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 » Wed Jan 27, 2021 1:05 pm

Chester Perry wrote:
Wed Jan 27, 2021 12:39 am
Brighton have published their 2019/20 financial results - headline losses of £67m - they have not adjusted their accounting period to cover the end of season so this doesn't include final tv income - they say lost £25m to covid

https://resources.brightonandhovealbion ... imited.pdf

@KieranMaguire has had a look

https://twitter.com/KieranMaguire/statu ... 3642417156

what is evident from all this is that if we were to add back the Covid losses and, forgetting the lost China TV revenues, the remaining £26m of tv money they are yet to report then Brighton would have had in excess of £180m turnover last season - ours would have been in excess of £150m - that is a significant uplift on the previous year largely as a result of the new TV deal
The Price of Football Blog does a deep dive into those Brighton 2019/20 financial results

http://priceoffootball.com/brighton-201 ... -fountain/

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 1:08 pm

Chester Perry wrote:
Wed Jan 20, 2021 7:14 pm
Bristol City's 2019/20 Financial results remind everyone just how bonkers the Championship is from a financial perspective - in case you had forgotten since last nights posts on the salary cap and QPR trying to wriggle out of their fine

https://www.bcfc.co.uk/news/city-announ ... -accounts/

Annual Report and consolidated financial statements
https://www.bcfc.co.uk/media/53969/bris ... 019-20.pdf

:KieranMaguire has a look

https://twitter.com/KieranMaguire/statu ... 8453799938
@SwissRamble delves into those 2019/20 financial results at Bristol city

https://twitter.com/SwissRamble/status/ ... 4779187201

and he has done his customary summary charts too

https://twitter.com/SwissRamble/status/ ... 8371251200

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 1:21 pm

Meanwhile the European Clubs Association President Andrea Agnelli is preparing the ground for his final push at UEFA in regards to the future shape and financing of there international club competitions (and the underlying threat of that European Super League) - from the Athletic

Juventus chief predicts up to €8.5bn losses for European football due to COVID
27 January 2021Updated 09:58 GMT

Juventus chairman Andrea Agnelli has warned European football might lose up to €8.5 billion due to the COVID-19 crisis, reports James Horncastle.

The pandemic has, barring brief periods, seen football played in empty stadiums across the continent since March 2020.

Speaking at the News Tank Football seminar on Wednesday, Agnelli painted a grim picture of the state of club finances across Europe.

What did Agnelli say?
He said: “My firm opinion that we will have a real understanding of what this crisis has meant for clubs only at the end of the season.

“I have seen the Deloitte study that came out yesterday. I was looking at data for the top 20 clubs whereby we had a €1.1 billion hit in the 19-20 season and the estimate for those 20 clubs alone is a €2 billion hit for the combined two years.

“I think it's going to be much worse than that. The 2019-20 season only has three or four months of crisis, of empty stadiums, no fans of stadiums, commercial rebates, broadcasting rebates, whilst as it seems right now from my point of observation 2020-21 will be a full season without fans in stadiums.

“We are in the middle of (broadcast) tenders. Some have been out, the Germans have been out, they've had a loss of value 10 per cent. We are seeing international broadcasters not paying their dues.

“And so I think this season will be much worse. So I mean, it's gonna be much worse than what we've seen there.

“When I look at the best information I've had so far, we're looking at a bottom-line loss for the industry in the region of €6.5 billion to €8.5 billion for the combined two years, and about 360 clubs in need for cash injections, whether it's debt or equity within those two years, for an amount of €6 billion.”

What did Deloitte predict?
The professional services firm predicted that the top 20 richest clubs in the world will lose out on over €2 billion by the end of the current season.

This revenue decline — 12 per cent — is largely due to the impact of COVID-19 on clubs’ finances with most around Europe set to play over a season of football without fans in stadiums.

What else did Agnelli say?
The 45-year-old also spoke favourably about the ‘Swiss system’ — which has been mooted as a possible new format to be used in the Champions League from 2024. It would see more games played between Europe’s elite clubs.

The Swiss system would have all 32 or 36 qualifying clubs in a single division, where each would play 10 matches against teams of varying strength according to seeding. The top 16 would qualify for the knockouts, where ties would be played much the same way as American playoffs — first would play 16th, second would play 15th and so on.

Agnelli cited the 1826 games played in Europe’s top five leagues compared to only 125 played in the Champions League as a flaw in the current system that means clubs are not maximising their potential revenue streams.

He also noted that the “great” Swiss system would help reignite interest in football and keep the sport ahead of its competitors.

He added: "I think what's dear to our hearts at the moment is mostly the governance of the entire system, that that is what we should be looking at most. And when I talk about the governance of the system, it's the governance and the right management system.

"And that is to create a better balance within the existing stakeholders in which clubs and national team football align, sharing objectives, we can talk about the sporting matters of competitions, whereby we as the ECA, evidently, we're looking at a quality versus quantity kind of approach.

"Just to give you an example, talking about the most viewed games in Europe, we take the top five leagues, we play one 1826 games every year in the top five leagues, versus only 125 in Champions League alone.

"We can look at the governance aspect in terms of financial management, and that is we've always had a profit and loss approach. So we're looking at total turnover we're looking across, we want to really focus on balance sheet management and value creation. I can give you some examples there.

"A revision of the transfer system, a collective bargaining agreement with the player that will leave us with the tools in order to operate in a moment of crisis."

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 1:40 pm

it is possibly a bit too much of a claim, but there is no denying the development and strategic focus at Leicester City - from the Telegraph

How Leicester turned the Premier League's 'big six' into a 'big seven'
JOHN PERCY JANUARY 27, 2021

The Premier League's 'Big Six' is not the sort of the club to welcome applications from new members, but Leicester City are proving difficult to turn down.

After winning the title in 2016, and finishing fifth last season, Leicester are the former underdogs who have become pedigree performers, emerging as a beacon club with a developing squad, progressive manager, enviable recruitment department and facilities which are now a match for any of the traditional elite.

As they aim to tighten their grip on a place in the top-four at Everton on Wednesday night, their sustained progress since delivering that fairytale title win five years ago is proof of the benefits of shrewd planning and careful management.

They may not be involved in the embryonic discussions around the creation of a European Super League, but having been crowned champions more recently than Manchester United, Tottenham or Arsenal, their case to be at the top table in negotiations is hard to counter.

Under manager Brendan Rodgers, Leicester are refusing to go away quietly. With a vibrant squad containing a crucial blend of experienced performers and young talent, they continue to threaten the private member’s party.

Rodgers was 48 yesterday and is clearly building something special in the East Midlands. He has harnessed an environment where players feel valued, challenged, and in constant pursuit of improvement.

Leicester, and Rodgers, are in a good place.

So what makes Leicester such a threat to the 'big six'?

Recruitment seems to have defined Leicester’s success in recent years: in the title season it was bargain buys Jamie Vardy and Riyad Mahrez who captured the imagination, with both players costing under £1.5 million.

Aside from a wasteful summer transfer window in 2016, when panic gripped as Leicester adjusted to their new standing in European football, the recruitment has been outstanding.

Youri Tielemans, the Belgium international, is the record signing at £32m and operating on a high level this season. Rodgers’ ‘coach on the pitch’, Tielemans is only 23 but was captain against Brentford in the FA Cup on Sunday and is already studying for his coaching badges.

There are many other crucial additions, such as James Justin (£6m from Luton), James Maddison (£25m from Norwich) Wilfred Ndidi (£15m from Genk), Jonny Evans (£3.5m from West Brom) and Timothy Castagne (£18m from Atalanta).

Yet the one player who appears their shrewdest find is Wesley Fofana, the 20-year-old defender signed from Saint-Etienne for an initial £30m.

Fofana has been outstanding alongside Evans and his potential is frightening, with the comparisons to Liverpool’s Virgil van Dijk more than just hyperbole.

Leicester first started watching him as a raw teenager in Saint-Etienne’s under-23s and Fofana is already being openly talked about as a future £100m player.

As a result of such high-quality signings, Leicester’s recruitment, and the analysis and preparation behind it, is the envy of clubs across Europe.

Rodgers works closely with director of football Jon Rudkin, recruitment chief Lee Congerton and head of football analytics Mladen Sormaz on targets and fully recognises the importance of recruitment in the modern game.

“It’s about understanding the market that you’re in and we know the types of players that we want to sign,” says Rodgers.

“We’ll never be spending £80 million on players but we have our profile that we like, that fits into the model of our game. We do our work on their character and how they behave off the field, plus they always have to be coachable.”

Leicester’s recruitment strategy remains a closely guarded secret, yet the foundation is based on always thinking ahead: when Manchester United first inquired for Harry Maguire, Leicester signed Caglar Soyuncu in the summer before Maguire’s sale.

Ben Chilwell was pursued over two seasons by Chelsea and Manchester City, so Leicester acted by bringing in Justin and Castagne. It sounds simple, but it means Leicester always have a succession plan in place.

There was also a pivotal moment in Leicester’s future on Christmas Eve, when the club moved into their stunning £100m training ground near Seagrave.

Ever since the Srivaddhanaprabha a takeover in 2010, a new headquarters has been a priority in the long-term vision.

Under construction since April 2019, and delayed six months due to Covid-19, the 180-acre site includes 14 pitches, a 499-seater stadia for the show-pitch, overnight accommodation and a nine-hole golf course which has been scored by the PGA.

The attention to detail is striking - first-team players all have video screens on their lockers, with clips or goals from recent matches plus a weekly schedule for training sessions and media commitments.

It is now the nerve centre for Leicester’s first-team squad, management, recruitment team and analysts, while the presence of the academy teams on site also represent a clear pathway for the club’s future.

“It’s an incredible place to come and work and we’re very fortunate,” says Rodgers, who was fully briefed over plans for the training ground during talks over his appointment in February 2019.

“It’s a modern facility at the very highest level and there certainly won’t be many more better around the world. We have to be so thankful for what the owners have provided, for this current generation of players and many more to come.

“It’s everything as a manager you would want to develop a club. Khun Top will be very proud because I know it was a legacy and a great passion of his father’s to build a training complex up there with the best in the world. When Khun Top does arrive he will see that vision laid out in front of him.”

Aiyawatt ‘Top’ Srivaddhanaprabha, the son of the late Vichai, has been unable to fly into England for some time due to travel restrictions, but remains fully involved via regular contact with chief executive Susan Whelan and Rudkin. He recorded a special video message for the squad when they moved into the new training ground.

The next plan is to expand King Power Stadium, increasing the capacity by more than 10,000.

Behind the football team, there is a culture within the club that radiates calm and professionalism, epitomised by the highly regarded Whelan, a long-term associate of owners King Power.

It was Whelan who recently argued against the pay-per-view model - despite a 19-1 vote - and she is renowned as a respected voice within Premier League boardrooms.

Leicester are a club making 100 per cent use of their resources, and there is excitement over what the future holds.

It may never become the ‘big seven’, but as we all discovered five years ago, it is always foolish to write Leicester off.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 2:40 pm

GameofthePeople.com with a tirade about those recent European Super League Proposals - I think what most people have missed here is that the insensitivity and raw logic of the proposals smacks of them coming from a financier looking to make money not a group of football executives making some additional consolations for the wider game you saw in Project Big Picture

The Super League – who is really hiding behind the leaked document?
JANUARY 27, 2021NEIL FREDRIK JENSEN

IT’S BACK again, the threat of a European Super League involving 15 fixed clubs and five lucky qualifiers. We can easily name the likely 15: there’s six from the Premier League; three from La Liga; three from Serie A; two from the Bundesliga and one from Ligue 1. It’s almost certainly the usual suspects, the first 14 in the latest Deloitte Football Money League and stray giants AC Milan.

The strategically-leaked document, which has turned up all over the place, shows no sign of accountability. Normally, one might expect a logo or two to indicate who has put the paper together. But there’s nothing to suggest where the proposal is coming from, no real mention of the universal benefits of such a structure and no attempt to convince. In other words, nobody is asking for approval. And nobody has yet to claim responsibility.

We can make a good guess where the idea originates from because without the involvement of some of Europe’s blue riband clubs, there would be no mileage in the project. But everyone is hiding and even some clubs that have been named as driving forces are distancing themselves from the controversial concept. If this is such a great idea, then why doesn’t anyone confidentally step forward?

Killer
It’s pure cowardice, because the clubs know that such a proposal would attract a mountain of negativity, mostly around the self-interest of the behemoth football houses and the damage it might do to the football eco-system. Social media will destroy anyone supporting the league.

This just doesn’t make sense and will effectively kill it before it can gather momentum. Why? Because without providing credible discussion points around the rationale and pluses of a super league, the governing bodies, media, supporter groups and vast body of opposition clubs will prevent it happening. If those that produced the paper want to gain backing for their league, then they have to canvas, cajole and compromise. Throwing it out there, running away and waiting to see what will happen is foolhardy. OK, it makes good copy, but actually, it is getting a little tedious.

A super league might actually be the natural evolution of the UEFA Champions League, but not in the way influential clubs are trying to create. This should be UEFA’s idea, devised by them, proposed by them and fully-aligned to domestic football across the continent.

The timing couldn’t be worse or more cunning. Football clubs across Europe have suffered from a loss of revenue due to the pandemic, as noted by Deloitte in their latest Football Money League. All the top clubs saw their overall revenues decline, Barcelona, the number one club by income (€ 715m) experienced a 15% fall, but the downturn varied at Real Madrid (-6%), Bayern Munich (-4%), Manchester United (-19%), Liverpool (-8%), Manchester City (-11%) and Paris Saint-Germain (-15%).

While matchday income and broadcasting income fell right across the board, 12 of Deloitte’s top 20 were boosted by increased commercial revenues. It is difficult to see the proposal of a super league anything other than a commercial enterprise. It’s curious that the involvement of bank financing from JPMorgan Chase was mentioned in much of the coverage, but no confirmation of the clubs that will undoubtedly be involved.

Supply
UEFA, FIFA and the European Union are all against the plan and FIFA have said anyone who plays in any super league would be banned from their competitions. This could prove a major stumbling block as it could start a player drought. But it is not just players that might be in short supply, what about managers and coaches, will they not be impacted?

Admittedly, the 15 clubs already have most of the world’s best players – 77% of the Guardian’s top 100 and 94% of the top 50 in KPMG Football Benchmark’s player valuation database. The clubs already trade heavily among themselves – Real Madrid, over the past five years, have dealt with 14, Manchester City 11, Barcelona and Chelsea nine.

But there’s also mention of the super league sending 12 teams to the annual revamped FIFA Club World Cup. How could they possibly even factor that into the equation unless there was reasonable hope that FIFA would buy into their scheme? Shouldn’t they be invited rather than assume they can even consider sending a dozen to China, Qatar, Morocco or wherever FIFA decide to host their new competition?

While the 20 involved clubs (the permanent 15 and five qualifiers) will play their 18 group games (two groups of 10) in midweek, they will also participate in their domestic leagues. How important will the Premier League be to the half dozen clubs who will appear in the super league, given their involvement is guaranteed in the latter? And surely, the FIFA Club World Cup will then become more important than the Premier?

This all could, of course, just be a tactic to push the governing bodies into a corner and for Europe’s giants to squeeze them for more cash, just as they have in the past. The tail is certainly wagging the dog, but the dog has got significantly weaker over the past few years. The clubs are so strong and they know that if they take their ball away, UEFA would struggle to produce a compelling Champions League that appeals to broadcasters and sponsors around the globe. This is a game of poker and at the moment, with the world suffering from covid-19 and lockdown fatigue, people are tired and bored of repeated attempts to bully the game into submission and introduce more elitism.

It would help if we knew who is really behind this attempt to challenge the status quo. If their paper is so marvellous, then stand behind it, explain it, try to change hearts and minds and, above all, present something that benefits the broader football world, not just 20 privileged clubs. The future of football is at stake, after all. Isn’t that worth a little more than USD 3 billion?

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 4:56 pm

The government have finally created a winter support package for the tiers 7-11, and they are talking of not letting no-league clubs go to the wall - the very language they have routinely condemned the Premier League for using re the EFL - from the BBC

Cash injection: Non-league clubs handed £10m government 'winter survival' money
Last updated 2 hours ago

About 850 non-league clubs have been handed a £10m injection as the first part of the government's Sports Winter Survival Package.

Teams in the four tiers below National League, National League North and National League South, will benefit.

But Sports Minister Nigel Huddleston also offered hope to the 66 National League clubs, promising: "We will not let clubs go to the wall."

The government will examine individual cases following a furore over loans.

Clubs at steps one and two in England's non-league system had agreed a delayed start to the season in October, with the help of a £10m government grant.

But that was on the assumption there would still be further financial support to complete the season if fans remained locked out of grounds in the wake of the coronavirus pandemic.

National League to talk with clubs about scrapping season vote
Instead, when a further cash injection was offered prior to the country going back into lockdown in early January, it was not as a grant, but as a provisional £11m loan on very low interest terms.

It caused discontent at many clubs who thought a promise of funding was to cover the entire season, not just the first third of it.

But the government says that any club in proven need of emergency funds just to survive will still be listened to if their imminent future is at risk and they can demonstrate loans are unaffordable.

"With precious public money, we are providing financial support to the National League Steps 1 and 2 in the form of loans," added Mr Huddleston.

"However, if clubs at those levels can demonstrate it needs grant funding urgently to survive, we will ensure that option is available.

"Applications will be assessed by the independent board, through the same rigorous process that we apply to other sports."

What is the Sports Winter Survival Package?
The award of a £10m grant to the 850 clubs in steps three to six of the non-league pyramid is the first to be announced by the government as part of a £300m Sports Winter Survival Package.

It is "a sector-specific intervention on top of the multi-billion pounds worth of business support that has been made available by the government, including the furlough scheme, business rates relief and business interruption loan scheme that has helped many sports clubs survive".

Clubs will be contacted directly by the Football Foundation on Thursday and invited to make an application.

Funds will then be distributed quickly to clubs through the Football Stadia Improvement Fund.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jan 27, 2021 9:49 pm

Chester Perry wrote:
Fri Aug 14, 2020 8:29 am
An update on the long standing saga of the missing millions loaned to Northampton Town to redevelop a stand - wife of the central figure in the case - is being sued to recover monies

https://twitter.com/mattcprecey/status/ ... 1712974850
There has been an enquiry into the council of the loan saga to Northampton Town football club and they have been found wanting - which is no surprise really

https://www.nnjournal.co.uk/p/unlawful- ... ished-into

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 1:17 pm

Today's Business of Sport Podcast from the Athletica looks at the financial Peril at Barcelona, while they still top the Deloitte money league - remember folks revenue does not equal wealth,

https://podcasts.apple.com/gb/podcast/t ... 0506843073

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 1:21 pm

The Football Today Podcast dissects the latest proposals for a European Super League

https://www.footballtodaypodcast.com/po ... e-proposal

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 1:24 pm

Daniel Geey (@FootballLaw) and Omar Chaudri of the 21st club have their own take on the European Super League

https://www.youtube.com/watch?v=uiTnpLk ... e=emb_logo

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 2:19 pm

The Athletic with a piece on the finances of La Liga's big two and why they are both wanting to grasp the opportunity of the European Super League


Dire finances mean Barcelona and Real are pushing for European Super League
Dermot Corrigan Jan 27, 2021

“And one last thing, beloved socio delegates,” said Real Madrid president Florentino Perez, coming to the end of his long speech at Madrid’s AGM last December. “We are all aware of the complexity of the moment and the adversities we will face in the coming months. The pandemic has made us more vulnerable and forced us into an even deeper reflection, because nothing will ever be the same again.”

Perez is not the most exciting public speaker, but he is a gifted politician who knew a moment had arrived for him to seize.

“Football needs new formulas to make it more competitive, more exciting, and stronger,” he continued. “As always, Real Madrid must continue at the vanguard of this sport. I want to remember that our club has taken part, since its foundation in 1902, in all the necessary innovations over the years, and also been protecting football’s traditions when they have been in danger.”

All Madrid’s socios attending virtually from home probably knew by now what Perez was building up to — one of his favourite themes over his two terms as president. But he was not quite there yet.

“I want to also recall that Real Madrid was the only founder club of FIFA in 1904, along with seven national federations. Also, 50 years later, the newspaper L’Equipe and Real Madrid pushed for the creation of the European Cup. That was a revolutionary moment, necessary for football, and especially for European competitions. And it changed the history of football. Without these changes, European football would not be what it is today.”

Finally, he got to the point.

