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 » Sun Jun 20, 2021 3:41 pm

Tariq Panja in the New York Times on the mess over French domestic football rights and how it is just the most significant trend in the downward valuations in European TV rights (likely to be mirrored in Asia but very different to the US)

As France Chases Title at Euros, Its League Faces a $400 Million Hole
JUNE 20, 2021

French soccer’s new television deal was supposed to save the league and its clubs from a financial meltdown.

Instead, it may have made a bad situation worse.

Soon after France’s top soccer league, Ligue 1, announced this month that it had enticed Amazon to become its lead broadcaster, its longtime television partner, Canal Plus, reacted with fury.

Canal Plus would neither pay for nor broadcast the two games per week it owned the rights to, the company said. Not at the premium price in its contracts, at least. And certainly not when Amazon was paying roughly $100 million less for four times as many games.

“Canal Plus will not, therefore, be broadcasting Ligue 1,” the company said in a statement.

The implications of the Canal Plus threat for the cash-strapped French teams could not be more serious. Already reeling from the effects of the coronavirus pandemic and the collapse last year of their league’s $1 billion television contract, clubs across France that had been planning to trim their budgets now face an urgent crisis.

While Amazon has agreed to broadcast eight games a week for little more than $300 million per season, Canal Plus was on the hook to pay almost $400 million for the two games a week it had picked up in a previous rights auction. Now that it is refusing to pay, many clubs have entered the summer player-trading market worried less about sales and signings than about the possibility of bankruptcy.

And they may have only weeks to find a way out.

The chaos behind the scenes at the French league is in sharp contrast to the international image of French soccer, burnished by the success of its World Cup-winning men’s team. France started its quest for the European championship last week with a serene display against Germany, tied Hungary on Saturday in Budapest and remains the favourite to lift the trophy next month.

Most of the players on France’s Euro 2020 roster play for clubs outside of France, but nearly all got their start with French teams. Now those same clubs are trying to plan for a future they cannot predict.

Can they afford to sign new players to strengthen their squads? Can they even meet the payrolls for the ones they have? Or is it wiser now to be sellers — even in a depressed pandemic market? The answers may determine how many teams enter the season with their financial futures in doubt.

“If you are not able to renegotiate player salaries you are risking bankruptcy — it’s as simple as that,” said Pierre Maes, the author of “Le Business des Droits TV du Foot,” a book on the soccer rights market.

The deal with Amazon came as a shock to many who thought that a monthslong rights-fee dispute between the league and Canal Plus — a league partner since the network’s inception in 1984 — would be resolved by a win at auction for the French network. But Amazon was picked over a joint offer from Canal Plus and its Qatari partner, beIN Sports.

Canal Plus executives have publicly expressed concern about Amazon, with Maxim Saada, the network’s chief executive, telling the business publication Challenges that the power of Amazon posed the “biggest danger” to the business model of Canal Plus. “We have dodge them permanently,” he said. Perhaps underlining that power, a top French soccer official said the league was not prepared to turn down an agreement with a company as significant as Amazon, believing that a bet on the e-commerce giant was a bet on the future.

But the outcome has introduced yet more uncertainty for a league that has been in a tailspin since it announced in 2020 that it would not be able to complete the 2019-20 season because of the pandemic. France was the only one of Europe’s top leagues to take the measure.

Almost as soon as it returned to the field for a new season, though, the league was quickly convulsed by a second — and perhaps far more serious — crisis. Late last year, Mediapro, the Chinese-backed company with which the league had signed a record-breaking television contract, announced it could not meet its commitments. Less than three months after the start of its three-year deal, Mediapro surrendered the rights to French soccer and walked away.

Canal Plus picked up the pieces, taking over Mediapro’s games at a discount, but it soon found itself in its own dispute with the league.

After learning that the price Amazon had paid for the rights to its matches was lower than the one Canal Plus was contracted to pay for fewer (and less high-profile) games, the network argued that it should no longer have to spend 332 million euros ($394 million) for the rights that it sub-licenses from the Qatari broadcaster beIN.

“Canal Plus will not pay 332 million euros for 20 percent of the matches, when Amazon broadcasts 80 percent for 250 million euros,” Saada told L’Équipe.

While in many ways the situation in which Ligue 1 finds itself is particularly French, the collapse of the rights market in the country is only the most recent example of the plummeting value of soccer rights in Europe more generally. In recent auctions for television rights in Italy and Germany, the leagues in both countries ended up getting less than in their previous deals.

England’s Premier League, the world’s richest domestic competition, required special government dispensation to roll over an agreement with its current partners to avoid a risky auction. And Spain’s top league will change the way it sells its rights to mitigate against what is likely to be a major drop-off in the price it can command.

“My conclusion is that in France the bubble has burst and it’s actually what I’m forecasting to become a reality in other countries, too,” Maes said.

The value of the Canal Plus rights is substantially lower since the collapse of Mediapro, Canal Plus argued before the latest auction. It demanded that the league renegotiate the price or include its rights in the auction to find Mediapro’s replacement.

The league refused and a court in France sided with it, saying Canal Plus had failed to demonstrate how it had been harmed.

But while the network is preparing new litigation, and contends it can make its case, Amazon and the league are looking forward.

“Ligue 1 football has a new partner and an exciting future,” Alex Green, the managing director of Amazon’s sports programming for Europe, said after the company’s biggest soccer deal to date was announced. “We won’t let you down.”

For France’s top-flight teams, the joy of having a new, deep-pocketed partner has been quickly tempered by the potential loss of hundreds of millions of dollars from Canal Plus.

Some French club executives, like the Olympique Lyonnais president Jean Michel Aulas, predict that Canal Plus will back down. “I do not see at all how Canal can deprive itself of having access to Ligue 1,” said Aulas, a member of the French league’s television rights committee.

But, according to senior Canal Plus executives, the company is standing firm. Its first payment is due Aug. 5. At the moment, it has no plans to pay it.

The rupture is significant. The relationship with Canal Plus — which has overcome previous disputes — has underpinned the economics of the French league for decades. The strain of the pandemic even led to intervention from government officials, including President Emmanuel Macron, who called on the network to play its role when the league’s finances started to teeter.

Ligue 1’s president, Vincent Labrune, met with Canal Plus’s Saada several times before the auction, and warned him that a lowball bid for the broader rights package on offer could lose out should a rival emerge. Saada, and Canal Plus, considered that unlikely after the league failed to sell the rights in a January auction in which neither Canal Plus nor beIN participated. But the bad blood between the league and its main partner started to escalate.

The bitterness, according to many commentators, clouded the negotiations and led to an outcome in which the only winner appears to be Amazon, which through the deal secured majority rights to a top European soccer league for the first time.

“It’s very opportunistic because Amazon has profited from a very emotional situation,” Maes said.

A league board member involved in the decision said Ligue 1 was confident Canal Plus would have to honor its contract, and that under French law action could be taken within 15 days if the money is not paid.

But for French clubs who need to decide now on budgets, players and plans for next season, that may be too late.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jun 20, 2021 3:59 pm

I have never believed that Super League had gone away for good - this from the Mail

Desperate Super League organisers 'believe a modified version of the hated competition can still go ahead' with England's Big Six amid claims the English giants 'still haven't formally left' the botched plan
The English clubs in the European Super League are reportedly yet to withdraw
Man City, Man United, Liverpool, Arsenal, Spurs and Chelsea all pledged to exit
The owners of the clubs are said to believe that the doomed project will resume
Sources have claimed there is no way they can formally leave the hated concept
By BEN MILLER FOR MAILONLINE

PUBLISHED: 10:02, 20 June 2021 | UPDATED: 14:17, 20 June 2021

All six English clubs involved in the European Super League are yet to formally leave the hated competition – with organisers claiming that the botched masterplan will relaunch, according to a report.

Manchester City, Manchester United, Liverpool, Arsenal, Tottenham Hotspur and Chelsea all withdrew from the European Super League within 72 hours of the seismic change to the sport being dramatically announced in April.

A spate of public apologies and pledges to resist revisiting the doomed idea followed, but the so-called Bix Six allegedly remain co-owners and shareholders of a holding company in Spain, with senior sources close to the venture claiming there is 'no mechanism' for withdrawal and the league will be relaunched, The Times has said.

Organisers are said to believe that the hugely controversial plan is even more vital amid the financial crisis caused by Covid-19, with a senior source reportedly saying: 'The owners know this is not the end — it's just the beginning.

'We will resume dialogue, whether this year or next year. It's just financial gravity. Football can't survive in its current form.'

The six clubs were fined a total of £22m in total earlier this month, agreeing to pay £25m each and lose 30 points if they attempt to exhume the scheme that was plotted in secret and drew unanimous fan fury.

Real Madrid president Florentino Perez has consistently insisted that the 12 clubs behind the concept have 'binding contracts'. His own club, arch-rivals Barcelona and Italian giants Juventus have not abandoned the league.

Serie A champions Inter Milan, neighbours AC Milan and La Liga winners Atletico Madrid also pulled out in the swiftly shunned farce, which caused a fierce backlash including protests outside Premier League grounds and a threat of government legislation.

Arsenal were quoted as saying: 'We have been absolutely clear we are withdrawing from the ESL. This is subject to a legal process which is under way.'

United were also said to have responded: 'The club has no intention to revisit the Super League concept. Any suggestion otherwise is simply an attempt to mislead our fans.'

Governing bodies UEFA and FIFA both condemned the proposals and warned that any teams involved would be banned from their leagues, including the outlawing of players from international competition.

Super League representatives believe that breaches competition laws because it prevents clubs from breaking away, and have filed a case with the European Court of Justice in a bid to establish whether the organisations have the exclusive right to organise competitions.

A source close to the competition is said to have affirmed: 'It's our belief we will win that case based on precedent in other sports and it will pave the way for the Super League to eventually relaunch in a modified form.

A Tottenham club spokesperson said: 'Our statements have made clear that we are withdrawing from the ESL.

'We have given our assurances to the relevant governing bodies and have drawn a line under this now.'

Sportsmail has contacted each of the other five clubs for comment.

According to The Times, several of the teams acknowledged they are still part of the European Super League Company, adding that they were determined to leave.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jun 20, 2021 4:05 pm

Having said that this was interesting from offthepitch,com a couple of weeks back

Column: European Super League was destined for failure, because it was an entertainment product marketed to sports fans
8 June 2021 9:26 PM
  • The great irony of the European Super League project was that it was conceived to maximise revenue for participating clubs but that those who are the ultimate source of all club revenue - the fans - weren’t consulted and didn’t like the idea very much.
  • It is true that enterprise values of MLS franchises are significantly higher than European teams, fuelling the narrative that European football is bad at monetising their product. But this is overstated.
  • There is much to unpick from the project’s remains but most striking is the reminder that despite its continued commercialisation, capitalism is not the only force to which European football is beholden.
  • While competition organisers have sought to maintain a delicate equilibrium between competitive balance and commercial ‘fairness’, European football is becoming more predictable.
  • This is the first in a series of articles about the sporting and commercial future of European football. This piece explores the reasons behind The Super League’s recent failure.
OMAR CHAUDHURI. CHIEF INTELLIGENCE OFFICER, AND BEN MARLOW, MANAGING DIRECTOR ASIA, TWENTY FIRST GROUP contact@offthepitch.com

The spectre of a European Super League has loomed large for three decades, the concept alone enough to increasingly unbalance European football with the slow concentration of resources - sporting and financial - among the biggest teams.

While competition organisers have sought to maintain a delicate equilibrium between competitive balance and commercial ‘fairness’, it has been clear to anyone paying attention that European football is becoming more predictable.

Domestic leagues are increasingly dominated by the wealthiest teams, while the last representative in a Champions League final from outside the big 5 leagues was in 2004, when Jose Mourinho’s Porto defeated Monaco - the last time the competition was won by someone other than one of the 12 founding members of the Super League and Bayern Munich.

The Premier League has been the final bastion for balance among Europe’s big 5 - a truth reflected in the number of different title winners over the last decade (five).

But while the league has been resistant to major changes to media rights distribution, the biggest clubs have soared in popularity, disproportionately growing matchday and commercial revenue, and with it their share of league table points.

This has made them the key draw for the league’s media and commercial partners - a trend reflected across the continent.

What was surprising, therefore, was not that the Super League was launched - many in the industry believed that the game’s capitalist forces made it inevitable - but that it failed so spectacularly and so quickly.

That within 48 hours, something whose sheer possibility had given European Football executives sleepless nights for a generation had been put to bed for perhaps as long.

There is much to unpick from the project’s remains but most striking is the reminder that despite its continued commercialisation, capitalism is not the only force to which European football is beholden. And maybe, just maybe, it isn’t even the strongest.

The logic behind The Super League

One of the driving arguments for The Super League is the commercial success of the American franchise model. It is true that enterprise values of MLS franchises are significantly higher than teams of equivalent quality or reach in Europe, fuelling the narrative that European football is bad at monetising their product.

But this is overstated. First, the league systems are distinct, with the US college system creating scarcity in the number of professional clubs available for purchase, driving up prices.

It is not a sport where the relation between effort and success does not exist.

Second, the size of European clubs’ global fanbase are often overstated - it isn’t credible, for example, to claim that around 20 per cent of the world’s adult population are Manchester United fans.

Third, relative to market size, European football is actually highly effective at monetising the product - European football fans are often willing to spend more per capita to watch football than Americans are to watch NFL, for example.

Otherwise, the great irony of the project was that it was conceived to maximise revenue for participating clubs but that those who are the ultimate source of all club revenue - the fans - weren’t consulted and didn’t like the idea very much.

The reaction to the project was one of the few times football fans have been truly united in pursuit of a coherent, common goal.

But the proposal is backed by both logic and evidence, of a kind. While not directly consulted, fan wishes were interpreted through their actions evidenced in viewing figures, social media following and engagement.

It is certainly true that more people tune in to watch Manchester United vs. Liverpool than Burnley vs. Brighton, and the relative social following of the world’s biggest teams dwarfs that of mid-table teams in Europe's top divisions.

This evidence supports the logic that more people will watch if there are more matches between the world’s biggest teams, resulting in higher subscription revenues for broadcasters, higher media rights values for competitions and higher revenues for clubs.

So far, so clear. But this only works in the context of an authentic competition and The Super League was not perceived as such.

It’s not sport

Much of the post-Super League analysis has focused on the communication strategy, rightly pointing out how badly the whole thing was handled and how surprising this was given the experience and competence of many of the people involved.

But the project was destined for failure, not because of the botched launch, but because it was an entertainment product marketed to sports fans, and as such was simply a bad idea.

For professional sport to be commercially successful, it must be authentic, requiring it to inspire fans through quality, excite fans through jeopardy and connect with fans through what it means - to both fans and players - to win.

The Super League was destined to be the highest quality football competition on the planet. Tick. But jeopardy was undermined through guaranteeing access to the founding members each year, removing the punishment for failure.

Allowing clubs to lose on the pitch without any material consequence off it meant that games outside of the title race wouldn’t have mattered.

“It is not a sport where the relation between effort and success does not exist. It is not a sport where success is already guaranteed, it is not a sport where it doesn't matter when you lose.” In his press conference following the announcement, Pep Guardiola succinctly articulated the significance of jeopardy’s absence.

But that fans didn’t feel a connection to the competition was a bigger issue still. First, the competition’s sporting credibility was undermined through the qualification criteria. Instead of being a sporting meritocracy the founders’ participation was determined by the commercial clout and historic, rather than current, success.

History matters

Second, the competition lacked historical context. Fans have a connection not only with the players and clubs, but also with the competitions in which they compete.

It’s a bit like watching Coldplay headline Glastonbury. It’s more meaningful seeing them perform on one of music’s most iconic stages than watching them play a random stadium in a one-off event.

The reason being there is a context to their performance that enhances its significance. And Glastonbury is still Glastonbury even without Coldplay. History matters.

In being motivated more by money than sport The Super League revealed the paradox central to its failure - to create stability in revenue, access needed to be guaranteed, but guaranteeing access undermined the competition’s credibility among the competition's customers - the fans.

Historical context is one of the key things that differentiates sport from entertainment. The top flight of English football has been running under various guises since 1888.

While the format, the teams, the narratives, the style of football have all evolved over that time, the fundamentals - that of a sporting competition between England’s best football teams - remain the same. That’s 123 seasons. Compare that to the longest running scripted TV Show - The Simpsons at 32 seasons (and counting) - and it is clear that sport is somehow different.

