprise with new bidders continuing to emerge (and pushing the price up) that Serie A are taking their time to consider their options - from SportsBusiness.com

Serie A to continue weighing up private equity offers
Martin Ross - July 2, 2020

Italian football’s Lega Serie A has decided to continue to examine proposals from private equity investors following a general assembly meeting.

The proposals were discussed at Tuesday’s meeting with none of the offers selected as the league opted to carry on weighing up the options.

One source told Reuters: “The clubs mandated Serie A’s president (Paolo) dal Pino to continue exploring the feasibility of a deal, in a bid to get more definite proposals by end-July.”

Private equity firms CVC Capital Partners, Advent International and Bain Capital are all said to be in the mix as Lega Serie A looks to boost its future media rights income amid the onset of the Covid-19 crisis.

London-based private equity firm Cinven has also expressed its interest in an investment but there is no certainty that it will submit a proposal, according to Bloomberg.

CVC enjoyed an exclusive negotiation window but this is now thought to have expired.

CVC’s reported €2.2bn ($2.48bn) bid was to acquire 20 per cent of a new company that would manage the media rights, Serie A’s international trademark and commercial development, and part-finance a new investment fund responsible for stadium development.

Bain Capital was last month said to have made “a tentative offer” to buy a 25-per-cent stake in Serie A for €3bn.

Leading Italian financial journalist and football analyst Marco Bellinazzo told SportBusiness this week that cash-strapped Serie-A clubs could find it difficult to agree a deal with a private equity investor because of internal politics and deep-seated rivalries.

Domestic live rights to Serie A games are held by Sky and DAZN in deals worth €973m per season, while the IMG agency holds the international rights in a deal is worth just over €380m per season for international broadcast rights, club archive rights, betting rights, a marketing spend and fee for access to the broadcast signal.

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Re: Football's Magic Money Tree

Post by huw.Y.WattfromWare » Thu Jul 02, 2020 3:01 pm

GodIsADeeJay81 wrote:
Thu Jul 02, 2020 1:51 am
I couldn't begin to pick a manager to do such a thing.
Simeone would be perfect but would he want it?

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 3:01 pm

In a growing relationship that is good for them but not so much for rights owners, BT and SKY for a new partnership to sell advertising - From SportsProMedia.com

BT Sport and Sky strengthen ties with exclusive ad sales partnership
Sky Media secures contract covering UK broadcaster’s TV channels and digital platforms.

Posted: July 2 2020By: Sam Carp

- Multi-year ad sales contract covers all BT Sport channels
- Sky Media ousts Channel 4 after ‘competitive tender process’
- Deal builds on Sky and BT content partnership agreed in 2017

UK pay-TV network BT Sport has appointed Sky Media, an arm of the European broadcasting giant, to exclusively sell advertisements and sponsorship across all of its channels.

Sky Media won a ‘competitive tender process’ to secure the multi-year contract, replacing UK commercial broadcaster Channel 4, which has handled the inventory since BT Sport’s launch in 2013.

Starting in September, the deal gives Sky Media the right to exclusively sell placements across both residential and commercial feeds of all BT Sport channels in the UK, as well as the broadcaster’s app and website.

Homemade tech, remote production and Tesco deliveries… how BT Sport brought the Bundesliga back

Sky Media represents all of Sky’s channels and also sells on behalf of other broadcasters such as Channel 5, Viacom and Discovery.

The deal strengthens the ties between Sky and BT after the pair agreed a content deal in 2017, allowing Sky customers to add BT Sport to their subscriptions and BT TV subscribers to access Now TV content on their set-top boxes.

“This new agreement between BT Sport and Sky Media is just another step forward in deepening the longstanding partnership between BT and Sky,” said Patrick Behar, Sky’s chief business officer. “From rolling out our world-class entertainment on BT TV through our Now TV service, and reaching a deal to offer both parties’ sports offerings in one place earlier this year, our relationship is going from strength to strength.

“This latest agreement is another perfect fit for both of us and it will mean Sky Media can offer clients all the best sports advertising available in the UK, in one place.”

Andy Haworth, managing director of BT Sport, added: “We are excited to be forging a new partnership with the Sky Media team, whose expertise in the sport market stood out, we are excited about the new opportunities this will bring and look forward to working together.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 3:32 pm

huw.Y.WattfromWare wrote:
Thu Jul 02, 2020 3:01 pm
Simeone would be perfect but would he want it?
Really? while I would have thought it would need an older universally respected head, I do not see Simeone as a perfect fit for Barcelona, or being the person to take down Messi a peg or two. It needs someone with the utter ruthlessness of Ferguson, but to do it you have to know you have the backing in the boardroom - and that is probably the most unstable area of the whole set-up

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 3:39 pm

@Marcotti takes his turn at looking at the complex issues involved in the proposed Saudi takeover of Newcastle

Newcastle United sale to Saudi Arabia-led consortium: Why the stakes are so high

Gabriele Marcotti - Senior Writer, ESPN FC

A full three months have passed since Newcastle United and the Saudi Arabia-led consortium seeking to buy the club submitted paperwork to the Premier League for approval. A process that normally takes no more than a month is taking three times as long, as everyone from members of the British parliament to Amnesty International to the World Trade Organization have had their say, extending the process and the uncertainty associated with it.

Premier League chief executive Richard Masters told a parliamentary committee on Tuesday that the process of approving the sale has proved to be "complicated" but that he hoped it would be concluded "shortly."

The stakes are huge, in part because some believe the new ownership group's main partner, the Saudi sovereign wealth fund (PIF), have the intention of transforming Newcastle into a global juggernaut in the same way Manchester City were overhauled after their takeover by Abu Dhabi. But this is a complicated tale that raises concerns over human rights, geopolitics and, possibly most crucially for the Premier League, broadcast piracy.

OK, start at the beginning. Who is part of the consortium?
The biggest stake, around 80%, belongs to PIF. It's basically the Saudi government and because it's an absolute monarchy, it means the Saudi royal family. Saudi Arabia is obviously rich in oil and because they know it will run out eventually, they set up PIF as an investment vehicle. They take the country's revenues, primarily from the sale of oil, and invest them in corporations around the world in an effort to diversify their economy. They have some $350 billion invested globally.

PCP Capital partners, led by Amanda Staveley, has another 10% of the Newcastle bid. She helped broker the sale of Manchester City to the Abu Dhabi United Group back in 2008. She's also in court, where she and her business partner have sued Barclays Bank for $1.85 billion.

According to the Wall Street Journal, Staveley has a close relationship with Carla DiBello, who has been advising PIF. DiBello is a former producer of reality TV shows like "Keeping Up with The Kardashians." The rest is held by the Reuben brothers, David and Simon. They were born in Bombay, back when it was part of the British Empire, and emigrated to London. They began dealing in scrap metal and carpets, graduated to aluminum and now are in private equity.

So these folks have a lot of money. With all due respect, why are they choosing Newcastle and not, say, Chelsea or Tottenham?
Those two clubs aren't for sale, at least not officially. More importantly, those would be multibillion deals; the Newcastle takeover is reportedly around £300 million ($370m) and the less you spend on acquiring a club, the more you can invest in it.

There is also potential in Newcastle. While the club last won the league title in 1927, it consistently draws 50,000 fans every week to St James' Park. And unlike Spurs and Chelsea, who share London with three other Premier League clubs, Newcastle are the only show in town, football-wise. There's also the fact that Mike Ashley, Newcastle's owner, is deeply unpopular with the fan base, which means the new owners would enjoy goodwill from day one.

Will it be enough to transform Newcastle the way City were transformed?
Not in the short term, and probably not in the medium-term either, as Mark Ogden explains. Both UEFA and the Premier League have versions of Financial Fair Play rules that limit the amount of losses a club can make, restrictions that didn't exist in the early years of the Abu Dhabi ownership at City. And Newcastle is simply a smaller, less economically developed part of Britain than Manchester, meaning growing revenue straight away will be a challenge.

So what are the potential objections to a takeover?
One of the objections that received the most attention is obviously Saudi Arabia's human rights record. Amnesty International have written to the Premier League, as has the fiancée of the murdered dissident Jamal Khashoggi, a Saudi national, who was killed inside his country's consulate.

Western intelligence believes the killing was ordered by Mohammed bin Salman, the crown prince and de facto ruler of Saudi Arabia and PIF Chairman. He has denied the charge and, in fact, five men were later sentenced to death in a Saudi court. That said, the United Nations observer, Agnes Callamard, called the trial "the antithesis of justice" in part because the perpetrators were put to death but the masterminds walked free.

Aren't there human rights concerns with other Premier League owners, like the Abu Dhabi sovereign wealth fund that owns Manchester City?
Sure. Both countries rank near the bottom of various democratic indices around the world, like that compiled by The Economist. Amnesty International's report on the United Arab Emirates and Saudi Arabia is fairly damning of both.

Perhaps there is more concern over Saudi Arabia because the country is also a major military power, with the fifth-biggest army in the world. Plus, City's owners have been there for more than a decade and while both countries are important allies to the United Kingdom, UAE has been more open to foreign investment and visitors. (Case in point: Dubai alone attracts more than 20 million tourists to the Emirates each year, whereas until this year you couldn't get a tourist visa to visit Saudi Arabia.)

And then there's the fact that when Abu Dhabi bought City, they acquired the club from Thaksin Shinawatra, who at the time was facing corruption charges and was, effectively, on the run back home in Thailand. Whatever reputational issues there may have been at the time, they played out against someone who, reputationally, was worse.

Others, like Roman Abramovich at Chelsea and Alisher Usmanov (former part-owner of Arsenal) have also faced human rights concerns, as has Shinawatra. But there's a difference, I think, between an individual owning a club and a sovereign wealth fund.

What's that?
An individual represents himself. Ultimately, he's accountable to laws and prosecution in ways that a sovereign wealth fund, which is basically a country, is not. Especially when that country, like Saudi, is an unelected authoritarian regime. Plus, an individual can do what he wants with his own money in terms of backing a club. A sovereign wealth fund should, in theory at least, look out for the interest of its citizens.

You could easily make a case that Mohammed bin Salman could buy Newcastle himself, with his own money, if he's so interested. Government ownership, especially by undemocratic countries without an independent legal system, is problematic in another sense and in the case of the Premier League presents a potential conflict of interest with another club: Sheffield United.

How so?
Sheffield United's majority owner is Mohammed Bin Salman's cousin, Abdullah bin Musa'ad bin Abdulaziz Al Saud. Premier League rules disqualify owners if "either directly or indirectly [they are] involved in or [have] any power to determine or influence the management or administration of another club."

Put differently, if the U.S. government owned an NBA team and Mark Cuban was the president's cousin, might there be a potential conflict of interest? That's something else the Premier League will need to figure out.

What about this piracy business?
This tale is a bit more complicated and, because there's money involved, could potentially matter more to the Premier League.

Basically, Saudi Arabia is in a long-running dispute with Qatar, who owns the broadcaster beIN Sport. BeIN has the rights to most major football tournaments in the Gulf, from the Premier League to the Champions League, from the World Cup to La Liga. For the past few years, BeIN's feed was pirated, its logo replaced with the words "beoutQ," and made accessible via decoder boxes freely sold in Saudi Arabia and elsewhere.

BeIN complained and tried to take legal action in Saudi, only to find that no local law firm was willing to take their case. A FIFA investigation found that "without question," Saudi-backed providers were a part of this piracy operation. FIFA, UEFA, the Premier League, La Liga and Serie A wrote to the Saudi government, urging them to take action. The Premier League even wrote to the U.S. Department of State highlighting Saudi piracy concerns. Last week, the World Trade Organization found in favour of Qatar in the beoutQ case, opening the possibility of sanctions.

When you want to join an organisation (the Premier League) and you've been engaged in criminal activity (piracy) that has directly damaged that organisation ... well, that's a problem. Which may explain why, on Sunday, Saudi authorities announced they were beginning to take action against the theft of intellectual property.

So how is this going to go?
Beats me, but the delay is significant and can't be simply explained away by the fact that the Premier League were busy with Project Restart. Ashley's departure would clearly lift a historically important club and its fan base, which is why so many Newcastle fans are so keen for this takeover to happen. (It's probably more that than dreams of replicating City's growth.)