“And now this model needs a new impulse. Football must step forward in these new times. And Real Madrid will be there, as it always has been over its history. Everyone realises that the current competitive environment must be reformed as soon as possible. The great European clubs have thousands of followers all around the world. We have the responsibility to fight for this change, a change which we must take on, of course, from a basis of solidarity with the rest of the clubs. Our duty is to adapt to our new reality. The competitiveness and quality of our competitions must improve. It is a challenge for which we must be prepared.”

The words “European Super League” were never mentioned. But everybody got the message.

Real Madrid’s interest in a European club competition outside of UEFA control goes back to before Perez was first elected Bernabeu chief in 2000. When a “breakaway” plan for the continent’s richest clubs to form their own competition was proposed by a Milan-based company called Media Partners back in 1998, Lorenzo Sanz was the Madrid president giving his backing to the idea.

The turn of the millennium also saw a new “European Golden Cup” proposed by Spanish sports business executive Carlos Garcia Pardo, on behalf of telecoms giant Telefonica. This was welcomed at the time by then Atletico Madrid president Jesus Gil and Deportivo La Coruna chief Augusto Lendoiro, and also reportedly had support from both Real Madrid and Barcelona.

“Of course this is an elitist project,” Garcia Pardo said in 2003, when a galactico-filled Madrid had won three of the previous five European Cups. “Elitist as we are looking for the best possible spectacle to offer to digital TV operators. Ask them if their viewers would prefer a Real Madrid-Barcelona to an Alaves-Celta.”

The pressure from such projects led UEFA to keep tweaking their Champions League model, generally favoring the bigger teams with more money and less chance of early exits. However the idea never really went away, and Perez kept talking about it. “We must agree a new European Super League which guarantees that the best always play the best — something that does not always happen in the Champions League,” he said in 2009, during a run of five successive last 16 exits for Madrid from the existing competition.

When the long-awaited Decima victory for Madrid in 2014 began a run of four Champions League trophies in five years, Blancos players and fans were very much in love with the competition. But even still, Perez regularly spoke about how difficult it was for his member-owned club to keep up financially with rivals around Europe who had super-rich backers, whether Arabian Gulf states, Russian oligarchs or US venture capitalists. “It is all the time getting more difficult to compete on a level playing field,” Perez told socios at Madrid’s AGM 2017. Also, around now, La Liga president Javier Tebas was pushing through changes to the distribution of TV revenue in the domestic league which somewhat reduced the previously dominant position held by Madrid and Barca.

In November 2019, Perez was named president of a new organisation called the World Football Club Association (WFCA), which also featured founder members AC Milan (Italy), Auckland City (New Zealand), Boca Juniors and River Plate (Argentina), Club America (Mexico), Guangzhou Evergrande (China) and TP Mazembe (Congo). “This new association will be a credible, focused counterpart to FIFA and we will strive to improve all aspects related to clubs, starting with the FIFA Club World Cup in 2021,” said Perez in comments carried on Madrid’s club website.

The first meeting of the new association was hosted by FIFA president Gianni Infantino, in stark contrast to the friction with UEFA chiefs, including current incumbent Aleksander Ceferin, which arose any time the European Super League was discussed. Whether Madrid really wanted to play TP Mazembe and Auckland City more often than Sevilla or Valencia was unlikely. But Perez was pushing the political buttons wherever he could find them.

With Madrid and Perez so associated with the whole European Super League idea, Barca’s directors have generally been quieter on the idea. Sandro Rosell was the blaugrana president who seemed most open to applying public pressure on UEFA, saying in 2011 he backed the demands being made by the European Club Association (ECA) lobby group.

“We’d like to have a Champions League with more teams — and have a Barcelona v Manchester United Champions League game on Saturday or Sunday,” Rosell said during a visit to Qatar. “If not, then ECA is entitled to organise their own champions competition by themselves. We’re asking for more revenue. We’re asking for governance, transparency, insurance.”

Rosell’s long time associate and successor Josep Maria Bartomeu said little about the issue, right until he dropped a bombshell while resigning from the blaugrana presidency last October.

“I can announce some extraordinary news,” Bartomeu said. “The board of directors have approved the requirements to participate in a future European Super League, a project promoted by the big clubs in Europe which will guarantee the future financial sustainability of the club and ensure that it remains owned by its socios.”

The farewell speech did not expand upon who had offered the invitation, or what it would mean for Barca’s participation in existing UEFA competitions or La Liga. Given how unpopular Bartomeu had become, it might have seemed obvious that anybody looking to replace him as president would immediately rule out anything he was in favour of. However anybody following things closely at the Nou Camp knew the club’s financial situation was so bad that no possible solutions could be discounted.

“Not everything is about money,” replied former president Joan Laporta, who was then readying a bid to return to the post. “But there are other alternatives like a ‘Super Club World Cup’. I’d incline towards that option.”

Long-time Bartomeu critic, and then “pre-candidate” for the club presidency, Victor Font was also cautious and did not reject completely the idea of joining a new competition.

“The European Super League has been tried before and is a very political issue,” Font said. “We would like to see an improvement to the format of the competition, whether it is called the Champions League or a Super League, so that we don’t have to wait seven years to visit Anfield again. But always without the death of the national leagues.”

Also concerned about the impact of any new European club competition on the national leagues was La Liga president Javier Tebas, who was also quick to react to Bartomeu’s parting shot.

“Poor old Josep Bartomeu announcing on his last day the participation in a phantom competition that would ruin (Barcelona) and reiterating his ignorance about the football industry,” Tebas tweeted that night. “A sad end for a president who did many things right but that lately made many mistakes.”

“Bartomeu was directed by Florentino, that is what I believe,” Tebas then told the AP. “This (league) has been a dream by the Real Madrid president. He has worked for this for a long time, this is nothing new. But it is a big mistake because he doesn’t understand its financial consequences.”

“Barcelona used to have its own voice when dealing with the league, with UEFA and with FIFA,” Tebas added, possibly with the aim of making it more difficult for any new blaugrana president to back the Super League idea. “But for the last three years it only repeats what Real Madrid says.”

In this battle, Tebas has an ally in Atletico Madrid chief executive Miguel Angel Gil Marin, who since last February has also been the “first vice-president” of La Liga.

“Football is a representation of society, and with that, of social and economic differences,” Gil Marin said in December. “The most powerful clubs do not want to share the value of their rights with the weakest. UEFA has the responsibility and the commitment to find a balance which is difficult to achieve, and leave everyone half-satisfied. It must protect the domestic leagues, and weekends must remain for the national leagues. To do that it is necessary to update the current format, increasing the number of attractive guaranteed games, which will bring more income from broadcasters and sponsors.”

Canny operator Gil Marin was not in favour of a new breakaway competition, and was backing the domestic league of which he is a VP. At the same time arguing that UEFA needed to reform the Champions League and guarantee the biggest teams would play each other more often. Which was maybe a different way of saying the same thing.

Recent weeks have seen the rumblings over a coming European Super League grow even louder. On January 19, Madrid president Perez visited Turin for a three-hour meeting with Andrea Agnelli, Juventus president and chairman of the European Club Association.

Two days later, The Times published an 18-page document outlining a potential new “closed” competition with 15 permanent members, who would include three Spanish teams — almost certainly Real Madrid, Barcelona and Atletico Madrid. The Athletic has been told that Manchester United co-owner Joel Glazer has also been a key figure in behind the scenes talks over potential changes to European club competitions, while sources say JP Morgan could finance the proposed project outside the current structures.

All this noise prompted last week’s letter signed by FIFA, UEFA and the world’s other confederations which emphatically rejected any proposal for a European Super League, and also said that players who took part would be banned from representing their national teams at World Cups or European Championships. This showed the strength of feeling against the move while also suggesting the governing bodies were rattled. It also showed that Perez’s apparent attempt to split FIFA’s Infantino and UEFA’s Ceferin over the issue had not worked.

The Times report said that participating teams would be offered around €350 million each to join and then earn as much as €230 million a season from taking part. Current Champions League qualification is worth about €100 million, with the winners receiving around another €100 million depending on other factors including their results along the way and the size of their TV market. This very significant jump in income even for teams who do not go far in the competition would be especially attractive at the moment, with COVID-19 having ripped through the financial plans of all of Europe’s top clubs.

As Perez was again pushing the need for “revolution” in how football was organised at December’s club AGM, he said the pandemic “was ruining us”. The current crisis has arrived just as Madrid were taking on the €600 million renovation of their Estadio Santiago Bernabeu, and the loss of ticketing, sponsorship and match-day revenue has put a €300 million hole in their finances. Their latest accounts show that they took out a loan of €205 million under a Spanish government scheme to balance the books over the next five years. Even still, they are asking their players to take 10 per cent pay cuts, and this January has seen pressure eased on the wage bill by allowing little-used squad players Luka Jovic and Martin Odegaard to leave on loan, with no replacements likely to be added.

Meanwhile, Barca’s financial situation is even worse than Madrid’s. This week’s release of accounts showing the money they still owed other clubs for transfers — such as €69 million from the deal with Liverpool to sign Philippe Coutinho and €19 million to Bordeaux for Brazilian winger Malcom, who left for Zenit St Petersburg more than 18 months ago. Even more scary for club members were total debts of almost €1.2 billion, of which €730 million was due to be repaid in the short term, €266 million to various banks by June 30. Such extraordinary numbers mean that Barca’s worries have moved from whether Lionel Messi will accept a pay cut to sign a new contract to whether the club might have to declare bankruptcy and lose its proud “socio-owned” status.

“The financial situation of the club is serious, but nothing that has been said today has surprised me, not a bit,” Font said this week when the detail and depth of the club’s debts was made public by Barca’s current interim president Carlos Tusquets. “Protecting the ownership model is a priority for us, to avoid the risk that Barca is converted into a public company.”

Fear of the dismantling of the club’s proud ownership model could in theory be used to bounce Barca into a new competition, and is now a real issue among club socios ahead of the election of a new president. Frontrunner Laporta this week appeared to confirm that he had already been in touch with those behind the latest proposal being circulated.

“They have explained to us how it would go,” Laporta said on Cope radio. “It is still very fuzzy. The income for the clubs would be significant, between €700 million and €800 million for each club. The first three years it would be a closed system, then there is a proposal for promotion and relegation.”

Official sources at the Nou Camp said this week that Bartomeu had not committed the club to anything concrete before he left, and the new president and his board would have to the consider the possibility of joining any new competition.

“The European Super League will be something for the new board to consider,” the source said. “Maybe not the first item on their agenda, but something for them to consider whether to go forward with or not. It would then of course have to be put to a vote of the socios.”

Madrid’s members would in theory also get a vote on whether their team would join any new competition — whether backed by FIFA, UEFA or American venture capital. Whether the idea is actually popular with Blancos socios has never really been explored, given the peculiar form of managed democracy at the Bernabeu. Perez is definitely not one to let a good crisis go to waste, so his long-term project of a European Super League is now being presented as necessary to secure the club’s long-term future. Moving forward into a new even higher profile competition would also allow the current club chief to emulate predecessor Santiago Bernabeu championing the early European Cup.

The coming weeks look sure to bring more developments, with UEFA reportedly readying a new Champions League proposal including further reforms and concessions to the biggest clubs. Others around Europe including Bayern Munich and Juventus appear to be still unconvinced about the need to break away. Spain’s big two are leading the push on this for their own reasons – and especially their own huge financial issues.

“It could be bread today, and hunger tomorrow,” said Laporta when asked if he had concerns over the proposal for a new competition that he said he had seen.

Given the seriousness of the financial situation at both La Liga’s biggest clubs, nothing is now off the table.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 2:23 pm

Meanwhile the outlook in the French Ligue continues to deteriorate - from SportsProMedia

Report: Ligue 1 losses set to exceed €1.3bn in 2020/21
Covid-19, scrapped Mediapro rights deal and stagnating transfer market cited as main causes.

Posted: January 28 2021 By: Ed Dixon

- Total income for French top-flight soccer clubs only set to reach €1.6bn; combined costs to hit €3bn
- Prior report from Le Parisien had put PSG losses alone at €300m

Clubs in Ligue 1, French soccer’s top flight, are set to run up combined losses of more than €1.3 billion (US$1.5 billion) this season, according to Paris-based news outlet Agence France-Presse (AFP).

The eyewatering figure, which averages to around €65 million (US$78.6 million) per team, was first reported by L'Équipe. The losses have been attributed to Covid-19 and the collapse of the league’s domestic broadcast rights deal with Mediapro, worth approximately €815 million (US$986 million) per season.

Now, the AFP cites a source close to the country’s Professional Football League (LFP) who says clubs have been warned by the organisation and the Direction Nationale du Contrôle de Gestion (DNCG), French soccer’s financial watchdog, about the losses. The total amount will reportedly exceed €1.314 billion (US$1.590 billion).

The AFP added that Ligue 1’s 20 clubs are set to have combined costs for the current campaign of almost €3 billion (US$3.6 billion). A considerable amount of this will be absorbed by Paris Saint-Germain (PSG), the reigning domestic champions and by far France’s richest team, who Le Parisien had already reported are facing losses of €300 million (US$363 million) for 2020/21.

With fans continuing to be shut out of stadia, coupled with the cancellation of Mediapro’s contract and the transfer market stagnating, it is expected total income will reach little more than €1.6 billion (US$1.9 billion) for Ligue 1 clubs.

The AFP reports that losses of €400 million (US$484 million) are set to come from the lack of in-game attendance, with a similar amount also being lost from the transfer market as clubs tighten the purse strings.

Money from player sales remains a key part of many French clubs’ business model and there will be hopes that by the time the summer window arrives the pandemic will have less of a stranglehold.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 2:27 pm

Chester Perry wrote:
Fri Jan 15, 2021 6:53 pm
The Portuguese Primera Liga is looking like it is about to join the collective bargaining ranks thanks to the intervention of the government - from SportsProMedia

Primeira Liga TV rights to be centralised by Portuguese government
Sports secretary says move will promote equal competition in Portuguese top flight.

Posted: January 15 2021By: Tom Bassam

- Existing contracts could delay move until 2027
- Sport TV currently has deals with all Primeira Liga teams apart from Benfica.

Portuguese soccer is moving towards the centralisation of media rights with government legislation being readied, a senior official has declared.

Currently clubs in the Primeira Liga market their rights individually rather than the league selling them centrally. Pay-TV network Sport TV has deals with all of the teams except Benfica, who broadcast their matches on an in-house network. However, there have been growing calls for Liga Portuguesa de Futebol Profissional (LPFP) to take control of the rights to more evenly distribute revenues.

João Paulo Rebelo, Portugal's secretary of state for youth and sports, has said that legislation is being prepared that should address the balance of broadcast revenue that sees a 15:1 ratio disparity between clubs at its most extreme.

He told a hearing of the Education, Science, Youth and Sports Commission this week: "Legislation on TV rights and their centralisation, which will introduce a much better distribution of the resulting money, is in the coming weeks for approval."

He added that a centralised model would provide "a much more competitive championship, in line with what happens across Europe."

It was reported last year that any changes to how rights are sold would not come into force until 2027 when contracts such as Benfica’s deal with telecommunications firm NOS come to an end.
The collective bargaining of TV rights is going to come to Portugal - just not yet - the 2027/28 season to be exact - from SportsProMedia

Primeira Liga TV rights to be centralised from 2027/28 season
New model described as a ‘core tool’ for the development of Portuguese soccer.

Posted: January 28 2021 By: Sam Carp

- LP and FPF to form new media rights company in coming months
- Sport TV holds rights to home matches for 17 of Primeira Liga’s 18 clubs until 2025/26

The domestic television rights to Portuguese soccer’s Primeira Liga will be centralised from the 2027/28 season onwards under an agreement between the top-flight league and the sport’s national governing body.

Liga Portugal (LP) and the Portuguese Football Federation (FPF) have signed a memorandum of understanding (MoU) that will see them form a company in the coming months to oversee the media rights sales process for the Primeira Liga.

The new approach will be a ‘core tool’ for the development of professional soccer in Portugal, according to the two parties, who added in a joint statement that the clubs will have ‘permanent involvement’ in the new media rights business.

“The sustainability and development of national football as a whole are closely linked to this negotiation,” said FPF president Fernando Gomes. “It seems to us that this is a sign of the irrevocable will of the FPF and the league to complete this process and work together to come up with better solutions for national football. ”

The move had been expected after it emerged earlier this month that the Portuguese government was readying legislation for a centralised media rights sales process.

It marks a significant departure from the current model, under which the clubs sell rights to their home games on an individual basis.

All but one of the current Primeira Liga clubs have deals with pay-TV broadcaster Sport TV until the end of the 2025/26 season.

Benfica games, however, are broadcast via the club’s in-house network, Benfica TV. The club also has a carriage deal in place with Nos, the Portuguese telecommunications company.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 4:56 pm

The Daily Mail is reporting that the FIFA threat against players wanting to take part in a European Super League has been overruled by the European Courts

EXCLUSIVE: UEFA and FIFA's threats to BAN players who play in £4.6 billion European Super League suffers a huge blow as European courts rule it is illegal for sports' governing bodies to stop clubs and players joining rival competitions
- Proposed European Super League would rival UEFA's Champions League
- Plan is being pushed by Europe's big clubs like Real Madrid and Man United
- UEFA and FIFA said clubs and players taking part would be banned from their compeitions, including the Champions League and World Cup matches
- But a German court this week ruled it's illegal for a sport to take that action
- It follows a similar judgement in Europe's second highest court in Luxembourg
By CHARLIE WALKER FOR MAILONLINE

PUBLISHED: 12:05, 28 January 2021 | UPDATED: 12:10, 28 January 2021

UEFA and FIFA's opposition to the £4.6 billion European Super League project has suffered a major setback following a new court judgement which found it is 'illegal' for governing bodies prevent clubs and players joining rival competitions.

Football's governing bodies moved decisively last week when more details of the proposed league emerged and they immediately threated to ban any club or player who took part.

The league, which is believed to be driven by Europe's biggest clubs, including, Real Madrid, AC Milan and Manchester United, would create a virtually closed-shop competition of 20 clubs, with 15 founder members having guaranteed participation.

These privileged teams would be awarded up to £310m to join the competition and as much as £213m from competing in the league, which it's been claimed would 'destroy' English football.

The plan is more threatening than anything that has been proposed before in the eyes of football's governing bodies, FIFA and UEFA

Their threat would mean that clubs who participated in the highly lucrative super league would be banned from the Champions League, Europa League and any FIFA Club World Cup event, and the players would not be allowed to take part in World Cups or European Championships.

--------------------------------------------------------------------------------------------
Super League Plans
Manchester United, Real Madrid and AC Milan are the driving forces behind the plans for a European Super League, to replace UEFA’s Champions League, according to The Times.

An 18-page proposal includes details of the proposed league, which includes plans for the format, membership, prize money and even financial fair play rules.

The current proposal is for the league to have 15 permanent founder members, who would receive greater financial reward and five annual qualifiers.

The league would be divided into two groups of 10. The top four in each group would compete in quarter-finals, semi-finals and a final, which would be held at a weekend.

Participating teams would play between 18 and 23 matches a season, as well as competing in their domestic leagues.

It is believed the plan would be for six clubs to be included as founder members from England — this could be the Big Six of Liverpool, the two Manchester City and United, Chelsea, Arsenal and Tottenham Hotspur — plus three from Spain, three from Italy, two from Germany and one from France.

The venture is believed to have the support of investment bank JP Morgan Chase

The document highlights the benefits of the super league, including huge revenues for participating clubs as well as the ability to offset losses associated with Covid.

The privileged teams with 'founder member' status would be awarded up to £310m to join the competition and as much as £213m from competing in the partially closed league.
---------------------------------------------------------------------------------------------

However, two European courts have now passed judgements overturning similar moves by other sporting federations, making the threat by football's governing bodies appear hollow.

'With these judgements the position of clubs and players has improved because it puts them on a more equal footing with the governing bodies,' said Mark Orth, of MEOlaw based in Munich.

'UEFA and FIFA's position in opposition to a European Super League has been weakened by these judgements.'

As reported by Sportsmail, the European Commission has previously ruled that the International Skating Union cannot prevent speed skaters from participating in new money-spinning events. That decision was supported in a judgement in Europe's second highest court, the General Court in Luxembourg, last month.

And now a German court has for the first time used that decision as a precedent to prevent the German and international wrestling federations from blocking a new competition.

The latest decisive action came on Tuesday in the Higher Regional Court of Nuremburg in Germany - the same court where the famous Nuremburg trials took place after the Second World War.

