Football's Magic Money Tree

[Chester Perry]

No surprise to learn that the EFL are to appeal the decision not to punish Birmingham City for breaches of it's enforced operation plan

https://www.theguardian.com/football/20 ... misconduct

[Chester Perry]

A stark but unsurprising warning from FA Chairman Greg Clark - English football could 'lose clubs and leagues'

https://www.bbc.co.uk/sport/football/52191973

[Chester Perry]

Meanwhile Javier Tebas gave huge press conference this morning with journalist dialled in from over 100 countries - the are looking to start training at the end of next month

https://www.theguardian.com/football/20 ... vier-tebas

I have still not heard anyone in football talk about contingency for a second lockdown, which scientists believe could be necessary to help health services deal with volume

[Chester Perry]

However rational/logical this is not good PR - Premier League Chief Richard Masters on furloughing staff

https://www.theguardian.com/football/20 ... aincontent

It is in a letter to the DCMS the head of which wrote a book on Tax Avoidance that is still in publication

[Chester Perry]

A new article in the Guardian taking perspectives from inside the game about the financial complications arising from the pandemic Quotes our Chairman's interview on 5Live yesterday

https://www.theguardian.com/football/20 ... e-the-game

[Chester Perry]

More on that Javier Tebas press conference this morning - this time looking at his desire not to loosen FFP regulation during the crisis and draw attention for the need that clubs meet their existing transfer commitments, this summer with some 350 million Euro due to be paid into Spanish League clubs this summer as instalments of previous transfers by clubs outside of Spain

https://www.independent.co.uk/sport/foo ... 52636.html

Transfer payment instalments is the next big thing to come up in the media analysis of financial repercussions I suspect.

From our clubs perspective - the last set of Accounts saw us with £14m or so due in and £19m or so out for some clubs in the Premier League it is multiples of that.

Tebas is right to be concerned as it only takes a couple of big payments not to be made and the house of cards could be gone

EDIT this Associated Press article has a slightly different take on what Tebas said

https://apnews.com/ec803eb2243c5581d962 ... =AP_Sports

[Chester Perry]

Another element of that Tebas press conference like England and Italy, Spanish league unable to agree a universal pay cut with players

https://twitter.com/tariqpanja/status/1 ... 9300087808

[Pstotto]

Father Ted in drag, Chester Perry. Rowls is still winnning.

[Chester Perry]

Leeds have published their 2018/19 financial results - no doubts about why that pay cut happened so fast now

full accounts https://beta.companieshouse.gov.uk/comp ... ng-history

@KieranMaguire takes a look https://twitter.com/KieranMaguire/statu ... 7947620367

[Chester Perry]

Stunning numbers from Fleetwood Town's 2018/19 Financial results - £6m loss in League 1

Full Accounts https://beta.companieshouse.gov.uk/comp ... ng-history

https://twitter.com/KieranMaguire/statu ... 3671562242

[Chester Perry]

This is an interesting discussion point if nothing else - Championship clubs talking about all going into administration together (all have same points loss) as "nuclear option" for dealing with the financial impact of Covid-19)

https://www.dailymail.co.uk/sport/footb ... lemma.html

[Chester Perry]

meanwhile more financial woe for the FA as international rights holders enter discussions about withholding outstanding payments for this season's FA cup

https://www.soccerex.com/insight/articl ... s-payments

[Chester Perry]

It is now being reported that Leeds have furloughed some non playing staff

https://footballleagueworld.co.uk/adam- ... velopment/

hardly a surprise given their financial results and the fact that the playing staff deferrals are effectively loans that will be paid interest https://www.dailymail.co.uk/sport/sport ... sumes.html

[Chester Perry]

This Independent article suggests that the pandemic may see the end of the EFL Championship as we know it - certainly if they go for the nuclear option posted above

https://www.independent.co.uk/sport/foo ... 54261.html

this from @KieranMaguire reveals the bonkers state in that league at last published accounts per club (half still to report on last season

https://twitter.com/KieranMaguire/statu ... 8432079874

[Chester Perry]

