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 » Mon Jul 08, 2019 1:03 pm

As part of the deal to end the deadlock over capacity and other issues between West Ham it's landlord E20 West Ham had agreed to pay for any upgrades and an increased rent (https://www.bbc.co.uk/sport/football/46545833" onclick="window.open(this.href);return false;) initially the increase was to 60k but the ambition was always to go up to the full 66k potential. now West Ham have applied to take it up to 62.5k as they seek to cement their place as London's largest club stadium. - from the Times


West Ham bid for more seats than their London rivals - Gary Jacob
July 8 2019, 12:01am,

West Ham United are seeking planning permission to increase their seating capacity to create the biggest club stadium in London, and second only to Manchester United in England.

The club want to increase the number of seats available for matches by 2,500 to 62,500 at the London Stadium and will consult with residents at a meeting in east London tonight. In what will be seen as West Ham trying to claim the capital’s bragging rights, the club eventually want to use all of the 66,000 seats in the ground. Tottenham Hotspur opened their 62,062-seater stadium in April and Arsenal are in the second stage of building work to increase the capacity of the Emirates Stadium to 60,600 this summer. United’s Old Trafford holds 76,000.

West Ham say that they have 54,000 season-ticket holders and a waiting list of 40,000. A planning application could be lodged in the coming months and it is hoped it would be granted in time to use the extra seats this coming season.

“It has always been the intention to increase the capacity,” a West Ham spokesperson said: “The club has started the next step of that process, which is to seek planning approval to increase the capacity to 62,500.”

West Ham moved to London Stadium in 2016 but were restricted to using 57,000 of the 66,000 seats by the safety advisory group, which includes the Metropolitan police, the local council and the London Legacy Development Corporation, the landlord.

The club were in a legal dispute with the landlord over the spare capacity, which was resolved last November. West Ham were given permission to raise their capacity by 3,000 to 60,000 by paying an additional £250,000 in annual rent to cover some of the costs. The club earns about an extra £1 million annually from the extra seats. Under the same agreement, it would pay a further £83,000 in rent if permission is granted to take the capacity to 62,500. They would pay about £33 per seat after that up to 66,000.

The club’s annual rent has increased from an initial £2.5 million to in excess of £3 million when taking into account the settlement of other disputes with the landlord.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 1:35 pm

Posted a number of times now about Chinese state effectively controlling Southampton FC going all the way back to post #821 (http://uptheclarets.com/messageboard/vi ... &start=820" onclick="window.open(this.href);return false;) through to strange shirt sponsorship post #1048 (http://uptheclarets.com/messageboard/vi ... start=1047" onclick="window.open(this.href);return false;) and what that could mean post #1052 (http://uptheclarets.com/messageboard/vi ... start=1051" onclick="window.open(this.href);return false;) and post #1063 (http://uptheclarets.com/messageboard/vi ... start=1062" onclick="window.open(this.href);return false;) The PL finding that the saints were not owned by the Chines State post #1062 (http://uptheclarets.com/messageboard/vi ... start=1061" onclick="window.open(this.href);return false;) and Gao Jisheng's own statements on the matter post #1358 (http://uptheclarets.com/messageboard/vi ... start=1358" onclick="window.open(this.href);return false;) and Simon Chadwick's contrary evidence post #1379 (http://uptheclarets.com/messageboard/vi ... start=1378" onclick="window.open(this.href);return false;)

Now Simon Chadwick shows a brief timeline of Chinese involvement in Southampton as a city and club (remember the Belt and Road Initiative) through to the recent announcement of a new tie-up with the university there

https://twitter.com/Prof_Chadwick/statu ... 7511059456" onclick="window.open(this.href);return false;

and that new link being rail based is interesting too, given Chinese ownership of Aston Villa, Birmingham City, West Brom and Wolves given that area's importance to HS2
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 1:46 pm

with their latest statement on the Newcastle Utd takeover the Bin Zayed group sound more and more like Bassini at Bolton

https://www.shieldsgazette.com/sport/fo ... eal-437531" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Royboyclaret » Mon Jul 08, 2019 6:39 pm