While German wrestlers may seem remote from the riches and glamour of elite soccer, the case is seen by competition lawyers as particularly significant because it closely resembles the situation in European football.

The upstart league launched a new wresting competition in Germany for clubs and athletes, but official federations reacted by threatening any club taking part with a ban from their competitions and the wrestlers were told they would not be selected for international competition, including the Olympics.

''The court has said that the sanctions put forward by the wrestling federations are illegal and contrary to competition law,' added Orth.

'In the end, the judgement means that the clubs and athletes can take part in the independent league and the national competition at the same time and the athletes can be representatives in international competitions.'

It also creates the possibility for clubs or athletes to seek damage should they be prevented from competing.

FIFA and UEFA have threatened clubs and players who participate in any European Super League with a ban from their competitions, but lawyers are sceptical about that claim

Competition law is notoriously complex, and should the European Super League challenge UEFA and FIFA in court there would still be significant areas of contention, not least around scheduling of fixtures.

However, the judgements say that it is not enough for a dominant governing body to simply argue there are no free dates, or that their own investment in a sport will be undermined, to prevent a new competitor entering the market.

Orth says that preventing athletes from competing would be, in his view, an abuse of FIFA and UEFA's 'dominant position' in European competition law.

The European Super League plan has re-emerged following comments from Real Madrid's President Florentino Perez.

He urged football to embrace change amid the coronavirus pandemic earlier this month in his most recent pitch for the competition to be created.

'Real Madrid played a part in the foundation of FIFA and the European Cup and the current model needs a reboot, as the impact of COVID-19 has demonstrated. Football needs new momentum and Real Madrid will be right there at the heart of it.'

But UEFA and FIFA have dominant positions they want to protect and enhance.

UEFA is considering its own plans to expand the continental competition from 32 or 36 clubs in 2024 and FIFA is developing its own tournament - a 24-team Club World Cup.

Meanwhile, supporters look on in concern at the powerplays at the top of the European game.

'It destroys domestic football,' Kevin Miles, chief executive of the Football Supporters' Association, previously told Sportsmail.

'The [European Super League] proposals are the latest incarnation of the greed of European clubs and their complete disregard in their pursuit of money over all principles and traditions of football.

'They want to siphon off more and more resources to a handful of elite clubs with a guarantee of participation. It's a bad idea.

'It would ultimately be the death of many of the already struggling clubs in the English football pyramid.'

The FSA fears a super league would increase the revenue for the Big Six in English football, while cutting the income for other top-tier teams, since broadcasters would be unlikely to pay as much for the Premier League.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 5:38 pm

SportsproMedia with another series - they have been very busy lately - this time American Investor Jordan Garner with "An expert’s guide to owning a European soccer club"
- part one: Identifying the opportunity

In the first of a four-part weekly series, Jordan Gardner, an American sports executive who is currently chairman and co-owner of Danish side FC Helsingør (also a minor shareholder at Swansea), outlines what drives individuals, private equity and institutional investors to look towards European soccer for opportunity.

https://www.sportspromedia.com/analysis ... an-gardner
Last edited by Chester Perry on Thu Jan 28, 2021 5:48 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 5:48 pm

The latest SportsProMedia Podcast asks "Are we going to see a European Super League"

https://audioboom.com/posts/7783419-are ... w-28330466

it is astounding that given the number of podcasts (six I think) I have now posted on this subject in the last week or so as to just how diverse the information is

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jan 28, 2021 7:36 pm

The targets that have been set for Serie A domestic rights in the next cycle are proving too challenging it would seem - the latest from SportsBusiness.com

Serie A to enter private negotiations over domestic rights
Martin Ross January 28, 2021

Italian football’s Lega Serie A is to engage in private negotiations with companies interested in domestic broadcast rights after the first-round bid deadline in its invitation to tender passed this morning.

Direct talks are to begin from February 5 onwards for the rights for the new 2021-24 cycle before new bids are submitted.

Last week, the league and its member clubs opted to push back the deadline for bids by 48 hours, as reported by SportBusiness.

The new deadline affected the separate invitation to tenders for “communication operators” and also “independent intermediaries”. The bid deadline for companies looking to create a thematic Serie A channel was also pushed back by two days.

The league is aiming to raise a minimum of €1.15bn ($1.39bn) per season from the sale of its domestic broadcast rights from 2021-22 to 2023-24. That represents an 18-per-cent increase on the €973m currently brought in annually through deals with pay-television broadcaster Sky Italia and subscription OTT platform DAZN.

Both incumbent rights-holders have bid across different rights packages, with Sky and the Infront agency also said to be putting themselves forward for the channel project, according to Il Sole 24 Ore.

DAZN is thought to be keen to retain premium content for its linear channel, which was launched on Sky Italia’s pay-television platform in September 2019.

Indeed, Lega Serie A chief executive Luigi De Siervo today (Thursday) told Calcio e Finanza that DAZN has made a significant offer, adding that Sky “will also have the opportunity to compete and to overcome the offer made by DAZN in private negotiations”.

On the size of the offers submitted, the league CEO described them as “not bad for a period of Covid emergency” but conceded that the €1.15bn annual target price is an “optimum price” and “above what you then end up getting”.

Speaking ahead of the bid deadline, De Siervo told Italian public radio channel Rai that Amazon was interested in the rights. A package of Uefa Champions League rights in Italy (from 2021-22 to 2023-24) was recently secured by the internet retail giant.

Lega Serie A has already decided to enter into private negotiations with agencies and broadcasters who bid for the league’s international rights (also from 2021-22 to 2023-24). That tender also includes rights to the Coppa Italia and Supercoppa Italiana but excludes the Middle East and North Africa region.

Domestic rights packages
In the Serie A tender, the rights for communication operators were split up into three main packages, covering exclusive satellite platform rights (Package A), exclusive digital terrestrial platform rights (Package B) and co-exclusive internet, IPTV and mobile platform rights (Package C).

An optional ‘Gold’ package of ‘accessory rights’ was also been made available and could only be acquired by the purchaser of (at least) one of the main packages.

Package A commanded a minimum reserve price of €500m per season, with reserve figures of €400m and €250m per season set for Packages B and C, respectively. A minimum reserve price of €20m per season was attached to the Gold package.

Alternatively, three packages of ‘mixed’ marketing packages were included in the ITT document. Package 1 included rights across all platforms exclusively, while Package 2 comprised rights across all platforms but with only co-exclusivity for internet, IPTV and mobile rights. Package 3 included the internet, IPTV and mobile rights held co-exclusively with the winner of Package 2.

A minimum reserve price of €750m per season was set for Package 1, followed by prices of €250m and €150m per season for Packages 2 and 3, respectively.

The ITT for independent intermediaries offered a global package of rights and also carried a minimum reserve price of €1.15bn per season.

Sky Italia’s broadcast rights for the current rights cycle are comprised of two packages, the first of which, Package 5, includes rights to three matches per weekend for a total of 114 per season, including the 8:30pm game on Sunday. Sky also acquired Package 6 – four matches per weekend or 152 per season, including the 8:30pm match on Mondays.

Sky Italia was recently left reeling after its appeal against a ban on it acquiring exclusive digital media rights was thrown out by Italy’s Council of State. The decision means Sky’s ban on acquiring exclusive digital rights to sports properties is upheld and will extend through to 2022.

Sky Italia’s inability to target exclusive digital rights was expected to damage the level of bid that Lega Serie A could expect.

The launch of the domestic tender came just weeks after Serie A clubs accepted an offer from private equity companies including CVC Capital Partners for a 10-per-cent stake in a new entity that will manage its media-rights business. That proposal, which is worth €1.7bn and also involves fellow private equity firm Advent International and Italy’s state-backed investor Fondo Strategico Italiano (FSI), is still to be fully signed off.

In February last year, Italy’s antitrust authority (AGCM) cleared the way for the domestic rights auction after approving the guidelines set out by the league. The approval followed the green light given by Italy’s communications authority (AGCOM) and covers the sale of centralised rights to Serie A, the Coppa Italia and Supercoppa, along with the ‘Primavera’ youth league, cup and Supercoppa.

Within its approval, the competition watchdog backed the “preparation of packages that stimulate competition in the pay-television market, allowing more pay-television operators to be able to broadcast a large part of Serie A”.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 1:24 pm

It has been a while since I have posted about the strange and sad goings on at Oldham, the Athletic have taken it upon themselves to have a look at what has happened to the former Premier League club


Special report: Oldham Athletic, a bag of £20 notes and a ‘pretty toxic’ mood
Philip Buckingham and Daniel Taylor Jan 28, 2021 28

It was at a busy restaurant in Fitzrovia in central London where Abdallah Lemsagam had arranged to meet.

Mark Moisley, Oldham Athletic’s chief executive, had been summoned to the capital earlier that day and, soon after arriving, was waved over to join an already cramped table.

Initially, there was small talk but Lemsagam then reached under his chair to justify the hastily-arranged dinner. A plastic shopping bag full of used £20 notes was handed over to help cover overdue wages for staff at Oldham.

Only when Moisley caught a train north and headed into the offices at Boundary Park the following morning did it become clear how much he had been entrusted with: £48,000, according to one person who was there.

A former employee said, “We told staff, ‘Look, (we) appreciate this is odd and you’ll still get a payslip and the deductions, but if you want paying you can come and get it in cash’. Most people did, because they were so desperate.”

One member of staff recalls walking into Oldham town centre during his lunch break to deposit the cash sum in the bank. The teller explained others from the club had already visited to do the same.

This was in October 2017, the season Oldham were relegated after 21 consecutive years in the third tier. The club have denied that £48,000 worth of £20 notes were given to Moisley. But stretched finances have come to typify the turbulent reign of Lemsagam.

Wages have consistently arrived late, while a sequence of winding-up petitions have been served by Her Majesty’s Revenue & Customs. The lingering threat of administration was also staved off in June last year.

A new season has brought rays of promise — most notably an excellent away record and consistent salary payments — but Oldham, one of the Premier League’s 22 founder members in 1992, are yet to see the top half of League Two this season. They sit 15th in the table after a 2-0 defeat at Cheltenham Town on Tuesday night and are fighting waves of apathy among a dwindling supporter base.

Lemsagam, a one-time football agent of Moroccan descent, is the poster boy of Oldham’s slide.

In a poll of more than 1,000 Oldham supporters in October, close to 90 per cent believed he was not the right man to take the Lancashire club forward.

The 44-year-old first arrived on the scene in the summer of 2017 before formally taking the reins from previous owner Simon Corney on January 26, 2018. A statement on the club website read, “Mr Corney believes that in Mr Lemsagam he has found the right man to take the club forward and one who has the resources, skills and contacts to do so.”

Lemsagam’s Dubai-based agency, Sport 2JLT, brought the promise of stardust to Boundary Park. His stable of clients included Alvaro Negredo and Samuel Eto’o, who were both lured to the Middle East in the twilight years of their illustrious playing careers. Another on the list of stellar names was Harry Kewell, the former Leeds and Liverpool midfielder appointed head coach at Oldham in August.

Little has since gone to plan for Lemsagam. The relegation to League Two came four months after his takeover, with Richie Wellens paying the price when he was sacked as head coach. Frankie Bunn was the first of Lemsagam’s official appointments before Paul Scholes’ brief reign was sandwiched by another local boy, Pete Wild, twice taking charge.

Then came Laurent Banide and Dino Maamria as Oldham plunged to worrying depths last season, paving the way for Kewell to arrive in time for 2020-21. An underwhelming start saw the Australian win only one of his first eight games on the back of a summer overhaul but six wins from 12 away fixtures have helped an attack-minded team at least steer well clear of the relegation places.

Seven different head coaches have served under Lemsagam in the last two and a half years and the only constants on a fluid landscape have been the beleaguered owner and his elder brother Mohamed, the club’s sporting director.

Abdallah Lemsagam has been described to The Athletic as “personable and charming” but his sibling, whose presence is more keenly felt on a day-to-day basis, cannot command the same character reference. “He was far more difficult to deal with,” said one former player.

Abdallah Lemsagam has pointed to his brother’s UEFA coaching badge and cited a short professional career in the third tier of French football as credentials to be the club’s sporting director, but there has been regular friction with the long line of head coaches.

One former staff member remembers a fiery confrontation with Bunn, sacked as head coach in December 2018. “We played Exeter a few days before Christmas. We went 1-0 up, 2-1, ended up losing 3-2. It was a big game. Abdallah and Mohamed were fuming. Frankie (Bunn) went into his office. Abdallah stormed straight in. Everybody in the club, in the players’ lounge, players’ families, could hear this massive argument.

“The manager’s office is in the middle between the tunnel to the changing rooms and the players’ lounge. The walls are thin and you could just hear really loud shouting — effing and jeffing. You couldn’t hear everything but at one point you could hear (Bunn) shouting, ‘I’m the manager, I pick the team, I make the substitutions. If you don’t like it, get rid of me’, or something like that.” Bunn, a club legend as a player, was sacked five days later via email. He stressed in a recent interview he had always picked the starting XI when in charge.

Scholes, the former Manchester United and England midfielder, lasted just 31 days in the same season.

“It unfortunately became clear that I would not be able to operate as I intended, and was led to believe prior to taking on the role,” he said after a seven-game tenure was cut short.

Oldham won a subsequent employment tribunal for breach of contract, with an arbitrator ruling Scholes did, in fact, have control over first-team affairs.

Wild took the reins for the remainder of the 2018-19 season but rejected an offer to stay on for “personal reasons”. It is understood he felt unable to continue working with Lemsagam and walked away from the club with which he had spent the previous 12 years.

Maamria, head coach for the second half of last season, left under a similar cloud in the summer. “I think it comes to a point where the position of a head coach becomes untenable,” he told website The Sack Race in August. “Without control of the dressing room and recruitment, then you’re not a manager or head coach yourself.”

Accusations of meddling have persisted, with Lemsagam making a point of denying them in a recent interview with the club’s in-house media. “It’s a very silly question. What do you need a coach for if you’re choosing yourself the players? It’s his job and his responsibility. He is one choosing tactics and his players.”

That man in charge is now Kewell, who was appointed in August with Lemsagam targeting a promotion challenge and a long-term ascent to the Championship.

Fortunes have gradually improved, as underlined by a 3-2 win over promotion-chasing Newport County on Saturday, but Oldham have the worst defensive record in League Two after conceding 45 goals.

If a succession of managerial changes have conjured a chaotic picture, fall-outs with high-profile senior players has been another recurring theme of Lemsagam’s reign.

Anthony Gerrard was one, sacked for gross misconduct in August 2018. The centre-back returned the following season with Carlisle to enjoy a comfortable victory. “I was going around clapping, waving, saying thanks for the three points,” he said. “Then you can see them (the owners) and they were very unhappy about it. That was music to my ears.”

Craig Davies, Jack Byrne, Andy Taylor, Chris O’Grady and Giles Coke have also left on acrimonious terms, with the pattern of fall-outs extended into this season. David Wheater, Oldham’s captain in 2019-20 and their highest earner, has not made a first-team appearance since March.

A club statement released by Oldham in early November stressed his absence has been down to a sequence of setbacks, including COVID-19, concussion and an injury caused by “lifting his dog”. Wheater, who has signed a non-disclosure agreement preventing him from discussing his plight in detail, responded to the club’s statement on Twitter to say, “Sounds like I’m free to play then cos I’ll be fit in a few days.”

The Athletic has learned that Wheater was a central figure in negotiations over a proposed wage reduction last season, acting as the senior voice on behalf of team-mates asked to accept a cut in their salaries.

It is understood Oldham’s players were initially told they would be placed on the government’s furlough scheme in April with the club topping up payments to 80 per cent of their salary. A second Zoom meeting then informed players they would only receive furlough money, equal to 80 per cent of salary but capped at £2,500 a month. Those who would not accept the proposal would be at threat of redundancy.

For some, including Wheater, that amounted to a wage cut of between 60 and 70 per cent and, on the advice of the Professional Footballers’ Association, Oldham’s revised offer was rejected.

Oldham confirmed at the time that players had been furloughed and added “in the unfortunate instance that furlough is rejected, normal employment practice decrees that they are placed at risk of redundancy. We must stress that this is a last resort and we are continuing discussions with all players and their agents to avoid this outcome for any player.”

Wheater and other senior players rejected the proposals but have since reached a settlement with Oldham. Wheater, however, has still not been considered for selection by Kewell.

Relocating to his family home in Middlesbrough, a 100-mile drive away, has become another bone of contention after Wheater failed to inform the club he would be moving house.

The most recent club statement on Wheater’s absence finished by saying, “The club is fully committed to supporting all of its players both on and off the pitch and will therefore continue with the medical treatment required to get David back to full fitness.”

Wheater, the club’s most experienced defender, has still not featured in a match-day squad all season.

Karl Evans, Oldham’s chief executive told a supporters’ podcast, The Boundary Park Alert System!, last week that he felt Wheater had played his final game for the club ahead of his contract expiring in June. “Do I honestly believe David will be considered for the first team again? No. Does he believe that? No.”

Simon Brooke, who was appointed to the board of directors in 2015 as the Trust Oldham supporters’ representative, has also found out what can happen when people challenge the club’s owners.

Brooke, a season-ticket holder since 1988, took legal action when he was removed from the board by the current regime. He subsequently received a letter in February 2019 informing him he was banned from the ground.

The Athletic has learned there have been concerns over the morale of non-footballing staff at Oldham, with a high turnover of personnel not limited to players and head coaches. Evans, who was appointed CEO in September, accepted he had inherited problems. “We’ve got a good group,” he added. “Some (staff) are a bit disillusioned. They’ve been through difficult times. Not just COVID but also some of the things around the ownership and people getting upset with Mo and Abdallah; people telling our commercial guy where to get off if he tries to sell them a sponsorship because they’re not going to put money in.

“It’s very demoralising. The staff have got a job to do and they’re doing their best to do it. I can’t say everything is going to be rosy in the garden in three months’ time. I understand some of these issues lie deep with people.”

Recruitment has routinely failed to reap dividends during Lemsagam’s tenure and it was the very first transfer window that it’s claimed he was involved in that has been at the root of the subsequent financial struggles.

Although not officially in charge of Oldham until the following January, the former agent is said to have orchestrated an expensive shopping spree in the final hours of business in August 2017.

Queensy Menig, a former Ajax youth player, was taken on loan from French club Nantes on wages of £11,750 a week, equivalent to five times the salary of Oldham’s top-earning player, and also given a hotel room at the Malmaison hotel in Manchester and a Mercedes.

Goalkeeper Johny Placide was recruited from Guingamp in France, also on a wage that eclipsed established players at the club. “You can imagine how that went down with the rest of the players on £2,500 a week or much less,” said one former Oldham employee.

Staff at Oldham were said to be amazed by the high level of spending in that round of business at Boundary Park. The takeover was not rubberstamped until the following January but The Athletic understands an agreement with Corney, who was present for the late spree, agreed Lemsagam would be liable for the additional outlay.

John Sheridan, the first head coach to work with Lemsagam, would leave within weeks of the last deals being concluded that summer.

Lemsagam has denied involvement in that recruitment drive when asked by The Athletic. When asked about this and other matters, the club said, “Mr Lemsagam did not take over the club until January 2018, six months after the 2017 transfer window.” They added that, “the majority of the information ….. is completely false and inaccurate” and that, “some of the (allegations) pre-date Mr Lemsagam’s takeover of the club and are wildly untrue.”

Then, that November, HMRC raided Oldham’s offices at the ground and took hard drives and files away with them. The club issued a statement saying they “have cooperated with them (HMRC) fully and will continue to do so.”

So far as The Athletic is aware, HMRC did not take action against the club or any individuals as a result of the raid.

Lemsagam then took over in the January. By the end of that season, Oldham no longer had the money to pay staff or even all of the club’s bills. All mobile phones were cut off by the Easter, with chief executive Moisley eventually paying £800 of his own money to resolve an outstanding debt.

Former staff members recall cash flow regularly being problematic. “We were often told the money was on its way from Dubai,” said one ex-employee.

The arrival of unknown foreign players was commonplace during Lemsagam’s first season in English football. “The standard of some of them was ridiculous,” said Gerrard, who made close to 500 appearances in English football before his recent retirement. “Some of them wouldn’t even get close to a Sunday League team in Liverpool, never mind a professional environment.

“There were players coming in on a daily basis that the manager had no idea about. You’d have the kit man scrambling around saying, ‘Who’s this?’