Longevity is achieved because sport continues to matter. The product evolves, narratives shift, characters change, standards are reset and with each passing year the historical tapestry upon which the competition is based becomes richer.

The passing of time is treacherous to a TV show. Plots become stale or out-dated. Values shift. Actors age. To sport, the passing of time is essential - the longer it runs, the greater the authenticity, the greater the narrative, the greater the meaning of victory.

This is not to say that new competitions can’t work - the success of, for example, the IPL would suggest otherwise. It is simply to acknowledge that for change to deliver positive outcomes it must improve the bits that aren’t working and preserve the bits that are. In the case of the IPL, fans were underserved by a high quality T20 competition featuring the world's best players. The same cannot be said for European football.

Authenticity. Credibility. Ever-changing narratives in an appropriate historical context. These are all things that underpin the fans’ connection with the European football product.

In being motivated more by money than sport The Super League revealed the paradox central to its failure - to create stability in revenue, access needed to be guaranteed, but guaranteeing access undermined the competition’s credibility among the competition's customers - the fans.

So what now?

While significant challenges with the status quo remain, lasting solutions must recognise what has made football so successful for so long.

Quality, jeopardy and connection, where connection is derived from a credible competition played within an appropriate historical context, remain the key things that determine a sport’s commercial success over the long term.

Those who ignore this intangible truth in narrow pursuit of financial return may not only be disappointed, but may also do lasting damage to one of the world’s great sources of entertainment.

Speaking about Atalanta’s qualification for the 2019/20 Champions League Juventus Chairman Andrea Agnelli posed this very question.

“I have great respect for everything that Atalanta are doing, but without international history and thanks to just one great season, they had direct access into the primary European club competition. Is that right or not?”

The answer, delivered to Agnelli in emphatic fashion by fans across Europe in response to The Super League, is clear: ‘Yes’.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jun 20, 2021 5:48 pm

Chester Perry wrote:
Thu Feb 21, 2019 3:22 pm
I have suggested before that Burnley being in the Premier League is possibly more important to the town than the club - the knock on economic benefit is difficult to measure, there is no doubt that a whole support infrastructure builds up around the fans coming to the matches, and I suspect that the raised profile of a sustained stay in the league encourages other kinds of inward investment, not to mention the physical increase in numbers of those employed by the club to cover all it's needs.

It is a whole new ballgame for the big boys when the Champions League comes to town - Liverpool commissioned a study to determine the economic impact their run to the final last year had on the economy, the numbers are eye-watering

https://www.telegraph.co.uk/football/20 ... ibute-575/" onclick="window.open(this.href);return false;

You do not commission a report like this unless you are after something, FSG, Liverpool's owners, are well versed in the Franchise sports game in the US and are used to Local government forking out vast sum's on infrastructure to keep the franchise happy. I expect Liverpool to announce a substantial new project in the near future that will see them demanding either: a free pass; or substantial contribution to infrastructure. This report is nothing short of a political tool and a pretty powerful one at that.
Anyone who remembers this post from page 12 of this thread (I do refer to it quite regularly) will be a little surprised by the numbers in an ostensibly similar report looking at the economic benefit of PSG in Paris - you would think they are looking at a very different set of criteria - translated from calciofinanza.it

CDES, PSG is a treasure for Paris: it is worth 182 million in revenues a year
of Gabriele Buscaglia - June 19, 2021

On the occasion of the ten-year presidency of Qatar Sports Investment (QSI), CDES, the French center for economic studies, conducted a study on the economic and social impact of Paris Saint-Germain in the Île-de-France region.

The study begins by summarizing the four pillars of the QSI strategy over the past ten years:

- professionalization of club management
- team building a highly competitive team
- development of infrastructure of the highest level
- redefinition and development of the brand

The arrival of the Qatari ownership marked the beginning of a real sporting domination of PSG in France: 48 trophies since 2011, divided between men's football, women's football and handball. All this thanks to the company's investments, which have generated a sensational growth of 207% in the value of the club in the last five years, up to the current 2.5 billion dollars according to Forbes estimates.

The heart of the research, in any case, concerns the economic impact of the club on the Île-de-France region. As a reference, the 2018/19 season was taken, the last totally "normal" before the upheavals generated by Covid-19.

The economic impact of PSG on the Île-de-France
The economic impact of a sports club is defined as the additional economic activity generated by the club in the geographical area of ​​reference, which the CDES has identified in the Île-de-France region, of which Paris is the capital. It is about the club's ability to attract money from outside the region and its willingness to spend it locally.

The primary impact of PSG is divided into three areas: club expenses (organizational aspect), investments and visitors. As regards the first, operating expenses for the 2018/19 season amounted to 118.6 million euros. Of these, approximately 60.3 million (51%) was spent locally, while the remaining 58.3 million outside the Île de France.

85% of the expenses (51 million) were financed by external revenues, the rest (9 million) by revenues generated locally: the balance allows us to conclude that in the 2018/19 season the primary impact of the club related to the organizational aspect in the Île-de-France region amounted to 42 million euros.

On the other hand, as regards investments, the total amount paid by PSG in the reference season stands at 7.3 million euros, 85% of which (5.2 million) invested locally and the rest outside. Here too, the balance allows us to assess the primary impact of the club's investment activities in the region, which amounted to € 4.1 million in the 2018/19 season.

Finally, there is the aspect of the fans. 26% of the spectators who attended PSG matches at the Parc des Princes were not residents of Île-de-France, including more than 100,000 foreigners. On average, this 26% of “outsiders” spent 393 euros (326 French, 511 foreigners) in the region to attend the match, including accommodation, food and travel, for a total of about 100 million euros.

In conclusion, it can be said that the presence of PSG guaranteed direct revenues of 145.8 million euros to the Île-de-France region in the 2018/19 season alone, mainly coming from the voice of the spectators (68%), then from the organizational aspect (29%) and finally from investments (3%). To this primary impact are added 36.4 million euros of "secondary impact", for a total of 182.2 million euros.

The social impact of the PSG
The study therefore focuses on the social impact of PSG, both considering the jobs generated, and considering the club's commitment to socially relevant causes. On the employment issue, the study reports 670 jobs directly created by the club in 2018/19, in addition to 1,480 jobs created indirectly, for a total of 2,150 new full-time hires.

Regarding PSG's commitment to the betterment of society, the study highlights the impact of the various associations of the club, from the PSG Association to the Endowment Fund, which supports girls and boys with health problems or from disadvantaged neighborhoods. In addition, the club's support for causes such as the inclusion of people with disabilities or the fight against racism, anti-Semitism and homophobia is highlighted, as well as raising awareness on the environmental issue.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jun 20, 2021 7:24 pm

The Turkish Super Lig has announced it's salary cap for next season - from DailySaba.com

Turkish Football Federation unveils spending caps for new season
BY DAILY SABAH
ISTANBUL FOOTBALL JUN 16, 2021 10:10 PM GMT+3

Turkish football’s ruling body on Wednesday announced the maximum amount Süper Lig clubs can spend on transfers and player wages in the next half of the new season.

In a statement, the Turkish Football Federation (TFF) released the spending limits for the 20 clubs competing in the top flight. The limits, however, can be exceeded up to 25% in certain circumstances, the TFF said.

According to the TFF’s list, Istanbul powerhouse Galatasaray will be able to spend the most, with a TL 546 million ($63 million) limit, which includes the 25% excess rate.

Fenerbahçe, which finished last season in third place, follows Galatasaray with a limit of TL 497 million, while champion Beşiktaş was allowed to spend TL 386 million.

Compared to the second half of last season, Beşiktaş and Fenerbahçe have been granted significant increases to their spending caps, while Galatasaray’s limit remained almost the same.

Altay, which was promoted to the Süper Lig last month, received the lowest spending amount with a TL 145 million cap.

The spending limits were introduced by the TFF to stop teams from falling into spirals of debt and being hit by the UEFA’s Financial Fair Play (FFP) rules.

Turkish clubs had been offering outrageous wages to world-class players in hopes of luring them away from Europe’s leading leagues. That practice however landed them in trouble with UEFA, which slapped several of Turkey’s largest clubs, such as Galatasaray, Beşiktaş and Fenerbahçe, with various fines, including bans from European competitions.

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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Mon Jun 21, 2021 7:47 am

So Turkey can have a salary cap in its top flight, but mention it anywhere else and people trot out all sorts of excuses not to have one...

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Re: Football's Magic Money Tree

Post by GodIsADeeJay81 » Mon Jun 21, 2021 7:50 am

https://twitter.com/samuelmarsden/statu ... 77058?s=19

I see Barca have got a loan, looks like they've got it at good terms.

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Re: Football's Magic Money Tree

Post by Newcastleclaret93 » Mon Jun 21, 2021 8:34 am

GodIsADeeJay81 wrote:
Mon Jun 21, 2021 7:50 am
https://twitter.com/samuelmarsden/statu ... 77058?s=19

I see Barca have got a loan, looks like they've got it at good terms.
That is an incredible loan. Will that even scratch the surface for Barca, they need a massive overhaul.

Interesting reading your comments about the TV rights decreasing in value. Could this possibly happen to the premier league?

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 11:29 am

GodIsADeeJay81 wrote:
Mon Jun 21, 2021 7:50 am
https://twitter.com/samuelmarsden/statu ... 77058?s=19

I see Barca have got a loan, looks like they've got it at good terms.
It is only to help them to cover for past indiscretions not future costs, which is why the rate is so low, it is about de-risking the now and the fact that they are an incredible revenue generating machine, though it must always be remembered that revenue does not necessarily mean wealth. This is greatly aided by the fact that La Liga are tightening their salary cap rules for the coming season.

It is of little surprise that Laporta still says that Super League is essential for the future of the game - his club now have over a 1 billion in loans to repay - from 90min.com

Joan Laporta claims football still needs Super League

By Max Cooper
Jun 20, 2021, 4:45 PM GMT+1

Barcelona president Joan Laporta has claimed the Super League is still required to make football 'more attractive and sustainable', despite the collapse of the private division.

12 of Europe's giants initially withdrew from the UEFA Champions League to pursue the money-spinning ESL, but a fierce reaction from supporters saw nine of those clubs backtrack on the agreement.

Barcelona, Real Madrid and Juventus are the three teams still pushing for the birth of this new league, and Blaugrana president Laporta believes football must 'go down this route' to survive.

"If we want football to be more attractive and sustainable, we have to go down this route [with the European Super League]," he said during an interview with La Vanguardia.

His persistence for the revival of the ESL largely comes down to Barcelona's dire financial situation, however. Laporta went on to admit that the economic side of the club 'is worse than expected,' and hinted at drastic measures to balance the books.

"There are some contracts that greatly limit us. There are things that will have to be explained and I won't rule out any measures. Everything will be explained, because otherwise we would be accomplices. The same people always appear in the contracts."

Laporta also bemoaned the contracts with 'out-of-date salaries' which have been handed out to players, and suggested that they will ask most stars to take pay cuts 'for the good of Barcelona'.

"We have found ourselves with a squad with out-of-date salaries and we will have to juggle," he said.

"Existing contracts can be changed or restructured, and then there are drastic measures that we would like not to have to take. Nothing is ruled out for the good of Barcelona.

"Between salaries and amortisations we have a figure of 650 million, which is more than the club's income. These salaries are out of date."

Despite all of the financial distress, Barça are still prepared to offer superstar Lionel Messi a new contract, and they hope for the Argentine 'to say yes as soon as possible.'

Lionel Messi
Messi's in talks over a new deal / Quality Sport Images/Getty Images
"I would like Messi to say yes as soon as possible, it would help us in every way," he said.

"We are in communication, day in and day out. He's excited and I'm grateful for the desire he's showing to stay."

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Re: Football's Magic Money Tree

Post by elwaclaret » Mon Jun 21, 2021 11:38 am

So Barcelona expect the rest of football to bend to their will and help them out of the financial crisis that has resulted from their own massive overspending to maintain their premier position in European football and its fantastic rewards. That sounds fair enough.

I remember going on a tour of the Camp Nou when Terry Venables was manager and the guide taking immense pride that unlike the rest of pezzie football clubs Barcelona was self financing and would not discredit the shirt with sponsorship… how times have changed.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 12:35 pm

For anyone who has not been following the French Ligue domestic rights farce on this thread for the last 15 months or so TIFO Football can bring you up to speed in a little over 5 minutes

https://www.youtube.com/watch?v=ZeJjHbgUolY

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Re: Football's Magic Money Tree

Post by Vegas Claret » Mon Jun 21, 2021 3:38 pm

footy is in a huge mess for sure

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 3:48 pm

LA Liga announce their total revenues for 2019/20 - they are the only League not to announce a loss - thanks in part to their tight FFP rules including a salary cap (reductions in which just pile liability into the future - contracts stand it is just the sums cannot be paid to the original schedule) and the perhaps more significantly that Spanish law that enables you to slash wages to around 30% in times of economic crisis, though no one seems to talk about that - from SportsProMedia

La Liga reveals record €5.045bn income for 2019/20 season
Biggest impact of Covid-19 felt by Spanish soccer body during 2020/21 campaign.

Posted: June 21 2021 By: Sam Carp

- La Liga says it is the only of Europe’s top five leagues to achieve positive net result for 2019/20
- Spanish soccer body expects income to fall to €3.545bn for 2020/21 campaign, meaning clubs will have missed out on roughly €2bn over last two seasons

Spanish soccer’s La Liga has revealed that it generated record total income during the 2019/20 season but has warned that the majority of the impact of the pandemic will be reflected in its financial results for the 2020/21 campaign.

Despite the effects of Covid-19, La Liga saw revenue for the 2019/20 season grow to €5.045 billion (US$5.996 billion), which represented an increase of 3.6 per cent compared to the previous year, when it generated €4.479 billion (US$5.323 billion).

According to professional services firm PricewaterhouseCoopers (PwC), that figure could have been as high as €5.321 billion (US$6.324 billion) without the impact of Covid-19, which saw the 2019/20 La Liga season completed behind closed doors.

Broadcast income accounted for 35 per cent of the overall total as La Liga generated €1.770 billion (US$2.103 billion) from its media rights. Unsurprisingly, matchday revenue was down on the previous season to €796 million (US$946.1 million), while commercial income was up slightly to €987 million (US$1.173 billion).

In light of its latest financial results, La Liga said that the average cumulative long-term growth in each of the last five seasons has been more than 12 per cent.

In addition, it noted that, including transfer income, La Liga was the only major European soccer competition to turn a profit during the 2019/20 season, achieving a net result of €77 million (US$91.5 million).

However, looking ahead to its financial results for the 2020/21 season, PwC has estimated that La Liga’s total income will fall to €3.545 billion (US$4.213 billion), largely owing to a projected drop in matchday revenue to €271 million (US$322.1 million).

Without Covid-19, PwC estimates that La Liga would have generated €5.266 billion (US$6.259 billion) during the 2020/21 campaign, meaning its clubs will have missed out on just under €2 billion (US$2.4 billion) across the two seasons affected by the global health crisis.

Despite that, La Liga said its clubs are well positioned to cope with the financial impact of the pandemic.

A statement accompanying the 2019/20 financial results read: ‘Thanks to the economic control that La Liga clubs and SADs self-imposed and their efforts in managing this, the competition is well prepared for the impact of Covid in the 20/21 season, where we can estimate that despite the economic year not yet being closed, results will be lower than expected, but thanks to the economic strength of the clubs they will be able to manage this difficult season.’

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 4:10 pm

La Liga are also mindful of the need to protect their domestic TV deal in the next cycle - European competition law will not allow them to roll over their existing deal like the Premier League did and they will be keen to avoid the 10%-20% drops or worse (France) their other European rivals have suffered - consequently they are trying to get creative and learn from what others have done - from SportsProMedia

La Liga modifying domestic rights tender to attract new bidders
Spanish soccer league to offer new packages, including select matchweeks.

Posted: June 17 2021 By: Ed Dixon

- Move designed to allow broadcasters to enter Spanish market
- Package of- one or two matchweeks is similar to Amazon’s 20-game deal for Premier League
- La Liga seeking to avoid drop in broadcast rights revenue

Spanish soccer’s La Liga top flight is modifying the tender for its domestic broadcast rights auction in an effort to entice new bidders and stop a decline in revenue, according to Bloomberg.