This isn't the NFL, where owners vote to approve sales of franchises. The Premier League is fundamentally a service organization, looking after the needs of its member clubs, all of whom are for-profit companies. Making purely moral judgements on who can buy a club isn't something it has the authority to do unless specifically requested by its members, hence the focus on business reasons, like potential reputational damage. There are also limits placed by UK legislation: Unless specific laws have been broken or there is a business case to be made for not approving a sale, it could be seen as discriminatory.

The impression -- and it's just a gut feeling -- is that the piracy matter is a bigger stumbling block, and if PIF is willing to work with the Saudi government to make it come to an end, the takeover will come one step closer.

You also get the impression that Premier League clubs would welcome the deal. In the short term, it would inject some liquidity into a league hit hard by the coronavirus pandemic, but in the medium and long term there is little reason to believe Newcastle will be a threat on the pitch, because of the existing cost controls and safeguards. Whether it's desirable for an authoritarian, unelected regime to own one-twentieth of one Britain's biggest and most prestigious brands is another matter.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 4:57 pm

Some interesting numbers from @KieranMaguire as he looks through the Championships 2018/19 finances - of course certain clubs still have to post thes accounts

https://twitter.com/KieranMaguire/statu ... 4525256705

the standout is the second table showing a breakdown of average actual wage to the average break-even wage

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 5:01 pm

And speaking of Derby County - the company formed to buy Pride Park from the club has an interesting report at Companies House

https://twitter.com/KieranMaguire/statu ... 4779231235

I take it from this that the ground sale was a paper exercise with no actual money changing hands - still they are charging rent so money will soon be coming in - or at least that is what I assume
Last edited by Chester Perry on Wed Jul 08, 2020 12:09 am, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 02, 2020 7:26 pm

The detail on that Lords report calling for the end of Gambling sponsorship on Football shirts I posted about last night - includes links to the actual report

https://committees.parliament.uk/commit ... ds-report/

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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Thu Jul 02, 2020 8:40 pm

huw.Y.WattfromWare wrote:
Thu Jul 02, 2020 3:01 pm
Simeone would be perfect but would he want it?
The real questions are would Messi want him and if not would the Barca board go against his wishes and plan for the future...

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 1:56 am

A fascinating discussion from a few weeks back on the Tifo Football Podcast - Which Football Club Should You Buy?

covers a lot more than just purchase of clubs 0 looks at players, scouts, coaches and Academies - i,e, it looks at the whole strategy for development of a club including looking at best practises across the globe.

https://podcasts.google.com/feed/aHR0cH ... w&hl=en-GB

Focus is on club purchase particularly a satellite club approach like Man City and Red Bull

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Re: Football's Magic Money Tree

Post by Vegas Claret » Fri Jul 03, 2020 2:17 am

Chester Perry wrote:
Fri Jul 03, 2020 1:56 am
A fascinating discussion from a few weeks back on the Tifo Football Podcast - Which Football Club Should You Buy?

covers a lot more than just purchase of clubs 0 looks at players, scouts, coaches and Academies - i,e, it looks at the whole strategy for development of a club including looking at best practises across the globe.

https://podcasts.google.com/feed/aHR0cH ... w&hl=en-GB

Focus is on club purchase particularly a satellite club approach like Man City and Red Bull
do we get a mention ? :D

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 2:26 am

Vegas Claret wrote:
Fri Jul 03, 2020 2:17 am
do we get a mention ? :D
no - the process of thought/analysis is very interesting and I fully understand why we were not mentioned
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Re: Football's Magic Money Tree

Post by Vegas Claret » Fri Jul 03, 2020 2:36 am

Chester Perry wrote:
Fri Jul 03, 2020 2:26 am
no - the process of thought/analysis is very interesting and I fully understand why we where not mentioned
cheers CP, i'll check it out

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 11:45 am

First story of a Premier League club defaulting on an outstanding Transfer Stage Payment (West Ham) - I expect more - from the Times

Fifa to investigate West Ham United over £5.4m Sébastian Haller payment
Martyn Ziegler, Declan Warrington
Friday July 03 2020, 12.01am, The Times

West Ham United are facing the threat of sanctions from Fifa after defaulting on a £5.4 million payment owed over the transfer of striker Sébastien Haller from Eintracht Frankfurt.

Fifa has confirmed to The Times that the German club has lodged a complaint relating to West Ham, which has set in motion an investigation.

Haller, 26, had cost West Ham £45 million when they signed him from the Bundesliga club last summer with the fee to be paid in instalments. The latest instalment of £5.4million was due on May 15 but was not paid, leading to Frankfurt reporting the matter to the world governing body.

A Fifa spokesman said: “We can confirm that we have received a claim from the German club Eintracht Frankfurt against English club West Ham United. The matter is still being investigated and consequently we cannot provide any further comments.”

Fifa’s rules on “overdue payables” state that “clubs are required to comply with their financial obligations towards players and other clubs as per the terms stipulated in the contracts signed with their professional players and in the transfer agreements”.

Any club found to have delayed a due payment for more than 30 days without an agreement “may be sanctioned”.

The range of sanctions can vary from a warning or reprimand to a fine or, for more serious cases, a transfer ban for one or two windows. Fifa rules state that more serious penalties are usually imposed for repeat offences.

West Ham declined to comment but sources close to the club insist the delayed payment was not related to any cashflow problem caused by the coronavirus pandemic but was connected to a contractual issue with Eintracht Frankfurt and is close to being resolved.

The club did not furlough any staff at the start of the crisis after the players agreed to defer a percentage of their wages, while David Moyes, the manager, and the vice-chairman Karren Brady took a 30 per cent wage cut.

An Eintracht Frankfurt spokesman said the club could not comment “as this is a pending procedure”.

Haller, left, who made numerous appearances for the France Under-21 team and other youth sides but has not been capped at senior level, looked a promising signing for West Ham with three goals in his first three games but his goal threat tailed off and he has only scored seven in 29 appearances this season.

Fifa’s rules state that the debtor club, in this case West Ham, must have been given at least ten days to comply with its financial obligations.

If the case continues, it will be judged by Fifa’s Players’ Status Committee or its Dispute Resolution Chamber.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 11:51 am

Jonathan Barnett -- the man who Forbes describes as the most powerful sports agent in the world, talks to the Football CFB Podcast about his work the new FIFA regulations on Agents etc

https://anchor.fm/footballcfb/episodes/ ... ett-eg5t70

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 12:26 pm

UEFA sign a Spanish Deal for it's club competitions for the next cycle - from SportsProMedia.com

Uefa confirms ‘€975m’ Champions League rights deal with Telefónica
Elite European club soccer stays on Movistar+ in Spain through 2024.

Posted: July 3 2020By: Steven Impey

- New contract worth a reported €360m per season
- Deal includes Europa League and Europa Conference League
- Movistar had previously sublicensed the rights from Mediapro

Madrid-based telecommunications giant Telefónica has secured exclusive rights in Spain to the Uefa Champions League and Uefa Europa League European club soccer competitions for the 2021/22 to 2023/24 rights cycle.

Reportedly worth €360 million (US$391 million) per season, the deal keeps top-flight European soccer on the Movistar+ media platforms for a further three years.

Under the current cycle, Telefónica sublicenses the contract from Mediapro. But now the telecommunications firm will be Uefa's direct broadcast partner for its men's European club soccer competitions as the deal also includes rights to the Uefa Youth League and the new Uefa Europa Conference League.

Emilio Gayo, executive president of Telefónica España, said: “This agreement with Uefa is an important step in Movistar’s strategy linked to the world of sport. Our Movistar+ platform continues to work after three decades to continue making football accessible in our country.

“A specialised team, the quality of everything surrounding the competition and differential production values are our hallmark. With Movistar, our client will always have the best sport and the latest technology to guarantee an added value experience, beyond the broadcasts.”

Guy-Laurent Epstein, Uefa’s marketing director, added: “This partnership ensures the competitions will continue to receive comprehensive exposure, through delivery of innovative coverage to football fans in Spain.”

Confirmation of the deal comes shortly after Telefónica struck a new €300 million (US$336.6 million) sublicensing agreement that will allow rival Orange to continue to show La Liga and Champions League games for the upcoming 2020/21 campaign.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 12:34 pm

Chester Perry wrote:
Thu Dec 13, 2018 3:54 pm
So the owner of Leeds Utd and Eleven sports is having to learn the hard way - no domestic TV broadcaster will buy the La Liga or Serie A broadcast rights from him (why finance a rival or someone who constantly berates you for showing his team and their associated sponsors too much on TV and not paying enough for the privilege. Seems they have an all sports block on him too as UFC have just cancelled their deal with Eleven sports as no UK broadcast partner could be found. he is now going cap in hand and tugging his forelock in hope of renegotiating said footy deals - good luck with that one

https://www.bbc.co.uk/sport/football/46555111" onclick="window.open(this.href);return false;

Andrea Radrizzani reflects on the failed Eleven sports venture in the UK - from SportsProMedia.com

Eleven Sports UK launch “a mistake”, admits Radrizzani
Aser chairman says it was “impossible” to secure carriage deal with Sky or BT.

Posted: July 2 2020By: Sam Carp

Eleven Sports chairman and founder Andrea Radrizzani has admitted that it was “a mistake” to launch the network in the UK.

Eleven, which is owned by Radrizzani’s Aser investment vehicle, went live in the UK in 2018 with an over-the-top (OTT) subscription service offering exclusive live coverage of the Ultimate Fighting Championship (UFC) and major European soccer leagues including Spain’s La Liga and Italy’s Serie A.

However, Eleven was forced to relinquish its premium rights in the UK after less than a year when it failed to secure a carriage deal with a linear broadcaster, and has not struck any live broadcast deals in the market since.

Speaking during the Talking Sport webinar series, Radrizzani said it was difficult for Eleven to establish itself in the UK given the power Sky and BT exercise over the country’s sports broadcast market.

“That is a project where I followed my instinct,” said Radrizzani, who is also the owner of English soccer club Leeds United. “I was convinced that the right commercial strategy and a good proposition for BT and Sky would have provided to all platforms all the content - and cheaper for them - to enable customers [of both companies] to get the main international football.

“But in reality it was impossible, because even if I would have offered this content for free, they would have never taken it. In the end when there is a market where there are two big players with control, it is very difficult to enter.

“Unfortunately I have done the same mistake twice, same in Singapore and same in the UK, challenging a market where there is a duopoly controlling the rights.

“It was a big mistake for the second time. I was convinced that the commercial proposition would have been so good to be accepted. I was wrong, and I paid a high price.”

Despite struggling in the UK and Singapore, where Eleven was taken off the air by Singtel in 2018, the network still has platforms offering an array of live sport in markets across Europe and Asia, including Portugal, Italy, Poland, Taiwan, Japan and Myanmar.

Most recently, Eleven secured the domestic rights to Belgian soccer’s top-flight Pro League in a deal worth €103 million a year from 2020/21 through 2024/25.

Radrizzani, who through Aser also has investments in Whistle Sports, Otro and Sports Data Labs, added that Eleven is looking to expand into additional markets in the future.

“Luckily we are still on our legs, we still stand strong, and we are ready to expand again in new countries, new territories. The company is going well and we learn from that mistake.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 12:50 pm

the trials and tribulations of buying a Football club when you act as an effusive investor rather than someone who has done real due diligence and understands the environment into which you are moving into - the murkiness of the transfer market and agents that give the industry a bad name - from the NY Times

Secret Contracts Held a Surprise for Fiorentina’s New Owners
Rocco B. Commisso completed his purchase of an Italian team in record time. It was only after the closing that he learned an agent controlled the fate of some of the club’s top players.

By Tariq Panja - July 3, 2020, 4:00 a.m. ET

When Rocco B. Commisso completed his purchase of the Italian soccer club A.C.F. Fiorentina last summer, he described the deal as the “quickest closing in soccer history.”

Flushed with excitement about owning a top-division team in the country of his birth, Commisso, the billionaire chairman of the cable provider Mediacom, spoke passionately about his aspirations to lift the club, based in Florence, up the league standings. There would be no shortage of effort to match the ambitions, he said at the time.

But like other American owners who have invested in Italian soccer, Commisso, 70, has quickly learned that the challenge of running a team in Italy is a far more difficult undertaking than simply buying one was.