“There was one lad on trial and didn’t train for eight weeks for one reason or another. He would tell the physio it was his back or something. In the end he trained, and it was blatantly obvious he wasn’t up to the standard.

“He finally played in an in-house game. There must have been 100 to 200 along to watch this game just to see what this lad was about. I think he lasted 10 minutes and he got dragged off.”

Another episode familiar to those working within the club dates from January 2019.

Lemsagam is said to have approached two non-football members of staff and asked if they were aware of any players Oldham could sign. “He was asking the ticket office manager and some 21-year-old work experience lad!” says a former member of staff. “It was just all over the shop.”

Find those iconic images released ahead of the inaugural Premier League season in 1992-93 and there you can spot Andy Ritchie.

Sitting in between Gary Charles of Nottingham Forest and Crystal Palace’s John Salako, the Oldham Athletic striker grins broadly in a 22-man — one from each member club — squad picture.

Oldham had finished the previous season in 17th — their highest standing since the Second World War — with a team led masterfully by manager Joe Royle. Two years earlier, they had finished as League Cup runners-up, edged out 1-0 by Nottingham Forest at Wembley, and were narrowly beaten by Manchester United in a FA Cup semi-final replay. Two epic clashes at Maine Road that both went to extra time (3-3, then 2-1) saw Alex Ferguson’s eventual FA Cup winners pushed all the way.

Survival was dramatically secured in the final knockings of that first Premier League season on goal difference, too. But Oldham’s luck expired the following season after another FA Cup semi-final replay against Manchester United and life has never quite been the same since.

Another relegation in 1996-97 took them to the third division, where they stayed for two decades before being condemned to League Two in 2018. Albeit in a campaign curtailed by COVID-19, last season’s final standing of 19th in the fourth tier was Oldham’s lowest since 1960.

“It was a great place to be,” said Ritchie, who went on to manage the club between 1998 and 2001. “The position we were in, the players we had and the manager, it was a pleasure to be there.

“We had no right to do the things we did as a group but Joe saw the potential in all the players they’d brought in. We were all great friends.

“I can remember our first big one, the League Cup final (in 1990). It was just fantastic. I don’t think there was anyone left in Oldham. There was bakers making blue pastries and pies. It was a great time to be around the place and feel the atmosphere in the town. Ordinary people bought into the club.

“It felt like we were everyone’s second favourite team for a time. We had a lot of people wanting us to do well, so I’ve been very hurt by what’s gone on there.”

In a region that has recently lost Bury and Macclesfield Town in a choppy ocean of financial issues, Oldham Athletic have been another north-west club dogged by monetary problems.

As recently as July they were in the High Court to have a winding-up petition dismissed after a debt owed to HMRC was cleared. A month earlier, Oldham had been able to finally stave off the threat of administration when outstanding money owed to Brass Bank — owned by previous owners Danny Gazal and Simon Blitz — was paid. A six-figure amount related to loans and rent arrears at Boundary Park.

Previous winding-up orders were dismissed in May 2019 and August 2018, two cases brought by HMRC.

“It was a farce,” said Gerrard. “It was down to me to go and see him (Lemsagam, as captain) and he was so blasé about it. It was quite scary, to be honest.” One player said wage payments were late by “a day or two” under previous owner Corney but delays gradually became longer.

As recently as August, Oldham admitted they had received warnings from the EFL for the late payment of wages in January, February and March last year. Cash-flow issues have brought embarrassment, too. “I remember the boiler being ripped out and there was no hot water for a shower. It was those type of things you were always fighting against,” said one player no longer with Oldham. The club, however, have said that this is not correct.

Lemsagam has consistently claimed he inherited a financial mess when agreeing a deal to buy Oldham almost three years ago, a stance challenged by predecessors, but in that time it has routinely run at a loss. Lemsagam told a supporters’ group last January that Oldham had been losing, on average, £200,000 a month.

The impressive Joe Royle Stand, opened in 2015, has become an unedifying emblem for the ongoing toil.

Previous owners Blitz and Gazal continue to own Boundary Park and the Oldham Event Centre (OEC) housed in the latest development has been at the heart of a long-running wrangle over rent paid by the club. A club statement at the start of last season said Oldham were being “held to ransom” by the OEC but the rent debt called in by Blitz in February sparked the threat of administration.

Lemsagam made an official complaint to Greater Manchester Police (GMP) in January over the “financial conduct” of the previous owners and how the stand had been funded. By June, GMP had decided there was no case to answer.

In between, the Joe Royle Stand was closed to supporters for the final four home games of last season due to “health and safety concerns raised by the Council inspection committee”.

Simon Wood, a lifelong Oldham fan and winner of TV cooking programme Masterchef in 2015, was formerly executive chef for the OEC, overseeing hospitality in Boundary Park’s plushest stand. But he ended that role, he says, because he did not like the way the club was run:

“This is something that’s been going on for a long time. The demise of the club, it’s been going on and on and on. It doesn’t even feel like it’s my club any more. I didn’t want to be associated with the new owners. I didn’t like the way they conducted their business. I didn’t like their attitude. And I didn’t like what they had done, and are doing, to my club.

“Look at the names and their connections to the football club who have been there in the past 12 months. Great players embedded in the history of the club like Andy Ritchie from the glory days. Frankie Bunn, who scored six goals for us in one match. Paul Scholes, a massive Oldham fan, great player, loads of knowledge to pass on to the younger kids. And none of them has stuck it out.”

Evans confirmed in November that the Joe Royle Stand would still not be able to open if supporters were suddenly allowed back for their next League Two home game.

Will Lemsagam be embarrassed by his role in the current plight? “I’d be surprised,” said Wood. “They are that thick-skinned. No fans can go into the ground, so that pressure is not there. If they don’t read social media, they don’t know. It’s sad, it’s awful and it’s unwarranted.”

So what comes next?

For all Lemsagam says he has long-term plans to take Oldham up to the Championship, it is a club drifting along in the bottom half of League Two. Oldham’s average crowd last season fell by a fifth to 3,434 and season ticket holders for the current campaign have fallen to just 1,400.

In a season being played behind closed doors, Kewell’s side have lost nine of their 13 home games.

“Having our home record, I’m probably glad they’re (supporters) not there,” said Evans last week. “I’m not sure what an egg stain or a tomato stain would look like on my suit jacket.”

Finances are being challenged by the absence of crowds this season but success on the pitch has delivered timely boosts along the way. Three EFL Trophy wins banked £30,000, while progress to the FA Cup’s third round, where Oldham were beaten 4-1 by Bournemouth of the Championship, has banked more than £80,000 in prize money and TV revenue.

A small windfall has also come from the Premier League champions. “Liverpool decided to take a punt on one of our 12-year-olds and paid us £15,000 plus VAT,” said Evans. Another five-figure sum, believed to be in the region of £40,000, was secured through the sale of Danny Rowe, their popular forward, to League Two rivals Bradford City last week.

The Premier League’s bail-out for the EFL also guarantees at least £250,000 to a club that drew 1-1 away to Chelsea on the opening weekend of that first Premier League season in 1992. Short-term relief but long-term worries persist.

“We’ve still got concerns over the long-term financial health of the club,” said Stephen Shipman of the Push The Boundary fans’ group. “We’ve had two sponsors that have contacted us and said they won’t give anything more to the regime so long as they’re here. They’re sponsors who have backed the club for many years.

“The mood is pretty toxic. Being in the same division for 20 years breeds apathy, so we’ve had to deal with that. We’ve always had a gallows humour as Oldham fans but despite a lack of success, we’ve always still gone.

“We conducted a survey where 88 per cent of over 1,100 respondents said they didn’t believe Abdallah was the man to take the club forward. Fans are seeing the same mistakes being repeated and are now starting to rally round each other and create a movement.”

Most damning of all is that there is scarcely any hope left in a club that once landed some damaging punches on English football’s elite. Just 38 wins have come from the 124 league games that have followed Lemsagam’s formal takeover of the club.

When asked about the matters raised in this article, the club said “the majority of the information that you seek to publish is completely false and inaccurate” and it was based on information from “disgruntled former employees”.

So what might have been Lemsagam’s reasons for wanting to become the owner of Oldham Athletic, an unglamorous club in a working-class northern town? “I’m going to disagree with a lot of people and say I think his motivation was reasonably pure,” said one former employee. “I remember him saying a few times he has an eye for this and he could find the right players. He thought players would come from European leagues, become better and be sold for millions. In theory, it’s good logic but it’s flawed.

“Players don’t leave League One for those sums. And it doesn’t tend to work with foreign players. If it does, it takes years to happen. He thought he could turn this around but we all know how difficult it is. Where do I think it’ll end up? It’ll end in tears.”

A source close to one current player, though, disagrees. “He’s trying to do the best he can. I know he gets a lot of stick but I believe his intentions are good. The club is in a much better place now than it was 12 months ago.”

Lemsagam, meanwhile, vows to carry on regardless. His most recent interaction with Oldham supporters came from his home in Dubai on November 18, with a promise he was “building for the future” by placing his faith in youth. “I am really, really committed to the club, to bring it to where it belongs. It’s taking time, but we’ll get it there.”

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 1:48 pm

More from the Athletic, this time the sometimes (and I stress sometimes not always) murky world of Football Agents

Fake boot deals, illegal cash, flattery – how agents fight over players

Adam Crafton Jan 28, 2021 21
During the 2019-20 season alone, Premier League clubs paid out £263 million to football agents.

Liverpool shelled out the most, at £30.3 million, while Manchester City, Manchester United and Chelsea all recorded agent payments above £26 million. Burnley’s figure, standing at £3.9 million, was the lowest. Across the Championship, the total was £49 million, while League One and League Two clubs jointly spent over £5 million in payments to agents or intermediaries.

As such, in the four divisions of English league football alone, agents stood to make just under £320 million in a single campaign. It is little wonder therefore that the battle to sign up players to agency stables is only becoming more combative in the sport.

At the highest level, the superagents compete for star names, such as the case of Crystal Palace’s Wilfried Zaha, who left Unique Sports Management in late 2019 and signed up to work with Federico Pastorello, the Italian agent who has also secured Inter Milan’s Romelu Lukaku from Mino Raiola in recent times. After a short-term mandate for Pastorello, Zaha more recently moved to RocNation, the American firm whose communication nous has been credited with helping Manchester United’s Marcus Rashford take on the front line of British politics. Meanwhile, Manchester City’s Raheem Sterling was recently reported by The Times to have left his long-time agent Aidy Ward and is considering his next steps for representation.

Yet turf wars are present at all levels of the football industry, both in the race to secure the most talented young prospects and the career-long battle to retain talent throughout a career, when contract negotiations are tense, or a significant transfer falls through.

The Athletic spoke to a series of agents at different levels of the market, including from the so-called superagencies, to uncover the realities behind the tricks of the trade.

Some of the revelations, such as fake boot deals, messages to minors on social media and shock tax bills for players, will make many in the industry squirm while other agents have revealed the developing innovations they use to identify and secure talent.

The overall message, however, was not pretty. At their best, agents should, and many do, protect the interests of a footballer and safeguard their personal, professional and financial interests. Yet, speaking on the condition of anonymity in order to be open and frank in their revelations, it is apparent many agents are concerned over the direction and reputation of their industry.

One concludes: “You want to work with integrity but the way people react when you say you are an agent, you see in their eyes that they think it is shifty. I want to work in a legitimate business I am passionate about, which is why we all go into it in the first place, but it is hard to make that point to people the way football is at the moment.”

In an ideal world, a footballer will meet one agent and remain with the representative for their entire career.

Current Football Association regulations forbid agents from entering into a representation contract with a player before January 1 of the year of a player’s 16th birthday, or even approaching a player with a view to doing so. An approach, according to FA guidance, would include mobile phone messages, emails, social media contact or any attempt to influence family or friends. In addition, between the 16th and 18th birthday, contact can begin but only with the explicit permission of a parent or guardian. The FA has banned six agents for approaches to minors over the past year.

They are, however, highly unlikely to be the only offenders. After all, many prominent agencies have youth identification leads whose specific job it is to identify emerging talent and ensure their company is best placed to secure a prospect.

The conversations for this report demonstrate an industry culture where suspicion is rife. As one agent explains: “We try to be good about it and go about it in the correct way but it doesn’t bloody work. It feels dodgy. We suspect some agents will have contacts on the inside of clubs. They may be mates with an under-14s coach, or find a way to attend academy games in the lower age groups. They could then speak to parents in the car park after a game. I went to one academy game between two big Premier League teams at under-15 level a couple of years ago and there were 10 agents there on the touchline. You see people handing out business cards. Some clubs use facial recognition to make sure only the people on the list to attend can actually get in. But there are probably a lot of academy games you can just walk into and say you are a parent or your brother is playing.”

A different agent, who represents Premier League players, says: “There is a list as long as your arm of agents getting in trouble for contacting minors without parents’ permission on Instagram, Snapchat or WhatsApp. Agents will also ask players at clubs to try to get the phone number of a teenager for them and a player will do it for a quick grand. The sensible kid will reply and say he needs to speak to his parents. The more daft ones — or more vulnerable ones — will meet people they do not know, grown men they don’t know from Adam, and really they are breaking the rules drastically.

“To meet a minor is a safeguarding issue. We would try to contact the parents and sometimes the only way to do that is to contact the club. If you call the Chelsea youth department and say you are looking to sign a player, they won’t give you the contact details. But nine times out of 10, you will have someone at a club, at some level, who will manage to get you a contact detail for a player directly, or their parents. Players go through a lot of age groups and coaches and all of those people will know parents. It can be someone within the administration. That is illegal and a data protection issue, but it happens. The more disingenuous agents are using social media and playing dumb to the rules. Or they will find the parents’ online details by looking through the kid’s profile and studying who they follow on Instagram, for example. They could also access people through brands or through international set-ups.”


TIFO Football - Inside Footballs Transfer Market - https://www.youtube.com/watch?v=a5CKQcQavbk


Privately, several agents spoken to for this piece felt the issue was overblown a little bit. One explains that he was nearly caught out calling a 17-year-old without permission from his parents, before realising his age at the final moment. He says: “The authorities are more worried to clamp down on that than any high-level corruption. Every agent knows an agent who has been banned or fined for tapping up minors. It might be an oversight on a representation contract and you get a six-month ban. There is sympathy there because these characters are made out to sound like paedophiles over an administrative oversight when all kinds of other shenanigans go on.”

Once a player is signed to an agency, this does not tie him to the agent for the entirety of his career.

In England, representation contracts last for a maximum of two years and as such, agents are vulnerable to losing their clients to rivals. Paranoia sets in.

When one Premier League player failed to secure a move during the summer transfer window in 2020, he received three calls the next day from rival agents asking if he would consider moving to them.

“We say they are like girls,” one agent begins. “You never know if your missus is cheating on you or having dinners with someone else. If they cheated once to sign with you, they will do it again. You may have a player you really trust, if it is a 10-year relationship with a player you have taken from League One to the Premier League but some are, ‘******* hell, his rep contract is ending in a couple of months and it needs sorting’.

“There’s normally a loan, transfer or contract discussion within two years, which we call a trigger point. Some are as loyal as a dog and do not entertain talking to somebody else. Others will always be talking to people. You can tell by a player’s Instagram if you check how many agencies they follow. If an agency follows them, that kind of player follows them straight back and wants to know what’s in it for them. Is it a move? Is it an endorsement? They talk about wanting someone they can trust. But then come the real questions: ‘How powerful are you?’ ‘What are your contacts like?’ If it is a young player, they want to know your track record with young players.”

Agents are concerned about retaining clients as the two-year deal ends but a particularly tense moment develops in spring when players receive their P11D tax bills. A P11D in the UK refers to the benefits provided and expense payments that are made to employees but not put through monthly payrolls. Often, agent fees for a contract renewal or transfer fall under this umbrella. As such, if a player has signed for a club the previous summer, he will then be taxed at 45 per cent for the fee the club has paid to his representative. Yet there are occasions when an agent has not clearly informed a player, particularly foreign players unfamiliar with the British taxation system, that a bill has arrived. Sources inside clubs are concerned that this is becoming increasingly frequent.

As one Premier League club source says, “Players get frustrated that agents are not open and transparent. If the agent said, ‘The club will pay me £1 million and you will have to pay 45 per cent’, they say ‘OK, I can prepare’. What players hate is receiving a shock bill after being kept in the dark.”

In these cases, several agents explained, there is a difference between agents who are calculated and intentionally do not tell players, because they wish to receive their fees and do not want players to block the payment, and those who are simply incompetent and do not know enough about taxation. “These are the cowboys,” the source continued. “If an agent has been paid £1 million, the tax bill at 45 per cent can be £450,000 and HMRC tend to want it now, rather than spread over payments. Often, the guys have sent money home or invested in property. They don’t always have that amount cash to hand. It puts them into a tough situation.”

As such, there have been instances where Premier League players have sacked their agents. One agent explains, “It is a huge own goal for an agent to do that if they have an interest representing the player going forward. Some clubs are better than others at explaining it to players and it can be awkward in the room when a club is firm with the player and say, ‘This is what your agent is being paid, £100,000, that is a P11D, a benefit in kind, so you will get a tax bill’. As an agent, you are thinking, ‘******* hell, shut up. I have explained it to him once, he doesn’t need reminding at the point we are getting our documents signed off!’

“But clubs have a responsibility to do that for players, as some have been shafted. But what this means is that May and June is a good time to recruit as players have had their feathers ruffled by tax bills that come in. The problem with such a bill is a player then says, ‘I am not paying that tax bill’. Then you are in the murky waters of clubs putting loyalty bonuses into contracts to offset tax bills, a convenient £50,000 loyalty bonus payable in June to wipe out the tax bill you receive in April. Or you get a player sending the tax bill to an agent and saying, ‘You ******* pay it — or I’m leaving’. I have heard stories where agencies are finding ways to pay players’ tax bills for them, which is illegal.”

It is one thing to know that a player may be unhappy with their agent but another altogether to then win the considerable battle in a saturated market to represent him.

The most effective advocates for an agency are the clients they already represent. One widely-known example is the case of Ivan Rakitic, who admired the trajectory of Gerard Pique’s professional career at Barcelona and subsequently began to work with Pique’s agent Arturo Canales. In Nicklas Bendtner’s autobiography, he revealed former Arsenal team-mate Ashley Cole put in a “good word” of recommendation for the agent David Manasseh.

Word of mouth is an agent’s most powerful tool in a dressing room.

“Players talk about everything,” one highly prominent agent explains. “They know how negotiations are going, how much players earn, buyout clauses, everything. We are lucky enough to have some players interested in working with us and we are approached by some players who are interested to know us because they know how we work with their team-mates.”

The challenge is then to have a player in the room. “For a young player, just take him to Nando’s,” one agent says. Another explains: “You want somewhere public but private: a quiet hotel bar, off-peak time, near where the player lives. Sometimes in a team hotel on the eve of a game, but that is a better place to see existing clients.

“You get more out of a player going for a meal but often there’s an age gap and it can be intense. These meetings are hard to get with players and when they are there, they often give the air of not wanting to be there. You are trying to sell them something and they are looking at their watch and really they just want to play Fortnite with their mates. You know you have 40 minutes with them and you aren’t worrying about food and drink. You want to get down to it and make sure you aren’t disturbed. It is great to show off a snazzy office but it is hard to get them there — they are lazy and don’t want to travel.”

Other agencies take schmoozing to a different level. Some, for example, might take a player to a gig or provide tickets in a box at a Premier League stadium to entertain them. The pitch to a client is an evolving field.

One leading European agent explains: “We do a deep analysis of the player: football, image, their current contract situation and their future potential options, with names, numbers and comparisons with other players in their position. It is a detailed presentation. We provide a list of clubs they could consider. What is important is you cannot talk at a player for 45 minutes. After 10 minutes, they are switching off. You get occasionally attentive guys, sure, but it is what it is. Smart people don’t want to listen for ever, either. You have to be concise, direct or you waste your time. I feel sometimes we talk too much and do not listen enough.”

Several British agencies now have their in-house scouting software and algorithm models that allow them to identify the talent that clubs would consider around the world and also produce presentations that highlight a player’s qualities. They show “spider-web radar images like Football Manager.” One agent says, “it is ego-boosting. A lot of agencies put together a slick video package of the player and literally just play the player his own highlights. I always think that is stupid because the player is watching himself but some people just like to be told they are wonderful. You want the player to recognise you are the best person to promote them. Ultimately we are salesmen and so we have to say, ‘This is how we will promote you and sell you’.