Chester Perry wrote:In post #1168 (http://uptheclarets.com/messageboard/vi ... start=1167" onclick="window.open(this.href);return false;) we finally learned the size of the TV deal that will cover the next 3 seasons of Premier League Football - In the following couple of posts Royboyclaret and I tried to work out what that would mean to prize money (there are new distribution rules remember). In post #1221 (http://uptheclarets.com/messageboard/vi ... start=1220" onclick="window.open(this.href);return false;) The telegraph had a go. Now it is the turn of @SwissRamble to offer his two penneth

https://twitter.com/SwissRamble/status/ ... 4980584449" onclick="window.open(this.href);return false;

It is telling how the new distribution rules have improved the benefits to the big six with exactly 50% of the increased overseas income going to them - if the old rules were kept the difference in overall PL earnings would have been narrowed
With the new season and new deal almost upon us it's important to understand how the new deal will affect us. In essence domestic revenue is reduced a little for the 2020-22 three year period but that is more than offset by a significant increase in overseas rights. Clubs will continue to share current levels of overseas income but any increase will be distributed according to finishing position in the league.

As a club we at Burnley have exceeded half a billion pounds in Total Income over the last five seasons but still it's incredible that TV Income accounts for about £430 million of that total. And remarkably that figure even includes one season when we only received parachute payments following relegation in '14/'15. Breakdown of the £430m as follows :-
'14/'15.......£66.6m
'15/'16.......£29.6m
'16/'17.......£105.0m
'17/'18.......£121.5m
'18/'19.......£107.3m.
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Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 7:33 pm

I last spoke of City Football Group expanding the number of clubs they own back in post #578 (http://uptheclarets.com/messageboard/vi ... &start=577" onclick="window.open(this.href);return false;) - back then it seemed that India was the next likely target. However speculation now suggests that Thailand may be the nxt stop

https://www.soccerex.com/insight/articl ... ong-united" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 7:49 pm

You may have seen the nonsense over the weekend about Jose rejecting a massive deal in China - It smelt wrong when it first began to emerge last week - they would not commit that level of money (the state would stop it) and Jose still sees himself at an elite league in Europe. This helps kill it, thankfully

https://twitter.com/DreyerChina/status/ ... 3913426944" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 7:58 pm

Nike come over all two faced as they release ads supporting the USWNT call for equal pay

https://twitter.com/Prof_Chadwick/statu ... 9404818435" onclick="window.open(this.href);return false;

that lawsuit

https://www.theguardian.com/business/20 ... rimination" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 8:05 pm

Following on from post #1558 (http://uptheclarets.com/messageboard/vi ... start=1557" onclick="window.open(this.href);return false;) and the next step for women's football the revamped women's super league organisation takes shape

https://www.bbc.co.uk/sport/football/48906848" onclick="window.open(this.href);return false;
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jul 08, 2019 8:33 pm

We know the importance of commercial sponsorships to football clubs at all levels, here AFC Wimbledon come up with an "innovative" approach to naming rights

https://www.dailymail.co.uk/sport/footb ... adium.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 11:53 am

Football, like most sport has the power to be a communities beating heart, sometimes the combined power of community and club can reach levels beyond what is believed attainable, Burnley has through it's long history done that more often than not. North Ferriby were doing the same, winning the FA Trophy and getting into the National League 4 years ago. In March this year they were liquidated, now a phoenix is arising with the man who built the previous success over 22 years, back at the helm.

https://www.theguardian.com/football/th ... esurrected" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 12:27 pm

In February 2018 Serie A announced that Mediapro would be the domestic broadcaster of live games for the coming cycle starting in August that year, by June of 2018 the rights were in possession of Sky Italia and DAZN in a landmark joint deal. That story here

https://www.tvbeurope.com/business/medi ... tv-channel" onclick="window.open(this.href);return false;

With the bidding process under way for the next cycle, the surprise is Mediapro are back in, and with a concept that will have established broadcasters feeling a little nervous - they want to create and produce Serie A's own TV channel - details are sketchy at the moment

https://www.tvbeurope.com/business/medi ... tv-channel" onclick="window.open(this.href);return false;