Like other American owners, for instance, he has found his grand hopes for a new stadium become tangled in red tape and nostalgia. But there have been other, thornier challenges, too. After that speedy agreement to close the deal last June, Fiorentina’s owners discovered a curious set of agreements — contracts signed by the club’s former executives just before the team changed hands.

The agreements, according to documents reviewed by The New York Times, effectively gave a soccer agent, named in February as part of a money laundering investigation in Spain, permission to find buyers for at least five members of Fiorentina’s roster. In return, the agent would be paid a commission. If Fiorentina balked at completing any deal the agent brought to the club, he would receive a penalty fee instead.

In effect, Fiorentina had agreed to offload some of its top players for a price negotiated by an outsider, for an amount it had not defined, or pay the agent a fee if it did not.

“This agreement seems to guarantee a payment to the agency no matter whether a transfer actually takes place,” said Roy Vermeer, the legal director at FIFPro, the worldwide union for professional players. “It’s hard to understand the reason why any club would agree to this.”

The accords are with companies controlled by the agent, Abdilgafar Fali Ramadani, whom the Spanish authorities have accused of being part of a multimillion-dollar money laundering and tax evasion scheme. But they offer yet another glimpse of the murky realities that underpin the global player transfer system, an industry worth more than $7 billion a year.

Fiorentina executives declined to comment on the agreements, and Commisso was not available for comment, according to a spokeswoman.

“For sure there was a strange relationship between Fiorentina and Ramadani,” said Pippo Russo, a sociologist at the University of Florence who has written books on the role of soccer agents in the transfer system.

For much of the decade before Fiorentina’s American takeover, the club’s relationship with Ramadani was as close as one between a team and an individual agent could be. A frequent visitor to the club’s offices, Ramadani, a Macedonian businessman known for his access to some of the brightest prospects in the Balkans, sent a number of his clients to Fiorentina, including several that were still on the team’s books when it was sold to Commisso.

It was those players — a group that included promising Serbian youngsters like defender Nikola Milenkovic and striker Dusan Vlahovic — that the former Fiorentina executives sought Ramadani’s help to offload, even as the team was days away from being sold to new owners. The connections between the club and Ramadani ran so deep that the person who signed the so-called private agreement on behalf of his company, Primus Sports, was Pedro Pereira, a Portuguese talent-spotter who once worked as part of Fiorentina’s recruitment team.

Pereira declined to comment on his role in the contracts, saying they were subject to confidentiality clauses.

The agreements were all worded the same way, with the only differences being the amount of money or percentages that would go to Primus Sports. “A.C.F. Fiorentina is interested in monitoring the market in view of evaluating possible opportunities to transfer the player to another club within the territory of Europe and China,” the contracts said.

Such agreements are not uncommon in soccer; clubs regularly enlist agents as they seek to offload unwanted players or try to raise funds. What was curious about the Fiorentina agreements, according to sports lawyers consulted by The Times, was not only the timing — so close to the sale of the club — but also the absence of any wording stipulating a minimum fee Fiorentina would accept.

“Such offers shall be in line with the market value of the player,” each contract states without determining how that value will be determined.

The Fiorentina contracts are only the latest developments involving Ramadani that have caught the attention of soccer officials. According to the authorities in Europe, Ramadani and his associates “were part of a criminal network which manages football clubs in several countries, among which are Belgium, Cyprus and Serbia.”

Through connections, the authorities said, the group was able to exploit lax regulations to hide millions of dollars in commissions by moving athletes through what were described as so-called ghost clubs. By doing so, investigators said, the agents avoided paying taxes on the payments they received for brokering the deals.

According to the investigators, the soccer agents used intermediary clubs in second- and third-tier European leagues as way stations in player trades. One teenage player bought by a Cypriot team for just over $2 million, for example, was sold six days later for more than triple the price. Another player was on the same club’s books for only eight days.

Pantaleo Corvino, the former Fiorentina technical director who signed the contracts with Primus on the club’s behalf, said the team’s relationship with Ramadani had greatly benefited the club and its balance sheet. He claimed that some of the players Ramadani brought to the club — like Stevan Jovetic, Matija Nastasic and Adem Ljajic — were later sold for prices that were multiples more than what the team had paid for them.

“What has been agreed has always been done within the rules and in the interest of Fiorentina,” Corvino said in a series of text messages over WhatsApp.

Corvino added that the deal to sell the team to Commisso was completed in such secrecy, and so quickly, that he had not known Fiorentina was on the verge of being sold when the agreements were signed with Ramadani’s company.

Fiorentina’s former executive president, Mario Cognigni, said the club had always complied with local regulations. “Please note that throughout my tenure as president of A.C.F. Fiorentina every single transaction has been carried out in the sole interest of the company and duly recorded in the relevant company’s books,” Cognigni said in an email.

While Fiorentina officials declined to discuss the agreements, a spokesman for the team said only that the team’s previous managers had been replaced. “We would like to let you know that the current management of the club works in complete transparency and we have no exclusions to work with any agent who might have interesting players to offer to Fiorentina, as long as all the rules are respected,” the spokesman said by email.

The revelations about Fiorentina’s contracts and close relationship with Ramadani come amid a push by soccer’s governing body, FIFA, to curb the influence and power of agents. FIFA recently agreed to new rules capping agents’ commissions and to a prohibition on an agent’s representing all parties involved in a transfer.

A senior FIFA legal official with nearly two decades of experience in the soccer industry said he had never seen any agreements like them.

Vermeer, the FIFPro legal director, said the union has been outspoken in its opposition to the player transfer market generally. Even before recent issues came to light — a money laundering and bribery scheme involving a club official in Belgium, huge fees paid to agents revealed in the Football Leaks hacks — its senior leaders had been at the forefront of calls for the system to be overhauled.

“It is plain wrong that the careers of professional footballers can be influenced by financial incentives to third parties,” Vermeer added. “We strongly oppose any arrangement that raises this possibility, and introduces a conflict of interest into player transfers.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 1:30 pm

Chester Perry wrote:
Wed Jul 01, 2020 12:18 pm
I don't think anything has changed much since the last time I broke it all down - the issue is cash flow, we have lots going out and nothing coming in

- I reckon we have had around £35m (+/- £5m) in outgoings since the pause - Salaries, operating costs, restart costs etc. That would likely clear out all our working capital we had in hand, and we won't have paid the bonuses yet because the season hasn't ended, though we know we will have to because we are safe in the Premier League.

- Then there are the outstanding transfer payments - we are due to both pay and receive £14m about this time - much will depend on who can start the payment carousel. There will also be £3m - £5m in condition transfer payments to pay - the main trigger is Premier League safety I would assume.

- We still don't know if the restart will complete successfully. if it doesn't then the armageddon scenario of a tv rebate for £762m immediately comes into play. Think Leicester lockdown, south coast beaches, Liverpool partying and demonstrations that could lead to a second wave as to why the club would be cautious.

- All that naturally affects your short term planning - the club still does not know what the current season's income will be (the variations depending on what happens could be as much as £30m)

- Much of the same goes for planning next seasons budget - the club do not know the base they will be operating from (this seasons - not year - final financial position - loss or profit - and by how much). Nor do they know what the minimum income will be next season - TV rebates are likely, match attendance is uncertain, day to day commercial activities curtailed, sponsorship income reduced. They do know what their current base costs are though and that will be making them nervous.
and just to underline the concerns about next season - from the Mail - Remember I was saying weeks ago that FIFA's/UEFA's insistence on progressing their competitions was the root cause of much of the difficulty that leagues would face.

Next season is ALREADY in chaos: The Premier League have still not decided when to kick off with Champions League, TV broadcasters and Euro 2020 all playing havoc with the calendar... and Man City, Man United and Wolves could MISS the start!
- Rescheduling the football calendar after the Covid crisis is proving difficult
- Current season's Champions League and Europa League will run until August 23
- That is one of three proposed starting dates for next season's Premier League
- So if an English club reaches a European final, they could miss start of season
- Worse still, they are facing the prospect of having no pre-season whatsoever
2020-21 Premier League season must be squeezed in before Euro 2020
By ADAM SHERGOLD FOR MAILONLINE

PUBLISHED: 12:38, 3 July 2020 | UPDATED: 12:58, 3 July 2020

The current Premier League season is very much back underway and, barring another health crisis, will be completed on July 26.

After that, thoughts will turn quickly to the 2020-21 campaign. It will be a speedy turnaround for everyone but for certain clubs it threatens to be so speedy they'll be left feeling dizzy.

The need to get next season started at roughly the same time as normal with the rearranged Euro 2020 on the horizon is already causing a scheduling nightmare.

Sportsmail talks you through the latest developments and the many problems arising.

So when will next season's Premier League start?

We don't know yet but the top-flight clubs are set to hold a video conference next week to fix a date.

According to The Sun, three weekends are on the table as the starting point for the 2020-21 season - August 22/23, August 29/30 and September 12/13.

The first two aren't too far removed from the traditional starting point for a Premier League season, while the third one is about a month later than normal.

But, of course, we are playing catch-up here because of the Covid-19 pandemic taking a three-month chunk out of the current season.

Which one would clubs prefer?

A 'number of clubs' reportedly prefer the later date in September because this would give them the maximum possible time to prepare for another nine month season.

It would allow them to have a form of pre-season, get out on the training ground and play some warm-up friendlies.

Another reason is that a September start increases the chances of at least some supporters being permitted back into stadiums, providing clubs with some matchday income.

This would be much less than usual but a welcome relief with the majority if not all clubs severely affected by Covid-19's impact on their finances.

However, Premier League referees have been alerted to the likelihood that the season will begin on the August 22 weekend so nobody involved should be booking their summer holiday for then.

Surely starting in September would cause a scheduling headache?

Oh yes. The English football calendar is congested enough - just ask the likes of Jurgen Klopp and Jose Mourinho for their views on this topic.

A September start would mean the two-week winter break we saw this season would likely have to be scrapped and teams in European competitions would be in action each and every midweek.

There would be the FA Cup and the Carabao Cup to shoehorn in somehow.

But the hand of the Premier League clubs could be forced by the broadcasters in any case.

Those multi-billion pound deals with Sky Sports and BT Sport stipulate that there must be 34 weekend dates in each season for maximum TV coverage, meaning that the season has to begin on August 22 to fit them all in.

Another factor is that the season must be concluded by May 16 because of the compulsory, FIFA-imposed rest period ahead of the delayed Euro 2020, which kicks-off on June 11, 2021.

And even if the new season started on August 22, the only way to get 34 weekends would be to move the fourth and fifth rounds of the FA Cup to midweek.

So the parameters in which the Premier League has to fit are quite clear.


Just clear one thing up… Why can't we start on September 5/6?

International football strikes again I'm afraid. UEFA has commandeered that weekend for the opening fixtures in the Nations League and everyone else has to work around it.

England are due to play Iceland in Reykjavik on Saturday September 5 and Denmark in Copenhagen on Tuesday September 8 part of UEFA's beloved 'week of football' between September 3-8.

There are further Nations League breaks in October and November just to squeeze things even more.

So it's looking like August then… but I'm sure there's something on during August?

Yes, the August 22 date should be ringing alarm bells. That's pretty much exactly when the Champions League and Europa League from this season will be coming to their climax.

As you'll remember, UEFA shifted the finale of their two club competitions to August to ensure that domestic seasons could be finished and they'll take the form of a mini-tournament.

The Champions League will resume on August 7/8 with the remaining last-16 matches and then we'll progress through the quarter-finals and semi-finals with one-legged games before the final is played on August 23.

All of the games from the quarters onwards will be played in Lisbon, Portugal.

As for the Europa League, that is going to be concluded at various venues in Germany, with the remaining last-16 ties to be played on August 5-6 through to the final in Cologne on August 21.

Hang on then, so if one of the English teams reaches the final they would miss the start of next season?

Bingo! In the perfect illustration of the looming fixture chaos, if an English side reaches the Champions League or Europa League final, they'd be forced to miss the start of the next Premier League season if it started on August 22.

Manchester City are the likeliest to go all the way in the Champions League - they lead Real Madrid 2-1 from the first leg of their last-16 tie and Pep Guardiola's side will fancy their chances of reaching their first final.

Chelsea are still in the competition but trail Bayern Munich 3-0 after the first leg of their tie and so are pretty much out.

In the Europa League, Manchester United and Wolves are well placed to advance from their respective last-16 ties and will also fancy their chances of lifting the trophy.