Sometimes, the introductions come not from team-mates but from a club. One former president of a major European club told The Athletic that a prominent agent once took him to lunch. “The agent explained how good the rich life is and how I could go to very nice parties all over the world with him or boxes in big stadiums. I said to him, ‘I love this club, my wife and my children, I don’t need you. I don’t need your houses, your parties, just tell me what you can do to help my club’. The guy was upset I did not want to enter his sphere of pleasures: money, women and parties.”

One agent says that a player who ended up at top club was introduced to him by an academy manager because the young player was receiving a lot of approaches and he was the agent most trusted by that coach. On other occasions, a club might have identified a prospective signing but dislike their current agent. This may give a second agent an opportunity to be involved in the deal.

One beneficiary explains, “Sometimes a club might say, ‘We like this player but think the agent is a shambles’, or, ‘We have heard he is in the process of leaving his agent’. You are then going into a meeting with the player, cutting to the chase, saying, ‘This club wants to sign you — are you interested in working with me?’ You may already have a player there (at that club) and know their pay structure. That’s a golden ticket for an agent.”

Sometimes, however, a club’s introduction of an agent to a deal can upset a player.

One source recalls, “I have seen a case where an agent came into the room to help a player signing at the last minute and the player says, ‘Who are you?’ They say they are the club’s agent. And the player said, ‘Who the **** are you? What the **** have you done?’ The agent said he had helped the club on the deal. They sign the piece of paper, walk out and made half a million. You are just thinking, ‘What on earth has just happened here? How is this allowed and why is this happening?’”

Agents, it should be said, are often valued by their clients. They are confidantes and business advisors, mentors and handymen. Many agents resent their industry’s reputation. The Football Agents Forum, of which Raiola is president, is currently challenging FIFA’s attempts to cap agent commissions at 10 per cent of the transfer fee and three per cent of the player’s fee. He has accused FIFA of treating agents like “lepers” and “criminalising” the industry.

FIFA said its reforms will “improve transparency, protect player welfare, enhance contractual stability and raise professional and ethical standards. In other words, to eliminate or at least reduce the abusive and excessive practices which unfortunately have existed in football.”

At crucial moments, rivalries between agents spill over and the same, it is alleged, can be said of the conduct used by certain agents to pursue clients. Agents are forbidden from using inducements to encourage players to sign with their companies but every agent spoken to for this report claimed to know of differing levels of dark arts utilised by their competitors.

Some stories are entertaining. Bendtner, for example, even received a bed from one agent who sought his registration.

Other agents use a pitch to, in one intermediary’s words, “****-talk” their rivals.

An agent says, “Everybody tries to sell negative examples of decisions taken by other people to justify themselves or to say they could do it better. I have been in conversations with agents when they said they would sign X player. They might explain how badly Mino Raiola did things with (Manchester United midfielder Paul) Pogba and make out Pogba is ****** off and say it’s Mino’s fault. I know people who use examples of a different player’s career to undermine their rivals.”

Despite the rivalry between agencies, it is not unheard of some agents to tip each other off when they suspect a client may be close to leaving their own stable. “We may give an agent we know a call and say ‘We are losing him, go and do your worst’. That way, you may get a favour back on a future deal down the line.”

Then there is the obsession among young footballers with regards to boot deals or brand endorsements.

Contrary to popular belief, boot deals are no longer particularly common, except for players at the highest level. A very small percentage are actually paid to wear a brand’s boots, while some will receive complimentary boots but are not paid by the company.

A British agent explains: “An agent always promises a boot deal but the player is not always getting a boot deal. They are secretly going to JD Sports and buying a pair of boots and pretending. The players fall for it: hook, line and sinker.”

One source at a major brand continues, “I remember a member of our digital department once came to me and said, ‘Who is this guy tagging our brand on social media saying thanks to us for these boots?’ And I say I have no idea. These players believe they have a boot deal because the agent is buying the ******* boots.”

An agent continues, “Most of these guys don’t have real deals, particularly the younger lads. They write on their Instagram they play for X club and represent Y brand. It is so their mates want to be them. They get a few more girls liking their posts and sending them nudes. That’s it.”

Inducements are, however, alleged to go beyond boots and beds. Several agents alleged that certain agencies induce players to sign with them by making cash payments.

One agent says, “We even mention in our pitch sometimes that you may get offered £50,000 by someone else, so if that is what you want, we will not continue the presentation. One, it is illegal, two, we do not have the money, and three, you are not our client potential if that is what matters to you.”

Another agent admits to have considered privately whether he and his colleagues should do the same, as they have been told by players they missed out on their registration due to cash inducements from rivals. The agent says, “When we miss out on a player, we want to know why. ‘What made you sign with them?’ Sometimes it is, ‘I liked their social media’. Other times it is simply, ‘They offered me X amount of money’. We are scratching our heads because it is not a fair fight. Realistically, therefore, we are not even at the table for a lot of players because some of the numbers are just totally insane — six-figure numbers.”

An agent based overseas believes this is more common in England than on the continent. He says, “It is supposed they pay a lot of money to have you under the contract and that way you have a current debt with the agency and you cannot leave until they have their money back. It is happening with young people and it is not nice. It is illegal, but there are always ways to solve illegal situations.

“Another common thing is if you go to an agency website and you will often find a brother, father, friend or relative of players who work with them, by coincidence. They might do one report per week and get a huge salary. These things — people buying cars for parents, people investing money in local businesses of the families — it goes on.”

One of his colleagues concludes, “It is, sadly, worse than we all think.”

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 2:24 pm

Chester Perry wrote:
Thu Jan 28, 2021 5:48 pm
The latest SportsProMedia Podcast asks "Are we going to see a European Super League"

https://audioboom.com/posts/7783419-are ... w-28330466

it is astounding that given the number of podcasts (six I think) I have now posted on this subject in the last week or so as to just how diverse the information is
SportsProMedia's European Soccer Week continues this is directly connected to the podcast posted yesterday
https://www.sportspromedia.com/from-the ... organ-fifa

European Soccer Week | Part four: How likely is a breakaway super league?
The looming threat of Europe's elite clubs banding together to form a continental super league is never far from the surface, but is such a competition viable or just an elaborate bluff?

By Tom BassamPosted: January 29 2021
European Soccer Week | Part four: How likely is a breakaway super league?

In October, as he resigned from the position of Barcelona president, Josep Maria Bartomeu declared: “I can announce something that will change in an extraordinary way the future revenue of the club for years to come. The board of directors have approved the acceptance of requirements to take part in a future European super league of clubs, a project put forward by the biggest clubs in Europe.”

Were these the words of a desperate man seeking to burn down the house on the way out? Or were they a glimpse through the cracks of the façade put up by executives at the continent’s top clubs?

When it comes to the breakaway proposition, La Liga president Javier Tebas certainly sits in the camp of those who believe that Bartomeu’s super league declaration was not grounded in reality. He dismisses the concept as “not a project”, firm in the belief that the current model creates enough economic incentive that there is no need for drastic alterations. He does, however, acknowledge that a breakaway is a threat should the game’s existing stakeholders not remain in positions of strength.

The latest revelations with regards to a breakaway super league emerged in The Times earlier in January. The report suggested US banking giant JP Morgan would pay clubs up to €350 million (US$426 million) each to join the competition, where they could earn as much as €240 million (US$290 million) a season from taking part. Spanish giants Real Madrid and Barcelona, the top two clubs in Deloitte's Football Money League, would purportedly each receive an extra €30 million (US$36.4 million) fee.

The report claims six English clubs would feature among the competition's 15 permanent founding members, with five more qualifying each season. Manchester United, Real Madrid and AC Milan are said to be the driving forces behind the new tournament, which would replace the Uefa Champions League.

One of the more fanciful elements in the story was that teams would still also play in their domestic leagues, with the continental competition accounting for between 18 and 23 midweek matches a season. Quite why the domestic leagues would be expected to sanction these elite clubs taking part after they had banded together to undermine the national competitions was not explained.

Income from TV and sponsorship would favour the founding clubs, who would have rights to show some of their matches on their own digital platforms. Some 32.5 per cent of the pot would be shared equally among the 15 teams, and another 32.5 per cent among all 20. Merit payments based on performance would make up another 20 per cent, with the final 15 per cent based on ‘club awareness’.

The document revealed in The Times includes a nod towards financial governance, with a cap of 55 per cent of net revenues imposed on salaries and transfers, and a ‘Financial Sustainability Group’ monitoring spending.

The International Football Association Board (Ifab) controls the laws to soccer and are the only rules Fifa sanctions to be officially played as the sport. As such, any breakaway would need ratification from the global governing body. Fifa recently said it would refuse to authorise any breakaway competition and that players who took part would be banned from competing in the World Cup.

The Times report adds that 12 clubs would qualify for Fifa’s new Club World Cup competition from the new super league, although given the governing body's strong opposition to the concept this again seems rather hopeful.

Phil Carling, the head of soccer at the Octagon agency and another executive with vast experience in the industry, says one can “set your watch” by when stories regarding breakaways or similar appear in relation to key commercial talks. The Premier League will be negotiating its next round of TV deals in 2021, as is La Liga, the Italian top-flight Serie A and - though rather by accident than design - Ligue 1 in France. Uefa will go to market with the Champions League rights in 2022.

“The big clubs have been going on for a long time about wanting to change the distribution model,” explains Carling, “so how better to do that than to have the threat of a breakaway or something that actually gives them more power and voting rights?

“You can track the bigger clubs’ ambitions in relation to all the rights that are centralised to the bodies that control that. Similarly, with the ECA and the elite clubs and the Champions League, they never do a deal beyond three years. So currently the protocols, all the relationships, that currently exist between Uefa and Team [Marketing] and the clubs, are only signed until 2024.

“[The clubs] want to keep the hammer in one hand to sort of beat Uefa over the head if they’re not happy with the job that they’re doing or the distribution model.”

Former Sky Sports managing director, Barney Francis, sees the proposition of a closed super league concept, or even a Champions League with limited entry, through a slightly different lens. He says the pay-TV broadcasters, which remain soccer’s biggest financial backers, would view such a competition as not making much sense as a standalone product. The networks rely on interest in their content from across the whole territory, which is something a super league would struggle with if it was limited to just a select few of the biggest clubs.

He asks: “Would a UK pay-TV broadcaster only be interested in the Champions League rights? Their view would be: ‘Well, we can sell Champions League as a product to the fans of the four British clubs. That’s all.’"

Breakaway competitions carry the risk of alienating fans and damaging competitive credibility

Francis' point might have been made in relation to the UK, but as attractive a proposition the Champions League is to pay-TV broadcasters, it is the sole soccer offering for networks in none of the major five European markets.

Interestingly the outlier here is Amazon, whose Prime Video streaming service has acquired the top-pick Champions League package in Italy and Germany. Some believe the ecommerce giant, which is not beholden to traditional pay-TV models, sits alongside the private equity firms as the most viable path to the establishment of a super league. Carling, for example, sees Amazon and other digital players as the fourth generation of sports broadcasters, capable of paying huge sums for live rights but also able to make that content available at cheap rates or even for free, via an advertiser-funded model, because of the scale of their businesses.

While Carling argues that such digital players are equally able to assert their dominance within the existing structure of European soccer, having the cash to own the entire competition means they could fund the establishment of a super league and turn a profit on the investment without employing a subscription model.

“The people sitting pretty in the middle of all of that are the elite clubs,” he says. “Ultimately they own the contracts of the 1,000 players that everyone wants to watch on a global basis. Those are the factors that will come to bear on the whole thing.

“What direction it actually goes in, I don’t totally know and if I did know, I’d probably be sitting on my yacht.”

Francis is more certain in his belief that a big digital player or a private equity investor backing a multi-territory over-the-top (OTT) platform would be prepared to sacrifice the local interests of a domestic market in pursuit of broader targets.

“[Buying New Zealand cricket rights in the Indian subcontinent] is an interesting deal and not because that is Amazon’s level of cricket,” he says. “That is Amazon saying, ‘Right, at some point, India, Sri Lanka and Pakistan are going to be touring New Zealand. That gives us a chance, particularly in India with a population of, whatever it is, a billion and a half people, to use Amazon to get their religion, which is cricket.’

“So you absolutely see how things like that work. An Amazon, or a private equity funded OTT, streaming model will be more interested in a pan-European club competition that featured all the biggest and best teams because their ambitions would be a certain number of subscribers in each territory.

“Although they put the Champions League model through it now, an OTT model is not bothered that people on the south coast of England may well not be interested in European football.”

Prior to and during the pandemic, European clubs have shown their skill at growing overseas fanbases. The Premier League has been able to achieve near parity between the value of its domestic and international rights courtesy of those endeavours. However, those same efforts have also had an unintended consequence of undermining the importance of clubs’ domestic market.

According to Carling, 97 per cent of Premier League followers do not live in the UK, a fact which picks at the established fabric of fandom. Commercially speaking, does it matter if an Arsenal fan is from north London? For an advertiser, fans are monetisable whether they live in Indonesia, China, or above a Korean restaurant on the Holloway Road.

It also makes the trade off for a breakaway league more palatable if the commercial value of the irate London-based Arsenal supporter gutted by his club’s decision to ditch the Premier League can be replaced by millions in Asia. However, Carling insists that currently those two fans are not equally valuable. While there might be millions of Arsenal followers in Indonesia, as an emerging country, the average spending power of those fans makes them a development project as a consumer.

This point, Carling believes, is the fundamental flaw with the breakaway concept at this moment in time.

“It is very important that clubs stand for something - can mean something - that’s actually a cool part of their attraction,” he says. “So taking a purely economic perspective on it, it is actually not only morally wrong [for elite clubs to pursue a ‘super league’ model], it’s actually commercially wrong.”

Tebas puts it in more emotive terms. “The sense of belonging in all countries exists for [their own] football leagues,” says the Spaniard. “The league that is watched the most is the local, domestic league. In China, the league that is watched the most is the Chinese Super League, not La Liga. In Argentina, they watch the Argentine league, not La Liga.

“Even though their football level is not as high as the Premier League or La Liga, there’s a sense of belonging for the fans of those countries to their own leagues and that’s never going to be lost.

“I don’t see fans, generally, in Singapore that are going to be sleeping with a scarf of European football teams. They’ll be wearing one of their own.”

While a super league might not possess commercial viability at present, an attempt from the very top of soccer could be a vastly different proposition. Any breakaway property would have to gain the sanctioning of Fifa to be formally recognised. Given the stern warning players were given by the game's global governing body over what joining a breakaway would mean for their participation in the World Cup, red tape appears to be one strategy for keeping clubs in-check. A Fifa-backed club tournament, however, would face no such legal issues.

In October, the global governing body was linked with a super league backed by American investment bank JP Morgan to the tune of UK£4.6 billion (US$6 billion), but Fifa president Gianni Infantino insists his focus at that level is to transform the Club World Cup into something more than its current guise as a seven-team winter sideshow. Plans for an expanded tournament in China featuring 24 teams, including eight from Europe, were in place for this year but have now been postponed amid the pandemic-enforced calendar reshuffle.

When Fifa’s ruling council approved the motion to scrap the unloved Confederations Cup in favour of the redrawn club competition back in March 2019, the ECA warned Infantino in no uncertain terms that its clubs would not take part in such a tournament. That notion was dismissed out-of-hand by Infantino, who said: "We hope that all the best teams will participate and we've had some very positive discussions with Uefa. But it was our responsibility to take a decision because we have to deal with the organisational matters."

Despite its indefinite postponement, Infantino is not dropping the redrawn Club World Cup from his agenda. Responding to October’s super league reports, he said: “For me, it’s not about Bayern Munich against Liverpool, but Bayern against Boca Juniors. Liverpool have 180 million fans worldwide. Flamengo have 40 million fans and 39 million of them are in Brazil. Liverpool have maybe five million fans in England and 175 million fans around the world.

“I want clubs from outside Europe to have global appeal in the future. That’s my vision: to have 50 clubs and 50 national teams who can become world champions.”

The last four editions of the World Cup have seen one nation from outside Europe reach the final. The Champions League is the most lucrative club competition globally and there is undoubted concern at Fifa that the flow of power in soccer is heading away from Zurich towards Nyon, where Uefa is based.

Fifa has shown it is willing to let a private investor control the new Club World Cup, including the frequency of the competition. If that were to come at the expense of the Champions League, one gets the feeling Infantino would be not too concerned.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 2:44 pm

This is an interesting opinion piece from SportsProMedia as to the future of OTT and sports rights - you have to remember it is from someone with a service to sell, but there is a lot of marketplace knowledge being shared also

Opinion | Why it pays to consider the long and short of OTT
Mike Emery, chief executive of streaming platform Joymo, on why OTT strategies need to incorporate longtail sports content as a valuable part of their digital offering.

By Mike EmeryPosted: January 19 2021

Over-the-top (OTT) sport streaming services are a popular method of complimentary distribution for major rights holders, but for longtail content creators the results can be truly transformative and sustain their sports for the long term.

OTT internet streaming services are not quite as new a phenomenon as you might first think. The first ever sports stream over the Internet was a baseball game in 1995, and it is almost 20 years since Major League Baseball (MLB) launched its MLB.tv service.

The more recent explosion in both OTT products and providers is in large part due to technological advances that now allow high-quality streaming services at scale and the rapid change in consumer behaviour, driven by a mobile-first mentality.

Now it is clear that this trend is only going to accelerate as cord-cutting increases, product integrations and services improve, while 5G networks facilitate greater content creation capabilities as well as reducing latency.

The case for OTT, from a rights holder perspective, has become overwhelming. Major events are now being watched over the internet in larger numbers than ever before. Last year’s Super Bowl, for example, was the most live streamed in history, delivering an average minute audience of 3.4 million, up 30 per cent on 2019.

MediaKind’s recent 2021 Sports D2C Forecast, which analysed 40 rights holders from around the world, noted that the direct-to-consumer subscription model is likely to be ‘the dominant long-term business model’. Indeed, the global value of sports rights is predicted an increase of 75 per cent by 2024 due to a growth in audiences choosing direct-to-consumer (DTC) content.

Premium rights holders have inevitably had a far greater focus on ensuring they maximise the value of their traditional media rights deals, as these are often the single largest revenue stream and underpin their organisational infrastructure, their competitions and their marketing efforts.

This explains why some of the biggest sports properties – such as English soccer's Premier League – have actually been the slowest to adapt, primarily due to the long-established, exclusive, linear broadcast rights agreements they have in place.

For tier two and three rights holders, who are less likely to rely on rights fees to underpin their overall revenues, direct-to-consumer services have become an increasingly vital source of returns via subscriptions, advertising and data.

Then there is the longtail end of the market. At this niche and - in many cases - non-existent end of the rights market, the considerations for content creators clearly differ considerably from those at the top of the funnel.

For most federations the number one priority is to grow their sport, both in terms of participants and overall number of identifiable fans. But they also have to consider competitions and events, sponsorship, safeguarding, data management and the overall development and integrity of their sport.

As OTT innovation continues apace and technology becomes more affordable, it is creating even greater opportunity for properties further down sport’s traditional food chain. The result is a massive increase in the volume of niche content and the possibility for rights holders to access, identify and monetise.

In the past - to truly go over the top of television and directly engage their fans – sports owners have had to consider the costs of hardware, specialist personnel and most significantly, production. In fact, for all the reasons right holders should be considering streaming content via OTT, there are as many to not undertake the infrastructural platform build internally, unless you have considerable budget and the resource to not only implement but also manage for the long term.

That said, we have now reached a tipping point with technology versus cost where leagues, federations, teams and individuals at every level of sport can launch high-quality automated OTT solutions to showcase their competitions and performances to the world.

And there is a growing desire for longtail, user generated content. MyCujoo is a great example of this, and also how technology-as-a-service can power OTT platforms. The success of the company’s tech stack paved the way for its recent acquisition by Eleven.

The MyCujoo model is heavily focused on providing free content to fans and, typically, a high proportion of longtail content finds its way to free social media platforms, namely YouTube, Facebook and Instagram. Traditionally this has been because, aside from the federation or club websites, these are free platforms that encourage user generated content (UGC).

The irony, of course, is that some of this UGC is amongst the most viral posted on accounts such as Sportbible, garnering millions of views and lining publishers’ pockets with advertising revenues, with the individuals, leagues and clubs receiving no recompense.

Fortunately, there are now OTT streaming platforms on the market tailored to longtail content creators that allow them to directly monetise their IP on a pay-per-view or season ticket/annual basis, with 100 per cent of proceeds going back into the sport or club.

