Football's Magic Money Tree

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Royboyclaret
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Re: Football's Magic Money Tree

Post by Royboyclaret » Sun May 31, 2020 8:44 pm

Chester Perry wrote:
Sun May 31, 2020 7:19 pm
This might stir the ire of Roy - Vysyble with the TV revenues for all 2018/19 Premier League - both Premier League and total TV revenue - every club shows a difference in the 2 we are just not told were the additional is from

https://twitter.com/vysyble/status/1267130062844936193
More relief than ire from me, Chester. At long last vysyble provide a fascinating chart that shows not only Burnley's difference of some £7.6m, but also that most of the clubs around us (Bournemouth, Brighton, Fulham, Huddersfield etc.) all received a very similar, if not identical, additional amount.

The odd thing is that we know we earned an additional £840k from the Europa League distribution pot for the 2nd and 3rd Qualifying Round payment and a Play-off elimination amount. Also since we last debated this subject on here I established confirmation of payment from BT Sport for 2 of our 6 Qualifying games that were broadcast live. Any idea what those games might have earned us ?

Strangely, looking again at the chart, the likes of Leicester and Everton earned only some £3.5m above the Premier League distribution figure before numbers for the top six who were involved in UCL or UEL reached upwards of £80m/£100m extra.

Anyway, all in all, an interesting story at long last behind the difference of the £107.3m and the £114.9m within Turnover on our P&L account. Thanks for that.

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Re: Football's Magic Money Tree

Post by dsr » Sun May 31, 2020 10:45 pm

Chester Perry wrote:
Sun May 31, 2020 5:35 pm
Brighton, Burton and West Brom to have a go at Trademarking "Albion" to "protect fans from fakes" - I just cannot see this getting allowed far to many other Albion's out there.

https://www.telegraph.co.uk/football/20 ... rd-albion/
Even the Brighton message board are not impressed by this latest move from Mr "I haven't embarrassed myself enough lately so here's another go" Barber.

What would be funny would be if they were about to win the case when Witton Albion (est. 1877) piggybacked it and established the trademark for themselves. Leaving Brighton & Hove without a nickname! :lol:

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 2:27 pm

Chester Perry wrote:
Fri May 29, 2020 6:26 pm
Newcastle United finally announce their 2018/19 financial results - - with a £34m profit after tax I do not understand the need for delay - a reasonably healthy picture though I think the cash balance is a little low given their costs. the £97m in wages is very healthy

https://www.nufc.co.uk/news/latest-news ... june-2019/

full accounts here https://www.nufc.co.uk/media/51257/newc ... ements.pdf

@KieranMaguire has had a quick look

https://twitter.com/KieranMaguire/statu ... 1609826308

I must say I thought the debt to Ashley was £111m at the close of the last accounts
@SwissRamble with his take on the 2018/19 financial results of Newcastle United

https://twitter.com/SwissRamble/status/ ... 5489334272

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 2:49 pm

Following on from Vysyble's review of the Premier Leagues 2018/19 financial performance @KieranMaguire takes his turn

https://twitter.com/KieranMaguire/statu ... 5275610112

I am sure we will see a lot more of this kind of thing in the coming days

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 4:31 pm

Will Stevenage be reprieved after all- they (like Barnsley) have consistently called for all in season EDL charges to be ruled before relegation be applied - Macclesfield currently 3 points above Stevenage and deducted 14 points this season and are not up for the issues surrounding the payment of wages in March - which they deny

https://www.bbc.co.uk/sport/football/52880611

Things could get interesting in the EFL around the timing of clubs putting their staff into furlough, even with the ability to backdate the furlough there will be some full wages to pay in March and players/EFL will be expecting any shortfall in salary to be made up by their clubs

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 6:26 pm

Has Scottish football found a philanthropist to dig itself out of it's current financial hole?

https://www.bbc.co.uk/sport/football/52881608

It is an unusual offer in what are (to this point of history at least) are unusual times - but effectively says (given the potential donor's history) that football is apart of the countries cultural fabric that is worthy of support/saving

More detail from the Daily Record - which is a terrible website (like all the Mirror Group ones) so I will transcribe

James Anderson unmasked as Hearts' mystery SPFL investor who plans multi-million pound donation for Scottish football
The businessman controls a trust that’s worth almost £10 billion.
By Gary Ralston - 04:30, 1 JUN 2020Updated11:34, 1 JUN 2020

James Anderson is renowned as an investor with the Midas touch and now he wants to gold plate the future for cash strapped Scottish football.