The tender, which is expected to be launched in September, will reportedly see a variety of new packages introduced, each designed to allow new broadcasters to enter the Spanish market, which Bloomberg estimates to be worth €1.14 billion (US$1.36 billion).

In addition, La Liga will purportedly offer up a package of one or two matchweeks, similar to the 20-game deal snapped up by Amazon for English soccer’s top-flight Premier League. The internet giant acquired rights for the league in a landmark three-season deal that initially ran from 2019/20 to 2021/22, with the Amazon Prime Video streaming service exclusively broadcasting 20 matches per season. That agreement for the UK and Ireland has now been extended until 2025.

As well as the Premier League, Amazon further beefed out its sports offering this month after securing the bulk of the domestic broadcast rights to French soccer’s Ligue 1. The three-season agreement from 2021/22 to 2023/24 is worth €275 million (US$329 million) per year, according to the Financial Times (FT).

Amazon currently has no deal for live Spanish soccer, though Prime Video offers several Spanish sports documentaries, including a series on the history of Real Madrid, as well as another focusing on Sergio Ramos.

The move from La Liga to lure new parties to its rights auction comes amid speculation that Spanish telecommunications giant Telefónica is seeking lower prices for the next domestic rights cycle.

“In the past auction, we managed to have a deflationary outcome -- it would be great to do it again,” Telefonica chief financial officer Laura Abasolo told Bloomberg TV last month.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 4:14 pm

This is whare I got the story that La Liga are tightening the Salay cap rules for next season - CalcioeFinanza.it

La Liga tightens its belt: stricter rules on the salary cap
of Gabriele Buscaglia - June 18, 2021

La Liga has decided to extend the changes made to the salary cap rule for the 2020/21 season to the 2021/22 season. This was reported by Palco 23 , explaining that the legislation envies us to further reduce the cost of the squad to clubs to prevent most of them from exceeding the limit imposed.

The salary cap is defined as the "cost limit of the sports squad": in practice it is a spending limit that each club proposes and justifies, in compliance with the available budget, leaving the La Liga validation authority with the task of approving the proposed limit.

In particular, the rules will concern those clubs (35 out of 42 between the first and second divisions) that have breached the salary ceiling and that will be able to sign new players only under specific conditions:

First of all, they will be able to register players whose cost does not exceed 25% of the reduction in the cost of the squad;

Secondly, in the event that they sell a player, they will be able to use 25% of the capital gain from the sale to sign up for another player (for example, if Barcelona were to sell Ansu Fati for € 100 million, they could use 25% of the capital gain. deriving from the sale);

Finally, the percentage will rise to 50% of the capital gain when the transferred player represents at least 5% of the cost of the squad.

It is an attempt by La Liga to control the excessive costs of clubs, inviting them to reduce the cost of the squad. However, there are those who believe that this extension will assist the big clubs, which through the rules on transfers will be able to register new players more easily without exceeding the agreed salary limit.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 4:21 pm

That same site is also suggesting that Juventus (one of the 3 standing firm on Super League) are looking for a capital injection of as much as 400m euro, though given it is that long since the Agnelli family (through it's business interests) put that much into the club to help it over this period.

Juve are studying a capital increase: hypothesis 300-400 million
of Editorial board - June 19, 2021

The hypothesis of a capital increase for Juventus is making its way . Currently no process has been initiated, but according to what reported by Il Sole 24 Ore, the indiscretion begins to circulate in the environment of investment banks.

The coffers of the Bianconeri club require resources, due to the Covid emergency and budget reductions in recent years, so Exor - the holding company of the Agnelli-Elkann family that controls the Juventus club -, together with the club, would be evaluating the situation, in waiting to understand the cash needs and the extent of any transaction at the end of the summer market session.

A value of the new possible recapitalization is not foreseeable at the moment, even if - according to rumours - we are talking about a figure between 300 and 400 million , therefore at a level similar to the last resource injection operation. Exor would subscribe pro quota the possible increase.

The timing, on the other hand, remains to be defined, although once the market is over, the situation could be clearer and more suitable for making a final decision. Among the other options, a convertible loan and the minority entry of a financial partner would have been studied , but both hypotheses would have been immediately discarded.

Juventus' accounts in the first half saw revenues of € 258.3 million , down from € 322.3 million in 2019/20. Costs also increased slightly to 263.4 million euros (compared to 260 million in the previous year), while losses for the period amounted to 113.7 million (50.3 million in 2019/20).

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 4:50 pm

The Huddle Up newsletter looks at the Business Model of Manchester United - there are a few graphics so I will not transcribe

https://huddleup.substack.com/p/the-bus ... manchester

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 5:54 pm

In a move that has been long trailed CAF have announced that they are looking at creating an African Super League - which will include the club that CAF's new President owns - from SportsBusiness.com

CAF in discussions to create an ‘African Super League’
SportBusiness Staff - June 21, 2021

President of the Confederation of African Football (CAF) Patrice Motsepe (by PHILL MAGAKOE/AFP via Getty Images)

The Confederation of African Football has said it is in “preliminary discussions” over the launch of a new ‘African Super League’ club competition.

The revelation was made as CAF president Patrice Motsepe issued a statement outlining the changes and reforms the new leadership is making to ensure African football is globally competitive and self-sustaining, following the South African official’s election in March.

An African Super League would likely usurp, or replace, the current CAF Champions League, with Fifa president Gianni Infantino having stated last year that he would prefer a model featuring 20 permanent members, with additional competitors gaining access through qualifying.

The news comes in spite of the proposed European Super League having generated huge controversy in Europe. However, Motsepe said: “ExCo may have to discuss and consider new CAF competitions which may generate additional funding or income for CAF, its member associations and bodies and also contribute to African football becoming globally competitive and self-sustaining.

“In this regard, we are assessing and (are) in preliminary discussions to start an inclusive and broadly supported and beneficial CAF African Super League. We have been following the attempts by some top European clubs to form a Euro Super League and will learn from their experience and pitfalls.”

The unveiling of details of a forensic audit report into CAF, produced by professional services group PwC last year, opened fresh concerns over financial irregularities in the governance of the game across the continent.

This report was carried out during the tenure of CAF’s previous administration under Ahmad Ahmad, Motsepe’s predecessor. Motsepe said CAF is committed to implementing the recommendations of the final PwC report and ensuring that the “irregular, unethical and improper transactions and behaviour” do not happen again.

In the statement released yesterday (Sunday), Motsepe said the issues relating to CAF and its media and broadcasting rights are also receiving “serious attention”. Pan-African pay-television broadcaster SuperSport has not screened CAF national team or club games since mid-2019 due to a cancelled contract.

In November 2019, CAF informed Lagardère Sports of its decision to cancel its $1bn (€880m) agreement with the agency. That deal was due to run from 2017 to 2028. The International Chamber of Commerce subsequently rejected Lagardère Sports’ application for interim emergency measures in its dispute with CAF over the cancellation of a 12-year global media and sponsorship rights contract.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 7:02 pm

OffthePitch.com with a piece on the American Investment in Lincoln City that has been catching column inches

American investment marks latest chapter in remarkable rise of Lincoln City
20 June 2021 9:09 PM
  • Over the past five years Lincoln City have risen from the National League to reach last season’s League One play-off final, with attendances more than trebling in size. The club has also earned recognition for its family and community values.
  • Now the club has received new investment from the States, with the Phoenix, Arizona-based Jabara family taking a 9 per cent stake.
  • It is a further indication of the growing appeal of lower-league English clubs to US investors. As part of the new developments, former USA international Landon Donovan is to join Lincoln City as a strategic advisor.
  • Lincoln City are now firmly focused on promotion to the Championship, and the new investment will go towards the first team squad, the club’s Elite Performance Centre, and a stadium expansion and upgrade.
JONATHAN DYSON dyson@offthepitch.com

Five years ago Lincoln City were playing non-league football, their first team squad were training at an army barracks and on a local school field, and home games typically attracted crowds of just 2,000 or 3,000.

After enjoying a dramatic rise since then, reaching last season’s League One play-off final, where they lost to Blackpool, and with crowds averaging above 9,000 before Covid struck, the club has now received a further boost, becoming the latest EFL outfit to receive US investment.

The club announced last Thursday that the Jabara family are to join the existing group of shareholders in Lincoln City Holdings, which owns 75 per cent of Lincoln City Football Club.

The investment will be headed up by Phoenix, Arizona resident Harvey Jabara, an investment executive by trade but also a keen sports fan. Jabara is the managing member of Olive Management LLC, a family office investment firm, and minority member of the consortium which owns the Major League Baseball team San Diego Padres. He will be joined by his wife Missy and two sons Jaxon and Jensen in HJ-LCFC Holdings LLC.

While the stake that HJ-LCFC Holdings LLC will initially take in Lincoln City Holdings is small, at 9 per cent, the move is nevertheless a further indication of the growing attraction of lower-league clubs to American investors.

In League One, Ipswich Town, Plymouth Argyle, Portsmouth and Wycombe Wanderers all have American owners, while Sutton United, who last season won promotion to League Two, received new investment from a US-based businessman in March.

Jabara reveals to Off The Pitch that the value of his family’s initial investment in Lincoln City is between £750,000 and £1 million, and suggests that more funds are likely to follow further down the line. While he will not be joining the club’s board of directors initially due to his other day-to-day commitments, Jabara retains a right to do so at a later date.

Attraction of family and community values

The American was drawn to Lincoln City after an extensive research process assessing other clubs in England and in other parts of Europe over the past five years.

He reveals that he assessed between 20 and 30 clubs during that time, and had come close to investing in a club outside of England, though he would not be drawn on which league it plays in.

Jabara says he was keen to be a minority investor in a club that was already achieving success.

“We were not in search of a distressed club in need of rescue,” he explains. “Our aim was to find a high-quality club that is well run and maybe could use a little bit of help.”

As well as the club’s rise over the last five years, he points to Lincoln City’s strong focus on family and community as a key attraction.

In 2019/20 the club received the EFL Family Excellence Award for the second consecutive season, with a record high score of 80 per cent, ranking it fifth in League One. And in an EFL survey around supporter satisfaction, it was listed third out of all 72 EFL clubs, with a match day satisfaction score of +53 and 8.6/10 for feeling valued by the club.

Family endeavour

“This is a club that clearly has high morals, high values,” says Jabara. “And the community embraces the club to such an incredible extent.”

He stresses that the aim is to pursue a long-term plan to help the club grow and ultimately move further up the pyramid, rather than make a quick return.

“This is not a short-term investment,” he says. “It’s a family endeavour and our goal is to help the club achieve promotion.”

He also stresses that “we're not here to Americanise Lincoln city. We have complete respect for English football, its pyramid and its history.”

Covid restrictions permitting, Jabara plans to visit the club later this year, “and, most importantly, attend matches and get to know the supporters.”

Strategic advisor role for Landon Donovan

As part of the new investment plans, Landon Donovan, former USA international and current manager and vice-president of soccer operations for USL Championship side San Diego Loyal, is to join Lincoln City as a strategic advisor, working with the board, CEO Liam Scully and director of football Jez George to enhance the club’s network and relationships, particularly within North America.

Donovan plans to visit Lincoln in November or December, and reveals that the two clubs have already been discussing possibilities around helping out with each other’s playing squads, such as the loaning or signing of players, and inviting players who are not getting regular game time to train.

“I can absolutely envision a future where we are collaborating with players in different ways,” he tells Off The Pitch.

“And maybe in the offseason for Lincoln or in the offseason for us, we have players going either side of the pond to train for different reasons and different purposes. Because our seasons actually fall differently, it gives us great opportunities to work together in that way.”

Elite Performance Centre a key focus for future investment

Lincoln City hopes that these developments will further boost its on-field success. The club opened its Elite Performance Centre (EPC), an academy and training facility in November 2018, and this, along with astute management, has been key to improving fortunes on the pitch.

In 2019 the first team was promoted back to the third tier of English football for the first time since 1998/99, and the club is now firmly focused on promotion to the Championship.

Lincoln City chairman Clive Nates expressed his excitement about the new developments, and underlined the value of continued investment in particular in the EPC, which he notes has helped boost the standard of players that the club can recruit, thanks to its Championship-standard gym, medical and pitch facilities.

“The EPC is the most important off-field development that has taken place at the club over the last five years,” he says.

“Our ability to progress as a club – to attract better players and to be recognised as a proper Football League club – has all come on the back of developing the EPC. One of the long-term objectives is to continue to put money when it's available into the EPC to make it better and better.”

New plans for stadium expansion and upgrade

Lincoln City CEO Liam Scully also welcomed the new investment plans, and stresses that it has been driven by Lincoln City the football club rather than any other business aspects that might be important for other investors.

“At no point was this about real estate, or stadium valuations or development opportunities,” he says. “We were talking about sport, the emotion of sport.”

Scully says that as well as improving the first team squad and the EPC, the new investment will go towards the expansion and upgrade of its home ground, the LNER stadium.

We'll never have a boom or bust mentality – everything that we have to do is sustainable

The club has received planning permission to expand the Stacey West Stand, with overall capacity set to move up from 10,120 to just over 12,000 by the summer of 2022.

Other upgrades are also taking place, and Scully reveals to offthepitch.com that LED advertising will be used for the first time at the ground from the start of next season.

“We're desperately working to upgrade the ground and get it up to a level fit for purpose at League One and possibly a higher level,” he says. “And that means updating our infrastructure. Investing in LED technology, above static boards, hopefully shows the commitment that we have got to our commercial strategies.”

During the summer the club has also been installing a new fibresand pitch, as well as upgrading the catering and toilet facilities.

Growth in attendances and commercial income

Lincoln City has experienced a huge increase in attendances over the past five years, reaching an average of 9,006 in 2018/19, and in the 2019/20 season readers of the92.net voted the club’s home ground, the LNER Stadium, the second-best ground for atmosphere in the country.

All this has helped increase the club’s turnover, which rose to £6.55 million in the 2019/20 financial year, up from £5.39 million in 2018/19. It made a loss of £0.89 million in 2019/20, compared with a loss of £2.24 million in 2018/19.

Commercial income rose by 13 per cent to £1.37 million in 2019/20, following an increase of 15.3 per cent to £1.2 million in 2018/19.

Scully says that as well as the club’s on-field success and recognition for its family values and stadium experience, it also benefits from a natural buy-in from fans who engage with sponsors by recommending their goods and services to other supporters on forums and social media, and also points to how the club works with its commercial partners.

“Through direct-to-consumer communications and through our CRM systems, we are able to offer them exposure and strategic development,” he explains.

Scully stresses that while the club’s ambition is promotion to the Championship, “this won't be done by putting a load of debt on the balance sheet. It won't be done in a way that risks the long-term future of the club. We are working to improve the overall business of the club, look after it in the long run, and at some point achieve Championship status. But we'll never have a boom or bust mentality – everything that we have to do is sustainable.”

Jabara and Donovan were first introduced to Lincoln City through Raphael Gellar, co-founder and executive director of the Israel-based football consultant firm Forward Sports Group.

Gellar first spoke with Nates in December 2019, before introducing him to Donovan, who then made the connection to Jabara.

“Working with Harvey, Landon and Raphael not only gives us help financially but also a business acumen and an understanding of the game that we can tap into,” says Scully.

“So we're delighted on all fronts.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 7:17 pm

This is an thoughtful piece for offthePitch.com about Wolves new kit deal with Castore (who I have posted about a few times now and will be supplying Newcastles kit too next season I understand)

Interview: Do kit suppliers pay enough for “forgotten” branding? Wolves may be front-runners with new Castore kit deal
4 June 2021 6:39 PM
  • “By taking up such a prominent position on our jerseys, as well as stadium, perimeter, and interview backdrop branding, we didn’t feel this was right and we wanted to find a deal that represented a fairer share of the commercial benefits.”
  • Wolves have announced that they will be partnering with British sportswear brand Castore in a multi-year deal commencing from the 2021/22 season.
  • Wolves general manager of commercial operations Vinny Clark, believes that the Castore agreement will be a “cornerstone of the club’s commercial strategies” moving forward.
  • “Before, there hadn’t been enough margin for us to drive a meaningful wholesale business into certain overseas territories,” says Vinny Clark.
  • According to Wolves, other brands haven’t reached a place of comfort yet in allowing clubs to make product under license. Castore were willing to take that leap, under strict and rigorous approval processes to protect their brand.
BEN KING contact@offthepitch.com

When Wolves General Manager of Commercial Operations, Vinny Clark, and co-founders of Castore, Tom and Phil Beahon, first discussed a potential partnership, excitement was already bubbling in the air of the meeting room.