(FT has most details if you are a subscriber - I'm not https://www.ft.com/content/45774c90-a1a ... f48f366f7d" onclick="window.open(this.href);return false;)

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 1:03 pm

I have posted a lot about sportswashing and softpower primarily with relation to the Middle and Far East with Hungary and Russia thrown in for good measure. The Brazilian President's hijacking of his team's performance in the Copa America was much more about the domestic stage.

https://www.independent.co.uk/sport/foo ... 92936.html" onclick="window.open(this.href);return false;

See also post #1563 (http://uptheclarets.com/messageboard/vi ... start=1562" onclick="window.open(this.href);return false;)

@EwanMackenna was particularly brave with his questioning in the post match news conference

https://twitter.com/MiguelDelaney/statu ... 8575656966" onclick="window.open(this.href);return false;

The difference in the approach of the Brazilian players and coach to say Megan Rapinoe and her very outspoken comments on Trump, FIFA and Infantino is probably one of the nature of reprisal

https://www.independent.co.uk/news/worl ... 31651.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 1:17 pm

You may be aware that the African Cup of Nations is currently in progress, but are you aware that the attendances are well below what we saw in the recent Women's World Cup (the poor ticket sales arrangements and marketing of which were under significant media scrutiny). Apparently this is part of a growing trend on a continent that still remains in thrall of the beautiful game - just not their's it seems


https://www.africanews.com/2019/07/08/a ... -oladokun/" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by SGr » Tue Jul 09, 2019 3:30 pm

Bit of Burnley finance news per Kieran Maguire. Overdraft facility with Barclays ended.

https://twitter.com/kieranmaguire/statu ... 04513?s=21" onclick="window.open(this.href);return false;

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 3:50 pm

SGr wrote:Bit of Burnley finance news per Kieran Maguire. Overdraft facility with Barclays ended.

https://twitter.com/kieranmaguire/statu ... 04513?s=21" onclick="window.open(this.href);return false;
Comes on the day when Man City confirmed how much they had borrowed against future TV revenue

https://twitter.com/KieranMaguire/statu ... 1287902208" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 3:52 pm

Another share issue from Villa - this time for £30m - these guys are fair chucking money at the club - with promotion the price they paid for the club went up too

https://twitter.com/KieranMaguire/statu ... 5187441664" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 4:17 pm

SportsBusiness.com have been holding a Sports Decision Makers Summit in London - this morning European Club Association managing director Charlie Marshall was one of the speakers. He is a being used essentially as a mood setter for a pane discussion happening now on media rights revenues. This is a short piece entirely focused on the commercial landscape

European Club Association MD pushes need to reform European club football - Patrick Tibke - July 9, 2019

Reform of European club football competitions could be necessary to restore dynamism to Europe’s most-loved tournaments, according to European Club Association managing director Charlie Marshall.

Speaking at the SportBusiness Decision Makers Summit in London, Marshall, said structural changes in the football industry could make reform of European competitions inevitable, but played down fears that this would impact national leagues.

“I think we are in a pretty parlous situation if we believe that this is it for the commercialisation of football,” said Marshall, “that these are the best products we are ever going to have, and from now on it’s just a matter of shifting money around.

“If we’d have said that 10 to 15 years ago, we’d have a lot of egg on our faces right now.”

Marshall went on to describe some of the structural changes that football is facing, and the “reality check” that comes with them.

“Structural change is long coming for premium sports. It has affected every other media sector that doesn’t have the same barrier to entry as live sports, and that structural change is coming.

“When we look at economic changes, the boom in OTT, convergence and confusion in market, those are signals of structural changes.