He oversees a portfolio of interests at Scottish investment firm Baillie Gifford that reads like a who’s who of A-list brands.

Anderson controls a trust that’s worth almost £10 billion and which holds an £850 million investment in Amazon, £800 million in electric car manufacturer Tesla and £600 million in Chinese e-commerce giant Alibaba.

He has a stake worth £250 million in Ferrari, £50 million in Facebook, £300 million in Netflix, £160 million in Spotify and £285 million in Kering, owners of luxury goods companies Gucci, Yves Saint Laurent, Balenciaga and Alexander McQueen.

But it’s Forfar and Montrose, Stranraer, East Fife and Albion Rovers among others that could soon benefit from his amazing largesse.

The philanthropist has pledged to make a multi-million donation to the SPFL and its member clubs to see them through the worst of the Covid-19 crisis.

He and other wealthy backers have already gifted £9 million to Hearts over the last seven years, with a relationship that is believed to have first begun when he agreed to underwrite their shirt sponsorship to Save The Children for a significant six figure sum.

Hearts will controversially drop to the championship next season after the Premiership was called early, even though they were only four points from safety with eight games still to play.

However Anderson and Hearts chairman Ann Budge, who brought him to the SPFL’s table, are at pains to point out his donation is no clumsy inducement to ensure the Tynecastle club are still playing top flight football next season.

Insiders say his integrity is beyond reproach and he is far too credible to lay any conditions on his gift to clubs, which will be discussed by SPFL members in a series of meetings over the next 48 hours.

Anderson also confirmed: “These commitments are not dependent on league reconstruction. They are not contingent. They are to help in a desperate situation.”

It’s believed the donation to the SPFL may even be the first of many for at least the next five seasons, with the 60-year-old respected as a long term player in both his investments and charitable involvements.

It is not known yet if only lower league clubs will benefit, or if he could also make funds available to clubs in the Premiership.

One source said: “James understands the extent to which communities and cultural institutions have been affected by the Covid-19 crisis and appreciates the vital role football plays in Scottish day-to-day life.

“Categorically, this is no Trojan horse for some SPFL takeover or a plan to keep Hearts in the Premiership. He is simply an individual who has done well in business life and understands the importance of giving back.”

Anderson and his wife Morag are well known sponsors of a range of Scottish institutions, including Scottish Opera and the Edinburgh International Film Festival.

They are particularly keen on supporting education for kids and have previously backed Sistema, the youth orchestra programme in socially disadvantaged areas, and learning projects for poorer children at the Edinburgh Festival.

Anderson’s Scottish Mortgage Investment Trust owns around 7.5 per cent in Tesla, second only to company founder Elon Musk.

Anderson is on first name terms with Facebook founder Mark Zuckerberg and Amazon’s Jeff Bezos, whom he once described as “my corporate hero.”

Anderson controls a trust that’s worth almost £10 billion and which holds an £850 million investment in Amazon, £800 million in electric car manufacturer Tesla and £600 million in Chinese e-commerce giant Alibaba.

He has a stake worth £250 million in Ferrari, £50 million in Facebook, £300 million in Netflix, £160 million in Spotify and £285 million in Kering, owners of luxury goods companies Gucci, Yves Saint Laurent, Balenciaga and Alexander McQueen.

But it’s Forfar and Montrose, Stranraer, East Fife and Albion Rovers among others that could soon benefit from his amazing largesse.

He is said to be on first name terms with Mark Zuckerberg

The philanthropist has pledged to make a multi-million donation to the SPFL and its member clubs to see them through the worst of the Covid-19 crisis.