The British sportswear brand was keen to add to their impressive roster of partners both inside of football with Rangers, and outside of the game, with the likes of former Wimbledon and US Open champion, Sir Andy Murray.

For Wolves, an established Premier League outfit, they were looking to re-set its kit partnership model in what Clark describes as a “win-win-win scenario”.

The club, its fans and the brand are hoping to benefit from this multi-year kit deal with an emerging, disruptive manufacturer that is Castore.

Shaking things up

Adidas and Nike have long-established their presence as the two driving forces in kit sponsorship for Premier League sides since the league’s foundation.

In this past season, 11 of the 20 English top-flight clubs had partnered with either of the two sportswear giants. Wolves were just one of seven pieces in Adidas’s pool of Premier League club partners.

In a bold move, Wolves decided to exercise the early breakaway clause in the deal, moving away from the German supplier’s pack and becoming the first of any English club sponsored by Castore.

“When we first sat with Tom and a couple of Castore’s key investors,” Clark recalls. “The consensus was that Premier League clubs outside of the ‘big six’ tend to get short-changed in terms of their technical partnership,”

“Castore bought into our thinking, and we’ve figured out a deal that works for everyone.”

Away from the kit manufacturers symbol being slapped onto the front of the jersey, there is more to this deal than meets the eye.

With this agreement, Wolves have a tighter grasp on the commercial incentives of this prosperous partnership, benefits they previously weren’t receiving.

“If a brand pays the club, £1 million, they will also provide team kit free of charge to a value of around £250k but crucially, there will be a minimum purchase obligation of around £3 million from the club,” Clark explains.

“This offsets the investment from the brand and nets off with some profit. What we felt had been forgotten in this dynamic is that the brand then gets an incredible amount of marketing inventory to the Premier League’s huge global audience for free.

“By taking up such a prominent position on our jerseys, as well as stadium, perimeter, and interview backdrop branding, we didn’t feel this was right and we wanted to find a deal that represented a fairer share of the commercial benefits.

Reap the rewards

“With Castore, there is a sponsorship fee, a gift of kit element as well as a commitment for the club to purchase the high-end premium ranges from them. The replica supply chain will be managed by the club, meaning inventory levels, lead times and cost can all be better managed, putting us on a much better footing.”

Along with this critical aspect of the collaboration, Wolves fans are also set to reap the rewards. Gone are the days of supporters wearing templated designs produced by brands that teams in different countries and leagues would sport.

The technology and innovation behind football’s modern-day apparel have been an asset that Castore has latched onto. It also shows the deeper significance of the club’s wearable identity and not just Wolves’ unique gold and black themes.

“We worked closely with Castore’s talented design and product development teams to build a range we are both very proud of,” Clark says.

“The manufacturing processes have run parallel with Castore working on our on-field technical product for players and staff, whilst we replicate those products for retail, e-commerce and wholesale distribution.”

A global trading strategy

A new era dawned at Wolves when Chinese investment group FOSUN International arrived at Molineux Stadium in 2016.

Just two years under new ownership, the club were promoted to the Premier League after a six-year absence, becoming an attractive worldwide proposition in the process.

On the field, they have since established themselves as a Premier League side, away from it, they have grown their fanbase to multiple demographics, whilst keeping fans closer to home, happy as a proud community club. The partnership with Castore will play an important part in strengthening these markets.

“Our domestic market is very important to us. This partnership and its structure allow us to give those fans more of what they want in terms of the merchandise and products compared to recent years,” Clark states.

“Away from the UK, a key pillar of growth for us is through our growing international fan base. We have expanded to several key markets in recent years and it’s important we can service that demand.

“Through our ownership group, FOSUN, our fanbase in China is rising every year. We also have huge followings in Mexico and North America, plus emerging markets in the Middle East and North Africa.

“Our demand in Portugal is also growing every year and we have ex-pat fanbases all over the world with notable demand coming from Australia.”

Unable to fulfil demand

Whilst Wolves have been able to mould its global footprint, there have been obstacles to fulfil overseas supporters’ needs. This has often been the case when purchasing items through the club’s e-commerce platform with high shipping fees and taxes a problem.

The club themselves have also felt the effects of this issue. However, Clark insists that partnering with Castore can provide solutions in being able to trade to foreign territories in a more “aggressive” wholesale approach.

This tweaking of the model aims to create a clearer checkout connection for Wolves fans.

“The one thing all of these territories have had in common in recent seasons is that we have been unable to fulfil demand due to the cost price we have paid for the product,” Clark highlights.

“Before, there hadn’t been enough margin for us to drive a meaningful wholesale business into these territories.

“We are working hard to have robust distribution networks up and running in all of these key territories so that we can remove as many barriers to purchase as we can and grow our overall merchandising revenues, now underpinned by better margins.”

Castore were “willing to take that leap”

Following on from the back of an impressive seventh-place finish at the end of the 2020/21 Premier League season where Wolves had also reached the quarter-finals of the Europa League, there were, as expected, several suitors looking to embed their logo on the club’s attire.

The relationship with Adidas had been solidified thanks to the club’s significant rise in performances with increased brand awareness working in tandem.

However, Wolves decided to part ways with the three-stripe brand for an emerging disruptor that was only founded six years ago. Speaking to Clark, it appears Wolves and Castore are ready to take this leap of faith together.

“We spoke to all of the brands that you would expect to be in the conversation and all of them were keen to partner with Wolves but it was Castore who really stood out as daring to be different.

“The other brands haven’t reached a place of comfort yet in allowing clubs to make product under license. Castore were willing to take that leap, under strict and rigorous approval processes to protect their brand, which we were delighted with.”

Future Initiatives

While the announcement of this partnership comes in preparation heading into the 2021/22 season, Wolves and Castore are confirming their commitment to the project, thinking further in advance. This is both from merchandise and business perspectives.

Furthermore, Wolves want this collaboration to work both for them and their new partners in what Clark alludes to as the “cornerstone” of the club’s commercial strategies.

“We are already looking to improve further still in 2022/23 and we are currently sourcing fabrics and beginning the design briefing process so that we can ensure we’re ahead of the game.

“From a business perspective, the various commercial operations teams within the club have an ongoing three-year plan which encompasses our various growth projections and the key strategic pillars that underpin that.

“We also want Castore to achieve great things and if the credibility that comes with being in partnership with a Premier League club gives them a platform to achieve their objectives as a brand, then we will be delighted.”

Could be the future of sports licensing

With products able to be made under license, a condition which other brands appeared hesitant to include, this part of Clark’s pitch caught the attention of Wolves executive chairman, Jeff Shi.

“The essence of the deal in taking on the manufacturing rights to verticalise the business was really attractive to me. I pitched this model to Jeff and he immediately saw the upside.

“We are proving a concept right now and perhaps more brands and clubs will see the value of this model longer term. This could be the future of sports licensing.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 21, 2021 7:39 pm

It seems like relegation has taught Watford's owners some harsh lessons - from offthepitch.com

Watford take first step towards stability: Starting now all player contracts include 50 per cent wage reduction in case of relegation
3 June 2021 1:01 PM
  • Sporting director Cristiano Giaretta says measure has been mostly well-received by players and agents alike so far.
  • Players have to accept more incentive based contracts in light of the pandemic instead of a high base salary.
  • After numerous coaching changes over the past few years Watford have increased investment in backroom staff to become less dependant on one single person.
  • Giaretta has started noticing interesting trends in the transfer market in which Watford have already been busy
.

EMIL GJERDING NIELSON nielson@offthepitch.com

It just took one year for Watford to return to the Premier League following relegation in 2020 that on the final match day ended their five-year stay in the English top flight.

The period until then had ups and downs with particular highlights an 11th place finish in 2019, a season in which they also reached the FA Cup final only to be beaten 6-0 by unstoppable Manchester City.

But if anything, the half-decade was defined by numerous managerial changes, seven in total, with the longest-serving manager, Javi Gracia, in charge for 66 matches.

Watford have different plans this time around. The club secured promotion to the Premier League through their Championship second place with two matches to spare and have been working hard to get ready for the "really tough" season ahead, according to their sporting director, Cristiano Giaretta.

"We ended up playing two seasons in one because we didn't have a break after relegation. You can imagine that was really tough. So, we started immediately to prepare to take advantage of the fact that we were promoted at the end of April," he tells Off The Pitch.

Backroom investment

Giaretta, a former player at clubs like Monza and Lecco, joined Watford in August last year from a similar position with Bulgarian CSKA Sofia, right in the midst of what has been the most difficult time in modern history for the world of football.

Recognising the revolving-door syndrome that has mired the club for the past seasons was not sustainable, the 53-year-old took part in a restructuring that saw investment into backroom staff amped up through a series of new hires.

After dismissing head coach Vladimir Ivić in December, a new head of performance, coordinator, sports scientists and technical coaches were brought in to support Xisco Munoz who ultimately oversaw the club's promotion.

"We have a manager who is the boss but around him we have many in human resources who support on and off the pitch," says Giaretta.

"We trust in their work more than one person," he adds.

Preparing for the unwanted

Of course, Watford will not be counting on a Championship reunion in the near future, but not preparing for such a scenario would only serve as a further indictment of the short-term thinking so ingrained in the football industry.

And it's clear that the £94.7 million wage bill they carried their last season in the Premier League is not fit for a second-tier reality. That's why the club have made it a requirement that all new player contracts include a 50 per cent salary reduction in the case of relegation.

"This is the way to keep the club healthy and not kill ourselves. The seriousness of the pandemic means we need to adapt," says Giaretta, who between 2013 and 2016 worked as sporting director at Udinese, who share owner with Watford in Italian businessman Gianpaolo Pozzo.

In addition to that, new contracts put a heavier emphasis on incentive-based bonuses in favour of a high basic salary.

"Players have to understand the more they are playing the more money they get. Because it's not normal to pay a player who will never play in the Premier League a Premier League salary," Giaretta says.

"Show me you are a Premier League player, and I will pay you as such. After you've shown me that you can come to me and ask for more money," he adds.

Despite the often-difficult nature in dealing with players and their agents, the new contracts have so far been received well.

"The first response has been good with players and agents we've spoken with. We've also signed renewals in this way, and I'm very pleased most understand this," Giaretta says, adding:

"We need to change the way in which clubs are managed, and players have to be open minded. It's better to go to a club with this strategy, a club who are able to guarantee your salary every week, than to a club with high salaries who are not able to pay on time."

Transfer market stuck in the old days

Watford have already announced three signings ahead of the new season, the most recent being French Moroccan central midfielder Imran Louza who was bought from FC Nantes in a reported €10 million deal.

Following a period in which transfer spending fell around €1.4 billion globally, the market for players this year will bear little semblance to any in recent history – at least that would be the assumption.

So far, though, in Giaretta's experience, some are stuck in the old days with the initial asking prices sought as high as they have ever been.

"As soon as you close down a club the asking price is still very high. But I've noticed in the past month that the pricing is going down when clubs realise it's better to close a deal," he says.

With clubs looking to salvage their budgets through player sales, the supply is seemingly limitless in particular players out of contracts or with just a year left.

"There are many options in the market, so you have to be patient to analyse what's best. But I'm surprised by the salary requests we're seeing. Maybe players and agents don't understand what we've went through over the past year. Everything has a new dimension after the pandemic, also money," Giaretta says.

"But once they see we are still undecided they come back with more reasonable requests. They need to realise it's important to focus on a good club with serious people and management, and with ambitions in terms of results. That's the best for their careers."

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

CRISTIANO GIARETTA RESUME

2020 - now: Watford, Sporting director
2019 - 2020: CSKA Sofia, Sporting director
2016-2018: Ascoli Picchio, Sporting director
2013-2016: Udinese, Sporting director
2011-2013: Novara Calcio, Sporting director
2010-2011: Caratese Calcio, Sporting director
2009-2010: Folgore Verano, Sporting director
2006-2008: AC Pro Sesto, Sporting director

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 12:17 am

One of the justifications for Super League was that it was a way of engaging a broader fanbase (but fans were never consulted and actually were the cause of it's catastrophic failure) - a new report (which you can download here https://www.clvgrp.com/press-news-v2) from Fan Relationship Index looks at how fan bases are monetised - it shows just how poor the game has been on this front

OffthePitch.com gives us an appraisal of the report

New research casts harsh light on big clubs pursuit of global fans revenue
21 June 2021 7:38 PM
  • 0.05 per cent of supporters generate 25 per cent of Big Six clubs revenue and more than 600 times revenue per fan than clubs’ global followers.
  • European Super League alienated clubs’ core revenue base and tried to give global fans a product they didn’t want, says report’s author.
  • Football clubs should stop benchmarking themselves against each other and look to global entertainment companies they are increasingly resembling.
  • England’s big six are sitting on £838 million untapped revenue.
JAMES CORBETT corbett@offthepitch.com

Have big clubs taken their eye off the ball when pursuing a global fanbase? Are international followings a kind of footballing Fools Gold? Should efforts on engaging local supporters be redoubled?

In a wide ranging report the CLV Group’s Fan Relationship Index highlights the twin-headed folly of big clubs’ pursuit of a global fanbase when they tried to create a European Super League earlier this year.

Firstly, the fans, who form the core of big clubs’ revenue base, have been “alienated” by the Super League plot, says Neil Joyce, CEO and Co-Founder of The CLV Group, who authored the report. Worse still, he says, they have been sidelined in pursuit of a concept or product that ignores what long distance fans really want.

The cost of these mistakes to England’s big six alone could be as much as £838 million, he says, based on the combination of “undervaluing and underinvesting in relationships with their fans.”

“A football club’s most valuable asset is its fans,” explains Joyce. “The time is now for clubs to recognise and look at the different types of relationships they have with their fans, as well as the innate sense of value and opportunity that loyalty and fan data can bring.

“They need to shift their approach beyond looking for media deals and commercial deals – the market is saturated – and think more like entertainment brands like Netflix.

“A lot of opportunity lies in content, especially when it comes to monetising global fanbases.”

Fanatics revenue

The report identifies three distinct types of fan – ‘Fanatics,’ ‘Casuals’ and ‘Followers’ – and calculates the average revenue per fan for each fan segment. The findings are stark. It shows that Fanatics – loyal fans who attend at least 10 games per season – contribute an average of 21-30 per cent of total club revenue.

To put this into context, a “fanatical” Manchester United fan spends 654 times more than a casual fan does with the club, with Chelsea not far behind with a factor of 609. Even when this gap narrows the spend rate is still in triple digits between the spend of a ‘fanatic’ and global follower.

“I think they [the big six] went for - let's just say - the easier option, the one that's kind of most obvious and known to them, which is trying to negotiate premium sports broadcast deals and looking at the exclusivity angle that the founding members of the European Super League bring,” says Joyce of the April fiasco.

“They really, really did forget about the product they provide, and that is for the fans.”

To what extent did the “big six” clubs alienate current fans by signing up to the Super League?

“I'd say eight out of 10 plus.”

Reputational disaster

While the ESL has represented a reputational disaster for England’s Big Six, the backlash was symptomatic of a broader malaise, says Joyce.

“Clubs have become over-reliant on a small number of revenue sources, such as media and sponsorship deals, and the Champions League – leading to fans feeling disenfranchised and exploited,” he says.

Joyce says that clubs ignore their most loyal fans at their peril. Among the “big six” clubs, “fanatics” represent just 0.05 per cent of the overall fanbase, yet they drive 25 per cent of revenues. He says these are the fans whose trust clubs must win back in order to drive maximum value from the relationship.

Missed opportunity

But at the same time he says that there is a missed opportunity in terms of monetising the global fan base. Joyce argues that it is not a new sporting product that more globalised fans seek, but rather different and better ways of consuming the matchday experience. Improving the digital product, offering premium streaming services and broadening a club’s scope so that it more fully represents an entertainment brand, he argues, is where the monetisation potential lies.

“Our view of this, and we've spoken to some of the clubs over time, is that really the clubs have been fixated on benchmarking themselves against each other when really they should be looking at broader businesses like an Amazon, Sony PlayStation and a Disney. They are big entertainment brands now, but they are all predicated on fans or users.”