Joymo is one such service that has been developed to empower everyday athletes performing at large scale international events, to grassroots competitions, by levelling the longtail playing field by removing the cost and operational barriers.

The financial benefits extend to the control offered over on-page advertisers and the fact that commercial partners have access to hyper-engaged audiences on a local, regional, national, and international basis. On top of that, access to precious user data is provided to the page owner, allowing them to retarget.

Moreover, the technology underpinning these platforms offers secure end-to-end streaming at low latency, with built-in e-commerce and customer service, plus data processing and management in line with GDPR regulations. Most importantly, the financial entry point – as little as €40 per year – is extremely affordable.

We are living in a period where longtail and grassroots sport have been hit harder than most, and many clubs and federations were already struggling to finance and promote their sports in a manner that helps retain existing fans and capture younger audiences. Whose time and interests are increasingly fragmented.

Joymo has seen a number of its partners not only salvage sporting competitions that would otherwise be cancelled due to Covid-19 restrictions on spectators but empowered them transform the potential of these events.

Whether it be a gymnastics club in Molde, streaming a one-off annual event, or a Norwegian Handball Association broadcasting all its weekly fixtures, longtail OTT has enabled them to generate significant revenues from digital pass sales, empowered players - who can now watch and analyse their performances - or enabled teammates to watch together and build unity. There are multi-level benefits being delivered directly federations, teams, players and fans.

While much of the noise and media coverage around OTT will continue to focus on premium rights holders, we must promote the services that exist for smaller federations and grassroots clubs, who are often the lifeblood for the professional end of the pyramid.

All sports, teams, athletes and events have an audience and longtail-focused OTT platforms empower these stakeholders to find them and help them support and grow their sports in the long term.

Mike Emery is the chief executive of Joymo, a leading live sports streaming platform for teams, clubs, and federations. For more information visit Joymo.tv.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 2:54 pm

More financial woe for football in France - broadcasters with rights to the French version of the FA Cup are looking for substantial rebates - from SportsBusiness.com

France Télévisions, Eurosport seek fee cut for Coupe de France rights
Reginald Ajuonuma - January 29, 2021

The two domestic rights-holders to the Coupe de France knock-out competition, France Télévisions and Eurosport, are thought to be seeking a 30-per-cent fee reduction this season due to the Covid-19 related reformatting of the competition.

The incumbents, which pay a combined €22m ($26m) per season for the rights from 2018-19 to 2021-22, made the request in a letter sent last week to rights-holder the French Football Federation, according to L’Equipe.

The FFF decided in December to change the format of this season’s competition, dividing it into an amateur path and a professional path, which combine from the last 32 round.

It has been reported that the FFF met public-service broadcaster France Télévisions and international broadcaster Eurosport last week to discuss the issue, with a second meeting due next week.

France Télévisions’ sports director, Laurent-Éric Le Lay, has questioned in recent years whether the broadcaster would continue to show French football’s knockout club competitions. The French Professional Football League (LFP) has already decided to suspend the Coupe de la Ligue given a lack of interest among broadcasters.

The FFF will likely resist as much as possible the demands of the two incumbents as Coupe de France media-rights incomes are partly used to support French grassroots football.

This is the latest issue to hit the sport in France after the collapse of the French league’s rights deal with Spanish agency and production group Mediapro in December. The latter had acquired rights to Ligue and Ligue 2 for the 2020-24 cycle for €780m per season and €34m per season, respectively.

The LFP re-tendered these rights on January 19 with a bid deadline of February 1 between 10am (CET) and midday. Pay-television broadcaster Canal Plus has initiated a legal challenge to the process, arguing that it should also include the €330m-per-season rights it sublicensed from beIN Sport for the 2020-24 cycle.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 3:21 pm

I have posted how some of the big players - Coke, Pepsi and Budweiser - are side-stepping the Superbowl ads this year, but who are filling their usual spots - here The Drum reveals just how much the feeling has changed this year

https://www.thedrum.com/news/2021/01/27 ... dium=email

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 3:47 pm

There has been a lot of renewed talk of a takeover at Newcastle in the last week or so - much seems to stem from the patched up middle East relationship, at least in western journalists minds. The detailed anniversary piece on the failed takeover in the Athletic recently showed that Amanda Staveley still believed in it. Here the Independent talks up the prospect of it happening, I am not convinced the Saudi's will return, whatever the result of the current arbitration between the club and the Premier League.

Newcastle takeover optimism cautiously grows with barriers to deal beginning to shift
A year on from initial talks the uneasy renewal of relationships in the Middle East may be a cause for positivity on Tyneside

Tony Evans - 4 hours ago

The Newcastle United takeover saga has rumbled on for a year but there are indications that the buyout of the club by Saudi Arabia’s Public Investment Fund (PIF) may be slowly creeping towards its endgame. The political mood in the Gulf has changed over the past month and some of the barriers to the deal may be beginning to shift.

Sources close to the Amanda Staveley-led bid remain cautiously optimistic. PIF proposed funding 80 per cent of the £300million takeover, with Staveley’s PCP Capital Partners and the Reuben brothers each financing 10 per cent of the transaction.

The departure of Rafa Benitez from Dalian Professional last week raised hopes among some fans that this was an indication that the logjam was close to breaking and the 60-year-old would come back to St James’ Park. Benitez has a good relationship with Staveley and would be keen to return to the north east under a new regime. The Spaniard is not heading to Tyneside, though. He is likely to be reappointed at a former club but Napoli is his probable destination.

The real indications that the takeover could move forward came from the Middle East. Last month Saudi Arabia and its allies restored diplomatic ties with Qatar. The neighbouring Gulf nations had been in a state of cold war for three years. The Premier League’s main objection to PIF taking a stake in Newcastle was the desert kingdom’s treatment of BeIn Sports, the Qatar-owned rights holder in the region. The broadcaster was banned from Saudi Arabia and the company’s transmissions were pirated. Riyadh – at the very least – turned a blind eye to the hijacking of BeIn’s Premier League coverage and the Qataris alleged that the Saudi authorities were behind the theft, an assertion backed by the World Trade Organisation.

The situation placed the Premier League in a difficult situation. The ruling body delayed rubber-stamping the deal until the consortium ran out of patience and withdrew their offer. Mike Ashley has begun arbitration proceedings with the Premier League and is considering escalating the legal action. The owner, who is reviled by the fans, is desperate to offload the club and has engaged two prominent QCs, Nick De Marco and Shaheed Fatima, to help pursue the case.

Courtroom battles may be unnecessary. Although BeIn is still officially blocked in Saudi Arabia, a number of cafes and restaurants have started showing the channel this month, using satellite dishes to pick up the Qatari broadcasts. BeIn filed a lawsuit against the Saudis seeking $1billion in damages but has indicated that it will withdraw the action if allowed to operate in the kingdom.

The growing détente between the countries is likely to remove many of the Premier League’s objections to the takeover. Suspicions remain between the Saudis and Qataris but the uneasy renewal of relationships on the Arabian peninsular may be a cause for positivity on Tyneside.

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This week PIF outlined its strategy for the next five years, committing to $40billion of investment each year as the kingdom attempts to diversify its income away from oil revenues. “Our goal is to make our country a pioneer for the new human civilisation,” Crown Prince Mohammed bin Salman, the Saudi ruler and PIF chairman said on Sunday.

That statement will grate in the ears of those who oppose the Newcastle sale on the grounds of Saudi Arabia’s human rights abuses. Amnesty International last year called for a revamp of the Premier League’s Owners’ and Directors’ test to exclude countries with dubious records on civil rights from buying into English football for ‘sportswashing’ purposes.

To counterbalance this, there was political pressure on Richard Masters, the Premier League chief executive, from north-east MPs who were keen to push the takeover through, believing that Saudi investment in the club and the wider community would give Tyneside an economic injection, a potential boost made more urgent by the impact of the pandemic.

No one connected with the deal believes anything will happen imminently. Both the club and the fans are preoccupied with the team’s poor form. Steve Bruce’s side have a six-point cushion between them and the relegation zone but results and form suggest that a battle against the drop is becoming a real danger.

There is little positive happening for Newcastle on the pitch but the long-delayed takeover may be inching towards a conclusion - for better or for worse.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 3:55 pm

and this is a large part of the reason why I am sceptical of a Saudi takeover of Newcastle

https://twitter.com/Prof_Chadwick/statu ... 7809845250

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 4:14 pm

This is an interesting read, a summary of some of the discussion from November's World Football Summit focusing on digital activities - there is much there that I expect to see from the club's new owners, particularly the focus on data and increasing of match day spend as a result of manipulating that data - warning it is quite a long read (though those regular to this thread must be used to that now), with plenty of links to further info which is why I am not transcribing

https://www.tisagroup.ch/wfs-live-summa ... -insights/

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 4:21 pm

The Financial Times with their take on why big brands are not advertising during this years superbowl

Big advertisers sit out Super Bowl during pandemic
SARA GERMANO JANUARY 29, 2021

Brands including Budweiser and Coca-Cola have opted out of running in-game ads this year © FT montage
The pandemic is taking the shine off next month’s Super Bowl — the biggest game in American football — for some of the most prominent commercial advertisers.

Blue-chip brands such as Budweiser and Coca-Cola, which for decades have fielded memorable ads for the National Football League championship game, say they are opting out this year. CBS, the Viacom network which will broadcast the game on February 7, finished selling its inventory of commercial slots just this week, according to a person briefed on the matter. Last year’s event sold out more than two months before kick-off.

The pandemic is shifting attitudes among some brands about their potential return on investment for an in-game Super Bowl commercial, which remains the priciest advertising real estate in US media. The price for a 30-second slot is expected to reach $5.6m this year, according to Kantar Media, up 7 per cent from last year's rate, the previous all-time record.

For brands sitting out this year’s game, “it’s not so much about a reduction in spending but shifting how their dollars are spent. For the Super Bowl we’re going to see a lot more digital campaigns and social sweepstakes,” said Jeff Eccleston, co-head of global brand consulting at Creative Artists Agency.

An example of such a campaign this year is one by Corona, in which the beer label is soliciting fans to upload videos of themselves to social media with a corresponding hashtag.

Meanwhile, competing beverage brand Budweiser will not run an in-game ad for the first time since 1983, instead donating funds it planned to spend for its Super Bowl campaign to a vaccine-education initiative by the Ad Council.

The decision by Budweiser is notable because its corporate parent, the Belgian brewing conglomerate Anheuser-Busch InBev, is a longtime NFL sponsor and the most prominent Super Bowl advertiser. The company accounted for roughly 10 per cent of total advertising revenues in each of the previous five Super Bowls according to Kantar, contributing $42m to last year’s total haul of $449m. This made it the biggest spending company paying for ads during the game.

Monica Rustgi, vice-president of marketing for Budweiser, said the brand decided at the last minute not to go forward with a planned Super Bowl ad, which they expect to release at a different time. The decision took into account the fact that the pandemic has scrambled typical routines — lockdowns mean people are not expected to gather in huge parties or at bars to watch the game.

“It’s all about in-home marketing, and in-home experience”, she said.

For companies under strain from the pandemic, a Super Bowl ad may not make financial sense. Coca-Cola said in August it would cut thousands of jobs after its steepest sales drop in a quarter century. Those challenges preceded its decision to sit out this year’s big game, a choice the company said “was made to ensure we are investing in the right resources during these unprecedented times”.

Super Bowl ads had grown to become theatre unto themselves, with companies hiring A-list celebrities like Brad Pitt and elaborate creative agencies to render funny, touching, or otherwise standout spots.

Overall, television remains the largest medium for US advertisers according to data from Kantar, with $12.2bn spent in the second quarter of 2020, while digital ads ranked second with $8.3bn spent. The pandemic scrambled spending in the early part of the year, with traditional media including print, radio and outdoor channels being hardest hit.

With companies of all sizes looking increasingly to digital ads, marketing consultants believe it will have an equalising effect for generating awareness for a given brand or product.

“Even if you’re not a tech company or a social or digital company, it will be easier to connect and find an audience if you are creating compelling content and storytelling”, said Mr Eccleston of CAA.

Nonetheless, CBS will have a full inventory of commercials for this year’s Super Bowl, a spokeswoman confirmed, which will pit the Tampa Bay Buccaneers against the defending champion Kansas City Chiefs. Among companies planning spots are veteran game advertisers such as M&Ms candy, as well as newcomers including online gig-matching platform Fiverr.

Ms Rustgi of Budweiser said the brand fully expected to air a Super Bowl ad again when the pandemic subsided.

“There is still power to having a game day ad”, she said.

“Three-hundred and sixty-four days out of the year, commercials are out there running in the background. But the Super Bowl is probably the only time of the year that people are saying: ‘be quiet, I want to watch the ads’. You don’t get that with a social or digital campaign.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 4:28 pm

@KieranMAguire (commenting on the announced resignation of Celtic's Chief exec) with a striking set of figures that show just how flat revenues have been at the top of Scottish football this century - Premier League revenues have grown by as much as 10x in the same period

https://twitter.com/KieranMaguire/statu ... 3606249476

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jan 29, 2021 6:17 pm

That new commercial partnership between Private Equity and Serie A has not got off to the best start has it? and here is SportsBusiness.com with more tales of delay over the new tenders. Perhaps the most significant as far as media watches are concerned is that Amazon chose not to bid (no surprise to some of us) after registering an interest

Serie A’s Mena bid deadline pushed back, Mediapro among domestic bidders
Martin Ross - January 29, 2021

The bid deadline for broadcast rights to Serie A in the Middle East and North Africa has been pushed back by two weeks and will now fall at 10am (CET) on February 15.

Having launched the bid process on January 15, Lega Serie A had issued a deadline of February 1 for the rights, which are being offered in a region-wide package and also individual packages in each country, including Saudi Arabia.

News of the delay to the sales process comes with Serie A having yesterday (Thursday) received offers for its domestic broadcast rights from incumbents Sky Italia and DAZN, along with the Mediapro agency and Discovery-owned sports broadcaster Eurosport.

The rights are for the next three-season cycle, from 2021-22 to 2023-24, and also include the Coppa Italia and Supercoppa Italiana.

The inclusion of the country-by-country packages in the Mena tender is unlikely to have appealed to pay-television broadcaster beIN Media Group, the incumbent Serie A rights-holder, which would prefer a region-wide process only.

Lega Serie A has already entered into a process of private negotiations with agencies and broadcasters for broadcast rights in the rest of the world in a separate tender process.

Announcing the launch of the Mena tender, Lega Serie A said it had been built on a territorial approach.

Tensions surfaced during the current rights cycle between beIN and the league. This peaked in June 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 holds the international rights, was subsequently struck and coverage resumed. The broadcaster’s original Serie A rights agreement across various territories, including France, Australia and the Middle East and North Africa was worth around $170m (€140m) per season.

During its recent Mena rights sales process, the English Premier League agreed a new three-year deal with beIN worth a total of $500m and covering the whole region.

The beIN-Lega Serie A relationship became particularly strained following the league’s decision to host the Supercoppa in Saudi Arabia. The kingdom had enforced an economic blockade on Qatar, the home nation and state funder of beIN, though that has now been lifted.

The Supercoppa hosting agreement, which is referenced in the tender, allows for Saudi Arabia to host three editions of the flagship match between 2018-19 and 2022-23. With two iterations having already been staged in the kingdom, the ITT document underlines that the broadcast rights in Saudi Arabia have already been awarded exclusively for the remaining match to be played in the country.

The tender reads: “…the rights to Supercoppa Italiana will not be included in the Licence Agreement regarding the territory of Saudi Arabia, as they have already been exclusively granted to a broadcaster from Saudi Arabia selected by Lega Serie A and whose signal is generated in Saudi Arabia.

“Furthermore, in the Mena territory, the rights to Supercoppa Italiana will be exercised by the Licensee on a co-exclusive basis together with the aforementioned broadcaster from Saudi Arabia, selected by Lega Serie A and whose signal is generated in Saudi Arabia, due to the accessibility of the latter’s signal in the Mena territory.”

It is also stated that if the match is played in another Mena country, then the rights “may also be granted by Lega Serie A to one single other broadcaster for any form of broadcasting in such country” and for the season in question.

IMG acquired the Serie A international rights from 2018-19 to 2020-21 in a deal originally worth just over €380m ($461m) per season. That covers international broadcast rights, club archive rights, betting rights, a marketing spend and fee for access to the broadcast signal. An ambitious financial target for the international rights of somewhere between the fee currently paid by IMG and €500m per season was outlined by the league upon the tender’s launch.

As with the global rights ITT, Lega Serie A has excluded a package of rights in Mena which it previously carved out for Italian nationals living abroad.

Private talks for domestic rights, no Amazon bid
The league is to engage in private negotiations with companies interested in domestic broadcast rights after assessing the bids submitted ahead of the first-round deadline yesterday. Direct talks are to begin from February 5 onwards for the rights for the new 2021-24 cycle before new bids are submitted.

Lega Serie A chief executive Luigi De Siervo said in a press conference that Sky Italia, DAZN, Mediapro and Eurosport had all bid in the tender for “communication operators”.

Mediapro was also among the agencies to have bid in the international rights tender. Its interest in the Serie A rights is sure to spark headlines in France following the collapse of its Ligue 1 agreement on the back of missed rights fee payments.

There are also separate sales processes for “independent intermediaries” and companies looking to create a thematic Serie A channel.

The league is aiming to raise a minimum of €1.15bn per season from the sale of its domestic broadcast rights from 2021-22 to 2023-24. That represents an 18-per-cent increase on the €973m currently brought in annually through deals with Sky and DAZN.

On the size of the offers submitted, the league CEO described them as “not bad for a period of Covid emergency” but conceded that the €1.15bn annual target price is an “optimum price” and “above what you then end up getting”.

Sky and the Infront agency are also said to be among those putting themselves forward for the channel project, according to Il Sole 24 Ore.

A bid from internet retail giant Amazon did not materialise.

De Siervo said that the league “knew that Amazon had asked to have a package modelled on the Premier League, which covers three days and would disrupt our strategy”.

The operator will still be able to bid for a new ‘1bis’ package outlined by the league today.

That package, which carries a reserve price of €350m per season, is for internet and IPTV rights to 266 matches per season.

This, it is thought, has been offered to cater for the scenario that Sky wins Package 1 in the ‘mixed’ marketing packages that were offered in the original tender. In that scenario, there would need to be co-exclusive digital rights awarded in order to satisfy Italian legislation.

This comes after Sky’s appeal against a ban on it acquiring exclusive digital media rights was thrown out by Italy’s Council of State. The decision means Sky’s ban on acquiring exclusive digital rights to sports properties is upheld.

Sky Italia’s broadcast rights for the current rights cycle are comprised of two packages, the first of which, Package 5, includes rights to three matches per weekend for a total of 114 per season, including the 8:30pm game on Sunday. Sky also acquired Package 6 – four matches per weekend or 152 per season, including the 8:30pm match on Mondays.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jan 30, 2021 5:40 am

A bit more information on the those private discussions for Serie A broadcast rights and why they are happening (as if we didn't know) and also why Amazon have not bid (again, as if we didn't know) - from SportsProMedia

Amazon out of Serie A rights race as DAZN bids to usurp Sky
Discovery and Mediapro also in running as bidders head for private talks.

Posted: January 29 2021 By: Tom Bassam

- Serie A seeking €1.15bn a year for new rights cycle
- Infront and Sky have made an offer to establish a Serie A channel

Italian soccer’s Serie A is moving into the next phase of its broadcast rights sales process, with four media companies having made bids.

Lega Serie A chief executive Luigi De Siervo confirmed to the Italian press that Sky, DAZN, Mediapro and Discovery had made bids for the top-flight league’s pay-TV rights for the 2021 to 2024 cycle. However, with Serie A seeking an 18 per cent uplift on its current deals, none of the bidders reached the €1.15 billion ($1.40 billion) per season minimum being sought.

Serie A executives will now start private talks with the broadcasters in order to increase the offers.

"I think there is room to improve the offers, they were not so bad as some could expect given the situation with the coronavirus pandemic," De Siervo said.

Amazon was expected to bid for Serie A rights but De Siervo said that they were seeking a limited package, similar to the digital giant’s rights deal with English soccer’s Premier League, which did not fit with the Italian league’s model.

“We knew that Amazon had asked for a package on the model of the Premier League, which covers three days and that would upset our strategy,” he said. “We consciously believed, in design of the packages not to have to change our approach to the market. In this historical moment interest from with certain operators is lower, but this should not change our approach so that viewers have to subscribe to an additional platform.”