United lead Austrian side LASK 5-0 ahead of the second leg, while Wolves grabbed an away goal when they drew 1-1 with Greek side Olympiacos back in March.

City are the bookmakers' favourites to win the Champions League and United are the Europa League favourites so this scenario is certainly possible.

So what would that mean in practical terms?

Well basically they would have no pre-season.

Having played in their European final, it'd be straight back into Premier League action the following week. There would be no possibility of a pre-season training camp, let alone any friendly matches.

There would be no opportunity for summer signings to bed in with non-competitive games and no time for the managers to work on new tactics and methods of playing.

What's more, they would be playing catch-up in terms of their fixture list from the outset if they missed their first Premier League fixture as a result of the clash.

City's burden next season could be less if their ban from European competition is upheld but for United and Wolves, it would be a real slog of a year, with a heightened risk of injuries and fatigue.

And on top of all that, quite a few of their players would report straight for international duty in May ahead of the European Championship.

So for the likes of Harry Maguire, Marcus Rashford and Paul Pogba it would mean a solid year of playing football without much of a break.

Can a solution be found?

The situation is what it is really. We are going through unprecedented times and the football calendar has been adapted accordingly. Nobody saw this crisis coming.

It's a miracle really that the 2019-20 season will be completed to broad satisfaction and without compromising the integrity of any competitions.

It was always going to be a sharp turnaround into next season, especially when Euro 2020 was postponed.

Squad depth will be more important than ever and there will never be a better opportunity for youngsters to prove their worth.

The hectic fixture list could well diminish the quality of football on offer, and no doubt managers will moan about it, but it's hard to see any other way as the game tries to get back on track.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 3:08 pm

Michael Dell (the American financier) who has previously been linked with investment/financing at both Sunderland and Derby, has had a charge with Southampton registered - from the Sunderland Echo

Michael Dell and his MSD UK Holdings group invest in Southampton - a year after their Sunderland takeover talks began
Michael Dell’s investment arm MSD UK Holdings have finalised an investment agreement with Southampton FC – a year after similar individuals engaged in talks over purchasing Sunderland AFC.
By Mark Donnelly
Friday, 3rd July 2020, 9:33 am

MSD UK Holdings are a newly-established investment group set-up to manage the wealth of billionaire technology tycoon Michael Dell, who last year was mentioned as a potential ‘passive, minority investor’ in a deal to buy Sunderland.

That deal was led by MSD employees Glenn Fuhrmann, Robert Platek and John Phelan – whose company FPP Sunderland ultimately agreed a £9million loan with owner Stewart Donald’s holding company, Madrox Partners, after takeover talks stalled.

And after rumours earlier this year that MSD were interested in striking an investment deal with Derby County, they have now finalised an agreement with Premier League side Southampton.

Documents lodged at Companies House show that a charge was registered by MSD UK Holdings against the Saints on June 29 – following similar terms to the agreement that was struck between FPP and Madrox.

Indeed, the signatory on behalf of MSD UK Holdings is a Marcello Liguori – the same individual who signed the deal between Madrox and FPP.

Interestingly, MSD UK Holdings were only established as a company on June 29 and share one common director with FPP Sunderland – Robert Platek.

While the specifics of the deal with Southampton, including the amount invested by the group, remains unclear, the charge is registered against the club itself, their home ground and training ground and a number of items of intellectual property.

The investment deal does not seem to break any EFL or Premier League rules regarding a conflict of interest given that no individuals or groups hold shares in both clubs – and since the respective investment deals came from separate entities.

But the news will come as a further blow to Sunderland supporters who had hoped that FPP Sunderland would purchase the club in the near future – a prospect owner Donald described as ‘unlikely’ in January.

“Their view is that they’re 3000 miles away and they invest in management teams, so their investment was in me,” he said.

“So if I’m not there it’s unlikely, I think, that they’ll want to take it on.”

-----------------------------------------------------------------------------------------------------------------------------------------------------------------

Southampton's filings https://beta.companieshouse.gov.uk/comp ... ng-history

I note that a previous charge from a different source was closed a couple of days later

to my mind the club are trying to raise operational cash to meet their commitments, this may have proven to be difficult from the factoring sources that we have talked about on this thread in recent years. The unusual and concerning factor is that this is a "loan" secured against property at St Mary's and the clubs intellectual property rights including it's name.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 03, 2020 5:50 pm

Stevenage will be wanting this to happen - The EFL are considering an appeal to the recent punishment handed to Maccelsfield following their failure to pay staff on time again.

https://www.theguardian.com/football/20 ... ers-appeal

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 04, 2020 12:08 am

The football transfer market is embracing technology, led by a former Goldman Sachs stockbroker - Here's his story in @theipaper- why Player LENS is one of football's best kept secrets:

Player Lens is one of football’s best kept secrets – a platform where 600 clubs around the world barter over transfers
Users can search for players based on asking price, wages, availability, position and other attributes… it’s like a real life Football Manager
author avatar image
By Sam Cunningham - July 3, 2020 6:16 pm - Updated July 3, 2020 6:18 pm

Lee Hemmings was working as a stockbroker for Goldman Sachs when he started to notice the slow death of his own job.

He had enjoyed some of finance’s boom years – at one point he was the global head of Asian equity, sales and trading for Lehman Brothers – but in the early part of the last decade, things changed.

“My job was cannibalised by the business going from people speaking on the telephones to people speaking online,” Hemmings tells i. “It was the slowest redundancy in history.

“I connected a buyer and seller of stocks and shares in the simplest form, and if someone needed to buy a big block of shares, then I would go and find the person on the other side and we provided liquidity in the market, very much like a football agent does with players.”

Like much of the world, what he did shifted online, and where he had previously acted as the connector, or the go-between, he found that increasingly websites started to cut the middleman out.

As his attention shifted towards what was next, Hemmings, already a football fan, spotted what he considered a gaping hole in the football transfer market. For a multibillion-pound global industry, the transfer market is still remarkably cloak-and-dagger, allowing agents and chief executives to form uncomfortably close relationships. It is poorly regulated and despite attempts to tackle that in some of the biggest deals agents still pocket obscene fees.

The Football Association revealed last week that Premier League clubs spent £263million on agent fees last year, with Liverpool alone accounting for £30m of that.

Hemmings explored how other technology companies had disrupted different markets. Uber is the world’s largest taxi company but owns no taxis. Airbnb is the biggest accommodation provider but owns no real estate. The world’s most valuable retailer, Alibaba, sells other people’s products.

Facebook is the biggest media platform but creates none of its own content.

“I just sat there looking at the football market thinking something needs to change here because it’s archaic,” Hemmings says. “We wanted to bring a communication tool to the transfer market so initially clubs could understand what each other wanted to do.

“If you think of all the other markets, all the other disruption we’ve seen, it just seemed like a natural progression.”

Seven years, an MBA and more meetings with clubs worldwide than he can count later, having gained support and the ear of Pere Guardiola, Manchester City manager Pep’s brother, and Jose Ramon Capdevila, Real Madrid’s former head of football operations, as a business partner, Player Lens is one of football’s best kept secrets.

“It’s a great platform,” Pere Guardiola tells i. “Everything is moving online. You have Airbnb, you have Uber, you have all of these platforms in all markets and industries except football. That’s why I became interested.”

Hemmings, a thick-rimmed spectacle wearing 46-year-old, takes me through the system.

It is like real-life Football Manager. Users can search for players based on transfer fee, expected wages, availability, attributes, position, style of player, comparisons to players. When a player of interest is identified the user can click through for more detailed statistics and videos of that player’s highlights or entire recent matches.

“We’re not saying that people may sign someone immediately based on what we’ve given them here,” Hemmings says. “But it gives you a quick understanding within the platform, whether it’s a player that you want to go and pursue.”

What they offer is intricately detailed: players who are listed for transfer can even specify countries or leagues in which they would or would not like to play.

“That’s important because otherwise it spreads too widely, you might get random phone calls from people in Asia that you don’t want, you might not want to advertise into certain parts of the world,” Hemmings says. “So you can be specific.”

The idea germinated in 2013 and the platform launched two years later. Hemmings had been approached by an IT company to build a trading system. Instead, he suggested to the company’s owner, who had worked for Microsoft for over a decade, that they build an exchange platform to trade players.

“So it was built by some really clever guys,” he says.

He took an MBA at Liverpool University which had a focus on business and entrepreneurship in football. “That got my foot in the door and some Manchester City staff were really instrumental in helping us set this up,” he says.

Then he raised some seed capital, and away they went.

Much of Hemmings’s job has been presenting and selling the platform to clubs. It was one such meeting with Real Madrid, early on, when their head of operations Capdevila, liked what he saw so much he joined as a business partner.

They saw initial success during the emergency loan market, when clubs would lose a player to injury on a Saturday and that evening were desperate for a quick fix, turning to Player Lens to search for suitable replacements.

Like any social network it is only as good as its user base. They have signed up clubs from the Big Six to League Two and have around 600 clubs involved worldwide. They have teams from Brazil to Syria to Croatia. Gremio, who had Ronaldinho move to Paris Saint-Germain and Lucas to Liverpool, are on there.

Connecting International markets is, Hemmings says, one of their strongest points, as is the transparency it lends to the transfer process.

“We’re trying to bring a lot of what the sporting director does online,” Hemmings says. They are more the LinkedIn of football than, say, the Facebook of football, but are really their own entity altogether.

Over time, the system has developed so that players can advertise themselves. They have a major player on the platform selling himself at the moment, although Hemmings is unable to say who due to confidentiality agreements.

“This is a tool predominantly for clubs,” he says. “They don’t want to spill their business everywhere. We’re quite secretive in the business that we do.”

Agents can list players they want to move. Player Lens charge a fee for players to list themselves and agents to list players, but only to ensure that serious professionals sign up.

“We just try to be honest,” Hemmings says. “We’re not in the business of selling dreams. We don’t want someone signing up thinking we’re going to get them a job. It’s not going to happen. This is a tool for the professional industry.”

It is not quite at the stage where they will be moving Neymar back to Barcelona for a world record, but they are growing.

“I still think some transfer deals have to be done on the phone, or face to face, you have to have that kind of relationship, but most of the job can be done online now,” Guardiola says. “Clubs want all the information, players want to be on a platform where they can show everyone that they are there.”

They have seen increased usage since the coronavirus outbreak. As cultures change, perhaps the football transfer market will finally fully embrace technology.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 04, 2020 12:49 am

Arsenal have been fined by FIFA for putting variable sell on clauses in transfer contracts - from the Associated Press

FIFA fines Arsenal over sell-on clauses for player transfers
By ROB HARRIS

Arsenal was fined 40,000 Swiss francs ($42,300) by FIFA and warned about its conduct regarding player transfers after the club used variable sell-on clauses that were found to give it influence over other clubs.

In a previously undisclosed investigation, FIFA legal documents reviewed by The Associated Press revealed the global governing body’s concerns about the terms of the 2018 departures of Chuba Akpom to Greek club PAOK Thessaloniki and Joel Campbell to Italian side Frosinone Calcio. Arsenal would receive a bigger cut of the deal if Akpom and Campbell were subsequently sold to British clubs.

Arsenal placed sell-on clauses in the contracts to ensure it would receive 40% of the fee if Akpom was sold to a British club but only 30% from any other team.

Frosinone was also given an incentive to not later sell Campbell back to a British club as 30% of the fee would have to be paid to Arsenal. But the London club would receive only 25% of the transfer fee if Campbell was sold to a club elsewhere.

Arsenal entered “release permanently” into the Transfer Matching System and the discovery of details of the sell-on clauses led to FIFA’s global transfers and compliance department opening an investigation into Arsenal in January.

The FIFA disciplinary committee then found Arsenal to be in violation of the rules for entering into contracts enabling it to influence other clubs and for failing to declare data in the TMS.

“The committee considers that, by the mere existence of these clauses, Frosinone and PAOK FC are influenced by Arsenal in employment and transfer-related matters,” FIFA disciplinary committee member Thomas Hollerer wrote in the verdict document.

“The committee considers that the relevant clauses undoubtedly grant Arsenal the ability to influence in employment and transfer-related matters the independence, policies and the performance of PAOK FC and Frosinone’s teams.”

Arsenal told FIFA the transfer terms did not enable it to influence any transfer decisions by PAOK or Frosinone and said the English Football Association and Premier League were satisfied there was no breach of third-party influence rules.