Joyce gives the examples of Indonesia and the USA, where CLV’s research shows that up to 50 per cent of fans want direct premium streaming services, virtual matchday services and behind the scenes coverage. Although sports rights are typically negotiated centrally there are plenty of opportunities, he says, where such content could be offered without infringing on such deals. Premium apps and other technological developments are easing the path to football club’s direct to consumer offerings.

“Every football club has a YouTube channel and they essentially are paying Google for the privilege of their fans being able to engage on there,” he says.

“So our recommendation is what we've seen in other verticals. I think we would point towards the huge success that Disney Plus had with its launch last year, the phenomenal success that Amazon had with streaming and getting people subscribing over the last year. Obviously with Covid it has provided a very big opportunity and momentum behind those things. So we look at those verticals in those adjacent places to actually say this is what is possible around the direct to consumer proposition that you can put together.”

Beyond the football model

Surely Disney Plus, with its range of content from Frozen to Star Wars and Marvel to National Geographic, couldn’t possibly be likened to a football club’s content offerings? There can only be so many match re-runs or training sessions even the most committed fan would want to watch?

“The way that we reference Disney plus, is that the football clubs have arguably as much fanatical, loyal bases around customers or users than what Disney does. Disney is inherent in you as a child and you grow up through it and you evolve from a Frozen into maybe a Marvel picture,” says Joyce. He adds that it is a duty of clubs to be forward thinking now and to start building a library of content for the future.

“I take your point around, 'Does a football club have the resources of inventory like a Disney has?' But there's new content systems that they can always cultivate now. So you just look to the advent of apps and podcasts. So the content a lot of clubs are producing is getting richer and richer. But from a legacy standpoint… this is more forward looking, around creation of new content based upon what fans actually want and need.”

Tiny revenues

One of the starkest aspects of CLV’s research is the relatively low amounts clubs earn from their global fanbases. Real Madrid top the league table with £62.82 million generated from their global followers – around 9 per cent of its revenue. But outside the world’s 15 wealthiest clubs, this drops to one or two per cent of revenue.

Even Borussia Dortmund – Champions League regulars, with a legendary fanbase and home to the world’s most exciting young player in Erling Haaland – earn just £4.2 million from its global followers, as per CLV. Is engaging globally all not just a lot of hard work and investment in exchange for relatively modest returns?

Not so, says Joyce, who points out that such findings are based on historical data rather than proper exploitation of the opportunities global followings offer.

“The incremental opportunity to overall revenues for all of these clubs is 20 percent plus,” he adds. “If you look at a world in which revenues are saturating, if not diminishing because of circumstance, growing your revenue by 20 percent would be a very interesting exercise for a club at a minimum to pursue.

“In terms of the level of effort required. It's really about investing somewhat more in data, in infrastructure, and obviously starting to model yourself as a content business as well. This isn't insignificant, but we don't believe it is miles away from where these clubs are because they all have TV channels already they all have apps and they all do podcasts. So they're building up content assets already.”

Beyond football

A recurring theme in our conversation is football clubs’ need to look beyond the game in terms of how it measures success. He gives the example of the Dallas Cowboys as “the benchmark for a sustainable revenue engine”, pointing out that its average revenue per fan of £64 is 16 times that of Manchester United or Liverpool. The Cowboys have optimised corporate hospitality and sponsorship, put a premium on ticket prices and created a “mystique” around their brand – but he acknowledges that they don’t and never will have the global reach of a leading soccer team.

CLV’s experience comes from working across a range of “sports, entertainment and media companies.” Joyce talks about a recent client – “a very large console manufacturer who launched a new product last year” – and how CLV have “helped them try to understand how they could increase revenues, how they could look at increasing the engagement of their users by being more relevant and targeted in their offerings and ultimately using data as the transformation agent within their businesses, beyond the power of their brand and their product.”

Joyce doesn’t elaborate on the name of the client, but later, when I’m looking over CLV’s research again, Sony PlayStation is referenced as a success story “from [its] ability to leverage the data and data driven expertise of adjacent verticals.” The result is striking: average user revenue for Sony PlayStation is £140.

Among “Big Six” clubs it is £6.57. Football seemingly has a long way to go.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 11:06 am

after being forced to sit and twiddle his thumbs for what seems a very long time @SwissRamble grabs Manchester United's Q3 results and sets to work - come on Newcastle, Watford and at least 10 Championship teams get those accounts out - then we can see the reviews of them - the lad is bored

https://twitter.com/SwissRamble/status/ ... 0528497666

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 1:27 pm

OffthePitch.com with a piece on a recent move from 9 leagues who have combined to sell their overseas rights collectively, in an effort to generate greater awareness, interest and revenues, and how the early success of the venture is encouraging others to join in - I think it is a really smart move

European Leagues chair expects more countries to join in on rights pool expected to "considerably" increase media value
22 June 2021 12:56 PM
  • Nine top European leagues including the Danish, Swiss and Norwegian have pooled their international media rights.
  • The combined package could bring in up to €17 million for leagues who believe joining forces increases their appeal.
  • Chair of the European Leagues who has been organising the offering says they are targeting international viewers of national leagues.
  • Sports marketing expert believes the value will initially be low but that building a presence will lead to benefits down the line.
EMIL GJERDING NIELSON nielson@offthepitch.com

Though it emerged just last week that nine European top leagues are pooling their international media rights with the expectation that a shared package will bring in more value, the chair of the organisation that has been leading discussions is not afraid of guessing how it will develop.

"I expect more leagues to gradually sign up for the deal as this is a way to distribute our matches to a global audience. And we expect that to increase the value of our rights considerably," Claus Thomsen, chair of the European Leagues and chief executive of the Danish football league, tells Off The Pitch.

Streaming services have made having a large portfolio a genuine upside

Besides Denmark's 3F Superliga, the top tiers in Switzerland, Norway, Poland, Northern Ireland, Slovakia, Iceland, Latvia and Kazakhstan have signed up for the package.

All are looking to cash in on the opportunities presented by the global media landscape allowing for people and organisations to connect across the world. Opportunities they believe can help not only grow their international footprint but their revenue in an industry that is increasingly divided into the haves and have nots.

Size matters

The tender is for the rights to air 116 clubs playing more than 1,500 matches every season - spanning all 12 months of the year.

Its sheer size is precisely why the package is interesting from a rights taker perspective, according to Thomsen who says the volume is perfectly suited for today's media landscape.

"You are targeting a very limited audience when you're selling your rights individually. But what we're doing here is reaching a potentially much bigger audience. That has become viable because streaming services have made having a large portfolio a genuine upside," he says.

Thomsen's comments are backed by head of analysis and consulting at GlobalData Sportcal Conrad Wiacek. He believes the package is a sign of a growing trend that started with Discovery's acquisition of the European rights to the Olympic Games from 2018 to 2024.

That deal was the first time the International Olympic Committee sold the entirety of the European rights to a single media company instead of going by each country individually.

"Selling and buying rights individually on a territory-by-territory basis is a long and complicated process. Content from multiple different leagues in one rights deal is very attractive for broadcasters because it helps build their schedule," he says.

International viewers

A large and diverse package featuring leagues from UEFA's top 20 like the Danish and the Swiss all the way down to the Icelandic – which is 52 out of 55 – caters to a wide audience base. But Thomsen is not worried of creating too broad of a product.

With it, they are targeting three specific types of viewers: Expats, people with an affiliation to another country than the one of their residence, and people who "would watch football twenty-four hours a day if they could."

"It's a very large volume of matches and that means we have a larger footprint, many more globally who are interested. That means you can package it at a much larger value simply because it caters to more," Thomsen says.

The challenge is finding a partner who is willing to promote the package

That also means, however, that the product likely will not suit a diverse set of broadcasters and instead cater to a streaming service.

"Ultimately it's worth what someone is willing to pay for it but at the moment the footprint of these leagues isn't huge. This is a starting point and what they will be hoping for over the next decade is that presence will lead to an increase in fees," says Wiacek.

Sports and entertainment agency Octagon is leading the sale which could bring in as much as €17 million for the three seasons from 2021-2024, according to a market survey. That may not seem like a lot, but none of the leagues currently have international media rights agreements.

The right partner

Though a tender has been launched calling for bids to be returned on 12th July there are still some things that need to be sorted before the terms of the package become final.

Whether production will be inhouse or external for example will be up to negotiation with the partner chosen, and exactly how the revenue will be distributed between the nine leagues is not certain at this point.

Should Denmark's league, the highest ranked, receive the same amount as the lowest ranked league, Iceland's?

Thomsen says this will be up to how much each league delivers in terms of matches and the value of each leagues' current agreement.

But for Wiacek, the goal of the new tender should not simply be attracting the highest value possible. It should be finding someone who is committed to the long-term.

"The challenge is finding a partner who is willing to promote the package, not just someone wanting to fill a schedule. That's why a streaming service makes more sense than a traditional broadcaster."

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Re: Football's Magic Money Tree

Post by ecc » Tue Jun 22, 2021 2:10 pm

“I have great respect for everything that Atalanta are doing, but without international history and thanks to just one great season, they had direct access into the primary European club competition. Is that right or not?"

This man is a disgrace. His family have, of course, always ruled the roost at Juve but the sad news of the death of Giampero Boniperti, former Juventus player and Chairman, is a timely reminder of an era when that club had some class. The head of the Agnelli family during that period, Gianni, also known as "L'Avvocato", personnified elegance and whilst no angel, I doubt very much that he would be happy to see how his nephew runs the club.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 3:51 pm

The Athletic with a piece on why Southampton still hasn't been sold despite being on the market for over two years - the only significant interest coming from Jose DaGrosa who I have posted about a number of times - we comes across is just how difficult it is to sell a Premier League club these days to investors who are wanting a return.

https://theathletic.com/2664136/2021/06 ... ed_article

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 4:05 pm

Very pleased to say that only Burnley of the teams that remained in the Premier League last season are not taking part in the EFL trophy (though this may only be as a result of only 16 academy teams being allowed in)

https://twitter.com/sistoney67/status/1 ... 5824995331

no B teams please - expect the protests and low attendances to continue

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 4:07 pm

I keep saying that Super League is not dead

this from @TariqPanja

New motion filed with Madrid court by A22, the company behind Super League. It is seeking to scrap the agreement UEFA signed with the 9 clubs- including 6 Premier League teams- after they backed away from the project. Would mean fines and penalties are annulled.

UEFA has five days to respond. A decision could take a few weeks, but would be a huge blow if implemented.

A22 is also filing to make UEFA cancel the disciplinary against Juve, Real and Barca in its entirety. It's currently "stayed" pending UEFA's appeal against the April 18 injuction by the Madrid court

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Re: Football's Magic Money Tree

Post by Vegas Claret » Tue Jun 22, 2021 4:26 pm

Chester Perry wrote:
Tue Jun 22, 2021 4:07 pm
I keep saying that Super League is not dead

this from @TariqPanja

New motion filed with Madrid court by A22, the company behind Super League. It is seeking to scrap the agreement UEFA signed with the 9 clubs- including 6 Premier League teams- after they backed away from the project. Would mean fines and penalties are annulled.

UEFA has five days to respond. A decision could take a few weeks, but would be a huge blow if implemented.

A22 is also filing to make UEFA cancel the disciplinary against Juve, Real and Barca in its entirety. It's currently "stayed" pending UEFA's appeal against the April 18 injuction by the Madrid court
what's your gut feeling on this - do you think it's inevitable at some stage ? I don't think there is any chance if it's a closed shop

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 4:43 pm

Vegas Claret wrote:
Tue Jun 22, 2021 4:26 pm
what's your gut feeling on this - do you think it's inevitable at some stage ? I don't think there is any chance if it's a closed shop
Legally UEFA do not have a leg to stand on in terms of Competition rules - that has been proven more than once in the last few years

I suspect that FIFA will announce a series of Continental Leagues - Starting in Africa followed by North America and Europe - these will be funded either directly or indirectly by Saudi or Chinese interests. Infantino and Perez have had an accord on this for over two years now. the Club World Cup will be a way of bringing these leagues together in competition every 1, 2 or 4 years.

FIFA president Gianni Infantino needs to find new revenues to maintain his power base - The UEFA club competitions earn more than the World Cup and Confederations combined over a four year cycle, and at least as importantly bring in substantial revenue every year not just every four, Until Infantino FIFA had not shown any interest in the club game, the wealth and strength of UEFA has changed that.

It means that domestic top flight leagues will drop to a maximum of 18 teams and participate n only 1 domestic cup, the repercussions on finances for domestic leagues will be huge. as TV deals move to the bigger competition, current ratios of 5:1 between highest and lowest earners in the league could stretch to over 10:1. It is possible that the Champions League will be used as a way of getting promotion to the FIFA continental league, as a sop to the continental federations

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 5:39 pm

Sky Italia show no sign of giving up on their grievance case with Seri A over the DAZN/TIM domestic rights deal, even though they have lost their previous hearings - from SportsBusiness.com It is worth noting the prices Sky and DAZN have paid for their respective deals and then compare and contrast those of Canal+ and Amazon for similar deals in France, it is then that you understand why Amazon bid what it did for an incredible deal that actually still leaves French football in a real financial crises, whether Canal+ evades paying for it's rights or not.

Sky takes DAZN-TIM grievance to antitrust watchdog
SportBusiness Staff
June 22, 2021

Pay-television broadcaster Sky Italia has lodged an appeal with Italy’s competition authorities over the agreement between sports subscription service and media company DAZN and Telecom Italia (TIM) for the rights to Serie A, the top division of domestic club football.

Sky confirmed the appeal today (Tuesday), continuing its long-held concern over the distribution agreement between DAZN and TIM.

In a statement to Ansa, the Italian news agency, Sky said: “Sky turned to the antitrust to be sure that millions of consumers and football fans can continue to subscribe to Serie A through a selection of broadband providers and watch it on the platform they prefer – satellite, DTT [digital terrestrial] or OTT – just like today.

“TIM, the dominant retailer in broadband, has entered into an illegitimate exclusive agreement with DAZN. This agreement precludes OTT distribution of the Serie A championship through other operators, therefore favouring TIM and strengthening its dominant position in the broadband market.

“At a crucial moment in Italy’s transition from standard to ultra-broadband, this exclusive agreement must not harm competition. For this reason, Sky invites the antitrust [authorities] to act urgently to ensure that Serie A can be enjoyed by all consumers in conditions that favour competition and free choice.”

In February, TIM clarified the nature of its support for DAZN’s bid for domestic Serie A rights. TIM said that it was not taking part in the rights tender but was instead supporting DAZN’s proposal. The telecoms operator’s public statement came as DAZN continued its push to allay the concerns of some club presidents as it battled Sky for the rights.

TIM said that it had “signed an agreement to supplement the already existing distribution agreement (with DAZN), conditional upon DAZN being awarded the aforementioned tender”.

The telco continued: “Under the agreement, TIM would qualify as the reference telephone and pay-TV operator offering DAZN content in Italy as well as for the technological partnership. The collaboration would kick off in July 2021 and would include DAZN’s full catalogue of live and on demand sports content.”

DAZN finally secured the necessary backing of Serie A clubs in March for its rights deal worth €840m ($998.4m) per season for seven exclusive fixtures per matchweek and co-exclusive rights to three matches. Ahead of a February 26 meeting, one of several at which the clubs voted on the rights offers, Sky sought to increase pressure on the clubs by flagging concerns over the effect on market competition of the DAZN-TIM proposal.

DAZN this month rejected a €500m carriage proposal from Sky that would have allowed customers of the pay-television broadcaster to retain access to Serie A. DAZN has signified that it will end the distribution of its DAZN1 linear channel on the platform of Sky. In doing so, DAZN is looking to deal a serious blow to a rival through the migration of linear pay-television subscribers to the ‘Sky Calcio’ package over to DAZN.

DAZN recently announced it will triple its subscription price in Italy on the back of its acquisition of Serie A rights. The monthly subscription price will rise from €9.99 to €29.99 from July 1 onwards.

Sky last month acquired the final package of domestic live rights being marketed by Lega Serie A. Sky acquired the co-exclusive rights to 114 Serie A matches per season, three for each round of games, for the three-year period spanning 2021-22 to 2023-24. These games will occupy the Saturday 8.45pm (CET), Sunday 12.30pm and Monday 8.45pm kick-off slots.