“For sure, there will be changes in the monetisation model [of football], but let’s face that together as an industry, rather than as competitors between one other.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 7:03 pm

New report suggests that illegal streaming around the globe is costing Premier League clubs £1m a game - not sure on the maths but you can bet it is being used to get legal justification to close down the streamers around the world

https://www.dailymail.co.uk/sport/footb ... -game.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 7:38 pm

The calamity that is the Confederation of African Football continues to show the mess it is as it suspends it's 3rd Vice President for a period of 12 months - the offence - Headbutting and Kicking a referee after his club lost the Confederation cup final this year

https://www.kick442.com/just-incaf-susp ... president/" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 11:44 pm

A look at how for the Premier League, pre-season has become a big and global business

https://www.playthegame.org/news/news-a ... -business/" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jul 09, 2019 11:53 pm

And for those clubs going to China this article provides some useful advice - nothing about Fleetwood and Crewe and such like though


http://www.sportspromedia.com/opinion/p ... r-strategy" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Royboyclaret » Wed Jul 10, 2019 10:24 am

Chester Perry wrote:A look at how for the Premier League, pre-season has become a big and global business

https://www.playthegame.org/news/news-a ... -business/" onclick="window.open(this.href);return false;
Burnley's first European adventure was 105 years ago in 1914 to Germany, although the motives were anything but financial. The players arrived home just three weeks before War was declared on 28th June 1914.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 1:30 pm

Barcelona's cash flow/financial problems (that the Telegraph has been talking up for quite some time - all the way back to http://uptheclarets.com/messageboard/vi ... &start=379" onclick="window.open(this.href);return false; through to http://uptheclarets.com/messageboard/vi ... start=1070" onclick="window.open(this.href);return false;) are preventing them from sealing the Griezmann transfer and even saw them paying their employees 3 days late last month all this from the club with the highest revenues in world football, How the hell do they expect to sign Neymar as well?

https://en.as.com/en/2019/07/10/footbal ... 24950.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 3:27 pm

Soccerex release their "20 under 21" report

FC Business article on the report - http://fcbusiness.co.uk/news/mbabbe-wor ... e-the-bar/" onclick="window.open(this.href);return false;

The report itself - http://mysoccerex.com/Soccerex_20U21_Pr ... t_2019.pdf" onclick="window.open(this.href);return false;

for the most part valuations seem more realistic than some you have seen bandied around

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 3:38 pm

If you liked that 20 under 21 report here are the previous iterations

2017/18 http://mysoccerex.com/Soccerex_20_Under ... Report.pdf" onclick="window.open(this.href);return false;

2016/17 http://mysoccerex.com/Soccerex_20_Under_21_2016.pdf" onclick="window.open(this.href);return false;

2015/16 http://mysoccerex.com/Soccerex_20_Under ... r_2015.pdf" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 3:55 pm

2nd day of Sport Business's - Sport Decision Makers Summit in London - (There is a completely separate conference in London on Sports Directors going on at the same time!?) - here a brief on the type of players best suited to sports investment

https://www.sportbusiness.com/news/high ... -couchman/" onclick="window.open(this.href);return false;

pretty much stating the obvious, This thread from that discussion panel will warm the hearts of investors but terrify fans I would think

https://twitter.com/SportBusiness/statu ... 7649556480" onclick="window.open(this.href);return false;

though not sure they have looked at how much the American owners have chucked in at Palace and are committed to a lot more with ground redevelopment.

Also they are hinting at the returns on the farming approach of young talent which Porto, Chelsea and Man City have approached in different ways but all with great success. Are they not aware that FIFA are looking to curtail large scale operations of this type.
Last edited by Chester Perry on Wed Jul 10, 2019 4:16 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 4:16 pm

In the Championship Middlesbrough take out their 3rd financial loan of the summer (no more parachute payments for them)

https://twitter.com/KieranMaguire/statu ... 8337166336" onclick="window.open(this.href);return false;

as newly promoted Barnsley effectively mortgage assets to raise funds

https://twitter.com/KieranMaguire/statu ... 9637443586" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 4:22 pm

following on from post #1626 (http://uptheclarets.com/messageboard/vi ... start=1625" onclick="window.open(this.href);return false;) and that investment panel discussion at the Sports Decision Makers Summit - here are some highlights

https://www.youtube.com/watch?v=rrm7Wu3 ... e=youtu.be" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 4:45 pm