Some of you may have read this https://theathletic.com/1729003/2020/04 ... ed-article - this morning - for those without a subscription here is a special Ornstein and Chapman Podcast on the article

https://podcasts.google.com/?feed=aHR0c ... IBxAE&ep=6

EDIT if anyone could post the article on here I would be grateful

[Chester Perry]

John Nicholson follows is 2 recent column's with a manifesto for football after hyper-capitalism

https://www.football365.com/news/john-n ... ier-league

[Chester Perry]

@Marcotti asks: Can FIFA save soccer during coronavirus crisis with an economic bailout?

https://www.espn.com/soccer/blog-fifa/s ... ic-bailout

I would say only if it can use that Softbank money that is no longer being offered

[Chester Perry]

@SportingIntel has responded to questions about he came to those figures in that Mail article the other day

https://twitter.com/sportingintel/statu ... 02/photo/1

I still think it was (unusually) a poor piece of work

Harris talks about the article itself here from around 23:30 in https://www.bbc.co.uk/sounds/play/p088xz8h

[Chester Perry]

It appears that the Mail have rehashed that Athletic article on the state of finances in the Premier League in part at least

https://www.dailymail.co.uk/sport/footb ... -BUST.html

you look at all the issues highlighted and think apart from being reliant on TV income there is no club in the 14 in a stronger position of itself (that is without additional owner financing) we have the lowest debt (all transfer related and that is £5m net in the last accounts) and highest cash position and are in the bottom 4 for wage commitments

[Chester Perry]

While we continue to wait for @SwissRamble to provide the definitive analysis of our 2018/19 financial results he has done the same for Middlesbrough, a club we became fraught rivals with a in recent years - it is frightening how quickly fortunes can change in this games

https://twitter.com/SwissRamble/status/ ... 8940465152

[Chester Perry]

@AndyhHolt is the first person in football that I am aware of to talk about what comes next after lockdown

https://twitter.com/AndyhHolt/status/12 ... 1259177984

- I have posted about this a few times in the last few weeks, I suspect people won't talk about it because they don't want to think about. It is a real and present danger, it must be planned for and managed and in a much better way than the current situation. Rights holders. leagues, clubs, players. fans/subscribers and media must know the path so this craziness can be replaced with a calm understanding of how to deal the game is to deal with it and get through to the other side.

[Chester Perry]

@KieranMaguire with a list of the net outstanding transfer payments for Premier League clubs - the figures for Palace and Newcastle are way out of date as they haven't published last season's accounts yet (expected late June)

https://twitter.com/KieranMaguire/statu ... 9600776194

- as I have said previously we are in a strong position relatively - especially if the stories about the devaluations of players are to be believed

https://www.bbc.co.uk/sport/football/52221463

EDIT look at the @KieranMaguire table again and think Man United also borrowed £260m or so to buy players and pay clubs upfront add the 2 figures together and try not to go - they are not the only ones to do this but the scale is different

[Chester Perry]

There is going to be plenty of this kind of thing going on across the game at the moment - Trevor Hemmings dips his hand into his pockets again and bought another £1.7m worth of shares from himself to boost the cash flow at Preston North End - that's about 1 month's wages, so this could get repetitive

https://twitter.com/KieranMaguire/statu ... 3523153920

[Chester Perry]

CIES Webinar looking at Football Clubs and their current challenges - with a panel from around the globe

https://www.youtube.com/watch?v=gfAXaj8AWRw

[Tricky Trevor]

PL advancing clubs millions by a percentage advance of the merit payment.
Via skysports app.

[Chester Perry]

Sport and Football in particular has been a major benefactor of some large sponsorship deals from the major airlines - when you read this you have to ask just how long can that continue? - the fallout could be huge for some (just look at those who are sponsored by Ethihad and Emerates for example)- and it is not just clubs, UEFA also benefit.

https://www.forbes.com/sites/dominicdud ... d744d7574c

of course this is not the only industry that pours sponsorship money into sport, the short term effects of a global economic downturn are likely to have a dramatic effect on commercial income for the game going forward

[Chester Perry]

With sponsorship playing such a key part to revenue growth in our game what are the impacts in times like these and how can relationships be maintained (even developed) this article from Sports Pro Media looks at the issue - Stoppage time for sponsors: Managing partnerships during a pandemic

https://www.sportspromedia.com/from-the ... c-red-bull

[Chester Perry]