He and other wealthy backers have already gifted £9 million to Hearts over the last seven years, with a relationship that is believed to have first begun when he agreed to underwrite their shirt sponsorship to Save The Children for a significant six figure sum.

Hearts will controversially drop to the championship next season after the Premiership was called early, even though they were only four points from safety with eight games still to play.

However Anderson and Hearts chairman Ann Budge, who brought him to the SPFL’s table, are at pains to point out his donation is no clumsy inducement to ensure the Tynecastle club are still playing top flight football next season.

Insiders say his integrity is beyond reproach and he is far too credible to lay any conditions on his gift to clubs, which will be discussed by SPFL members in a series of meetings over the next 48 hours.

Anderson also confirmed: “These commitments are not dependent on league reconstruction. They are not contingent. They are to help in a desperate situation.”

It’s believed the donation to the SPFL may even be the first of many for at least the next five seasons, with the 60-year-old respected as a long term player in both his investments and charitable involvements.

It is not known yet if only lower league clubs will benefit, or if he could also make funds available to clubs in the Premiership.

One source said: “James understands the extent to which communities and cultural institutions have been affected by the Covid-19 crisis and appreciates the vital role football plays in Scottish day-to-day life.

“Categorically, this is no Trojan horse for some SPFL takeover or a plan to keep Hearts in the Premiership. He is simply an individual who has done well in business life and understands the importance of giving back.”

Anderson and his wife Morag are well known sponsors of a range of Scottish institutions, including Scottish Opera and the Edinburgh International Film Festival.

They are particularly keen on supporting education for kids and have previously backed Sistema, the youth orchestra programme in socially disadvantaged areas, and learning projects for poorer children at the Edinburgh Festival.

Anderson’s Scottish Mortgage Investment Trust owns around 7.5 per cent in Tesla, second only to company founder Elon Musk.
Anderson is on first name terms with Facebook founder Mark Zuckerberg and Amazon’s Jeff Bezos, whom he once described as “my corporate hero.”

He is also pals with Jeff Bezos who he describes as his 'corporate hero'

But he is not afraid to call out business leaders and rounded on his own industry in the aftermath of the financial crisis of 2008 for not doing more to help the Royal Bank of Scotland and Bank of Scotland from financial collapse.

He even called out Musk for his attack on British diver Vernon Unsworth, labelled a “pedo” on Twitter by the Tesla chief after he helped rescue 12 boys and their football coach from caves in Thailand.

Anderson said at the time: “We are in contact with the company and we are hopeful that it is being taken with due seriousness.”

Anderson graduated in history from Oxford University and also studied in Italy and Canada. He is a trustee of the Johns Hopkins University, a renowned private research university in Baltimore, Maryland.

He joined Baillie Gifford in 1983, when he was 23, and became a partner four years later. He was raised in Norfolk, but has spoken of his Scottish roots, declaring proudly: “My grandfather was Archibald Kennedy Anderson”.

Budge has protected the identity of Andrson, at his request, but previously revealed he only ever made one request on the back of his £9 million donation.

She said: “He asked for a relaxation of the dress code in the boardroom because he doesn’t like wearing a tie to games.”

Private equity firms have recently been eyeing Italy’s top league, Serie A, for potential business amid Coronavirus pandemic.

CVC Capital Partners and Blackstone BX are both reportedly ready to bid around £2 billion for a 20 per cent stake in the league.

But one source said: “Categorically, that is not in the plans of James, or Baillie Gifford. This is purely a donation from a philanthropist keen to help Scottish football through the most challenging period in its history.”

Premiership clubs plan to return to training in a fortnight in time for the new season kick off on August 1, but even Scottish government advisors admit that could be optimistic.

Top flight games are likely to be played behind closed doors in the opening months, with fears the championship - and Hearts - may not kick a ball until October.

Clubs in League One and League Two may even have to go into hibernation for 12 months and start all over again next summer.