In post #1619 (http://uptheclarets.com/messageboard/vi ... start=1618" onclick="window.open(this.href);return false;) I mentioned that CAF's 3rd Vice President had been suspended for 12 months for Headbutting and Kicking a referee - well now it turns out he is not suspended because he was not at the hearing (claiming to be ill) the whole thing is farce built on farce - if you know the story of the cup final in question(http://uptheclarets.com/messageboard/vi ... start=1313" onclick="window.open(this.href);return false;)

http://www.insideworldfootball.com/2019 ... nt-lekjaa/" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 6:18 pm

How Liverpool are closing the £135m revenue gap to Man Utd - this data is taken from a podcast @KieranMaguire did with BloodRed which I nearly posted last week - this is much more bitesized

https://www.youtube.com/watch?time_cont ... XBlxXTWgcs" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 6:32 pm

The Football Supporters Association has published it's Annual review - contains a number of pieces on the stuff we have discussed on this thread with chapters on the progress of our governance work, standing campaign, ticket prices and TV's impact on match-going supporters.

http://www.fsf.org.uk/assets/Downloads/ ... ersion.pdf" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jul 10, 2019 7:13 pm

Aki Riihilahti formerly a player of Crystal Palace now CEO of HJK Helsinki - talks of the need for European Club Football Reform post 2024 outside of the Champions League. It is an impassioned plea for relevance in a world where the Big 5 leagues are crushing clubs from the smaller associations/leagues even in their own domestic markets - from the Times


European football is broken, reform is necessary - Aki Riihilahti, HJK Helsinki CEO - July 10 2019, 12:00pm

My dream is to see Crystal Palace and HJK Helsinki meet in the Champions League: my global and local club lining up to that famous anthem at Selhurst Park.

But that has a snowman’s chance in hell with the present Champions League format or whatever the Uefa consultations for post-2024 competitions lead to. Because what would be good for me is not what the world of football needs and the recent discussions have been overshadowed by people shouting about their own interests.

I would rather stick pins in my eyes than listen to Javier Tebas, the La Liga president, crying about how he is there for the smaller guy again. He is not. Tebas is doing a good job protecting the top five richest leagues.

The plans would see, from 2024, the competitions changing from the present 32 teams in the Champions League and 48 in the Europa League, to having three tier structure of 32 in Champions League, 32 in Europa League but another 64 in Europa League two. That would mean around 44 countries guaranteed to have group matches in European football; currently it is just 28.

For the majority of professional clubs, European competition may soon be the only chance of staying relevant and staying alive. That is why it is so disappointing the whole discussion about the post-2024 vision has focused on the Champions League instead of it being about the right direction for European football as an overall system.

It is not about my club playing in the Champions League, I’m just praying that one player from my country can do it. It is not too far away for a situation where the lack of local relevance will lead to loads of kids only consuming football through television.

Whatever the Champions League will look like after 2024, the chances are the usual suspects will be in it. However, the resistance for the change has been coming from those countries — and it is understandable that Spain, Italy, Germany, France and England don’t want to kill what is the golden goose for them.

It is in most of the other 50 Uefa countries where the football is broken. Last season, Ajax were the brave underdogs but not too many years ago they were one of those giants. How has that happened?

“Money” people kept insisting that a competition can be attractive only by increasing the top quality. The commercialisation has been aggressive, but it has not really increased quality, just concentrated it across the top five leagues. The industry has become so top heavy that a Super League feels inevitable.

Money is the key driver for competitive imbalance, but the system makes it self-perpetuating.

Of the overall €20 billion (2017) in club revenues across top divisions in Europe, 74 per cent goes through bank accounts of the top five leagues. Nearly €4 billion is spent on transfers a year but most between the top five countries. Players will keep following the money unless Fifa protects smaller clubs better than it does now. Apart from Ajax, in the last 14 years, only clubs from the big five countries have made it to Champions League semi-finals.

The top five leagues are fighting for who gets the most caviar while most of the other 50 countries are starving. Local football is losing its relevance in many countries.

One reason is the lack of participation in European competitions. Over the last decade more than 600 clubs have participated in European competition, but almost 400 of these have not made it to group stages. Qualification has become either Russian roulette or Via Dolorosa for many clubs. Reform would mean a healthier qualification path and would also give clubs a better possibility to plan, invest and grow instead of being dragged down.