“It is evident that in a scenario in which PAOK FC and/or Frosinone receive two similar and/or identical offers for the transfer of the relevant players, one being from a club in the United Kingdom and the other one coming from a club outside the United Kingdom,” Hollerer wrote, “PAOK FC and Frosinone would be more inclined to accept the offer coming from the club outside the United Kingdom, as it would make the operation most profitable from a purely financial point of view.”

Details of the case have emerged only after the completion of the legal process at FIFA. Campbell, meanwhile, transferred from Frosinone on Thursday after making a loan move to Mexican club Leon permanent. Financial terms were not disclosed.

Hollerer is general secretary of the Austrian Football Association. The disciplinary committee panel also featured Togolese Football Association president Kossi Guy Akpovy and Mahmoud Hammami of Tunisia.

Arsenal was told by FIFA that “should such infringements occur again in the future, the committee would be left with no other option than to impose harsher sanctions.”

Simon Leaf, the head of sports law at London-based Mishcon de Reya, said it was a “pretty surprising decision” given the prevalence of sell-on and buy-back clauses in transfers and that it “will have an impact on how future deals are structured.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 04, 2020 1:31 pm

@KieranMaguire theorises in the Sunderland Echo just what Financier Michael Dell is doing with his money at Sunderland, and Southampton - of course he could be doing a McQuarrie and factoring - as I mentioned yesterday the strange thing is just is what is being used to secure the loan at Southampton (it could just be a cheap way to buy into the club, should the club default.

The inside track on American investment in Sunderland and Southampton - and what it could mean in the future
Football is a game of trends – from boots to facial hair; kits to cut-out fans.
By Mark Donnelly
Saturday, 4th July 2020, 10:00 am

But the latest trend sweeping the domestic game is coming in the boardroom, where English clubs are receiving a host of interest from American investors – particularly those involved in the technology industries.

Sunderland have been one of the beneficiaries of the new-found American interest in the English game, agreeing a $12million loan with FPP Sunderland – a group of individuals with links to tech tycoon Michael Dell – in November 2019.

A similar, albeit different, group have this week invested in Southampton, while technological giants Silver Lake last year bought a fraction of the Manchester City’s ownership company the City Football Group for $500million.

But why are these American investors targeting clubs such as Sunderland, and what could it mean for the future of English football?

We spoke to Kieran Maguire of the University of Liverpool to gain the inside track on the latest investment trend:

So why English clubs?
Sunderland and Southampton are far from the first English clubs to be the subject of investment from Americans, the close proximity of the deals struck with both clubs (only seven months have fallen between the finalisation of Sunderland’s agreement with FPP Sunderland, and Southampton’s subsequent agreement with MSD UK Holdings) is telling.

Football is seen as a real growth market by American firms who, by bringing their own technological expertise, feel that there are new avenues to be explored by clubs in the long-run.

And of course, these will be monetised.

“At present, investors see football as an industry where you can pick up things on the cheap – and they’re looking beyond COVID-19,” explained Maguire.

“We are now looking at football as not being you and me, turning up at the Stadium of Light with a pie and a pint shouting things for ninety minutes. We're now seeing football as a product to cash in on.

“That was very evident when the tech company Silver Lake invested in Manchester City. These tech companies are looking to turn all the data that we have on fans into cash.

“Michael Dell is clearly in the tech sides of things, so it’s no surprise that organisations linked to him are getting involved in football – because we’re going to consume it in a different way.

“There’s an audience out there who are football mad – and whether it’s through streaming, through augmented reality, or embedding camera’s into Lionel Messi’s shirt so you can watch the match through him – these are huge opportunities and show where football is going.”

A race to the front
Of course, it’s key to note that in the cases of Sunderland and Southampton the American investors have not taken a shareholding in the respective clubs. At the moment in time, they have effectively given both clubs a loan. They own no shares and have no control over the clubs.

But this doesn’t mean that won’t happen in the future.

Maguire believes that the deals struck with the Black Cats and the Saints could allow those associated with Dell to test the waters before potentially later strengthening their involvement in the English game.

There is also a desire to be one of the first involved in the game – so when there is a chance to further monetise football, these individuals and firms are already prepared.

“If you take a look at what happened with Silver Lake and Manchester City, it cost Silver Lake $500million,” explains Maguire.

“The costs involved for Sunderland and Southampton are going to be substantially less than that, so it allows you to get the experience.

“If it doesn’t work out, then it’s a relatively small cost from their perspective – and given it’s a loan they would hope to get that money back anyway.”

“I think American tech companies have realised that football is the biggest showing pound in terms of attracting a global audience,” he continued.

“It’s a bit like things such as driverless cars, you want to be at the front of the queue when that technology is converting.

“These companies have realised that American sports companies have a limited audience, and while that’s very lucrative they’re looking four or five years down the line. Football is the most attractive sport, and they want the opportunity to participate in that.”

What does it mean in the long-run for Sunderland, Southampton and other clubs?
That’s the question on the lips of fans of the Black Cats at the moment.

Maguire feels that the investment by the group in two clubs signals a desire to be involved in the game in the long-term – although that may not necesarilly be with Sunderland.

“These loans could potentially be converted into equity into time,” he said.

“Under normal circumstances, you wouldn’t lend money to a football club because the risk associated with football are too high.

“So you would suspect they will be looking at some form of longer-time involvement through whatever means.”

It’s also worth noting that there is nothing to stop either FPP or MSD UK investing in further clubs – providing they take no shares in sides – after the latter group were previously linked with Derby County.

“The rules for both the Premier League and the EFL prevent joint-ownership – but to have ownership you need to have the majority of shares,” explains Maguire.

“To a certain extent, this arrangement is no different to Santander or Barclays lending money to various football clubs. They don’t have an involvement in strategic decision making, they don’t get involved on the day-to-day activities of the club – it’s just a lending and borrowing relationship.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 04, 2020 2:32 pm

Chester Perry wrote:
Wed Jul 01, 2020 9:47 pm
FIFA launched a new online Professional football Journal today - it can be found here

https://www.professionalfootballjournal ... m/homepage

I found this article particular interesting and informative - Quick overview of post-COVID-19 football: From cash-flow pressures to mitigation - in particular the breakdown of 3 orders of effects was very good

https://www.professionalfootballjournal ... assessment
another article in that journal

FIFA with a summary of how they are transforming the transfer market

https://www.professionalfootballjournal ... guidelines

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 04, 2020 8:48 pm

Northwest counties team Oswestry Town announce they are to fold as a result of the financial impact of the Pandemic

https://twitter.com/FCOswestryTown/stat ... 4346520577

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Re: Football's Magic Money Tree

Post by huw.Y.WattfromWare » Tue Jul 07, 2020 5:53 pm

Apologies if I’ve missed this previously. Not altogether happy with it being Mr.X. That smells like a journo sat in the pub but sensible points.
https://www.skysports.com/share/12023074

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Re: Football's Magic Money Tree

Post by Royboyclaret » Tue Jul 07, 2020 6:34 pm

huw.Y.WattfromWare wrote:
Tue Jul 07, 2020 5:53 pm
Apologies if I’ve missed this previously. Not altogether happy with it being Mr.X. That smells like a journo sat in the pub but sensible points.
https://www.skysports.com/share/12023074
Sensible points, indeed, huw. That 85% figure will be certainly realistic to the majority of Championship clubs mainly because their Income is heavily dependent on matchday receipts which clearly are non-existent at the moment. Next season will see many clubs staring down the barrel.

However, there are several clubs eligible for PL parachute payments in '19/'20 (Cardiff, Fulham, Sunderland, Swansea, Stoke, West Brom & Huddersfield), so the overall effect on those clubs will be less painful.

In terms of PL clubs, and in particular Burnley, the financial penalties will be less severe (certainly as a percentage of Total Income), but it remains imperative that this season reaches it's natural conclusion otherwise the financial complexion looks completely different.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 7:55 pm

Chester Perry wrote:
Wed Jul 01, 2020 9:10 pm
Sheffield United announce that the club now owns Bramall Lane and other properties that were owned by the McCabe family - fulfilling the legal requirement placed on them by the courts las autumn

https://www.sufc.co.uk/news/2020/july/club-statement/
It comes as no surprise that Sheffield United have had to take out loans to buy all those properties from the McCabe family

https://twitter.com/KieranMaguire/statu ... 8527863808

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 9:27 pm

So after a couple of days not adding to this thread - anyone ready for some serious reading

Simon Chadwick contributes to a white paper about how Covid19 has caused an erosion in Soft Power for the Middle East

How Covid-19 Has Undermined Gulf Airlines’ Sports Sponsorships
Nick Burton, Brock University; Simon Chadwick, Emlyon Business School; Paul Widdop, Manchester Metropolitan University

https://serjournal.com/2020/07/06/white ... er-eroded/

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 9:41 pm

Chester Perry wrote:
Mon Jun 29, 2020 7:24 pm
A new writer for us - @YannickRamcke with his blog OffTheFieldBusiness.de written in English - This is an extensive post (yes that means long, actually very long) looking at the concessions the Premier League is having to make to keep the money coming in and it's long term impact amongst other things

https://www.offthefieldbusiness.de/sing ... s-to-Watch
Yannicke has also recently started a podcast focussed on the sports media environment

the first one focuses on the Premier League and Bundesliga - like the article linked above - so if you haven't read it - (and you really should have - I am sure TheEsk would find it deeply interesting in synching with his thoughts re Football Shorts)

https://www.unofficialpartner.com/podca ... ick-ramcke

NB this was recorded in mid June, and some of the projections have become true - especially Amazon making use of Twitch for their games

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 10:09 pm

A report looking at the implications of Covid19 on Brazillian Club football revenues

https://www.sportsvalue.com.br/wp-conte ... 2020-1.pdf

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 10:46 pm

Chester Perry wrote:
Sun Jun 21, 2020 7:46 pm
BeIN took an interesting move with the return of Italian football last night - from Bloomberg .com

Qatari Broadcaster Lets Screens Go Blank on Italian Soccer
By David Hellier
20 June 2020, 21:40 BST Updated on 21 June 2020, 01:37 BST

Qatari broadcaster BeIn normally shows top-tier Italian soccer matches in 35 countries but on Saturday night, anyone tuning in to watch Torino take on Parma in Serie A’s return would have been disappointed.

“No Serie A matches are being broadcast on Bein Sports’ entire global network,” a company spokesman said. “It would not be appropriate to comment further, other than to say our legal and public position has been consistent and well-documented for three years.”

In France, viewers were treated instead to a match between Turkey’s Denizlispor and Besiktas. And a late-night trawl through BeIn’s website for all of Saturday’s results suggested there weren’t any games played in Italy -- just England, Spain, France and Germany. For the record, Torino and Parma drew 1-1.

BeIn paid $500 million to broadcast Italian soccer from 2018-21, an agreement that has been beset by snags. It claims strong backing from competitions including England’s Premier League, Spain’s La Liga and the Wimbledon tennis championships, as part of a long-running campaign against its sports rights being pirated in Saudi Arabia.

The company recently wrote to Premier League clubs to warn them against agreeing to a takeover deal with a Saudi-led consortium for Newcastle United. The Premier League board is currently deciding on whether to allow the deal to go through.

BeIn’s particular grievance with Serie A reached a tipping point when the league decided to play some exhibition matches in Saudi Arabia despite the broadcaster urging it not to. The league argued that it had signed a contract that was difficult to get out of.

The Italian league, which is said to be in discussions with private equity groups over refinancing, is the home to Cristiano Ronaldo of Juventus. Serie A couldn’t immediately comment on the broadcast blackout.

— With assistance by Geraldine Amiel
Remember this - well it worked, Bien get a discount on their current deal and they start broadcasting again - it is good to see that the Italians are not getting everything their own way - though I missed this report last week - from SportsProMedia.com

BeIN restores Serie A broadcasts as league accepts discounted deal to end blackout
Qatar-based network says agreement sets "major precedent" and reflects piracy's influence on exclusivity.

Posted: June 29 2020By: Sam Carp

- BeIN resumed Serie A coverage on 26th June
- Broadcaster had shunned Italian soccer league’s return over piracy inaction
- Original three-year deal worth - US$500m

Qatar-based broadcaster BeIN Sports resumed its global coverage of Serie A over the weekend, ending a week-long blackout of Italian soccer’s top flight in protest against the league’s inaction over piracy.