One source said: “The coming weeks will be crucial, but with the support of James it should help ease some of the worst financial fears of our clubs throughout the SPFL.”
Last edited by Chester Perry on Tue Jun 02, 2020 10:24 am, edited 2 times in total.

Chester Perry
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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 6:35 pm

Vysyble with their now daily post in review of the Premier Leagues 2018/19 financial performance - today the gap between the 6th and the 7th ranked by revenue viewed over the last decade - the escalation in creased is huge - also interesting that Newcastle where once regularly the 7th placed

https://twitter.com/vysyble/status/1267456957482483712

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 6:46 pm

Royboyclaret wrote:
Thu May 28, 2020 10:41 pm
From their accounts to Jun.'19:-
Operating Loss (£27.0m)
Depn & Amort. £37.5m
Profit on Disp. of players reg. (£3.1m)

EBITDA £7.4m.

Swiss Ramble £7m

The esk £36.3m

Looks like your theory re-Bournemouth is correct, Chester.
and to add to their issues - The deal with their shirt sponsor finished yesterday and no new one currently insight - strongly suspect that will be determined by the league they find themselves in next season. Sounds like they may pick up some positive PR points in the restart though (though few will realise it is because the current deal has ended and just what a new deal is dependent on)

https://www.sportbusiness.com/news/bour ... l-expires/

There is still no word as to Everton's new shirt sponsor either

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 6:49 pm

Some good news for Sports rights owners (including the Premier League) - Nent today announce that they will resume paying rights fees as they turn the taps back on for their subscribers

https://www.sportbusiness.com/news/nent ... -payments/
Last edited by Chester Perry on Mon Jun 01, 2020 7:00 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 7:00 pm

The Saudi backed take-over of Newcastle continues to drag on - The process of the Owners and Directors test should not take the 6 weeks or so that it has reportedly been with the Premier League - it suggests that here is a lot of negotiating going on behind the scenes - and given the content of this article it could easily be seen that the UK government (and probably other governments too) is involved in trying to get the shutdown of BeoutQ to happen - simply because it is unlikely that the Premier League is powerful enough to force such an outcome on it's own.

From the New Arab - Stalled Newcastle United takeover exposes limits of what Saudi money can buy

https://english.alaraby.co.uk/english/c ... audi-money

Of course this follows the news over the weekend that the FA was considering suing BeoutQ for illegally broadcasting old FA cup matches

https://www.sportbusiness.com/news/fa-t ... roadcasts/
Last edited by Chester Perry on Mon Jun 01, 2020 7:24 pm, edited 1 time in total.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 7:08 pm

Chester Perry wrote:
Mon Jun 01, 2020 6:46 pm
and to add to their issues - The deal with their shirt sponsor finished yesterday and no new one currently insight - strongly suspect that will be determined by the league they find themselves in next season. Sounds like they may pick up some positive PR points in the restart though (though few will realise it is because the current deal has ended and just what a new deal is dependent on)

https://www.sportbusiness.com/news/bour ... l-expires/

There is still no word as to Everton's new shirt sponsor either
Of course Man City are reported to be looking for a new shirt sponsor, whenever one becomes available at the money they want

could this be the route via a minor interest relationship with the club's owner

https://twitter.com/kartik19shetty/stat ... 2950189057

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 7:31 pm

In line with all other major American sports the MLS could be facing a lock-out as it struggles to reach agreement with the players association over economic reforms to help teams/franchise get through economic impact of the Pandemic. - From SportsProMedia.com

MLS players facing lockout as deadline looms to resolve pay dispute
League union given 2nd June ultimatum as financial negotiations with owners falter.
Posted: June 1 2020By: Michael Long

Major League Soccer (MLS) looks to be heading towards an unprecedented lockout amid an ongoing economic dispute between the North American league and its players union.

Both sides are engaged in talks over plans to resume the suspended 2020 season but they have yet to agree on a raft of economic concessions designed to offset the financial impact of the coronavirus pandemic.