Not sure that giving advance payments of TV monies that might have to be refunded is a good idea from the Premier League - are they just hoping that if it is spent that it cannot be clawed bac

https://www.bbc.co.uk/sport/football/52228551

this decision was reportedly taken last Friday and is only just coming out - but you would have expected it to be accounted for in the £50m loss worse case and no cash left come August statements from our Chairman

Another factor of the statement is that neither mentioned transfer payments outstanding either to us or from us - have we factored in our debtors not paying while we pay our creditors? that would be a £19m outgoing rather than £5m or a £14m deficit (assuming all payments were due to be paid out this summer, which may not be the case) overall we have to be grateful that the club prefers to do most of it's player trading with a heavy cash up front focus.

EDIT sorry Trevor should have quoted your post

[Chester Perry]

I hadn't realised that the EFL are not going to advance the Premier Leagues advance of £125m to their members until a few issues are to be sorted out -

https://twitter.com/danroan/status/1248230684918976519

no doubt this will upset a few - but may help focus a few minds on sorting their rules out

[Chester Perry]

Those Trinidad and Tobago FA officials ousted by FIFA in the Infantino revenge mission - have gone to CAS to appeal the decision

https://apnews.com/3d1502fe324cccf4394c8c47b0b08ae7

[Chester Perry]

Rui Pinto of Football Leaks fame has been moved from Prison to home where he will remain under house arrest

https://www.theguardian.com/football/20 ... d-internet

[Tricky Trevor]

Now saying circa £20m for top teams down to bare millions for bottom end. Strange that the clubs with the wealthier benefactors get the lions share.

[Chester Perry]

Now saying circa £20m for top teams down to bare millions for bottom end. Strange that the clubs with the wealthier benefactors get the lions share.

Tv appearances will be the key I suspect - they always top that pile - no surprise they are the biggest winners here - It is the way the system was designed - still they will be the biggest matchday and onsite hospitality (matchday and other events) losers (Spurs possibly the biggest)

remember our outgoings are around £8m - £8.75m a month so we could get a months plus money very few will get that much in the scheme of things

[Chester Perry]

Rumours that Premier League clubs will furlough non football staff once they have all negotiated pay deferrals with players

https://twitter.com/MirrorFootball/stat ... 8158590976

[Chester Perry]

Man City could be the next Premier League club to announce wage deferrals for football staff

https://twitter.com/Lawton_Times/status ... 2486178820

[Chester Perry]

@AndyhHolt with perhaps his most scathing attack ever on the EFL - follows on from yesterday

https://twitter.com/AndyhHolt/status/12 ... 8130825217

we as far away from a whole game solution as ever

[Chester Perry]

The Athletic do an EFL analysis similar to that one on the Premier League the other day

https://theathletic.com/1731864/2020/04 ... ed-article

[Chester Perry]

A really good article from The ESK (Everton fans site) looking at the future financial health of the Premier league - the title may give the game away - "Staring into the abyss?"

https://theesk.org/2020/04/09/staring-into-the-abyss/

essentially business as normal for us - set a budget and stick to it, try to make a small profit, grow our cash in hand and avoid credit. It is likely to be a smaller budget though

[Chester Perry]

An article from the Law Society Gazette on the legal realities of an extension to the football season - co-written by John Mehrzad QC who has featured quite a bit recently on this thread

https://www.lawgazette.co.uk/legal-upda ... c0.twitter

[Chester Perry]

By now most of you will know that Wimbledon (the Tennis tournament) has insured itself against a Pandemic for 17 years. @Uglygame asks why the game wasn't so prepared (I have only heard of Aberdeen having the requisite insurance and that hasn't registered in the media, especially the fact that come renewal in a couple of weeks no one will include it in their policy anymore). Though this is more about the ultra short term perspective that has been prevalent in the game in the last 2 decades

https://twitter.com/uglygame/status/1248525474567016450

EDIT Simon Chadwick thinks that Pandemic insurance (or the lack of it) was endemic of the strategic myopia in sport, much like @UglyGame - he now thinks the current situation will lead to an upturn in both policies and premiums - the latter will certainly have to occur if the former is to occur geven the Aberdeen experience

https://www.newindianexpress.com/sport/ ... 28184.html

[dsr]