BeIN’s coverage resumed on 26th June with Juventus’ 4-0 win over Lecce after the broadcaster reached a new agreement with Serie A which it said better reflects how the company was sold exclusive rights by the league, only to see that status effectively removed due to piracy.

BeIN did not reveal the value of the new agreement, but SportsPro understands Serie A had to accept a major discount to end the blackout.

The original three-year deal, which spans 35 territories including Australia, France and 24 countries in the Middle East and North Africa (MENA), was worth some US$500 million to Serie A from 2018 to 2021.

BeIN said the settlement reflects its overarching stance on media rights, adding that the agreement should serve as a warning to other soccer leagues that do not protect the exclusivity of their rights.

A spokesperson for BeIN Media Group said: “The agreement reached regarding Serie A sets a major precedent, reinforcing what BeIN and other international broadcasters have been saying for years: if rights holders don’t tackle piracy, they’ll only receive non-exclusive fees.”

BeIN had previously warned Serie A that it was putting its relationship with the broadcaster at risk by agreeing a deal to stage the Supercoppa Italiana in Saudi Arabia, despite the kingdom’s ties to piracy operation BeoutQ.

The new agreement comes just weeks after a landmark report by the World Trade Organisation (WTO) found that Saudi Arabia had facilitated the illegal broadcasts of BeoutQ, which had made BeIN a primary target after the broadcaster’s transmission was blocked in the kingdom as part of a trade blockade against Qatar.

It is understood that BeIN is reviewing all agreements and renewals in light of the WTO ruling. BeIN chief executive Yousef Al-Obaidly told SportsPro in December that the broadcaster’s rights strategy going forward will be “premium, but in proportion”, noting that the company would not make big offers to rights holders not doing enough to tackle piracy.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 10:48 pm

The 2nd Episode of The Bundle Podcast from Unofficial Partner with @YannickeRamcke looks at that Serie A/BeIN Sport dispute and the outcome of the Bundesliga domestic rights sale

https://www.unofficialpartner.com/podca ... unbundle-2

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 10:58 pm

Meanwhile in Serie A the ongoing dispute with Sky over unpaid media rights has seen a court injunction imposed on Sky - from SportsBusiness.com

Court issues injunction over Sky Italia’s non-payment of Serie A rights fee
Alex Taylor - July 7, 2020

Milan’s civil court has hit pay-television broadcaster Sky Italia with an injunction after an appeal from Lega Serie A over a missed rights fee payment by the broadcaster amid the Covid-19 shutdown.

Lega Serie A, the organising body of the Italian top division, took action over the non-payment by Sky of a €131m ($147.7m) instalment for the 2019-20 season by appealing to the Milanese court.

The injunction was filed in late May and it is open to appeal from the pay-television broadcaster and therefore is not immediately enforceable, according to ANSA, the Italian news agency.

A July 12 deadline has been issued by the league and, in the event that the payment is not made, it is threatening to prevent Sky from receiving the broadcast signal at a time that the rescheduled 2019-20 Serie A season enters its decisive phase.

Sky Italia had previously asked for a reduction in its fees for the 2019-20 season, equating to between 15 per cent and 18 per cent.

Sky and OTT platform DAZN hold the live domestic rights to Serie A in deals worth €973m per season. Sky Italia pays the bulk of that fee with its contribution standing at €780m per season which give it the rights to seven out of the 10 weekly Serie A fixtures.
DAZN pays €193.3m per season for the rights to the remaining three fixtures per week.

For its part, DAZN has also had well-publicised payment discussions with Serie A as well as the IMG agency which holds international rights to the league. Both DAZN and IMG successfully reached accords with the league. Through the deals struck, the agency and OTT platform were both required to pay their first instalments by June 27 with the second due by July 20.

IMG’s international rights deal is worth about €380m per season for broadcast rights, club archive rights, betting rights, a marketing spend and fee for access to the broadcast signal.

Speaking in May ahead of the filing of the injunction as the deadlock in talks persisted, Sky Italia chief executive Maximo Ibarra said that he hoped it would “finally be the right occasion for representatives of Serie A clubs to take the proposal for dialogue that we have offered them for weeks”.

Serie A chief executive Luigi De Siervo gave the notion short shrift, saying that the broadcaster could not claim that amount if the season gets finished.

De Siervo said: “We immediately made it clear that Sky’s request for a discount, in the event of the continuation of the championship, obviously could not be accepted, especially during such a tricky financial period for our teams.”

Serie A resumed on June 20 after the league’s shutdown due to the Covid-19 pandemic.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 11:08 pm

Some interesting if not entirely welcome observations from Sir Martin Sorrell at first day of the World Football Summit Live yesterday - from SportsProMedia.com

Covid-19 will accelerate soccer league efficiency savings, says Martin Sorrell
S4 Capital chairman thinks segmented rights sales could shore up recovery prospects.

Posted: July 7 2020By: Ed Dixon

- Players “will have to be remunerated in different ways,” believes ex-WWP CEO
- Rights holders will be forced to innovate to survive post-coronavirus

Soccer clubs will have to be consolidated as leagues seek efficiencies during the professional game’s coronavirus pandemic recovery, according to S4 Capital chairman Martin Sorrell.

Speaking at this week’s World Football Summit, Sorrell, who founded the advertising and PR giant WWP in 1985, believes leagues must improve their professional standards in order to deal with the competition, as sports properties look to recover from the financial implications of Covid-19.

“In my view there are too many football clubs, they have to be consolidated,” Sorrell said. “Players are probably over-remunerated, they will have to be remunerated in different ways. The leagues are going to have to be run more efficiently and professionally because the competition is going to be huge.”

Assessing the wider implications of the pandemic on the industry, the 75-year-old believes the crisis will prove a catalyst for accelerating innovation in key areas within the sector, particularly digital, as sports properties are forced to adapt to survive.

“Everything that has happened around Covid has accelerated everything that we’re doing,” he continued. “The move towards digital has accelerated. This is a pressure cooker, this is a petri dish. This is an escalation of everything that we've seen.

“There may be some new stuff that comes out of it... but I think this accelerates every trend, good and bad, that you saw before.”

Sorrell also suggested that rights holders will have to adjust their strategies or risk clashes with cautious investors weighing up their options amid the fiscal uncertainty.

“[Rights holders have] always operated, at least in their own minds, with the long-term view,” he said. “Private equity, naturally, and this is not a criticism it’s a fact, whether they agree with it or not, their view tends to be a five-year view. It is not the long-term view. So, there is the potential for a conflict in views.”

Sorrell drew particular attention to NBC’s mega broadcast rights deal with the International Olympic Committee (IOC), which secured the US commercial broadcaster's deep commercial relationship with the Olympic Games through to 2032.

“The rights holders have tended to go long, as I would call it, with their rights,” he said. “It may now be more important for the rights holder to segment the rights, that they decide, for example, to sell the analogue rights to one group of competitors, to sell the digital rights to others.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 11:21 pm

Day 2 of the World Football Summit Live saw a discussion on sports finance

LEADING INVESTORS REMAIN CONFIDENT: “OVER THE LONG RUN, SPORTS IS GOING TO BE A GREAT INVESTMENT”
WFS LIVE / JULY 7, 2020

All areas of the sports industry have been affected by the coronavirus pandemic and this includes the investment in sporting businesses. While there may be disruption in the short term, several leading investors believe that the industry will continue to provide excellent opportunities over the long term.

This was the view of the three panellists who took part in the ‘Aftermath Of Investments In Sports’ discussion during WFS Live, Powered by Ronaldo. Taking part in that virtual round table were George Pyne, CEO and founder of Bruin Capital, Assia Grazioli-Venier, founding partner of Muse Capital and a Juventus board member, and Andrea Radrizzani, chairman and founder of Aser Ventures.

They concurred that the passion and emotion inherent in sports means that the industry will be in good health once the Covid-19 pandemic is over. “Over the long run, sports is going to be a great investment” Pyne stated. “Long term, there’s nothing like sports. Sports represent who you are and what you stand for and your values. So, there’s nothing like it. Sports brings people together during difficult times for positive outcomes. So, that’s an incredible outcome in a world that is going to be more fragmented from a media standpoint. Sports is one of the few things that you can invest behind that gets you big and passionate audiences.”

“Long term, there’s nothing like sports. Sports represent who you are and what you stand for and your values. So, there’s nothing like it.” – George Pyne, CEO & Founder – Bruin Capital

That said, Pyne did admit that the short-term outlook is less certain. He went on: “In the long term I think sports is a great play. In the short term it’ll be a little choppy, but in the short term it provides real opportunity. So, I think you’re going to see more and more people look to invest in the sports business for those reasons.”

Grazioli-Venier agreed that there is a lot to be positive about when looking a decade into the future. “I am long-term investor. I look seven to 10 years ahead. I’ve always done that since I was a child. I’m the opposite of living in the moment. For me, I look seven to 10 years ahead and I see teams becoming true lifestyle brands, not just communicating and engaging with the fans on the pitch, but working with them across the board in the other areas of their lives. That’s why I think you have to look at investment opportunities outside of the core sports space.”

Radrizzani, meanwhile, joked about how he’d never had so many people return his calls as he has experienced in recent months, expressing his optimism that there will be good opportunities in the sports industry for a long time to come.

This panel took place during the second day of WFS Live, which is running from Monday July 6th to Friday July 10th. It is still possible to buy a ticket here, with all net proceeds to be donated to Fundação Fenômenos and the Common Goal Covid-19 Response Fund.

QUOTES FROM THE ‘AFTERMATH OF INVESTMENTS IN SPORTS’:
George Pyne on what he looks for in an investment opportunity:
“You’re asking is the strategy good or is the jockey. We believe that you can have the best ideas, but without the right management you can’t go anywhere. To me, you’ve got to have the right management team and the strategy. You’d like to get both. But, if I had to pick between one and two then I’d rather back the people because, even if the people are going down the wrong road, eventually they’re going to find the right road. So, of the two, I believe in people over strategy, but I’d like to find good strategy and good people.”

Assia Grazioli-Venier, on the current capital flow:
“There is capital flowing around. It surprised me as well to be honest, because we all operated on the worst-case assumptions during the first three months of Covid and that’s how we prepare for the future. I think all of us on this panel are used to doing that. But, I was very very surprised at how much capital is flowing. It’s more important now than ever that, because it’s not as much capital, that the capital is value-add and that you really choose your partners wisely.”

Assia Grazioli-Venier on teams and franchises further embracing non-gameday revenue streams:
“I think teams have to start thinking again and not just on the pitch. They need to realise that they truly are a lifestyle brand. Ten years ago, or longer than that, if you said that teams were selling merchandise and selling mugs and pins then you would have said that was crazy. Now, it’s full speed ahead. It’s a strong source of revenue. So, there are still a lot of new opportunities that we can explore.”

Andrea Radrizzani, on the appetite for investment he has come across in the past few months:
“I’ve been trying to put together finance in football leagues for the last eight years and I was always very close, but with no luck to conclude any deal. But, the last four months, I think I’ve never seen [so many people] call me back from New York or London. We’re working on different opportunities. Overall, I think it’s a great chance for leagues to involve different management and more professional management and inject capital that can close a short period of need, but at the same time regenerate and invigorate and completely restructure the business case.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 07, 2020 11:58 pm

I have posted a little about how PSG have been building a lifestyle brand alongside the club for some time *their collaboration with Air Jordan helped gain them a lot of traction in the US) - a new deal with Fanatics (yes we just keep hearing about more and more deals with them - they have really proved themselves in the marketplace) sees PSG taking a significant step forward with their plans - from SportsProMedia.com

Inside the deal: PSG and Fanatics’ landmark ecommerce partnership
Global sports merchandise and retail specialist Fanatics announced its biggest ever soccer partnership in late June, a deal with PSG worth tens of millions of euros between now and 2030. SportsPro spoke to Fabien Allegre, PSG's marketing director, and Fanatics' president of business affairs, Gary Gertzog, to unpick the finer details.

Posted: July 6 2020By: Tom Bassam

Fabien Allegre is not your typical sports industry marketing director, but given the project he has undertaken at Paris Saint-Germain perhaps that is not really a surprise.