On 31st May, the Major League Soccer Player Association (MLSPA) voted to authorise salary reductions for all players, reduce team and individual bonuses, and accept ‘additional concessions to existing and future terms’ of the collective bargaining agreement (CBA) it agreed in principle with the league in February.

While the MLSPA has offered to accept a 7.5 per cent pay cut in 2020, league owners are understood to be pushing for a 8.75 per cent reduction in salaries. The union is also requesting that the current CBA be extended by one year to 2025.

‘While a difficult vote in incredibly challenging times, it was taken collectively to ensure that players can return to competition as soon as they are safely able to do so,’ read a union statement. ‘The package has been formally submitted to the league for a decision by the owners.’

ESPN reports that the union’s proposal is set to be rejected by MLS, which has already ‘submitted its best offer’ and will not make further economic concessions ahead of a 2nd June deadline, raising the prospect that the players could be locked out.

According to ESPN, the league and the union remain at odds over a proposed revenue sharing plan related to a new broadcast rights deal set to begin in 2023. A further issue lies in a force majeure clause inserted into the CBA that would allow either side to renege on the agreement as a result of an event like a pandemic.

The league’s proposal gives it the right to invoke the clause if five teams see a drop of 25 per cent or more on attendances from the previous year, but the MLSPA has not insisted upon the same stipulation.

MLS has been on pause since 12th March due to the coronavirus crisis. Since then, the league has been exploring the possibility of resuming its season by staging matches during a quarantined summer tournament at Orlando’s ESPN Wide World of Sports Complex. The league’s latest plan is for 26 teams to participate in a six-week event, with a three-game group stage followed by a knockout round.

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Re: Football's Magic Money Tree

Post by Royboyclaret » Mon Jun 01, 2020 7:36 pm

Chester Perry wrote:
Mon Jun 01, 2020 6:35 pm
Vysyble with their now daily post in review of the Premier Leagues 2018/19 financial performance - today the gap between the 6th and the 7th ranked by revenue viewed over the last decade - the escalation in creased is huge - also interesting that Newcastle where once regularly the 7th placed

https://twitter.com/vysyble/status/1267456957482483712
Am I reading this correctly?.....Newcastle were 7th highest Revenue earning club in '12/'13, '13/'14 & '14/'15 even though they finished those seasons in 16th, 10th & 15th?.......Impressive if true, but Liverpool and Man Utd finished two of those seasons in 7th and both would likely have had a higher Revenue than Newcastle.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 7:49 pm

Royboyclaret wrote:
Mon Jun 01, 2020 7:36 pm
Am I reading this correctly?.....Newcastle were 7th highest Revenue earning club in '12/'13, '13/'14 & '14/'15 even though they finished those seasons in 16th, 10th & 15th?.......Impressive if true, but Liverpool and Man Utd finished two of those seasons in 7th and both would likely have had a higher Revenue than Newcastle.
that is what Vysyble are saying

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Re: Football's Magic Money Tree

Post by Royboyclaret » Mon Jun 01, 2020 9:06 pm

Chester Perry wrote:
Mon Jun 01, 2020 7:49 pm
that is what Vysyble are saying
Fair play to Newcastle then.

It therefore follows that one of the main reasons for the smaller gap in the Vysyble chart for the 5 seasons from the 11 featured in which Newcastle came 7th in the Revenue league, is the very strong Turnover figure for Newcastle in 7th rather than that of the team finishing 6th from the Big Six. If that makes sense.

It's interesting that when Swiss Ramble did their analysis of Burnley's accounts, they produced a Deloittes Football Money League chart on which there was no sign of Newcastle. The reason being no doubt that Newcastle had not revealed their accounts at that time, whereas the £176.4m Turnover would now have them in 24th position in that European elite league.

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 9:24 pm

Royboyclaret wrote:
Mon Jun 01, 2020 9:06 pm
Fair play to Newcastle then.

It therefore follows that one of the main reasons for the smaller gap in the Vysyble chart for the 5 seasons from the 11 featured in which Newcastle came 7th in the Revenue league, is the very strong Turnover figure for Newcastle in 7th rather than that of the team finishing 6th from the Big Six. If that makes sense.