An article from the Law Society Gazette on the legal realities of an extension to the football season - co-written by John Mehrzad QC who has featured quite a bit recently on this thread

https://www.lawgazette.co.uk/legal-upda ... c0.twitter

I think he's arguing points that haven't been made. It's stating the bleeding obvious that if a player doesn't want his contract extending beyond 30th June, you can't make him play. And the suggestion that this will call into question the integrity of the competition because some clubs will be worse affected than others - well, you could say the same about injuries. It's tough luck.

What FIFA is presumably saying is that the transfer window will be delayed and clubs can (and probably will be expected to) extend players' contracts if they run out. Nothing too controversial there.

[Chester Perry]

I think he's arguing points that haven't been made. It's stating the bleeding obvious that if a player doesn't want his contract extending beyond 30th June, you can't make him play. And the suggestion that this will call into question the integrity of the competition because some clubs will be worse affected than others - well, you could say the same about injuries. It's tough luck.

What FIFA is presumably saying is that the transfer window will be delayed and clubs can (and probably will be expected to) extend players' contracts if they run out. Nothing too controversial there.

It is like you said on the Championship group administration discussion - players will do whatever they think is best for them going forward

[Chester Perry]

loving this post from The Athletic journalist @MJShrimper about Burnley's accounts

https://twitter.com/mjshrimper/status/1 ... 5866456064

wish I could read that article mind - anyone care to transcribe

[Chester Perry]

Taxing Sport blog breaks down how donations to #PlayersTogether will work in with their tax rethttps://taxingsport.com/playerstogether/urns

https://taxingsport.com/playerstogether/

It could cost the government (and indirectly all of us) a lot of money should they claim the gift aid and tax relief the law entitles them too - the causes are worthy but it will be interesting how the public/government responds if the pledges are as high as some anticipate

[Chester Perry]

Of course '#PlayersTogether presents a different problem for clubs as this snippet from the Mail highlights

Clubs fears over NHS fund

The #PlayersTogether fund which was set up by top-flight stars earlier this week to collective and distribute money to the NHS and associated charities has not been universally welcomed within football.

While no-one is questioning the players' good intentions and hard work in creating the fund several executives have noted that the significant charity donations may make it harder for them to agree wage-cuts with the players, which the clubs insist will be necessary to keep some of them afloat during the shutdown.

[Chester Perry]

The Premier League are hanging back on a ruling over whether to allow Everton's £30m naming rights option on the new stadium at Bramley-Moore Dock

https://www.dailymail.co.uk/sport/footb ... manov.html

It was thought to be an innovative master stroke at the time being announced at the time of last years Financial results (and huge losses) were made public - others though were quick to question whether it represented fair Market value given the source of the money and it's already questionably high sponsorship deal on the club's training ground

[Chester Perry]

It was inevitable and the income it provides will be a big loss to Europe's biggest clubs - This years International Champions Cup has been called off

https://www.sportbusiness.com/news/inte ... alled-off/

In many ways I am surprised it has taken until now

[Chester Perry]

So far we have only heard of right's holders losing subscribers and either holding back on payments or maintaining the status quo - This is the first time I have come across one stepping out on the front foot and seeking to replace existing holders who have refused to pay dues during the pause. MediaSet want to replace CanalPlus and BeinSport in France and say they will pay for this season next. They have already won a host of domestic rights packages for the next cycle.

There is also a huge attack on Biensport and it's Chairman Nasser al-Khelaifi who is also President of Paris Saint Germain, ECA representative on UEFA Exco and his astonishing role in the French Ligue discussions

https://www.sportbusiness.com/news/medi ... -and-bein/

[Chester Perry]

David Conn of the Guardian provides a different (considered?) take on footballs use of the governments furlough scheme

https://www.theguardian.com/football/bl ... otect-jobs

[Chester Perry]

Strong stuff in this column from Vysyble - laying the blame for the current financial mayhem in the game squarely at the door of club and league officials

https://vysyble.com/the-barbour-file