Allegre’s background prior to his arrival at Parc des Princes in 2008 was in the music industry. He was formerly the chief operating officer for NRJ Music, the offshoot label of the most popular music radio station in France, and he gives off a rock star vibe - all long hair and impassioned monologues.

Since Qatar Sports Investments (QSI) took over at PSG Allegre has been tasked with exponentially growing the identity of what was a big - but by no measure dominant - club.

“Since 2011 the objective has been for Paris Saint-Germain to build one of the top clubs in the world and - at the same level - to build a real, lifestyle/global brand,” Allegre explains to SportsPro.

“On my side with the brand, it is about not only addressing fans of Paris Saint-Germain the football club but also of Paris as a city - the culture and DNA that we have in common.”

Now, Allegre thinks he has signed the deal which could well deliver on that ambition.

At its most basic level, the French soccer champions’ new ten-year partnership with sports merchandise and ecommerce specialists Fanatics brings in an annual multi-million euro fee, but it has been signed off with the bigger, specific purpose of tripling their income from digital product sales by 2023.

“We currently do like €12 million and the objective is in a few years to go to over €30 million,” asserts Allegre.

PSG’s ties with Fanatics date back to their deal with UK-based sports retailer Kitbag, which was bought out by Michael Rubin’s company in 2016 for US$17 million. An ecommerce deal was then agreed between PSG and Fanatics in 2017, but discussions on their new wide-ranging partnership began a year ago. Since then, Fanatics International president Steve Davis, head of corporate development Zohar Ravid and Joachim Hilke, the company’s managing director of global partnerships, have been working on the deal. On the PSG side, Allegre, club president Nasser Al Khelaifi and their legal team oversaw negotiations.

One of the signatories, Gary Gertzog, Fanatics’ president of business affairs, tells SportsPro there were two key reasons why PSG were interested in expanding their relationship.

“One, they observed how we conducted our business with them, and two - perhaps more importantly than that - they looked at what we’d accomplished over the years with other partners in the US and our new relationship with Nike.”

Allegre concurs: “Fanatics has this capacity and they already did it for a lot of American franchises.”

He adds: “It’s not a partnership like a sponsorship deal or we give you the keys of Paris Saint-Germain. It’s far away from that.

“It took some time because I strongly believe we need to know the people internally - the staff and the top management - to see if we are on the same line. It’s not a date, we’re getting married now.”

Whilst the coronavirus pandemic undoubtedly delayed the nuptials, Allegre insists it was an engagement that was never going to leave either party in tears at the altar.

“What was very interesting,” adds Allegre, “was that we both stayed very motivated to make this deal happen. We spent a lot of time on the phone discussing what was happening [with the Covid-19 pandemic] and what are the consequences on the business side. I can say now that our ecommerce will be very strong.”

The other goals of the partnership are clear. PSG currently have between 110 to 120 licensees, mainly in Europe, which Allegre wants to double in the next two years. With Fanatics now providing access to more than 1,000 licensees that it works with globally, it is a target that should easily be met.

The deal also expands the club’s reach by tapping into Fanatics’ database of 45 million active clients - all in key PSG markets across Europe, North America and Asia.

For Fanatics, the company now gains an even broader set of ecommerce rights, taking over global distribution for the club’s merchandise operation. Fanatics also becomes the master licensee for PSG, meaning it will be able to make or sublicense to third parties all club products, except for those made by the club's technical partner Nike.

Whilst the company expects the majority of product sales on the ecommerce side to be Nike, Fanatics will also be working with PSG to develop other lines it thinks there is a lot of potential in.

“PSG are very focused on presenting fashion forward products that hit all ends of the marketplace and that’s exciting,” says Gertzog.

What was not apparent when the deal was announced are the human resources that Fanatics are putting into managing the partnership. There will be close cooperation day-to-day, with a new Paris office being staffed by Fanatics’ licensing and account management executives.

“This deal and some other things we’re working on will be a catalyst to increase our presence in Paris,” confirms Gertzog.

Those entwined operations and the hands on approach from Fanatics are vital to the partnership’s success, according to Allegre.

“It’s not like the usual deal that the club are doing to give a licensing contract to a partner and they will manage it on their own,” he says. “The objective for us is to keep all the strategy and marketing side of the brand development. We, together, strongly believe that we need to have people that know Paris Saint-Germain and they need to work closely on a daily basis with the whole team - digital, purchasing department, etc. But also to understand the project of Paris Saint-Germain, which are not the same as other clubs Fanatics deal with.”

The long-term nature of the partnership, which will begin this summer and run until 2030, mirrors that of Fanatics’ other major deals with the likes of the National Football League (NFL) and Major League Baseball (MLB). Gertzog acknowledges a deliberate shift in the company’s strategy during the last seven years towards contracts with double digits in the length column. Asked about the thinking behind that shift, Gertzog explains that it helps develop the business within each partnership and provide security to sublicensees.

“Our partners expect us to make significant investments in the business - we want to be able to do that - and those investments take a long period of time to monetise,” he continues. “They’re significant upfront investments so we want to be able to have the proper return on that.

“Over time you start working better with a partner. If there is a three-year deal or five-year deal, you’re pretty much within the first year and a half to two years thinking - given the lead times, product development and other things you may be working on - ‘well, should I be putting the effort into this, how do I know I’m going to be renewed?’

“A [long-term deal] changes the mindset. It lets everybody think about growing the business. It gives you the opportunity to plan properly, invest properly.”

One of those areas of investment from Fanatics has been on the cloud technology which allows it to react quickly in times of high demand - say after a championship win or following the announcement of a new signing. According to Gertzog, the company has spent “several hundred million dollars” on innovation to position itself as a leader in mobile-first ecommerce.

For Allegre the technology element was a very attractive part of Fanatics’ proposition and sees PSG take an alternative path to that of European rivals Barcelona, who recently brought their merchandise operation back in house.

One of Allegre’s key moves when the Qataris invested in PSG was to wrestle back control of those rights from Nike. Now, with several years of brand building in place, Allegre feels it is time for the next step: “[Fanatics can] make sure that we can take advantage on a worldwide basis, say if we win the Champions League, or reach the final - what can we do? How can we grow the business?”

He adds: “For sure you can invest a lot in your platform and of course the marketing budget is really important if you want to [triple ecommerce revenues]. Or you can go to the biggest player in ecommerce for fans’ goods which is Fanatics. They have all the background, the technology, they know how to run the digital marketing, as they are spending money for lots of different teams they get a better price on advertising. So it’s really based on one plus one equals three.”

Fanatics values what PSG have done to skilfully grow their brand to get it to the point where the company felt comfortable making such a significant investment. Statement signings on the pitch such as Neymar and Kylian Mbappe have been matched by commercial deals which recognise a soccer club of increased stature. Perhaps the most notable was the €80 million (US$89.9 million) a year contract renewal signed with Nike last year that runs through 2032.

That relationship has also seen the Parisiens draw on their city's heritage as a fashion capital, appearing on the catwalk via their collaboration with Christelle Kocher. Another Nike-led innovation came with kits being produced by Jordan Brand in its first foray outside of basketball. That collaboration contributed to a 470 per cent increase in shirt sales in the US, signalling PSG’s growing credibility as a brand that was further entrenched by their 2018 collaboration with streetwear brand A Bathing Ape.

“Since 2011 we started to work on brand development that is far away from the other football clubs,” says Allegre.

“It is part of our DNA to work with brands or designers that have the same values that we have - excellence in their own field.”

The club’s merchandise operation currently produces some 5,000 licensed products over 350 categories and now includes their #PSGLimited lifestyle range, which recently went live with its first product - a US$750 paddle board. Gertzog says Fanatics has some ideas around new PSG product categories, but does not want to front run the club in terms of announcements.

“We want to have a partner that has the desire and the agility to work with us closely and see what products we can introduce to the marketplace that haven’t been introduced before - what sticks and what doesn’t,” he says.

You can be sure that PSG will not be pushed into going in directions they are not comfortable with. The deal ensures the club keep ownership over their brand and its development, which is not typical of every such arrangement.

But what is that identity the club are so keen to protect?

“PSG is about a brand of passionate people," says Allegre. "The passion is not only for football, it’s a crossover of passions and how they mix. You can be interested in contemporary art, go to a football game in the evening with friends then have dinner in a nice restaurant. All these elements were very distinct ten or 15 years ago - now they can all be mixed in one fan’s day.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:11 am

Chester Perry wrote:
Thu Jul 02, 2020 7:26 pm
The detail on that Lords report calling for the end of Gambling sponsorship on Football shirts I posted about last night - includes links to the actual report

https://committees.parliament.uk/commit ... ds-report/
The EFL have come out against the Lords call to end shirt sponsorship from Gambling organisations - from SportsBusiness,com

EFL voices opposition to recommended ban on gambling sponsorships
Matthew Williams - July 7, 2020

The English Football League (EFL) has called on the UK government not to ban sponsorship deals with brands from within the gambling sector within football.

It follows the publication of the findings of a House of Lords committee, set up to examine the social and economic impact of the gambling sector, which recommended a ban on sport sponsorship involving gambling brands to the government as part of measures to deal with gambling-related harm.

The EFL and its clubs could be particularly vulnerable to this given the reliance on deals with gambling brands.

The naming rights to the Football League are held by Sky Bet in a deal due to run until 2024, with 17 of 24 Championship clubs holding front-of-shirt sponsorship contracts with gambling brands.

In a statement, the EFL highlighted the increased vulnerability of its clubs due to the impact of the Covid-19 outbreak as a reason to not remove the lucrative option of gambling sponsorship. It said: “The Covid-19 pandemic represents perhaps the biggest challenge to the finances of EFL clubs in their history.

“With over £40 million (€44.5m/$50.3m) a season paid by the sector to the League and its clubs, the significant contribution betting companies make to the ongoing financial sustainability of professional football at all levels is as important now as it has ever been.”

The committee’s findings did recommend that restrictions on shirt sponsorship contracts and other advertising shouldn’t come into effect for clubs below the Premier League until 2023.

Its key conclusion though was that there “should be no gambling advertising in or near any sports grounds or sports venues, including sports programmes”.

The House of Lords review followed the commitment the government made in 2019 to review the 2005 Gambling Act, amid a focus on reducing gambling in the UK.

The EFL’s statement continued to indicate it was happy to work with the government to reduce gambling but reiterated its opposition to a widespread ban on sponsorship from the sector.

The statement read: “The League firmly believes a collaborative, evidence-based approach to preventing gambling harms that is also sympathetic to the economic needs of sport will be of much greater benefit than the blunt instrument of blanket bans.

“It is our belief that sports organisations can work with government and the gambling industry to ensure partnerships are activated in a responsible fashion.”

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Re: Football's Magic Money Tree

Post by Royboyclaret » Wed Jul 08, 2020 10:05 am

Chester Perry wrote:
Tue Jul 07, 2020 10:58 pm
Meanwhile in Serie A the ongoing dispute with Sky over unpaid media rights has seen a court injunction imposed on Sky - from SportsBusiness.com

Court issues injunction over Sky Italia’s non-payment of Serie A rights fee
Alex Taylor - July 7, 2020

Milan’s civil court has hit pay-television broadcaster Sky Italia with an injunction after an appeal from Lega Serie A over a missed rights fee payment by the broadcaster amid the Covid-19 shutdown.

Lega Serie A, the organising body of the Italian top division, took action over the non-payment by Sky of a €131m ($147.7m) instalment for the 2019-20 season by appealing to the Milanese court.

The injunction was filed in late May and it is open to appeal from the pay-television broadcaster and therefore is not immediately enforceable, according to ANSA, the Italian news agency.

A July 12 deadline has been issued by the league and, in the event that the payment is not made, it is threatening to prevent Sky from receiving the broadcast signal at a time that the rescheduled 2019-20 Serie A season enters its decisive phase.

Sky Italia had previously asked for a reduction in its fees for the 2019-20 season, equating to between 15 per cent and 18 per cent.

Sky and OTT platform DAZN hold the live domestic rights to Serie A in deals worth €973m per season. Sky Italia pays the bulk of that fee with its contribution standing at €780m per season which give it the rights to seven out of the 10 weekly Serie A fixtures.
DAZN pays €193.3m per season for the rights to the remaining three fixtures per week.