Sky will pay €85m for the first season of its rights agreement, rising to €87.5m and €90m, respectively, for the latter two campaigns. Sky will share its rights with DAZN.

The award of package two to Sky was dependent on the broadcaster dropping its legal action concerning the original rights deal with DAZN. Sky had moved to block the award of the rights to DAZN through an appeal lodged with a Milan court. The waiving of the legal action was confirmed in the middle of last month.

Meanwhile, TIM is also said to be in talks with Mediaset with regards to distributing the commercial broadcaster’s ‘Infinity’ streaming offering, including matches from the Uefa Champions League, reports Milano Finanza, the Italian financial newspaper.

Mediaset picked up multi-platform rights to the first-pick Tuesday matches and also non-exclusive streaming rights to 104 Champions League matches per season. Both deals run from 2021-22 to 2023-24.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 22, 2021 6:07 pm

It has been discussed for a while but he MLS has now confirmed that it will be launching a new lower tier in 2022, it sounds more of a development level league - there is no sign of promotion/relegation which may become a feature of USL - from SportsProMedia

MLS launching new lower tier league in 2022
Competition hoping to attract new owners and markets ahead of inaugural season.

Posted: June 22 2021By: Ed Dixon

- League to develop young players and bring soccer to cities without a pro team
- Competition to kick off in late March next year, followed by playoffs in the autumn and championship match in early December
- Name, logo and participating clubs to be unveiled over the course of 2021

Major League Soccer (MLS) has announced plans to launch a new lower tier professional league in 2022.

The new division will look to develop young players making their way from the MLS Next youth leagues to the professional ranks, in addition to bringing the sport to cities that currently do not have a professional soccer team.

Consisting of a mix of young talent and established professional players, the competition will be made up of MLS club-owned and operated teams, though organisers also hope to attract new owners and markets to join.

In addition, the league aims to give more professional opportunities on the technical and business side of the game, developing new jobs for coaches, referees and executives to become involved in the growth of soccer.

The division will also follow MLS’ commitment to activate programmes as part of the Soccer Upward Mobility initiative to develop talent and create opportunities for individuals from underrepresented groups.

Consisting of 20 MLS clubs, along with the potential for independently owned teams for the inaugural season in 2022, the league will begin in late March and conclude with playoffs in the autumn, followed by a championship match in early December.

According to The Athletic, the league will seek third division sanctioning.

In the coming months, the division’s leadership team will be hired to oversee the launch and ongoing management of the competition, which will be based in MLS’ New York City headquarters.

Further details, including the league’s name and logo, participating teams and application process for expansion clubs will be unveiled over the course of this year.

“We are excited to launch a new league to complete the professional pathway between our academies and the MLS first teams,” said MLS president and deputy commissioner Mark Abbott (pictured above).

“In addition to providing more opportunities for MLS-calibre players, the new league will develop a diverse talent pool of coaches, referees and front office executives while also attracting fans who previously were unable to support a local club in their hometown.”

The United Soccer League (USL) and USL League One currently operate below top tier MLS. A USL spokesperson said to ESPN: “The more pathways there are for young players across the country, the better. We wish MLS success in their efforts and look forward to continuing our work together to grow the sport of soccer in the United States.”

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Re: Football's Magic Money Tree

Post by Vegas Claret » Tue Jun 22, 2021 7:36 pm

Chester Perry wrote:
Tue Jun 22, 2021 4:43 pm
Legally UEFA do not have a leg to stand on in terms of Competition rules - that has been proven more than once in the last few years

I suspect that FIFA will announce a series of Continental Leagues - Starting in Africa followed by North America and Europe - these will be funded either directly or indirectly by Saudi or Chinese interests. Infantino and Perez have had an accord on this for over two years now. the Club World Cup will be a way of bringing these leagues together in competition every 1, 2 or 4 years.

FIFA president Gianni Infantino needs to find new revenues to maintain his power base - The UEFA club competitions earn more than the World Cup and Confederations combined over a four year cycle, and at least as importantly bring in substantial revenue every year not just every four, Until Infantino FIFA had not shown any interest in the club game, the wealth and strength of UEFA has changed that.

It means that domestic top flight leagues will drop to a maximum of 18 teams and participate n only 1 domestic cup, the repercussions on finances for domestic leagues will be huge. as TV deals move to the bigger competition, current ratios of 5:1 between highest and lowest earners in the league could stretch to over 10:1. It is possible that the Champions League will be used as a way of getting promotion to the FIFA continental league, as a sop to the continental federations
well if all that comes to fruition I'll be done with the pro game, very depressing

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 12:21 pm

Vegas Claret wrote:
Tue Jun 22, 2021 7:36 pm
well if all that comes to fruition I'll be done with the pro game, very depressing
By way of contrast there is this from Bury AFC - who are looking for more people to get involved with their phoenix club - I have to say I got quite emotional watching the attached video - I wish them every good fortune

https://twitter.com/OfficialBuryAFC/sta ... 7477852167

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 12:49 pm

Chester Perry wrote:
Wed Jun 02, 2021 12:26 pm
Apparently there is a bidder for Bordeaux who has got to the data room stage - somewhat unfortunately it may seem, is the fact that it is the former CEO of the LFP (French Ligue) who oversaw the Mediapro TV contract (the one that most neutral, but informed observers thought was doomed to fail) that collapsed so spectacularly within it;s first 3 months last season

https://twitter.com/GFFN/status/1399820744788430848
So Didier Quillot has not manager to take over at Bordeaux but the news who has may come as a surprise given he was forced out at Lille last year because the creditors had no confidence in his ability to service or pay off the clubs debts - yes step forward Gerard Lopez - who you have to say oversaw the creation of a title winning side, just with debts so large they have now mostly been sold off, the manager walked too

This statement comes from the Bordeaux club website and has been translated

Following long discussions in recent days, an agreement was finally reached between King Street, Fortress and Gérard Lopez validating the project carried out by the latter.

The guarantees requested by the Executive Board held in the middle of the day were provided in the hours that followed.

These last elements met the expectations of Rothschild &Co, the Financial Advisor of the Club, and the Ad Hoc Agent thus avoiding the placement of the Club in receivership.

The takeover of FC Girondins de Bordeaux remains conditional on the finalization of the usual contractual documentation, after consultation with the staff representative bodies, and the confirmation by the DNCG of the possibility for the Club to continue its prestigious history in Ligue 1.

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Re: Football's Magic Money Tree

Post by Vegas Claret » Wed Jun 23, 2021 3:09 pm

Chester Perry wrote:
Wed Jun 23, 2021 12:21 pm
By way of contrast there is this from Bury AFC - who are looking for more people to get involved with their phoenix club - I have to say I got quite emotional watching the attached video - I wish them every good fortune

https://twitter.com/OfficialBuryAFC/sta ... 7477852167
Brilliant, good luck to them :)

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 3:13 pm

Vegas Claret wrote:
Wed Jun 23, 2021 3:09 pm
Brilliant, good luck to them :)
It gives you hope doesn't it?

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 3:17 pm

Serie A are about to make a 4th attempt at selling it's rights in the MENA region for the next cycle following BeIN's refusal to take part - it is rumoured that the Saudi's made the largest bid last time but it was very short of expectations. By way of contrast and due to it's excellent working relationship with BeIN the Premier League were able to roll over their equivalent rights deal without any real complication - this from SportsBusiness.com

Serie A to hold new negotiations in bid to end Mena rights stalemate
Martin Ross
June 23, 2021

Lega Serie A is to enter a new phase of negotiations as it continues its attempts to derive a satisfactory value from its broadcast rights in the Middle East and North Africa from 2021-22 to 2023-24.

The Italian league decided at its assembly meeting on Monday to go back to the negotiating table after rejecting offers received by the latest deadline of June 18. The stalemate comes with incumbent rights-holder beIN Media Group having steered clear of of the invitation to tender process.

Rights in the Mena region were carved out of Serie A’s global rights invitation to tender and also include the Coppa Italia and Supercoppa Italiana competitions.

Lega Serie A told The Associated Press that it will “open new negotiations in the next weeks”.

Tweaks were recently made to the initial ITT document, which was sent out in the middle of January, to take into account the new format for the Coppa Italia. Last month, Lega Serie A agreed to revised a controversial plan to alter the format of the knockout clubs tournament. Starting next season, the tournament will comprise the 40 teams that compete in Serie A and Serie B, plus four clubs from Lega Pro, organising body of the third-tier Serie C.

Successful bidders for the rights in the Mena region must guarantee the broadcast of at least 21 matches each season from the Coppa Italia and Supercoppa.

BeIN was left frustrated by the initial sales process that allowed country-specific bids as opposed to solely a pan-regional offering.

Tensions surfaced during the 2018-21 cycle between beIN and the league. This peaked 12 months ago as beIN enacted a blackout of coverage amid ongoing tensions over the league’s relationship with Saudi Arabia and the country’s links to pirate channel beoutQ.

A compensation deal with the league and IMG, the agency that held the international rights, was subsequently struck and coverage resumed.

The broadcaster’s original Serie A rights agreement across various territories, including France, Australia and Mena was worth about $170m (€142.4m) per season. During its latest Mena rights sales process, the English Premier League agreed a new three-year deal with beIN worth a total of $500m which covers the whole region. BeIN also recently retained its rights to Uefa club competitions across the region, paying around $200m per year.

Speaking to AP in March, Luigi De Siervo, the chief executive of Lega Serie A, claimed that beIN had “prohibited all of their friends and intermediaries to make offers for their countries” and that the league had been “ostracised” by the Doha-based broadcaster.

He bemoaned: “BeIN was worth 50 per cent of our package and they’ve decided not to take part in our auction.”

Having twice pushed back the bid deadline in its Mena ITT process, Lega Serie A invited companies to submit their offers by 10am (CET) on February 28.

Serie A international rights (excluding Mena) were secured by the Infront agency for the next three seasons in a deal worth €139m ($166m) per year.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 3:23 pm

Chester Perry wrote:
Tue May 25, 2021 12:11 am
Some really intriguing detail in this report on the rescue package for Inter Milan that has apparently been concluded

U.S. Investment Firm Oaktree Capital Signs $336 Million Financing Deal With Serie A Champions FC Inter
Giacomo Galardini

On Thursday, Italian soccer giant FC Inter have officially agreed to a $336 million deal with U.S. based Oaktree Capital Management Group.

The club majority shareholder — Chinese retail giant Suning Holding Group — hopes the deal will help the team’s troubled finances, badly damaged by the Covid-19 pandemic.

“Following a process of due diligence and with a collective long-term vision of the project, Inter have today finalized a financing deal with funds managed by Oaktree Capital Management,” the Nerazzurri told Italian news agency ANSA.

“With this financing deal, the shareholder will continue supporting Inter to overcome their difficulties and the opportunities lost during the COVID-19 period.”

To avoid burdening the club troubled assets with further debt, the American fund will grant the loan to Great Horizon Sarl - the Luxembourg-based holdings company through which Suning controls FC Inter, soccer finance website Calcio e Finanza reports.

As part of the deal, Suning have pledged their 68.55% majority stake in the club as loan collateral.

This means Oaktree could take full control of FC Inter, should their president Steven Zhang not be able to repay the debt after three years.

The ownership of the Milan-based club is currently shared between Suning, which has owned FC Inter since 2016, alongside Singapore venture capital LionRock Group, which currently owns a minority of 31,05 % share.

It is yet to be seen whether Oaktree will only partner with Suning to ease the club’s financial woes - leaving the corporate structure intact - or if the U.S based firm will replace LionRock Group as the club’s minority shareholder, as Reuters reported.

A possibility that is being widely reported as very likely.

According to La Repubblica, Suning would only need $40 million from the deal to buy out LionRock, as the minority shareholder took over their stake with a $163 with a loan directly from Suning, obtained through their subsidiary Great Horizon.

Italian daily La Stampa also cast some shadow of doubt regarding the communication of the deal.

The Nerazzurri did not issue any official statement about the operation, and the report claims that the “odd lack of transparency” is a plan to keep a much-needed low-profile in the club’s board.

FC Inter’s new investors Oaktree Capital are one of the largest ‘distressed securities’ manager in the world, and already have experience working in soccer.

Last year, the Los Angeles-based firm purchased 80% of French Ligue 2 side Caen, and they also have links to English Championship side Swansea City.

Additionally, the group has a strong interest with the Qatar Investment Authority, which has French giant Paris Saint-Germain among their partners.

Suning has been seeking fresh investment to shore up their finances, especially after last January, when changes in economic planning made by the Chinese government further complicated the owner’s liquidity.

The club has been in financial dire straits due to the COVID-19 pandemic, as matches are played behind closed doors and several companies cut sponsorship budgets.

On top of that, Il Sole 24 Ore observes that Suning will be looking to refinance two bonds worth $456 million due to expire in 2022.

To further complicate the strained situation, only last month FC Inter saw the collapse of the European Super League project, a breakaway competition that the Nerazzurri founded hoping to secure an initial $367 million injection.

Lately, FC Inter failed to pay regular salaries to its players and asked them to give up a part of their annual wage, Italian daily Il Corriere della Sera reported.

Last week, FC Inter CEO Giuseppe Marotta said the club must reduce its wage bill to keep its business sustainable, hinting at possible player transfers.

Giacomo Galardini

I am a football (soccer) journalist passionate about everything related to the beautiful game, from live matches to football business and stadiums. I am the Senior… Read More
It looks like the Oaktree funding of Inter Milan is on schedule if the agenda for the shareholders meeting of the club is anything to go by

this translated from CalcioeFinanza.it https://www.calcioefinanza.it/2021/06/2 ... embri-cda/

Inter, shareholders' meeting on 8 July between bylaws and Board members
by Matteo Spaziante - June 23rd, 2021

New shareholders' meeting in sight for Inter. The Nerazzurri club has in fact convened an assembly, "exclusively in audio/video conference mode", for next July 8, 2021 at 9.30 am.

Two main topics on the table: the amendments to different articles of the articles of association and the appointment of members of the Board of Directors. The agenda states:

adoption of amendments to Articles 6.1, 6.2, 6.4, 9.9, 10.1 and 10.5 of the Articles of Association;
appointment of members of the Board of Directors of Fc Internazionale.
What do the articles that will be amended refer to, after the last amendment in March 2019?

6.1: definitions of the transfer of stakes in the company;
6.2: transfer of shareholdings by act between the living;
6.4: right of pre-emption;
9.9: constitutive and deliberative majorities relating to the shareholders' meeting;
10.1: structure and appointment of the Board of Directors;
10.5: Resolutions of the Board of Directors.
Changes that should have been necessary under the agreement between Suning and Oaktree regarding the $275 million funding guaranteed by the US fund, with the Nerazzurri's shares in the hands of the Chinese group pledged.

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Re: Football's Magic Money Tree

Post by Vegas Claret » Wed Jun 23, 2021 3:33 pm

Chester Perry wrote:
Wed Jun 23, 2021 3:13 pm
It gives you hope doesn't it?
it does, I follow a channel on youtube https://www.youtube.com/c/FootyAdventures/videos an he has been going around all the Scottish grounds, lower league stuff, historical stuff too, I've really enjoyed most of the videos. In all honesty I'm finding pro level footy less and less appealing

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 3:33 pm

Interesting and detailed interview from SportsProMedia about how twitter are doing massive business from Euro 2020

https://www.sportspromedia.com/intervie ... -theo-luke if you want to see the embeded tweets/clips

Twitter’s Theo Luke: ‘We will do more revenue from the Euros than from the last World Cup’
Euro 2020 has so far delivered entertainment on the pitch, which for Twitter is good news as it continues to position itself as the second screen for sports. Theo Luke, the platform's EMEA director of content partnerships, lifts the lid on how partners are also making the social media platform work for them during the tournament.

By Tom BassamPosted: June 22 2021

There is no doubt that Twitter is where fans go to for live reaction during a major event. According to a study conducted by the social media service and Comscore, one in two people agree that being part of the conversation on the platform helps them feel more connected to the sporting event they are watching.

It became clear a few years ago that Twitter does not see itself in the live sport content space and that it is supplementary to broadcasters – not competitive. This is clearly helpful for brands in knowing where they stand and what the platform is trying to do: monetise the real-time reaction.

During a major tournament, such as the ongoing Uefa Euro 2020, most of the event partners are trying to insert themselves into the conversation and the really successful ones will be able to start it. The Football Association (FA), for example, are putting press conferences and training sessions live on Twitter, as well as creating bespoke player content for the platform. England might not win the tournament, but their social media team are much hotter favourites to win on Twitter.