The top five leagues have created fantastic products but their combined €6.65 billion domestic broadcast revenues are the root cause of the problem — that is eight times bigger than the rest of the 50 countries combined.

International broadcast revenues practically go entirely to the top five leagues — in many countries, such as here in Finland, we pay more for Premier League TV rights than for our own domestic league. The rest of Europe’s situation is similar, pay hundreds of millions for the rights to broadcast the top five leagues’ games and get nothing in return, except a reason to stay home watching TV instead of going to a local stadium.

Money attracts money: the top five countries also receive the lion’s share from €3.2 billion European competitions revenues. They may claim that solidarity payments to clubs not in the Champions League or Europa League have increased to €130 million but they forget to mention most of this so-called solidarity money goes to the top five countries.

My club has to play eight qualifying games to reach the promised land of the Champions League, and I understand that HJK meeting a club like Crystal Palace is not the product global audiences want to see. However, it would be healthy for football to find a better balance than we have presently.

People who love the game should stop shouting their opportunistic or protectionist opinions and concentrate their efforts into finding solutions based on facts. For the vast majority of European countries, the Uefa vision is not a bad start. There still needs to be the right balance between domestic and international competitions.

Football is the world’s biggest sport because it has allowed everyone to dream. I hope we keep it that way. There is nothing to lose except a dream barely alive.

-----------------------------------------------------------------------------------------------------
• Riihilahti is the CEO of HJK Helsinki, who beat Havnar Boltfelga 3-0 last night in the first leg of their first qualifying round for the Champions League.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 12:59 am

Strange goings on at Wolves - Managing Director leaving with immediate effect after relationship with the board totally breaks down - also no plans to replace him - he was there before the Chines takeover, but now they are running things on the ground as well

https://www.dailymail.co.uk/sport/footb ... -club.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 1:11 am

The FA seeks to justify why it wanted to sell Wembley, as they say grassroots football is seriously underfunded

https://www.standard.co.uk/sport/footba ... 1562781108" onclick="window.open(this.href);return false;

The FA's statement and links to the full report here

http://www.thefa.com/news/2019/jul/09/s ... and-090719" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 12:04 pm

One has to wonder just what led to the fall out at Wolves that has led to the sudden departure of their Managing Director of over 4 years, citing a complete breakdown of the working relationship with the board (see post #1633 http://uptheclarets.com/messageboard/vi ... start=1632" onclick="window.open(this.href);return false;). Many fans were shocked with their signing this week of their 5th Chinese player (from Oxford United - Oxford United fans were shocked too). Are the club caught in the trap of trying to build a club at the same time as appeasing Chines State authorities? Simon Chadwick points to their dilemma

https://twitter.com/Prof_Chadwick/statu ... 6229516289" onclick="window.open(this.href);return false;

What is noticeable is just how active the other Chinese owned clubs in the Premier League are spending (Southampton and Aston Villa), will this be allowed to continue, wolves have been quite in the window so far despite speculation on a few £40m+ transfers

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 2:22 pm

It has taken a long time to get there but Sheffield Wednesday have finally posted their accounts for the 2017/18 season - @KieranMaguire takes a gander - includes confirmation of the sale and leaseback of Hillsborough to avoid FFP sanctions (though appears no cash was used in the sale buyer appears as a debtor in the balance sheet and according to the Land Registry the club still own the ground - might get messy with the EFL) and Kieran has made a mess of his thread creation

https://twitter.com/KieranMaguire/statu ... 5937943553" onclick="window.open(this.href);return false;

https://twitter.com/KieranMaguire/statu ... 3726412800" onclick="window.open(this.href);return false;

https://twitter.com/KieranMaguire/statu ... 8348905472" onclick="window.open(this.href);return false;

document not currently available to general public at Companies house

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 3:41 pm

In post #1542 (http://uptheclarets.com/messageboard/vi ... start=1541" onclick="window.open(this.href);return false;) I shared the FA's new amendments for dealing with intermediaries and some guidance from lawinsport.com - The FA has now published its own guidance notes


http://www.thefa.com/football-rules-gov ... egulations" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Royboyclaret » Thu Jul 11, 2019 4:01 pm