While no frontrunner has emerged, De Siervo did talk up the offer from DAZN. The UK-based digital sports media company currently has a secondary package of domestic Serie A rights, but De Siervo confirmed DAZN’s intention is to become the league’s main broadcaster.

“DAZN is a well-known brand and has become a dominant platform in other territories,” he said. “It aims to take on the biggest central broadcast role Sky has had for many years. [Sky] also has the opportunity and resources to compete, reach and overcome a ‘big offer’ in the second phase of negotiations.”

Il Sole 24 Ore reports that Sky and Infront had submitted bids for the package that would see them establish and manage a branded Serie A channel. However, talks on taking that approach will only occur if a deal cannot be reached in the private negotiations on the pay-TV contracts or during a second round of talks with agency bidders.

Discussion with the four bidders begin on 5th February, with the aim to have a deal in place by 8th February.

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Re: Football's Magic Money Tree

Post by chekhov » Sat Jan 30, 2021 5:41 am

You’re up early Chester Perry!

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jan 30, 2021 4:21 pm

The Financial Times with a piece on why the transfer window is so flat - some details coming out about the finances and the summer gamble at a few clubs

there is a chart you can view here https://outline.com/u8BFRK

Football transfers hit by ‘double whammy’ of Covid and Brexit
SAMUEL AGINI JANUARY 30, 2021

Amad Diallo after signing for Manchester United on New Year’s Day © Ash Donelon/Manchester United via Getty Images
When 18-year-old Amad Diallo moved from Italy’s Atalanta to England’s Manchester United on New Year’s Day, the £37m signing became the first move of this January’s football transfer window.

But Premier League clubs have made just four other permanent signings since then, during what has been a frenzied period in past years for big money transfers in English football’s top division.

The lack of activity before the window shuts on Monday is due to twin factors rocking the game: the financial crisis caused by the coronavirus pandemic and post-Brexit immigration rules making it tougher to complete transfers.

“The pandemic has been the big thing [as] clubs are reluctant to spend money now and a lot don’t have it,” said Jonathan Barnett, co-founder of ICM Stellar Sports, the agency that represents stars such as Tottenham Hotspur’s Gareth Bale and Chelsea’s Ben Chilwell.

“As for Brexit, it has affected things. The quality of certain players wasn’t high enough to come into the country . . . so a lot of smaller deals probably haven’t been done.”

Lockdowns have left teams bereft of match-day revenue. Each month without fans equates to £100m in lost ticket sales across English football, according to the Premier League. Last season broadcasters also clawed back rebates worth £330m to cover the four-month period from March last year when fixtures were suspended.

Premier League clubs spent £230m in last year’s winter transfer window, prior to the pandemic, according to consultancy Deloitte, the second-highest figure on record after the £430m spent in 2018. This January, top tier teams have spent just £65.1m on players so far, according to data collated from the Transfermarkt site. The last time the total was below £100m was in 2012, according to Deloitte.

“The transfer market is very flat,” said one Premier League club chairman. “It held up remarkably in the summer [when more than £1bn was spent on player transfer fees by top English clubs] but it was quite distorted by one or two clubs with near unlimited funds . . . in January [there’s] a lot less going on.”

In recent months, teams have also been struggling to offload players to raise funds to buy new ones, often resorting to cheaper short-term “loan” deals instead.

“The pandemic has been hugely, hugely challenging for us,” said a Premier League club chief executive. “We’ll have had to go and get investment to fill the cash gap. It [losing all your gate income] certainly means no transfers this window.”

Football industry executives said some clubs were being stymied by the introduction of new Brexit-rules governing transfers.

English football’s authorities agreed to new immigration rules to govern the acquisition of overseas footballers from this year.

All foreign players must adhere to a new points-based system, based on factors like how often they have played in top leagues or national teams. There are also new limits on the number of players under the age of 21 who can be signed by clubs.

Manchester United’s acquisition of Diallo was the first to comply under the new system. England’s richest club first needed to satisfy the UK’s Home Office that he satisfied the new rules, with the player applying for the visa in person in Rome in advance.

Some football industry executives complained that the new visa system means clubs with fewer financial resources are prevented from signing little known players from smaller leagues — such as Leicester City’s signing of Riyad Mahrez in 2013 from French second division side Le Havre.

Meanwhile, all English clubs face curbs that prevent their past practice of filling their academies with the best young European players, with under-18s prevented from moving to UK teams from overseas altogether.

“It’s hard to tease apart the Covid effect from Brexit [on reduced transfer activity this month],” said Omar Chaudhuri from 21st Club, a consultancy that advises football clubs on player acquisitions. “There has been a double whammy.”

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Re: Football's Magic Money Tree

Post by JohnDearyMe » Sat Jan 30, 2021 11:36 pm

Chester Perry wrote:
Sat Jan 30, 2021 4:21 pm
The Financial Times with a piece on why the transfer window is so flat - some details coming out about the finances and the summer gamble at a few clubs

there is a chart you can view here
Interesting article.

I also enjoyed your own recent piece in the latest London Clarets magazine, very illuminating.

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jan 30, 2021 11:46 pm

JohnDearyMe wrote:
Sat Jan 30, 2021 11:36 pm
Interesting article.

I also enjoyed your own recent piece in the latest London Clarets magazine, very illuminating.
thank you, it is not something that I have done before, but the space afforded me gave me chance to say something more substantial and coherent than I can with posts on here.
This user liked this post: JohnDearyMe

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jan 31, 2021 2:57 am

Phillipe Auclair reporting of some strange goings-on right under FIFA's nose for Josimar - tomorrow will see the election of a new FA president for the nation of Comoros in the Indian Ocean - there is only one ratified candidate (FIFA ratified) and there is a FIFA official there to oversee the process, the problem is that the candidate was banned by the ethics committee of the Comoros FA when he was last President of the Cormoros FA in 2019, It is pretty clear that FIFA effectively want him re-instated, but not why.

FIFA Chaos in Comoros
29/01/2021

A suspended FA president is running unopposed. And why has Fifa’s Head of Member Associations Veron Mosengo-Omba travelled to Comoros in the middle of the pandemic to make sure the election goes ahead on 30 January?

By Philippe Auclair

Seen from the outside, this is encouraging news for the small Indian Ocean nation: after two years of strife, scandals and controversy, Comorian football will have a new FA president on 30 January. The normalisation committee (CoNor) set up by Fifa to run the island’s football affairs will then have fulfilled the mission it had been given on 23 October 2019 (*), and things will return to normal.

The problem is that this new ‘normality’ is nowhere near to be seen on the ground. The election should not take place, to start with. The normalisation committee member Fakriddine Youssouf Abdoulhalik has just died from COVID-19, its Chairperson Kanizar Ibrahim is in hospital, receiving treatment for the virus, whilst another member of the ConOr, Hamada Jambay, who tested positive, is self-isolating at the moment. Meanwhile, a fourth member of CoNor, Adfaon Hamada Bacar, cannot leave the island of Moheli, where he resides, as all transport links have been suspended – which leaves only one member of the Committee to supervise the proceedings, which will take place in a country which has been hit by the South African variant and where the pandemic is running out of control.

Yet the annual general meeting of the FFC (the Comorian FA) will proceed on 30 January as planned, when all football games have been postponed as a mark of respect for Mr Abdoulhalik, whilst the inauguration of a Fifa-financed synthetic pitch has been postponed. What’s more, all gatherings of more than 20 people are prohibited in the country. Around 70 delegates were supposed to attend the AGM. In this devout Muslim country, the situation is so dangerous that all mosques have been closed until further notice. What now?

How and why can the election go ahead in such circumstances? Several local sources have told Josimar it is “because FIFA wants it to happen, and will make sure it does”, pointing out that its Head of Member Associations (and longtime friend and enabler of Gianni Infantino’s) Veron Monsengo-Omba arrived in the capital Moroni in the afternoon of 28 January, pandemic notwithstanding, to make sure everything would be going according to plan. Mosengo-Omba was accompanied by Djibouti FA president Souleiman Hassan Waberi, representing CAF, and, according to our information, met with the president of the Comoros Azali Assoumani on the evening of his arrival, which has yet to be reported in local media.

The problem is also that the new ‘normality’ looks an awful lot like the old one when looked at more closely.

To start with, we already know who will be the ‘new’ FFC president: Said Ali Said Athouman, as he is the only man who was allowed to stand by Fifa. This is the same Said Ali Said Athouman whose suspension by his own Ethics Committee precipitated the crisis in the summer of 2019, as we shall see. He will run unopposed after the CoNor invalidated the bids of the two other declared candidates, Said Abdallah Salim, a former special advisor on youth and sports to the President of the Comoros who is also the chairman of the Rapide Club de Moroni, and Mahmoud Aboud, former Comoros ambassador to China and to the USA.

The pilgrimage
Two heavyweights, but so is Athouman, the scion of an influential political family (his father served as a minister) who’d been a close collaborator of the former FFC president Tourqui Salim for a decade before succeeding him in 2018. Athouman, a decent attacking midfielder in his day, is a good friend of currently suspended CAF president Ahmad Ahmad: he was among the eighteen Muslim football administrators who accompanied (all expenses paid) Ahmad on his ‘Umrah’ – a pilgrimage to Mecca which was paid for by CAF, and whose financing was one of the key reasons why Fifa’s Ethics Committee imposed a 5-year ban on Ahmad on 23 November, 2020.

Athouman is also said to be a supporter of Gianni Infantino (unlike his mentor Salim Tourqui, who backed Sheikh Salman in the 2016 Fifa presidential election), whom he visited in Zurich in January 2019, a trip from which he did not come back empty-handed: Fifa awarded the Comoros FA a 295,000 US dollars grant which Athouman split among the First Division clubs of the archipelago – whose chairmen also happened to have voting rights in the FFC General Assembly. Josimar has found no other example of a Fifa Forward grant being used in that fashion anywhere else in the world.

Opponents of Athouman’s have described to Josimar this distribution of Fifa money as a ‘bribe’, and Josimar was told that an investigation into the matter had been launched by the local gendarmerie; but, ‘bribe’ or not, it is not because of Athouman’s largesse with Fifa funds that he was banned by own FA’s Ethics Committee: it is because he had single-handedly decided which Comorian club would take part in the UAFA Cup, a non-Fifa competition which is open to teams from the Arab-speaking world. He nominated one of the clubs he happened to have played for, Volcan, rather the new champion, Fomboni FC, who immediately called on the FFC Ethics Committee to intervene.

Athouman was banned for three months – and retaliated by…dissolving the Ethics Committee which had just banned him, at which point Fifa intervened. But it did not intervene to put a stop to Athouman’s rule. The consequence of its intervention was the complete opposite: it oversaw the process by which the normalisation committee it appointed will enable the banned president to resume his rule over Comorian football. To do this, all the CoNor had to do was to ensure that no-one would stand in Athouman’s way. So it did; and how it did it borders on the surreal.

All candidates had to demonstrate that they had the support of at least nine officials involved in Comorian football, none of these officials being allowed to endorse more than one candidate. Josimar was told that Athouman somehow got hold of the sponsorship forms ahead of the date at which they were supposed to be available and proceeded to hoover as many signatures as he could – 315 in total, it appears, when only 9 were needed. Yet both his opponents managed to gather the support they needed – or so they thought.

The next step was the validation of the bids by the Fifa-appointed CoNor, whose five members were to meet on 5 January to decide whether they conformed to the statutes or not (statutes which the CoNor had forgotten to pass on to the Comoros Ministry of Sports as required by law and whose legality is in doubt as a result). The CoNor met on the prescribed date and rejected the bids of Mahmoud Aboud and Said Salim Abdallah on the grounds that some of their sponsors did not meet the right criteria.

This, however, is not quite how it went. The CoNor did meet, but not all of it, despite the signatures which appear on the minutes of the meeting and appear to show all of its five members took part in the deliberation. As we’ve seen, one of them, Adfaon Hamada Bacar, is a resident of Mohéli island, which had been put in quarantine since 28 December; since all inter-islands transport had been suspended, he could not have attended the CoNor meeting in person, as it took place in Moroni. Neither could another member, Souleymane Soudjay, who’d been in France from 24 December until 9 January. How then could they sign the document (which Josimar has seen) which barred Abdullah and Aboud from running for the presidency?

Be as it was, the rejected candidates had three days to appeal against the decision, and intended to do so, as they believed they could prove that they both had gathered the nine signatures required. But the CoNor ignored the electoral regulations it had put in place in September 2020 and decided that no such appeal would be heard. If the rejected candidates had complaints to make, they should now turn to Lausanne’s Court of Arbitration For Sport, a time-consuming and costly exercise which neither was in a position to contemplate.

Aboud and Abdallah had their lawyer write to the Chairman of the FFC’s Ethics Committee on 20 January and request the annulment of the CoNor’s decision. No answer has yet been forthcoming. It is now too late to stop Athoumane resuming his rule.

And this is how things will go back to ‘normal’ on Comoros on 30 January. Fifa’s Veron Mosengo-Omba will be able to express his best wishes to Said Ali Said Athouman, the banned president who, ultimately, wasn’t. Exactly as planned.

(*) The task of this normalisation committee, which is directly overseen by Gianni Infantino’s éminence grise Véron Mosengo-Omba, was to revise the statutes, electoral code and ethics of the Comoros FA [the FFC] and its three leagues, in order to bring them in line with Fifa statutes and regulations, then “to organise and supervise elections at all levels of the FFC.

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Re: Football's Magic Money Tree

Post by Vegas Claret » Sun Jan 31, 2021 3:20 am

strange goings on and FIFA in the same sentence, who'da thunk it

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jan 31, 2021 3:42 am

Vegas Claret wrote:
Sun Jan 31, 2021 3:20 am
strange goings on and FIFA in the same sentence, who'da thunk it
It's not just FIFA though is it, look at most sports bodies and you often find a persistent presence of an individual in power for far to long, enabling them to become unchallengeable dictators - there has been some bizarre revelations about Biathlon in the last week, but it is the tip of the iceberg, particularly when you think of the number of Olympic events where this situation a has arisen in the last few decades.

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Re: Football's Magic Money Tree

Post by Vegas Claret » Sun Jan 31, 2021 5:35 am

Chester Perry wrote:
Sun Jan 31, 2021 3:42 am
It's not just FIFA though is it, look at most sports bodies and you often find a persistent presence of an individual in power for far to long, enabling them to become unchallengeable dictators - there has been some bizarre revelations about Biathlon in the last week, but it is the tip of the iceberg, particularly when you think of the number of Olympic events where this situation a has arisen in the last few decades.
100%, it would be a close run thing to see who is the most corrupt (allegedly) between FIFA and IOC

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Re: Football's Magic Money Tree

Post by Chester Perry » Sun Jan 31, 2021 3:25 pm

Perhaps the most interesting thing in this article is that even through Covid the number of full-time staff at the club is almost 50 higher than the last set of published accounts - they were probably recruited pre covid but it is a sign the club was still growing - Sean also repeating what I have said many times - a lot of peoples jobs rely on us being in the Premier League - from the Mail

Sean Dyche would 'enjoy the challenge' of managing a bigger club as he insists he would not be intimidated by the pressure because he has to deliver for THREE HUNDRED people at Burnley whose jobs rely on their Premier League status
- Burnley boss Sean Dyche is the Premier League's longest-serving manager
- He meets Thomas Tuchel, the eighth Chelsea boss since his arrival at Turf Moor
- Dyche insists he understands the demands of working for a Roman Abramovich
- But he says he has an even wider responsibility than challenging for trophies
By JOE BERNSTEIN FOR MAILONLINE

PUBLISHED: 07:03, 31 January 2021 | UPDATED: 09:45, 31 January 2021

While Chelsea managers live in fear of saving their own jobs, Burnley boss Sean Dyche has the futures of three hundred people to worry about at Turf Moor.

He believes having those experiences mean he wouldn't be intimidated by moving to a bigger club even if the casualty rate is high - as Frank Lampard discovered last week.

Dyche, the Premier League's longest-serving manager, meets newest recruit Thomas Tuchel, the eighth Chelsea manager since his own arrival at Turf Moor in October 2012.

While understanding the demands of working for Roman Abramovich, Dyche says clubs like Burnley give managers even wider responsibility than challenging for trophies.

'It depends how you define pressure. We have office staff, playing staff, all with contracts that radically change if you are not in the Premier League,' he says.

'That is an in-house pressure in itself – I have to deliver on behalf of them. I wouldn't imagine it's the same at Chelsea.

'I factor in the welfare of people here. From where this club has come from to where it is now, there are hundreds of people who are more than happy with what they've gained; the kudos of being in the Premier League and their own development.'

Burnley have been promoted twice into the top flight under Dyche and now have 296 full-time and part-time staff including 54 first-team players and coaches.

Having played in Europe under Dyche, the Clarets have bounced back from a slow start to this season with successive wins against Liverpool and Aston Villa in the last 10 days.

Though Dyche has been linked with other jobs, he's not received a firm offer for his services.

'If a challenge comes my way that's bigger on paper and I wanted to do it and they wanted me to do it, I'd listen, learn and take it on,' he says.

'If you said to me at some point would I enjoy the challenge of trying to manage what would be deemed a bigger club, of course.

'It's a natural progression but I am not running there or forcing it. I am making sure this club is in good shape because that's my job.'

Dyche considers career ambitions as purely theoretical without opportunities.

'Doors have to open,' he says. 'My life hasn't been by clear design. I was youth team manager at Watford and enjoyed that. A door opened as assistant manager, then manager. Then I got the sack and another door opened to be manager.

'People think it's all been plain-sailing at Burnley. I got booed off for the first seven or eight months so I have had my fair share of question marks.

'You can confuse yourself with too many thoughts about this industry. Football is not a straight line in my experience. I speak to people in business about going up then ladder. In football, you can be a top manager and a bottom manager within a season. I have never taken it for granted.'

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 1:53 am

There would need to be quite a bit of thinking and rule setting, but this is a interesting bit of hypothesis from the Financial Times - Should Netflix buy a League - I think it would be easier for a service like Netflix to own/create a sport outright rather than take something like the Premier League - though a newly formed and ostracised (by FIFA, UEFA and the European Leagues) European Super League would certainly fit the bill

Sports leagues should join forces with streamers
ALEX BARKER JANUARY 28, 2021

Netflix has avoided live sports for good reason. Broadcast rights are wildly expensive, only last for a few years and are limited by territory. If Netflix wants overpriced content, it has plenty of better options in Hollywood.

But, while the streaming company abjures advertising, it has never ruled out sports coverage. Its projected $17bn annual content budget gives it some terrific problem-solving power. And there are ways to make streaming live sport a viable business: Netflix could buy a league or just create one from scratch.

To the sports world today, basking in a two-decade long flood of cash, this might sound daft. But, over the next decade or so, as streaming undercuts the distribution model for traditional sports broadcasting, leagues will probably find teaming up with the likes of Netflix more appealing.

It may take time and financial pain to drive this point home. But if club owners and leagues worry about the decline of their great benefactor — pay-TV — and want to reach the biggest possible paying audiences, they should start exploring how to co-own rights with a global streaming service.

Aggressive media barons have tried the “buy-a-league” trick before. When Australia’s establishment thwarted Kerry Packer’s bid to secure cricket television rights in the late 1970s, he just bought some top players and set up World Series Cricket. They gave Packer the traditional cricket rights in the end.

Star Sports, the Indian network developed by Rupert Murdoch and bought by Disney, was another pioneer. It bet on the ancient game of kabaddi, first putting its marketing power behind a newly formed pro league in 2014 then buying a controlling stake. This once humble rural sport now beats the football World Cup in national broadcast ratings, and, occasionally, even tops audiences for India’s Test cricket matches.

Streaming has already brought a wave of experimentation to sports broadcasting in Europe and the US. New business models are being tested by leagues and new entrants. But, as TV sports newcomers have found for two decades, most attempts have been decisively unprofitable.

The pay-TV model has warped the economics of sports rights, driving price inflation. Mr Murdoch set the model with Sky in Europe, buying prized rights — like the English Premier League — then using them as a hook to sell viewers a bundle of other things at a much higher margin.

The golden era for leagues and rights-holders, in other words, was bankrolled by pay-TV using sport as a loss leader. As rights costs soared, so did prices for consumers. That is a factor behind the retreat of cable TV in America, which is losing viewers because of cord cutting, and then punishing those who stay by charging them even more. François Godard of Enders Analysis points out that the audience of 18 to 49-year-olds for sports channel ESPN fell 35 per cent over the past decade, while per-subscriber fees increased 130 per cent.