For its part, DAZN has also had well-publicised payment discussions with Serie A as well as the IMG agency which holds international rights to the league. Both DAZN and IMG successfully reached accords with the league. Through the deals struck, the agency and OTT platform were both required to pay their first instalments by June 27 with the second due by July 20.

IMG’s international rights deal is worth about €380m per season for broadcast rights, club archive rights, betting rights, a marketing spend and fee for access to the broadcast signal.

Speaking in May ahead of the filing of the injunction as the deadlock in talks persisted, Sky Italia chief executive Maximo Ibarra said that he hoped it would “finally be the right occasion for representatives of Serie A clubs to take the proposal for dialogue that we have offered them for weeks”.

Serie A chief executive Luigi De Siervo gave the notion short shrift, saying that the broadcaster could not claim that amount if the season gets finished.

De Siervo said: “We immediately made it clear that Sky’s request for a discount, in the event of the continuation of the championship, obviously could not be accepted, especially during such a tricky financial period for our teams.”

Serie A resumed on June 20 after the league’s shutdown due to the Covid-19 pandemic.
No doubt the Premier League will be awaiting the outcome of this deadlock with more than a passing interest.

Serie A were clearly far less accepting of the sanctions imposed by Sky in terms of potential rebates than the PL.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:01 pm

Royboyclaret wrote:
Wed Jul 08, 2020 10:05 am
No doubt the Premier League will be awaiting the outcome of this deadlock with more than a passing interest.

Serie A were clearly far less accepting of the sanctions imposed by Sky in terms of potential rebates than the PL.
What is not acknowledged about the Premier League rebate to Sky, by the government or sport in general is that Sky themselves have said it allowed them to maintain other rights contracts (at less significant rebates) with less commercially viable sports and leagues and that includes the EFL, Cricket and Rugby.

There is also La Liga in Spain where Javier Tebas has pointedly refused to talk rebates with rights holders until after the season completes - I assume he wants the viewing figures to defend his position. He has adopted his usual quite aggressive approach (he only seems to think of toppling the Premier League not the long term relationships - hence his previous willingness to entertain Saudi approaches even though BeOutQ was in full swing.

What you see from the Premier League is long-term diplomatic and collaborative partnerships where they work to support their partners, they are the best in the world at it and it shows with partners like BeIN Sport and also Sky, who will be driving revenues up with all those extra free games. It is one of the reasons the same broadcasters in key regions repeatedly bid high for Premier League rights cycle after cycle, the Premier League works with them to grow their revenues and long term viability.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:19 pm

Remember those state of the game articles from @MiguelDelaney that were so well received in January - well he has returned to the theme today, looking at clubs who appeared settled in the Premier League but do not have the finances or the means to grow revenues to keep them there - though I think he has made a poor choice as to what a Model Club could be - from the Independent

The Premier League’s financial ceiling has distorted the meaning of a ‘model club’ – as Bournemouth are realising
Clubs are now openly preparing for relegation rather than attempting to break financial barriers, and that throws up far greater questions for English football, writes Miguel Delaney

It’s a statement that illustrates the frustration, and also the confusion. “We all put a lot of work in. For it to unravel in 12 months…”

The sentiment sums up the feeling around Bournemouth, as they’re on the brink of going down – but wasn’t actually said by anyone at the club. They were the words of West Brom chief executive Mark Jenkins, as he faced up to a similar situation in 2018.

It illustrates how, as Eddie Howe strives to figure out all manner of problems in his team, they might be suffering from a wider issue.

Bournemouth may well be the latest in a long line of Premier League sides – and especially promoted sides – who looked a model club as regards to how you operate, only to hit a ceiling that very quickly sent them back through the trapdoor. Years of stability abruptly followed by a quick and chaotic relegation.

It happened to West Brom, to Stoke City, to Swansea City, to Fulham, to Bolton Wanderers and to Charlton Athletic. It may well happen to Burnley in the future, too, given some of Sean Dyche’s recent comments. It certainly feels like it’s happening to Bournemouth now.

This isn’t to either absolve Howe, or overlook the many injuries his squad have suffered, but there are broader issues that have been common to all of these clubs.

It is as if years of exemplary work at a certain status gradually lead to a stagnation, that brings some strident decisions, that are far too removed from what they’ve done at their best.

Charlton were perhaps the first to suffer from this, and remain the ultimate example. After years when Alan Curbishley had the club ticking along so nicely, there were constant questions about the “next level”. They instead went down a level to the Championship in the very first season after Curbishley left.

Matt Holland was there throughout some of the club’s best Premier League seasons and that 2006-07 relegation and feels that ceiling was an issue.

“I think it’s one of the reasons he did go in the end,” Holland tells The Independent. “I think Alan probably looked at it thinking ‘I can’t do much more with what I’ve got. I’ve got a pretty stable side, mid-table Premier League, but I don’t know whether I can go to the next step.’

“But the fans see that for three or four years and start thinking ‘we want to go eighth’, ‘we want to get into Europe’, and that’s really difficult to sustain year in year out.”

That does raise the question of whether Howe should have left earlier, to prevent this eventuality, but there are similar stories at many of the other clubs.

“Boredom” was said to take hold at Stoke, and was a word used a lot, even of manager Mark Hughes.

Huw Jenkins, after years of prudent decisions at Swansea City, suddenly started to make many that seemed out of kilter with everything the club was about. The worst, and a genuine turning point, was the appointment of Francesco Guidolin over Brendan Rodgers.

“They seem to run into issues when they stop seeing themselves as what they are and think they are bigger,” says one source, who has been involved in the decision-making at three of these clubs. “They get higher opinions of themselves and suddenly think they have an elevated status. That leads to sweeping changes or decisions, that purely seem to be made because they think that’s what ‘big clubs’ do… when, in fact, stopping doing what got you to where you are is the biggest mistake you can make.”

That is the common link with all of these. It’s usually most visible, and most consequential, in signings. “That’s where the problem starts and finishes,” one figure who has worked with such clubs says. “Recruitment.”

It’s been a big issue at Bournemouth, and exacerbated Howe’s injury problems. The alternatives haven’t stepped up. The recent signings just haven’t fit what was there.

Again, that was the same at West Brom and Swansea. Players were brought in that represented a clear deviation from the successful approach. And they weren’t so much as attempts at evolution as abrupt switches.

Other clubs illustrated the same problem in a different way. They signed too many players, as if trying to force a cultural change en masse. This was what happened at Fulham, and at Charlton in 2006.

The latter made 11 signings in the summer that Curbishley left, with many of them well-paid “names” such as Jimmy Floyd Hasselbaink, Djimi Traore and Souleymaine Diawara. While there were few problems with any of them individually, it proved too difficult to integrate at a time when the club was struggling to adjust.

“It was such a big cultural change,” Holland says. “There was too much change in one hit. We were given money to spend, but it takes a while to get used to.”

All of this touches on a philosophical issue, but one the goes way beyond style of play. Football, like life, requires a sense of hope; that you can keep growing and progressing. This is something that the Premier League denies. There is a hard financial ceiling at seventh place, that is very difficult to smash through without mountains of cash.

“That’s what Sean Dyche is seeing now at Burnley,” Holland says. “Without real investment, where are you realistically going to take Burnley? Where is Alan Curbishley realistically going to take Charlton? Ultimately, the feeling is, if you said at the start of the season to 12 clubs that they’re going to finish 10th, they’d snap your hand off.

It’s the point when just surviving gives way to just existing, and cuts to the core of what the Premier League is: a highly tiered competition, with limited internal mobility.

Consider this perspective. A total of 49 clubs have competed in the Premier League, across 101 different spells. Only 20 of those – naturally – have not yet ended in relegation, with eight of those clubs never having been relegated at all. One of those clubs is Bournemouth.

The brutal reality of the Premier League is that you can’t come up without generally going down. It has happened in over 86 per cent of cases, a proportion that will inevitably increase as time goes on. The average length of those cases is a mere 3.84 seasons.

At 18 seasons, Manchester City are currently on the longest ever Premier League run of any club promoted into the competition, but that was only after a takeover that changed football itself. That isn’t available to the vast majority. It isn’t available to Bournemouth.

They’re now on their fifth season, a spell in which it had seemed like they were a new fixture in the division. They’re learning there are very few fixtures in the competition, and that you can never think you are one.

There are no “model clubs” for long. There’s only really a financial model that eventually finishes you. Howe is battling that as much as the problems in his team.

The true model club is maybe one that has prepared for going down, as Burnley and Norwich City have done. That, however, throws up far bigger questions than how quickly a Premier League spell went wrong.

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Re: Football's Magic Money Tree

Post by frankinwales » Wed Jul 08, 2020 12:32 pm

Thanks Chester, certainly food for thought... Up the Clarets...

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:39 pm

Tranmere, newly relegated from League one (by vote) release their 2018/19 Financial accounts the season they won promotion from League 2 (on the pitch)

https://twitter.com/KieranMaguire/statu ... 9967068160

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:47 pm

following on from that @MiguelDelaney article - the news that the 5 subs could be in play all next season could be disastrous for clubs like ours - from the Mail

Controversial five substitutions rule 'set to be extended for ALL of next season' despite fears that it hands richest clubs unfair advantage - with Liverpool and Manchester United having used all their subs since restart
- Premier League clubs have been allowed to make five substitutions since restart
- Rule was brought in to try to help players avoid injury amid fixture congestion
- It is a temporary rule for rest of this season, voted through despite opposition
- Some clubs claim it only offers an advantage to those with deepest squads
- That anger is likely to increase if the rule is extended for use for 2020-21 season
By CHRIS CUTMORE FOR MAILONLINE

PUBLISHED: 09:29, 8 July 2020 | UPDATED: 10:44, 8 July 2020

The temporary rule introduced under Project Restart allowing Premier League teams to make up to five substitutions in a game is set to be extended for use across all of next season too.

There has been anger among some clubs that this rule, which was made with the intention of helping players avoid injury while playing a relentless schedule to get the season done by July 25, only benefits the richest clubs who have squads packed full of higher-quality players and in greater number.

But football's law-makers, the International Football Association Board, will announce in the coming days that this rule will be in use for the 2020-21 season due to the same concerns over player welfare, report The Athletic.

The new Premier League season is due to start on September 12, just seven weeks after the end of the current campaign, so there will be no room for a traditional pre-season. Clubs involved in the latter stages of European competition face a turnaround of just days with the showpiece fixtures scheduled for late August.

Individual leagues were given the choice whether to take up the IFAB's temporary rule, and the Premier League voted in favour of doing so, with the majority overruling the objections of Aston Villa, Bournemouth, Sheffield United and West Ham.

Their anger that the rule is biased against clubs of their means is now only likely to increase if the league again decides to implement the rule, which allows teams to make two more substitutions per game than the normal three.

Not only will it potentially impact their next season, but there will also be fears that the rule will become so ingrained that it could become permanent.

Liverpool, Manchester United and Brighton are the only clubs to have used five substitutes in all of their games since the resumption of play.

Liverpool's last game saw them bring on Roberto Firmnio, Jordan Henderson and Gini Wijnaldum, while United have used stars such as Paul Pogba, Mason Greenwood, Scott McTominay and Odion Ighalo as subs since the restart.

Brighton, meanwhile, called on less celebrated players such as Dale Stephens, Pascal Gross and Alexis Mac Allister in their last game against Norwich.

Burnley, however, have only made six changes in four games, and have even failed to fill their bench, while also naming more than one goalkeeper among their subs to pad out the numbers.

Sheffield United boss Chris Wilder is one of those who has been critical of the rule, saying bigger clubs are benefiting from the allowance of five substitutes.

'It favours the powerful clubs. We don't think that is the right way to go about it,' he said last month.

And this week Crystal Palace manager Roy Hodgson said: 'It does tip the balance to the clubs with bigger and stronger squads.

'I was very much in favour of the five subs during this period. I thought that was the correct thing to do for football to get these games played where we tried to at least diminish the risk of injuries as much as we could.

'We knew they would come about, but we tried to diminish it by giving everyone the chance to get the extra subs on.

'If we give everyone a chance to start with a level playing field next year, when you don’t have necessarily this problem hanging over you of playing so many matches, then it would probably be in the interest of clubs like ours – although we won’t be alone – to go back to three.'

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 08, 2020 12:54 pm

the boys @Vysble illustrate just how it favours the big clubs, who have the squad depth to prosper from it

https://twitter.com/vysyble/status/1280796359025623040

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