Chester Perry wrote:It has taken a long time to get there but Sheffield Wednesday have finally posted their accounts for the 2017/18 season - @KieranMaguire takes a gander - includes confirmation of the sale and leaseback of Hillsborough to avoid FFP sanctions (though appears no cash was used in the sale buyer appears as a debtor in the balance sheet and according to the Land Registry the club still own the ground - might get messy with the EFL) and Kieran has made a mess of his thread creation

https://twitter.com/KieranMaguire/statu ... 5937943553" onclick="window.open(this.href);return false;

https://twitter.com/KieranMaguire/statu ... 3726412800" onclick="window.open(this.href);return false;

https://twitter.com/KieranMaguire/statu ... 8348905472" onclick="window.open(this.href);return false;

document not currently available to general public at Companies house
Finally we see what Wednesday have been up to. Another club to sell their ground to circumvent FFP. What will they sell in 2019?

And the worst bit for me?........An increase in Wage bill of almost 50% for a club that's struggling to over £37m.

Yet another club heading the way of Bury.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jul 11, 2019 10:53 pm

@KieranMaguire adds a bit more to that Sheffield Wednesday analysis

https://twitter.com/KieranMaguire/statu ... 7247639557" onclick="window.open(this.href);return false;

look at how much the owner has chucked at the club - over £100m, still owes then £60m for the ground and the company that owns it now resides in Hong Kong,

Question for those who know these things - can the owner use a paper trick to convert the debt to him into the asset that is Hillsborough and still count that as a sale which gives the positive twist to the accounts posted, Thereby not having to throw the extra £60m out of his pocket.
Last edited by Chester Perry on Fri Jul 12, 2019 1:21 am, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by rob63 » Fri Jul 12, 2019 12:20 am

Chester Perry wrote:New report suggests that illegal streaming around the globe is costing Premier League clubs £1m a game - not sure on the maths but you can bet it is being used to get legal justification to close down the streamers around the world

https://www.dailymail.co.uk/sport/footb ... -game.html" onclick="window.open(this.href);return false;
Well we all know that if illegal streaming is stopped all the people who use it will immediately rush out & buy subscriptions to legitimate matchday suppliers! :lol:

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 1:39 am

The EFL has released it's 2019 supporter survey

http://fcbusiness.co.uk/news/efl-releas ... -findings/" onclick="window.open(this.href);return false;

The full set of results https://www.efl.com/supporters/supporters-servey-2019/" onclick="window.open(this.href);return false; - no mention of the negative reactions and campaigns against Premier League U23's in the EFL Trophy though which is really gaining traction in Keagues 1 and 2

https://www.vice.com/en_uk/article/nzx7 ... -asked-for" onclick="window.open(this.href);return false;
https://www.theguardian.com/football/20 ... teams-fans" onclick="window.open(this.href);return false;
http://www.fsf.org.uk/blog/view/checkat ... tive-match" onclick="window.open(this.href);return false;

or the competitions falling attendances - see post #1408 http://uptheclarets.com/messageboard/vi ... start=1407" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 2:33 am

In post #1577 (http://uptheclarets.com/messageboard/vi ... start=1576" onclick="window.open(this.href);return false;) Gianni Infantino announced plans to increase the next edition of the women's world cup to 32 teams (there is still no host announced) and a doubling of Prize money to $60m - nearly $400m behind the men's version.

In this blog piece we see how that imbalance could be illegal and against FIFA's own Human Rights statutes - looks like lawyers have found a way to make money out of women's football

https://verfassungsblog.de/fifa-for-wom ... -strategy/" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 2:47 am

The "Barry Fry" net gains model is starting to gain traction

https://twitter.com/CIESsportsintel/sta ... 3813246976" onclick="window.open(this.href);return false; - though wouldn't be the least bit surprised if this has been going on a lot longer though maybe not quite so official (Brian Clough, George Graham amybody)

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 2:59 am

Following on from post #1642 (http://uptheclarets.com/messageboard/vi ... start=1641" onclick="window.open(this.href);return false;) and the application of human rights laws and regulations to force FIFA to equalise pay across genders this blog piece cites a ruling that may assist lawyers in that pursuit.