While not an official tournament partner, Twitter and Uefa – which has more followers across its channels than the National Football League (NFL) – do work together to bring sponsors to the platform. That collaborative sales process is part of a rights holder agreement revenue partnership, but there is also a more informal relationship where Twitter conducts training with the European soccer body’s internal teams and partners in order to maximise the platform from a B2B, as well as B2C, perspective.

To get a handle on what this all means during the Euros, SportsPro spoke to Theo Luke, Twitter’s EMEA director of content partnerships.

How is Twitter working with its partners around the Euros?
We are a partner of many of the broadcasters across Europe. Here in the UK, ITV, we work very closely with Uefa, indeed they have even brought some of their sponsors on board as well. We will do more revenue from the Euros than we did from the last World Cup. That is testament to how Twitter has got bigger and bigger, and video has got to be a bigger part of the platform, but also the Amplify product, which is core partnership/monestisation model, has become a bigger part of our business.

One of the conceits that has made Amplify a successful product is that we are agnostic about who sells the content. We recognise that the value is in both the content – usually the broadcaster content – our ad engine and all the data that you use to target fans. So either our sales team - or ITV’s or Uefa’s - are selling their content into brands. That brand is then targeting the football conversation on the platform. You’re a Brighton fan, you’re on Twitter and you follow Brighton, the players or you’ve tweeted about Brighton, then it’s a fairly good guess you’re a football fan. So someone like Heineken will be targeting you, the second place in your timeline will be a tweet from ITV football with a pre-roll from Heineken – that’s how it works.

What is the secret for brands to be successful around a big tournament with their activations?
Where we see some really smart integrations that build on many years of partnership with the football industry, is bringing existing tournament sponsors or existing broadcast sponsors onboard. The likes of Hisense, or some of ITV’s partners or the Paddy Powers of this world, they understand our platform, they create bespoke content for our platform and they are sometimes woven into the actual video experience – those brands are marrying rich creative with the data and analysis you can deal in real time via our ads dashboard. They are not strange transplants from TV that don’t think about how they live in a slightly different ecosystem.

What is absolutely true is that we are a real-time experience. Clever brands are those that understand meme culture and how reactive they have to be when moments take place on the platform. It’s early days in this tournament, but that’s where I would focus.

What has been the tone of conversation around the Euros so far?
There’s a lot going, it’s a moveable feast. In terms of things we’ve noticed in the first couple of days of the tournament, there was some really nice stuff.

All of the tweets that we saw [after Christian Eriksen’s cardiac arrest] were fans wishing him well. You had people from the British Royal Family through to the federations [sending positive messages].

Also, the standout moments that you would previously talk about in the office while you’re having a cup of coffee, you can’t do that anymore, so you do it on Twitter. For [Patrik] Schick’s wonder goal, I wasn’t watching the game because I have two kids, but the reason I knew it happened was because I saw a colleague on my team tweeted about it.

We think of ourselves as being the roar of the stadium when games are taking place, I think that is particularly true as we’re coming out of the pandemic with limited capacities in the grounds.

We’re seeing more conversation on the platform, more users, more tweets and football is the number one conversation in the UK. People are beginning to realise the power of platforms like ours to mobilise fans. Take the ESL, for instance, you got an immediate reaction. At a time when it is very difficult to stage demonstration or turn up Twitter is a good place to do that. So yes, in that sense we’ve seen a tonal change.

The elephant in the room here is the abuse that rightly has had a lot of attention shone on it recently. What is your take on that?
I’d like to emphasise that the vast majority of tweets around football are football fans being football fans. By that I mean cheering on their side, slagging off their sides, but they are not abusive. We ran analysis from September to April – just pre-ESL – and there were over 30 million tweets in the UK about football and 7,000 of them were removed from breaching our terms of service. So that’s 0.02 per cent. The problem is that it’s 0.02 per cent too many, but there are whole loads of steps that we’re taking to ensure that the tweets that have got through won’t get through in the future. The majority of the conversation is the same kind of conversation that football fans have in the pub, in the ground and it’s what delights everyone about the fan experience.

What is doing being done to tackle that 0.02%?
Nobody who works at Twitter, or the business, or our advertisers or our users want to see this nonsense. We have been working with the football industry - who are sometimes our fiercest critics and sometimes important partners – to try and improve and refine our processes. That includes some technology. For instance, we’ve added features to direct messaging that let you decide who can DM you and they’re not just open. We’ve done reply prompts where if we think you’re sending an abusive message then we’ll ask you ‘do you actually want to send this message?’ We’re providing expedited reporting channels to some of our football partners. We’re also using technology to review content, with proactive measures to reduce the burden on users having to report to us and the technology can catch up.

You can liken it to an arms race. We’ll never be content until we can remove all of the abusive tweets, but I would pause for a minute and say it is a complicated technical challenge. The example I would use is Heung-Min Son. Lots of people tweet about their son and they tweet about their son using abusive terms or swearwords sometimes, but not always in a manner that unless you have a human in the loop able to contextualise it you wouldn’t know if it’s abusive or not.

Technology alone is only one part of the solution, it needs to be multi-layered. You need to have humans involved, you need to have machine learning, and you need to rely on partners feeding us information. So when new players come into teams, we know what new tropes are being used.

A real world example, [Marko] Arnautovic did this symbol which people are saying is a white power symbol, the broadcasters didn’t know that. We will remove content when it is in breach of our terms of service, but a machine is not going to know that symbol.

I think the careful balancing act that smarter people than me have to constantly think about is the challenge of people’s right to free expression and people’s right not to be persecuted for their beliefs, nationality, the colour of their skin, gender or sexuality. That is complicated and does not have a simple solution with a technological bandaid.

What was the impact of the recent UK sport social media boycott?
It was a very useful exercise to help publicise the complaints and concerns of our partners. I think it helped impress upon our teammates in California how serious this issue is and we continue to discuss this issue – pre and post-boycott – with all of our football stakeholders. They understand that we are working on this but they won’t ever be fully satisfied and nor will we, until the system removes any kind of abuse on the platform.

SportsPro has been having some fun with Twitter Spaces. How has the rollout of that new product gone?
There is lots of interest in Spaces. In fact, the first monetised Space anywhere was our team in Dubai. We have sold a Spaces activation where Uefa were previewing how each team is likely to do [at Euro 2020], sponsored by Qatar Airways. You can get a sense of how excited people are about Spaces at Twitter by the amount of real estate that is on the app dedicated to the experience and we’re seeing lots of our partners – Sky Sports and some of our football clubs – experimenting. It’s early days from a monetisation and branding perspective but there are more features coming. Ticket Spaces are coming soon, which will allow you to charge for access for people to hear you talk and better scheduling features. It’s a new product, it’s getting a lot of focus and there are examples of brands and big rights holders leaning into it.

Twitter also acquired two other tech platforms – Scroll and Revue – earlier this year. What was that about?
These are two acquisitions around non-video long-form media consumption, so you can have an ad-free experience to read articles. These are part of a revenue diversification process that we’re undergoing at Twitter to look at a multitude of ways to offer services to our users that we can drive additional revenue from.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 4:51 pm

An Interesting read from TheConversation.com

Spacs: why investors fell in love with these stock market vehicles – and how the bubble burst
June 22, 2021 5.41pm BST
Author Daniele D'Alvia
Teaching Fellow in Banking and Finance Law, Queen Mary University of London

What do Taylor Swift’s record company and Asian “superapp” Grab have in common? They are both part of Wall Street’s recent dealmaking fad: special purpose acquisition companies (Spacs).

Spacs are shell companies that are floated on the stock market with one purpose: to buy another company. This aims to achieve the same as a stock-market listing or initial public offering (IPO), but in reverse. Instead of a traditional company seeking to raise capital from investors through an IPO, with Spacs the empty listed company is set up first. For this reason, they are sometimes known as blank-cheque companies.

Depending on where the Spac is listed, whoever is in control usually has two or three years to find a company to buy. If they fail, the Spac will be wound up and the funds returned to investors.

The Spac explosion
Spacs have been around since the 1990s, but they exploded in popularity in 2020 and early 2021. This is partly because there has been more and more capital looking to make money, since bonds have been paying unattractively low interest rates, and far fewer companies are listing than in previous decades.

Regulations have made traditional flotations slower and more expensive. Flotations are also traditionally underpriced on the day of listing to drum up investor interest. But a crucial advantage of Spac deals is that they are privately negotiated and avoid the risk of money being “left on the table”.

High-profile deals involving Spacs have included Virgin Galactic, sports betting group DraftKings, and a digital manufacturing firm called Velo3D whose Spac has Serena Williams on the board.

More recently Singapore-based app Grab, which offers everything from ride hailing to online banking, has done a Spac deal which will see it valued at US$40 billion (£29 billion). And star US hedge fund manager Bill Ackman, who created the biggest Spac ever in 2020 with a value of US$4 billion, is using it to buy 10% of Universal Music, whose roster includes Taylor Swift, Kanye West and Sting.

Yet despite this eye-catching activity, many would say the bubble in Spacs has burst recently. Only 30 Spac flotations took place in April and May compared to 299 in the first three months of the year, while total Wall Street investment-bank revenues derived from these vehicles has fallen from over 20% to under 5% over the same period.

Finally, the two largest US exchange-traded funds focused on Spacs – SPAK and SPCX – are down 26% and 12% in value respectively from their February highs. This is probably linked to US regulator the Securities and Exchange Commission (SEC) beginning to rein in the sector to protect retail investors.

Though in my view the rate of Spac creation would have slowed down to reach a lower equilibrium anyway, the SEC intervention is reducing some of the benefits to using Spacs as a way of accessing the capital markets. For instance, the SEC has made it harder for Spacs to reward early investors with shares in a company after an acquisition, and is looking at preventing the management from making statements about future profitability.

The bitcoin parallel
Regulators often resist financial innovation in the hope of reducing the uncertainty in investing. It is not by chance that Gary Gensler, the SEC chair, recently associated spacs and bitcoin when he spoke of the need for better investor protections. As with Spacs, regulatory moves to restrict the use of bitcoin and other cryptocurrencies have probably contributed to prices falling lately (along with other worries such as bitcoin’s carbon footprint).

And that’s not all Spacs and bitcoin have in common. Bitcoin is e-money that can circulate anonymously among infinite users without needing banks or a central issuing authority. But these potential benefits depend on enough users accepting it as a store of value. To paraphrase something said of currencies in general, bitcoin is like a religion, based on faith.

The same is true of Spacs, in that public investors entrust the management to find a suitable takeover target. And both bitcoin and Spacs disrupt the common wisdom around an established financial practice. While bitcoin is a new way of exchanging value, some have described Spacs as the second coming of the IPO.

In part due to the severe restrictions that a traditional IPO places on how a company may communicate its story, companies not yet producing revenues had been staying private for longer. Spacs changed this, and in the process became a way for amateur investors to be part of late-stage venture capital funding. Instead of only accredited professionals and insiders providing such funding to new companies, Spacs open them up to anyone – particularly in an era where stock-market investing has been made easier thanks to apps like Robinhood and eToro.

Again, the same is said of bitcoin and other cryptocurrencies: if amateur investors think a crypto project could eventually go stellar, by buying and holding the relevant coins they can invest far earlier than with equivalent projects in previous decades.

In this way, investors can make bets on whether new kinds of investment like Spacs and crytocurrencies will succeed. Inevitably they need to be regulated, but regulators will need to be careful in how they handle these nascent products if they want them to develop. Vehicles for creating future wealth, be it Spacs or bitcoin or anything else, are underpinned rather than undermined by uncertainty.

They have developed systems for self-regulating by specialists who often understand the needs of the various players better than the regulators themselves. In the case of Spacs, regulators should focus on ensuring that the financial information published by the companies involved is truthful and consistent – so, for instance, the SEC is right to be tightening up on to what extent Spac operators disclose conflicts of interest.
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Disclosure statement
Daniele D'Alvia has previously received funding from Birbeck College, University of London to write the first PhD in the law of Spacs. He is the CEO and founder of Spacs Consultancy, which is focused on investment vehicles and Spacs.

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Queen Mary University of London provides funding as a member of The Conversation UK.

The Conversation UK receives funding from these organisations

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 23, 2021 5:12 pm

Chester Perry wrote:
Wed Jun 23, 2021 3:17 pm
Serie A are about to make a 4th attempt at selling it's rights in the MENA region for the next cycle following BeIN's refusal to take part - it is rumoured that the Saudi's made the largest bid last time but it was very short of expectations. By way of contrast and due to it's excellent working relationship with BeIN the Premier League were able to roll over their equivalent rights deal without any real complication - this from SportsBusiness.com

Serie A to hold new negotiations in bid to end Mena rights stalemate
Martin Ross
June 23, 2021

Lega Serie A is to enter a new phase of negotiations as it continues its attempts to derive a satisfactory value from its broadcast rights in the Middle East and North Africa from 2021-22 to 2023-24.

The Italian league decided at its assembly meeting on Monday to go back to the negotiating table after rejecting offers received by the latest deadline of June 18. The stalemate comes with incumbent rights-holder beIN Media Group having steered clear of of the invitation to tender process.

Rights in the Mena region were carved out of Serie A’s global rights invitation to tender and also include the Coppa Italia and Supercoppa Italiana competitions.

Lega Serie A told The Associated Press that it will “open new negotiations in the next weeks”.

Tweaks were recently made to the initial ITT document, which was sent out in the middle of January, to take into account the new format for the Coppa Italia. Last month, Lega Serie A agreed to revised a controversial plan to alter the format of the knockout clubs tournament. Starting next season, the tournament will comprise the 40 teams that compete in Serie A and Serie B, plus four clubs from Lega Pro, organising body of the third-tier Serie C.

Successful bidders for the rights in the Mena region must guarantee the broadcast of at least 21 matches each season from the Coppa Italia and Supercoppa.

BeIN was left frustrated by the initial sales process that allowed country-specific bids as opposed to solely a pan-regional offering.

Tensions surfaced during the 2018-21 cycle between beIN and the league. This peaked 12 months ago as beIN enacted a blackout of coverage amid ongoing tensions over the league’s relationship with Saudi Arabia and the country’s links to pirate channel beoutQ.

A compensation deal with the league and IMG, the agency that held the international rights, was subsequently struck and coverage resumed.

The broadcaster’s original Serie A rights agreement across various territories, including France, Australia and Mena was worth about $170m (€142.4m) per season. During its latest Mena rights sales process, the English Premier League agreed a new three-year deal with beIN worth a total of $500m which covers the whole region. BeIN also recently retained its rights to Uefa club competitions across the region, paying around $200m per year.

Speaking to AP in March, Luigi De Siervo, the chief executive of Lega Serie A, claimed that beIN had “prohibited all of their friends and intermediaries to make offers for their countries” and that the league had been “ostracised” by the Doha-based broadcaster.

He bemoaned: “BeIN was worth 50 per cent of our package and they’ve decided not to take part in our auction.”

Having twice pushed back the bid deadline in its Mena ITT process, Lega Serie A invited companies to submit their offers by 10am (CET) on February 28.

Serie A international rights (excluding Mena) were secured by the Infront agency for the next three seasons in a deal worth €139m ($166m) per year.
Here is another example of the benefits of right's owners working with media partners rather than looking for a "quick buck" - there is always a bigger picture

https://twitter.com/martingrantross/sta ... 3603507204

It is why the Premier League essentially partner with Sky/Comcast in every market in which they operate (Sky Germany won Premier League rights for the next cycle, it was announced last week) and I can see a similar relationship developing for them with NENT who have now spread out of the Nordics and into a number of European markets with an aggressive rights purchasing plan, which in Holland especially has turned the marketplace upside down this year.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 24, 2021 11:45 am

Vysyble with a very punchy new blog which takes swipes at the "fan led review of football", the DCMS, strategic and economic control of Premier League clubs, modern finance and accounting practices that refuse to look at economic value creation/realisation

as they themselves put it

"English football's self-examination process is underway. It is questionable if the radical regulatory changes demanded by fans will actually materialise. Our thoughts on the process and some of the harsh realities facing the game."