Now, pure-sports services such as DAZN demonstrate how hard it is to build a paying audience big enough to cover the cost of prestige rights.

Leagues have also explored direct-to-consumer options. But those that dared — WWE wrestling, Formula One racing and NFL American football — have struggled to manage parallel rights sales, deploy robust technology and build up enough content. Live sports have a short shelf life and do not fill streaming libraries in the way a movie or drama series does.

The advantage that global streaming services bring is scale — an audience vastly bigger than anything that pay-TV can offer or that a do-it-yourself streaming service can reach. Disney Plus expects close to a quarter of a billion subscribers in 2024. Netflix already has more than 200m, and Amazon Prime Video is approaching that figure.

It would be easy enough to offer a sports add-on to subscribers. At present, the hitch is that low-priced streaming services would need to charge sky-high subscriptions for sport to even approach the profitability of the cable TV bundle, at least with the current rights system.

Club owners — and the private equity investors piling into sport — can bank on pay-TV surviving, new entrants overpaying, or someone creating a media bundle that works in their favour.

But for global sports with global appeal, there might be a smarter long game: take money upfront from a big streaming service and co-own media rights. Then bet on reaching the widest possible paying audience at a price closer to the amount most fans are willing to pay.

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Re: Football's Magic Money Tree

Post by brunlea99 » Mon Feb 01, 2021 11:46 am

An interesting article from Sportico on the ALK takeover:

https://www.sportico.com/business/sales ... 234621513/

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 12:44 pm

Chester Perry wrote:
Wed Jan 27, 2021 12:39 am
Brighton have published their 2019/20 financial results - headline losses of £67m - they have not adjusted their accounting period to cover the end of season so this doesn't include final tv income - they say lost £25m to covid

https://resources.brightonandhovealbion ... imited.pdf

@KieranMaguire has had a look

https://twitter.com/KieranMaguire/statu ... 3642417156

what is evident from all this is that if we were to add back the Covid losses and, forgetting the lost China TV revenues, the remaining £26m of tv money they are yet to report then Brighton would have had in excess of £180m turnover last season - ours would have been in excess of £150m - that is a significant uplift on the previous year largely as a result of the new TV deal
Chester Perry wrote:
Wed Jan 27, 2021 1:05 pm
The Price of Football Blog does a deep dive into those Brighton 2019/20 financial results

http://priceoffootball.com/brighton-201 ... -fountain/

@SwissRamble takes his turn on those Brighton 2019/20 financial results

https://twitter.com/SwissRamble/status/ ... 3620002818

he has also done his usual summary sheets

https://twitter.com/SwissRamble/status/ ... 4395191298

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 12:53 pm

The Football Today Podcast asks - How Bad is Barcelona's Financial Crisis?

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

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Re: Football's Magic Money Tree

Post by icu81b4 » Mon Feb 01, 2021 12:54 pm

I’m informed by a Man Utd friend of mine that they (Man Utd) have said they wouldn’t be interested in joining the Super League.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 1:06 pm

icu81b4 wrote:
Mon Feb 01, 2021 12:54 pm
I’m informed by a Man Utd friend of mine that they (Man Utd) have said they wouldn’t be interested in joining the Super League.
Certainly not one that takes them away from the Premier League - They want both in a perfect world, the fans are more certain, they want the domestic league above all else

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 1:43 pm

This is useful to anyone who wants to understand Amazon's approach to sports rights investment - there is also an associated Podcast - from SportsProMedia - my favourite line and the most pertinent "No matter how much we talk about the global appeal of sports, which they have, ultimately the most passion is often local."

https://www.sportspromedia.com/analysis ... -interview

‘We start with the customer and work backwards’: The Amazon playbook for buying sports rights
Speaking during December’s SportsPro OTT Summit, Marie Donoghue, Amazon’s vice president of global sports video, explained why live and on-demand sports content is becoming an increasingly important component of the Prime Video offering.

By Sam Carp Posted: February 1 2021

Marie Donoghue sits back in her chair, looks down the camera and smiles.

“I’m just having a ball and loving my time at Amazon,” she declares enthusiastically. “It’s such a customer-focused company and culture, and really I think we have an amazing opportunity to use new technologies, new products, to create content and bring it to customers and sports fans in a whole new engaging way.”

It is perhaps no surprise that Donoghue is enjoying herself at a business that has the resources to - if it so pleased - acquire virtually whatever sports content it craves in whichever market it desires.

That, of course, has been the general consensus in the industry since Amazon, the Seattle-based technology giant that was last reported as having a net worth of more than US$1.7 trillion, made its first move into the marketplace in 2017, paying US$50 million for a package of non-exclusive National Football League (NFL) rights to exploit on its Prime Video streaming service.

Plenty have tried to analyse and explain Amazon’s approach to buying live sports rights in the time since, but no one will be as familiar with the company’s strategy as Donoghue, whose appointment in 2018 as vice president of global sports video was widely perceived as the ecommerce firm taking a significant step towards establishing itself as a major player in the sports media rights landscape.

A law graduate of Columbia University and formerly of ESPN, where she spent nearly 20 years expanding the Disney-owned broadcaster’s programming slate, including the popular 30 for 30 franchise, Donoghue now effectively decides and evaluates what sports content will add more value to a customer’s Prime subscription.

“My role is fairly simple,” she says, speaking during the SportsPro OTT Summit in December. “[It] is to bring folks in, figure out how to use sports – whether it be live or on-demand sports – to bring them in. I watch really closely their behaviour, what brings them in, what engages them, what keeps them interested.

“We are opportunistic. I think sometimes that confuses people, that we do look at everything, but everything has started with the customer and we only do it if it provides value to the customer and particularly their Prime membership.”

Moving the needle
It would be fair to say that there are few deals Amazon has done to date that look the same. Rather than secure blanket coverage of a particular major league in a specific territory, the company has so far acquired smaller packages of rights to premium sports properties that have enabled it to observe uptake and engagement. Its sports portfolio has spanned soccer, football, tennis, rugby union and cricket, among others, and it has been linked with many more. There have been exclusive and non-exclusive contracts, as well as tri-cast agreements and pay-per-view (PPV) offerings, while Prime Video also provides live sports coverage through its Channels feature, which houses out-of-market packages such as NBA League Pass and MLB.tv.

Identifying a discernible pattern in Amazon’s approach can therefore be difficult.

Look a little closer, though, and it becomes easier to see the thinking behind each acquisition. Its first year of domestic Premier League soccer coverage - which, during the 2019/20 season, featured a round of games in the first week of December followed by the popular Boxing Day slate of fixtures - delivered Prime’s two highest ever sign-up days in the UK. It is no coincidence, according to Donoghue, that the package of Uefa Champions League rights Amazon picked up in Germany from next season covers matches featuring the top Bundesliga sides. One of the company’s more recent deals, a six-year partnership with New Zealand Cricket (NZC) for the Indian market, will include two series between Virat Kohli’s men and the Black Caps.

Donoghue herself acknowledges that there is “not a one sentence answer” for how Amazon approaches each rights deal, but reveals that there are a consistent set of considerations that the company takes into account.

“I always want to explain that we’re not a 24/7 sports service,” she points out. “We’re a much broader entertainment service, we’re global, so we look at things a little bit different. We literally start with the customer and work backwards.”

She continues: “We also want to do things that move the needle in broader ways. We always start with the country or the territory. We figure out what are the most attractive sports offerings for those audiences? Where is there an opportunity? Why should we come in? Is it a good thing for us to come in and serve these customers for them? Will they find it additive?

“Sports are largely inherently local. No matter how much we talk about the global appeal of sports, which they have, ultimately the most passion is often local.”

Some leagues have previously hoped the encroachment of tech firms like Amazon and Facebook into the sports media space is something that can spark bidding wars and drive up the value of their rights. However, those companies are only likely to stay around for as long as they see that content being beneficial to their customers, and by consequence their business. Prime Video is, after all, just one of many membership benefits for Amazon’s subscribers, and sport is one among a number of genres to choose from in the streaming platform’s content catalogue.

That said, this year should provide some clarity on how valuable Amazon views sport for driving its Prime memberships. The Premier League is likely to go to market with its domestic rights for the 2021/22 to 2023/24 cycle at some point in the next 12 months, while the NFL’s current media rights contracts are also nearing completion. Should Amazon elect to retain or expand its rights to either or both of those premium properties, its outlay would need to be considerable.

Donoghue says she “can’t answer a hypothetical” about whether Amazon will still be investing in sports rights five or even ten years down the line, but says the company has been “really pleased” with what it has seen so far.

“We have numerous ROI measures that we look at,” Donoghue says. “It’s acquiring new Prime customers, it’s engaging and driving usage by existing Prime members - it may be reengaging existing Prime members who have not streamed video in a while.

“We use sports to drive engagement and focus to our overall Prime Video offering, so fans don’t just come in and watch the Premier League. We know they come in, they get exposed to broader Prime Video offerings, whether it be entertainment, or documentaries, or other things. And of course they also get exposed to the other Prime membership benefits.”

Customising the experience
While live sport is undoubtedly a benefit for Prime subscribers, a number of sports properties have been reaping the rewards of having their content on a platform that can offer fans a different viewing experience to one they would have watching on a linear network. Amazon’s X-Ray feature, for example, has become a highlight of its NFL coverage, giving fans real-time access during live games to statistics that were previously only available to coaches and broadcasters.

X-Ray, which appears as an overlay on the screen, isn’t something that was initially created with the NFL in mind, but is an example of how Amazon has been able to adapt features from its broader entertainment offering to work for its sports content.

“We believe in customisation,” Donoghue asserts. “Not every fan is the same, so your daughter watches sports differently than how your wife or your mother watches it. Some people like a lean back experience on the couch, some people want to watch certain stats, certain players, things like that. So we leave it up to the fan, and X-Ray is one of those great customisations that you can actually engage with when you choose to.

“What we’ve found is, particularly on Thursday Night Football, where we have the stats and have actually tracked this quite closely, more and more fans are engaging with X-Ray, and when they engage with X-Ray their engagement and their time spent goes up materially.

“So as I said, we start with the customer, we’re always looking to see what the customer is enjoying and how we can better serve the customer, and there’s no better example of someone who engages with it more and stays more when they use it.”

Indeed, the NFL is one league that you could arguably say has received the full Amazon treatment given the way its partnership with the company has evolved. Coverage was initially transmitted only via Prime Video, but the relationship has now grown to include Twitch, another Amazon streaming platform, which has gamified NFL broadcasts through features like live chat, custom extensions and predictions, as well as other interactive elements that allow fans to watch along with their favourite creators.

Last year the pair also rolled out a weekly interactive show specifically for Twitch, allowing fans to engage with former players and analysts in what Donoghue describes as “a very authentic and informative way”.

“We’re joined at the hip,” Donoghue says of Amazon’s relationship with Twitch. “It’s a great sandbox, it’s a great place for us to experiment, to test new experiences, [to] innovate on the viewing experience.

“We’re particularly interested in building community, [and] Twitch has such a powerful community. Obviously it engages new and younger audiences, it’s a very international audience. I’d also say it helps our partners with some of their goals. That younger, international audience is very attractive to rights holders.”

‘Unlimited shelf space'
Clearly, then, Amazon has every tool in its arsenal to be a prominent – and, you might say, popular - player in sports media for the foreseeable future.

Donoghue, who was named among SportsPro’s ten influencers for 2021, is understandably coy about what the company’s next move might be, but makes clear that its decisions will continue to be guided by its customers. She also says little to suggest that Amazon’s interest in sports will plateau anytime soon.

“We believe sports is really compelling, exciting content for our customers, so we will always look at opportunities to bring them sports they care about, whether it be in our SVOD or subscription service, or Channels or pay-per-view,” she says.

“We don’t imagine a prototypical fan. We want to create a huge big tent, bring everybody in, then figure out how best to serve them, and then give them the opportunity to choose - whether it be choosing your own audio feed, you choose whether you want to watch it on Prime Video or you want to watch it with a creator on Twitch.

“We have unlimited shelf space. We had a night where we had eight EPL [English Premier League] matches going, many concurrently. It’s like sports nirvana. I think that’s what we’ll continue to focus on. I hope and believe the industry and teams and leagues will also focus on the customer, but I can guarantee you that we will.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 2:20 pm

The first of 3 posts on the French Lique rights re-tender which is due to close to day - this from digitaltveurope.com

Day of reckoning for LFP as deadline for new Ligue 1 bids arrives

Stuart ThomsonWritten by Stuart Thomson 1 hour ago

Today marks the deadline for tenders for the rights to top-tier French football after the French professional football body the LFP was forced to re-auction them following Spanish producer and broadcaster Mediapro’s failure to maintain payments.

The deadline arrives amid uncertainty about the outcome of the process and legal action by the most likely bidder, Canal+, against the LFP after the latter refused to re-auction all rights to Ligue 1 rather than restricting the process to those returned by Mediapro.

The LFP is faced with the prospect of failing to make its reserve price in the absence of a serious competitor to Canal+ for the rights. There has been speculation about the likelihood of Amazon making a bid. However, the latter has generally been content to position itself as a secondary player with a smaller package rather than as the primary contender for premium in-territory rights such as Ligue 1.

Observers believe Canal+ is in a strong negotiating position, not only because it is unlikely that Amazon or another player will ride to the rescue of the league, but because acquiring the rights is no longer as essential to its business model was was the case in previous years. The pay TV operator has experienced something of a bounce-back after years of decline from positioning itself as an aggregator of content from multiple sources.

France’s professional football league, the LFP, is launching a new call for offers for the rights to Ligue 1 matches that Spanish broadcaster and producer Mediapro agreed to hand back after failing to make payments agreed at the time of the previous auction.

The LFP controversially decided to call for bids only for the rights returned by Mediapro in the wake of the debacle over the latter’s failure to maintain payments, despite Canal+ chief Maxime Saada stating that the group would return the rights sub-licensed to it by beIN Sports.

Canal+ CEO Maxime Saada believes the operator overpaid for the rights it currently holds and that would in a position to bid less as part of an overall auction in the wake of the Mediapro debacle. Canal+ paid €330 million for the rights to BeIN Sports to cover the latter’s deal with the LFP for the period from 2020-24.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 2:25 pm

post 2 - it appears that Canal+ did not submit a tender for those Ligue 1 rights - this from Tellerreport.com

Canal Plus did not participate in the call for tenders for the L1
01/02/2021, 11:54:24

According to information from the Team, the encrypted channel remains faithful to its logic of hardening its relations with the League

Canal + is in a strong position regarding the TV rights of Ligue 1 after the announcement of Mediapro's refusal to pay (photo illustration).

And what had to happen happened.

As could be feared in view of its attitude since the start of the crisis, Canal + has decided not to participate in the call for tenders launched in disaster by the Professional Football League (LFP) on Monday morning, according to the information. of the Team

A logical outcome, as the encrypted channel has sent clear signals for a few weeks.

First by refusing to negotiate over-the-counter without going through an official call for tenders, then by attacking the LFP before the commercial court because of the re-selling only of the ex-lots of Mediapro (80% of the L1 and L2 for a total of 830 million euros annually between 2020 and 2024), and not the famous lot 3, paid ruby ​​on the nail by Canal (330 million euros) to broadcast two matches for the day.

Canal therefore chooses the policy of the empty chair, and this could well render the call for tenders unsuccessful as the LFP has been in a weak position since the abandonment of Mediapro, which has continued to broadcast the matches without paying for several weeks.

Unless Amazon or a surprise operator decided to join the battle, a highly unlikely hypothesis in recent hours.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 2:29 pm

post 3 - may offer some explanation as to why Canal+ did not bid - they have filed a second suit against the process - they have a long history of litigation with the French Ligue, all very different to the Premier Leagues more diplomatic relationship based approach I neep talking about - this from SportsBusiness.com

Canal Plus launches second challenge to LFP tender with bids due today
SportBusiness Staff
February 1, 2021

Pay-television broadcaster Canal Plus has stepped up its challenge to the domestic broadcast rights invitation to tender recently issued by France’s Professional Football League (LFP) by making an application to the country’s competition watchdog, the Autorité de la concurrence.

The challenge, reported by French newspapers Le Figaro and L’Équipe, comes with the LFP scheduled to receive first-round bids this morning.

Canal Plus is said to have started two procedures with the competition body.

Firstly, precautionary measures to oblige the LFP to organise a new tender process covering all matches. A second claim would allege that the LFP has committed anti-competitive discrimination against Canal Plus, with the launch of a partial tender acting to destabilise the pay-television market.

The latest move by Canal Plus comes with the Vivendi-owned broadcaster having sent a summons to the LFP on January 25 regarding a challenge to the tender process that is due to be heard at Paris’ commercial court on February 19, raising the possibility that the results of the auction could be annulled by the court.

In going to market, the LFP has re-tendered the broadcast rights previously held by Mediapro, which is closing down its Téléfoot subscription service in France, but not those currently held by Canal Plus through its sublicensing agreement with subscription broadcaster beIN Sports.

The moves by Canal Plus appear to be designed to dissuade potential new market entrants in France from bidding aggressively in the rights sales process. Mediapro held exclusive rights to eight Ligue 1 fixtures per matchweek in a deal worth €780m ($942.8m) per season from 2020-21 to 2023-24. It also held rights to Ligue 2 in a contract worth €34m per year. Both deals were terminated in December due to missed fee instalments.

Canal Plus holds exclusive rights to two top-pick Ligue 1 fixtures per matchweek from beIN. It is the latter that holds the original contract with the LFP in a deal worth €330m per season, from 2020-21 to 2023-24. Canal Plus has been vocal in its calls for the LFP to tender the full set of rights and warned that it will hand back its rights to the league on February 5, the date up to which it has paid beIN.

Canal Plus’ challenge to the Autorité de la concurrence could take four to six months to complete, according to Le Figaro, and success for the broadcaster would result in the LFP having to run a new tender process. The claim over abuse of a dominant position is also being seen as a means for Canal Plus to challenge all potential contracts signed by the LFP with new broadcast rights-holders.

Four Ligue 1 rights packages

There are four packages of rights available from the top-tier Ligue 1 and, as part of separate tender, two from the second-tier Ligue 2. Matches up until February 5 have been excluded from the Ligue 1 and Ligue 2 rights on offer.

The four Ligue 1 rights packages on offer are:

Package A: One match per matchweek, including 10 first-pick matches per season, 28 third-pick matches, the Sunday-evening magazine programme and review magazine programme

Package B: Seven matches per matchweek, including 38 second-pick matches per season, 38 fifth-pick matches, 36 sixth-pick matches and 152 matches ranging from seventh to tenth pick. Two magazine programmes, including the Sunday morning programme

Package C: Simultaneous ‘multiplex’ coverage of all matches during the 19th, 37th and 38th rounds of the championship, plus the relegation playoffs and the Trophée des Champions match

Package D: Magazine programmes during the week

The main Ligue 2 package (‘Package A’) comprises eight matches per matchweek, the two ‘multiplex’ matchweeks during the 37th and 38th rounds, the ‘tour of the stadiums’ magazine programme and the Sunday morning magazine show. Package B comprises the magazine programmes during the week.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Feb 01, 2021 5:09 pm

Bein Sports have joined in with Canal+ on not bidding for the league 1 rights, remember Bein are fully dupportive of the cases Canal+ have brough against the Ligue - I suspect this means that either the Ligue back down to Canal+ and Bein's demands (they have been the longstanding media partners for the Ligue, who were treated pretty shoddily when Mediapro won the rights last year (after another legal case between Canal+ and the Ligue).

Meanwhile it has emerged that someone who did bid was a senior exec of Telefoot - the company at the core of this mess created by Mediapro - seems like he wants to start his own business - from getfootballnewsfrance.com

Téléfoot Chaine chief makes TV rights offer

Editorial Director at Téléfoot Chaine, Jean-Michel Roussier, is one of the four parties to have made an offer for the French football domestic TV rights this morning, according to L’Équipe.

Canal + and BeIN Sports boycotted the tender, but we now have the identity of one of the four parties to have produced a proposal. Roussier did not make the offer on behalf of Mediapro/Téléfoot Chaine, but in his own name. Who his backers are and how much he offered is currently unclear.

More now on Roussier’s surprising offer: RMC understands that the corporate vehicle through which he has made the offers is a company that he owns himself. He bid on 2 Ligue 1 packages, and two Ligue 2 packages for the 2020-24 period.

The LFP’s board of directors is studying the proposals this afternoon.

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