https://verfassungsblog.de/is-bauer-the ... -for-fifa/" onclick="window.open(this.href);return false;

There are likely to be many other scenarios where this will become a factor

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Re: Football's Magic Money Tree

Post by Royboyclaret » Fri Jul 12, 2019 10:37 am

Chester Perry wrote:@KieranMaguire adds a bit more to that Sheffield Wednesday analysis

https://twitter.com/KieranMaguire/statu ... 7247639557" onclick="window.open(this.href);return false;

look at how much the owner has chucked at the club - over £100m, still owes then £60m for the ground and the company that owns it now resides in Hong Kong,

Question for those who know these things - can the owner use a paper trick to convert the debt to him into the asset that is Hillsborough and still count that as a sale which gives the positive twist to the accounts posted, Thereby not having to throw the extra £60m out of his pocket.
Not the most straightforward set of accounts to read and a question mark still remains over some of the numbers, for instance they appear only to have spent just £500k during the year on one player purchase and yet amortisation on the P&L account increases to £10.9m from £6.1m the previous year.

In terms of the ground there's a figure in the previous year of £22m or so for freehold land which is no longer there and the Profit on Sale in the P&L is £38m, the inference being therefore a sale value of £60m. He appears to be paying that in 7 annual installments of £8.5m.

Of course satisfying FFP requirements for 2019 will provide the next challenge.

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 12:33 pm

It wasn't that long ago we had a thread on the board asking what relegation would look like for us - well not exactly the same scenario (their owner subsidises them heavily) but Middlesbrough are showing the pain - originally talking about smashing the championship on their last relegation (https://www.bbc.co.uk/sport/football/39922674" onclick="window.open(this.href);return false;), they outbid us for Brit Assombalonga (especially on wages) and added more wages, their promotion bid failed. Last season they began to cut their cloth accordingly, sold off a number of players including Ben Gibson to us and ultimately failed again, now they have no parachute payments and are seeking voluntary redundancies as parachute payments end

https://www.gazettelive.co.uk/news/tees ... b-16568406" onclick="window.open(this.href);return false;

@KieranMaguirre has a brief look at the financial issues

https://twitter.com/KieranMaguire/statu ... 6431996929" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 1:52 pm

FIFA has had a major revision of it's disciplinary code - it's first in 15 years - of particular interest to us on this thread are the finance related ones


http://static.fifa.com/about-fifa/news/ ... -code.html" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 2:07 pm

Simon Chadwick looks at the way Abu Dhabi makes good use of Man City to further The Emirate State's interests in China and compares with Man Utd and their completely commercial focus, while both do not reflect the reality of their home locale

https://twitter.com/Prof_Chadwick/statu ... 3031582721" onclick="window.open(this.href);return false;

https://www.thedrum.com/news/2019/01/09 ... ities-2020" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Fri Jul 12, 2019 7:39 pm

With Premier League clubs paying out over £200m in wages to injured players, and transfer prices seemingly only going in one direction getting the right data at a medical is as much a financial consideration as a playing squad one, more so as transfer deadlines approach - TheConversation.com has a look at the issue

https://theconversation.com/transfer-de ... ers-119058" onclick="window.open(this.href);return false;

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Re: Football's Magic Money Tree

Post by Chester Perry » Sat Jul 13, 2019 12:04 am

CONCACAF is a FIFA Confederation with a long history of strange dealings and manipulations most famously by Jack Warner. They have just announced a change of format for their 3.5 places at the 2022 World Cup (the .5 goes to a paly off with another confederation. We can only assume that it has nothing whatsoever to do with money

https://www.concacaf.com/en/world-cup-q ... 15557239=1" onclick="window.open(this.href);return false;

as @PhilippeAuclair puts it - To sum it up, 6 nations from one Confederation, CONCACAF, selected because of their FIFA ranking (no comment), will play for 3 spots at the 2022 WC; the remaining 29 (!) will battle it out for one spot in...a play-off. Well done everyone. #equalplayingfield #forthegoodofthegame

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