The Road to Nowhere https://vysyble.com/blog-014

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 24, 2021 1:00 pm

A truly fascinating thread from @RorySmith on the downsides of Europe's industrialisation of the Academy system - Strikers who cannot score defenders who cannot defend- lots of high quality possession though - but is it worth the hundreds of millions spent on it

https://twitter.com/RorySmith/status/14 ... 7910353922

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 24, 2021 1:35 pm

This is a very interesting column for OffthPitch.com by Fitch Ratings Director of Global Infrastructure and Project Finance - I don't like that it is essentially focused on the biggest clubs but I certainly agree with him that it is unlikely that full attendance at matches will be possible next season, though they feel the same about the season after too, which will have many clubs worried

Column: Fundamental financial problems in European football – the Super League plans might have been unpopular but they solved some serious problems
23 June 2021 8:49 PM
  • Super league plans may be gone, but thanks to pandemic woes, maybe not for good. Powerful players are blocking the need for flexible costbases in clubs.
  • We expect stadium attendance in Europe to reach around 40 per cent of capacity during the 2021/2022 season, improving to around 80 per cent in 2022/2023 and not fully recovering before 2023/2024.
  • The transfer market is also in very bad shape. This could lead to decisions that prevent clubs from receiving some much needed cash.
GEORGE ABBATT, DIRECTOR, GLOBAL INFRASTRUCTURE & PROJECT FINANCE, FITCH RATINGS contact@offthepitch.com

What were a dramatic few days in the football world seem to have resulted in largely the status quo being restored. However, this may just be the beginning of a shakeout for an industry which is still struggling to recover from the financial damage of the pandemic.

Following an announcement late on Sunday the 18th April that 12 of the largest European clubs would be setting up their own largely “closed” league, the clubs involved faced a furious backlash which saw most abandon the project over the next few days.

The ramifications and potential punishments from national football associations/leagues and UEFA are yet to be finalised for all teams but for now the danger of a “breakaway” seems to have passed.

The justification for such a move has largely been put forward by Real Madrid chairman Florentino Perez who explained that the clubs involved had faced significant financial pressures over the past year – The European Club Association (ECA) estimated the overall sector's revenue shortfall at €3.6 billion.

A combination of lost match-day revenues due to games being played ‘behind closed doors’ with no fans at stadiums, along with discounts demanded by broadcasters and sponsors to compensate for postponed or cancelled games during lockdowns, has been exacerbated by inflexible cost structures, particularly wages, the largest operating expense for football clubs.

Football clubs' wage ratios (wage costs divided by revenue) are likely to have deteriorated materially in the 2019/2020 season, and are expected to do so again during the 2020/2021 season due to the pandemic, with a significant number of clubs’ wage ratios potentially moving above 70 per cent (from roughly 55-65 per cent historically for top clubs).

Fitch views levels above 70 per cent as potentially unsustainable.

Many players insisted on maintaining their salary structures

Some clubs have had success in negotiating wage cuts or deferments but for many clubs these costs remain significant. Three of the clubs involved in the proposed Super League (Arsenal, Barcelona and Juventus) were among those clubs that negotiated cuts to their sizable wage bills.

However, many players insisted on maintaining their salary structures agreed before the pandemic leading to severely reduced profitability and liquidity stresses for some clubs, such as Inter Milan (rated by Fitch).

There could be greater flexibility incorporated in future player contracts once the pandemic is over, but negotiations are likely to be challenging.

We expect top players to maintain their strong negotiating power, particularly if contract changes were only implemented in certain leagues as these players would still have the option to play for teams in other leagues.

Madrid’s Perez also argued that clubs at the top level are carrying significant debt burdens and will struggle to manage these, invest in their squads and, in some cases, renovate dated stadiums.

Real Madrid and Barcelona are both planning costly stadium refurbishments and carrying significant debt burdens, according to media reports.

Perez also argued that proposed changes to the UEFA Champions League, scheduled to begin in 2024, are insufficient to cover the revenue shortfalls faced by most clubs and in any case would be too late.

UEFA is expanding its lucrative Champions League competition from the 2024/25 season and promising more games for participants.

Such grants could have materially reduced the need for debt

A number of clubs have been helped by government-backed support schemes, such as the Bank of England’s Covid Corporate Financing Facility, and others have changed ownership, but faced with an increasingly uncertain recovery, particularly in continental Europe, fears are growing for clubs’ finances.

The up-front cash injections for founding clubs which formed part of the Super League proposal would have helped to alleviate the pressure built up during the pandemic due to revenue shortfalls, particularly for clubs in financial difficulties.

In the longer term, the infrastructure grants would have been beneficial for clubs given the importance of modern top-tier stadiums in maximising revenue growth. Such grants could have materially reduced the need for debt to fund investment in stadiums.

There are still uncertainties about the pace of recovery in football across different countries. Fitch expects stadium attendance in Europe to reach around 40 per cent of capacity during the 2021/2022 season, improving to around 80 per cent in 2022/2023 and fully recovering in 2023/2024.

This also roughly corresponds with Fitch’s forecasts for revenue in the UK pub and leisure sectors which it expects to reach pre-pandemic levels on a quarterly basis by end-2023.

May be a strong disincentive for clubs to sell players

The other potential headwind clubs face is a transfer market unrecognisable from recent years. Gone are the days of growing revenues, rising players' salaries and active transfer markets.

In prior years when one club found itself in financial distress it could generally sell players fairly quickly in order to both generate cash and reduce ongoing expenses by reducing its wage bill.

However, transfer market activity dropped significantly during the pandemic due to sector-wide stresses, leading to prices significantly below normal market values. For example, player prices reportedly fell by 20-30 per cent during last summer's transfer window as most clubs grappled with financial turmoil.

This may be a strong disincentive for clubs to sell players unless there are no other options to avoid insolvency. Clubs are also strongly incentivised to retain their best and most valuable players to maintain on-pitch performance, which in turn supports their financial performance.

In our view, transfer market activity during the upcoming windows could continue to be subdued versus pre-pandemic levels as clubs which are continuing to suffer from the negative effects of the pandemic have less cash available to spend on players, and the reduced player valuations may also continue to discourage clubs from selling players.

In conclusion, while the attempted European Super League breakaway seems to have been seen off and the existing football pyramid appears to be safe for now, the underlying issues which led to its attempted formation are still far from resolved.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 24, 2021 2:25 pm

La Liga champions Atletico Madrid are about to confirm a huge rights issue to help them through the economic impact of the pandemic - Though the majority interest group are having to take on a huge loan to maintain their shareholding - it looks rather risky to me

https://www.2playbook.com/clubes/atleti ... 1_102.html

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jun 25, 2021 12:29 pm

West Ham fresh from their most successful season it what seems like decades - 6th in the Premier League and Europa League Group stage qualification, are far from the sound fiscal arbiters they regular try to present themselves as - they have a history of saying one thing and then doing another, Famously when FFP was introduced to the Premier League at the same time the broadcast income jumped 70% - Baroness Brady of Kensington wrote in the annual accounts

"Financial Fair Play is the new legislation for the next three years which will limit the ability of clubs to over extend themselves on players' costs and will likely enable all clubs, including ourselves, to increase profitability"

They reported a profit that year and losses the following two. A similar message at the start of the next cycle (30% broadcast revenue uplift) followed a similar pattern

This time last year the club had a £30m rights issue to help them through the impacts of the Pandemic, and had a summer transfer window that recorded a net trading profit, reducing the size of the squad like almost everyone else. That window was followed by taking on more loans to assist cash flow. In January they sold Sebastian Haller to Ajax at a book loss fee. They also spent around £19m in the transfer window.

February's Accounts saw them announce a huge loan with MSD - which allowed them to consolidate all other borrowings, but which was also flexible (like an overdraft) though you would think the rate was higher than the deals they had with Barclays
ewanrob wrote:
Tue Mar 09, 2021 5:24 pm
West Ham have taken on a £120m loan facility from US fund MSD, which invests tech billionaire Michael Dell’s assets.

Club made £65m loss in year to 31 May 2020 (2.5 months of Covid-19 shutdown);

Shareholders (principally Davids Sullivan & Gold) invested £30m by rights issue.
today we learn that not only was the Haller deal a book loss they got very little of the money upfront (less than a third, maybe just a quarter) and that they have factored the outstanding amount (at a cost) to specialists Macquarie

https://twitter.com/KieranMaguire/statu ... 6917770240

Are they going all out for Europe, as this is obviously about cashflow, and their merit money (just received has never been higher, even after the rebate)

What is for sure is that there appears no firm long lasting or meaningful strategy in place at the club
Last edited by Chester Perry on Fri Jun 25, 2021 4:02 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jun 25, 2021 1:57 pm

Matt Slater in the Athletic with a special report on the state of the French Ligue in particular it's financial crises

https://theathletic.com/2666927/2021/06 ... dailyemail

Includes:
- a cautionary tale for those who believe talent development and subsequent player sales are the way for small clubs to survive and prosper against bigger more financially strong rivals
- why all clubs are effectively up for sale
- why it is not a good idea to damage relationships with long-term broadcast partners

I also worry about their big bet on Amazon, this is not a company that will take them to the levels of revenue they dream of

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jun 25, 2021 2:40 pm

OffthePitch.com with an article on UEFA's legal position in regrd to Super League - I have to say this is the first legal briefing I have read that suggests UEFA could win in court

Experts: UEFA on solid ground in legal battle with European Super League – but UEFA might have to drop the hefty fines
24 June 2021 7:24 PM
  • Legal experts are confident that UEFA will win the legal battle against the European Super League.
  • ”The regulatory authority of UEFA to allow or prohibit access to the market will likely be confirmed (in court)”, says one expert.
  • UEFA would probably also be allowed to penalize the founding clubs – but they might have to be less “tough” on the founding clubs and find a more proportionate sanction.
  • But with the legal outcome seeming so obvious why is the European Super League spending money and time on this legal battle? There is a very good reason to that explains one expert.
RYAN ROTHON contact@offthepitch.com

Experts don’t even hesitate when asked about the legal battle between UEFA and the European Super League – at this stage in the process led by Real Madrid, Barcelona and Juventus.

UEFA has the legal jurisdiction to protect their competitions and the European Super League’s attempt to find protection under the European Union Competition law won’t be heard.

UEFA announced on the 26th May 2021, that they had begun to consider sanctions against the remaining Super League clubs for attempting to form a new League without prior approval.

The Super League clubs responded by claiming that UEFA were breaching EU competition law and vowed to continue challenging their monopoly over European football through the Spanish Courts.

Facing a new question of how to interpret EU law that is of interest to uniform application, the Madrid based Court handling the dispute asked the Court of Justice of the European Union, CJEU, to inform them if UEFA were abusing their dominant position within the internal marker and/or illegally restricting competition through punitive sanctions.

Expert on closed leagues

Despite the strong comments by the Super League, there is no genuine threat to UEFA’s monopoly over European football says the legal experts that Off The Pitch have spoken to about this topic.

“They (UEFA) regulate access to European competitions and organisational market and, as the Court confirmed in the ISU case, this is a regular function of a governing body. I don't anticipate that the court will say anything to the contrary. The regulatory authority of UEFA to allow or prohibit access to the market will likely be confirmed.” says Katarina Pijetlovic, an EU sports law researcher at Manchester Metropolitan University and expert on closed leagues.

On this point there seems to be agreement among the top minds in EU sports law.

“A federation owning a competition is perfectly legal and the European Council has previously recognised the idea of ‘one sport one federation’.” explains Rodrigo Iglesias Torturelli, associate professor at the EU Business School.

While this legal challenge may fail to dismantle UEFA’s monopoly, there is a chance that the CJEU could prevent UEFA from levying sanctions against the remaining Super League members.

“The complaint which the clubs have put before the Madrid Court, which was then passed to the Court of Justice, is that UEFA are acting in an anti-competitive way by seeking to penalise and thereby deter clubs that might participate in a breakaway league,” says Stephen Weatherill, the Jacques Delors Professor of European Law at Oxford University.

The ISU case

Professor Weatherill further explains how the Super League might argue their case.

“There is nothing in the EU treaties or secondary legislation which states explicitly what anti-competitive conduct means in the sporting context. You have to look at previous CJEU decisions to get some sense of what might constitute anti-competitive conduct.” Weatherill says.

“The case that's most relevant is called the ISU case, in which it was held that the International Skating Union had acted in an anti-competitive way by aggressively restricting third-party organisers of skating events.

"They threatened to ban skaters to maintain their position in the market at the detriment of third-party suppliers. The clubs in the Super League case are arguing that UEFA sanctions are anti-competitive in the same way that the international skating union’s actions were anti-competitive. They are stopping the emergence of a new service, which might be of interest to consumers”

The Super league might have a valid point. UEFA are threatening hefty fines and/or lengthy bans for all of the remaining Super League clubs.

Both of these potential sanctions are likely to be considered breaches of EU law, because their clear intention is to punish clubs and prevent them from creating competition for UEFA on the highly lucrative European football market.

Even if the UEFA sanctions breach EU competition law, they could still escape intervention from the CJEU.
  • Integrity means open leagues
“The Meca Medina case says that some restrictions on clubs and players are allowed if there is a legitimate objective in the public interest.” explains Pijetlovic.

“In this case, there are plenty of legitimate objectives for UEFA to claim. They could say that they are protecting the integrity of European football and trying to keep domestic leagues afloat by preventing any loss of commercial value caused by the Super League.”

Professor Weatherill builds on the idea of protecting the European football structure adding:

“Integrity in European football means open leagues with promotion and relegation. It involves qualification on merit and certainly doesn't include 12 clubs participating just because of their name and history. UEFA can argue that they are simply protecting the integrity of the sport, something that I think is directly recognised by European Union law.”

This notion of protecting European football might be a convincing argument for allowing sanctions, but how does the CJEU determine which particular sanctions are sufficient and appropriate for achieving this aim?

In short, the sanction must be proportionate.

“A proportionate sanction would be one that achieves the desired goal of preventing clubs from jumping ship, but at the same time doesn’t achieve more than that. Essentially, the least restrictive way to achieve the objective must be used.” says Pijetlovic.

I'm puzzled

“If UEFA were to seek to ban the clubs and even worse the ban players of the clubs from European competitions, then there would be a strong argument that UEFA has gone beyond what is necessary to protect the integrity of the sport. Any action taken must be motivated by a genuine desire to protect the existing model and to keep the clubs within it.” Explains Professor Weatherill.

With EU competition law likely to maintain UEFA’s dominance over European football and allow appropriate sanctions against the remaining Super League clubs, it may seem strange that the Super League are still fighting this case.

“I'm puzzled as to why this is being pursued. It seems that the most sensible thing for the Super League to do is accept the loss and come back when they have prepared more strategically.” says Professor Weatherill.

But the real reason behind bringing this case might have nothing to do with destroying the UEFA monopoly and everything to do with making extra money.

‘They (the Super League) are always going to be challenging the system because, if football is moving towards being 100 per cent business, we need to rethink the system. The old system where the federation takes a cut of the money and redistributes the rest may not work for the larger clubs.

"The people running them are often obligated to act in the best interests of the shareholders. If they have the opportunity to create another competition that gives them the freedom to focus on their business interests (maximising revenues) then they have to take it," explains Rodrigo Iglesias Torturelli.

Threatens UEFA's position

While this may explain the motivation to form a Super League where the clubs have a greater control of the finance, why would they continue fighting a case they are likely to lose?

“It is all about establishing the battleground” explains Torturelli. “By bringing the case the Super League are starting a debate around the future of football and the sustainability of the role that UEFA play in that future, they are also establishing the possibility that the CJEU could act against UEFA and restrict some of their powers. While this outcome is unlikely, the fact that it is technically possible, and the ongoing debate around the future of football, threatens UEFA’s position and gives the remaining Super League clubs leverage as they try to negotiate a stronger position over the economic aspects of football.”

With the football landscape in complete turmoil, it seems that there could be a lot riding on the outcome of this case, so when can we expect to receive a decision from the CJEU?

“I'd be really surprised if the CJEU even answers the questions asked by the Madrid court” Professor Weatherill explains.

“The Court of Justice doesn't decide on hypothetical points of law, and I think the Court of Justice might hold that this is a hypothetical dispute, and that they have no jurisdiction to answer the questions.”

Even if the CJEU decides to respond, Katarina Pijetlovic outlines why we shouldn’t expect a decision anytime soon.

“I would say at least a year, maybe two, it simply depends on the backlog of cases that they currently have.”

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