It's interesting that when Swiss Ramble did their analysis of Burnley's accounts, they produced a Deloittes Football Money League chart on which there was no sign of Newcastle. The reason being no doubt that Newcastle had not revealed their accounts at that time, whereas the £176.4m Turnover would now have them in 24th position in that European elite league.
This is a good illustration as to why:
- the gap increased
- Newcastle started to drop down the Premier League table
- Newcastle fans got increasingly frustrated with the Ashley regime

https://twitter.com/Lu_Class_/status/12 ... 10/photo/1

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Re: Football's Magic Money Tree

Post by Chester Perry » Mon Jun 01, 2020 11:33 pm

The vultures are at the door

It seems that is now official that Belgian football is no more than a farm for any European club that wants to purchase a league team - following recent club purchases by organisations related to Barnsley and Manchester City - Lille are in talks to buy Royal Excel Mouscron. This is something of a rare occurrence for French football, whose relationships are based more on their colonial past in North Africa, still this opens them up to not just Belgian talent but also Belgium's own colonial west African connections.

https://www.getfootballnewsfrance.com/2 ... -mouscron/

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 9:58 am

Chester Perry wrote:
Mon Jun 01, 2020 2:49 pm
Following on from Vysyble's review of the Premier Leagues 2018/19 financial performance @KieranMaguire takes his turn

https://twitter.com/KieranMaguire/statu ... 5275610112

I am sure we will see a lot more of this kind of thing in the coming days
Maguire continues with a look at the financial performance of all 39 clubs who have played in the Premier League in the last decade (only while in the Premier League not the years in the EFL which would make them worse really). There are some shockers there from clubs that have spent the last half of that in the Premier League - the period of it's greatest ever revenues and 3 years of which had cost control on wage growth

https://twitter.com/KieranMaguire/statu ... 0094647299

Every club above us bar Newcastle have played in the Champions League Knockout stages (huge monies) - only Leicester above us has spent as few years in the Premier League as we have - no one above less

And if you wan to understand just how good that financial performance is - we are only 19th in terms of revenue in that period of the 39

https://public.flourish.studio/visualisation/2664249/

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Re: Football's Magic Money Tree

Post by Royboyclaret » Tue Jun 02, 2020 10:17 am

Chester Perry wrote:
Tue Jun 02, 2020 9:58 am
Maguire continues with a look at the financial performance of all 39 clubs who have played in the Premier League in the last decade (only while in the Premier League not the years in the EFL which would make them worse really). There are some shockers there from clubs that have spent the last half of that in the Premier League - the period of it's greatest ever revenues and 3 years of which had cost control on wage growth

https://twitter.com/KieranMaguire/statu ... 0094647299

Every club above us bar Newcastle have played in the Champions League Knockout stages (huge monies) - only Leicester above us has spent as few years in the Premier League as we have - no one above less

And if you wan to understand just how good that financial performance is - we are only 19th in terms of revenue in that period of the 39

https://public.flourish.studio/visualisation/2664249/
So, Burnley a highly commendable 7th of 36 in that list, averaging over £25m annual profit in our five completed seasons in the Prem. Yet more evidence, if we needed it, of being owned and run in a proper manner.

Meanwhile, Man City 36th of 36. That'll do for me.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 10:31 am

Royboyclaret wrote:
Tue Jun 02, 2020 10:17 am
So, Burnley a highly commendable 7th of 36 in that list, averaging over £25m annual profit in our five completed seasons in the Prem. Yet more evidence, if we needed it, of being owned and run in a proper manner.

Meanwhile, Man City 36th of 36. That'll do for me.
You have to say Roy that the overall financial performance of the Premier League clubs is shocking when you consider it generated £33.5 billion of revenue in the period

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Re: Football's Magic Money Tree

Post by Royboyclaret » Tue Jun 02, 2020 10:36 am

Chester Perry wrote:
Tue Jun 02, 2020 10:31 am
You have to say Roy that the overall financial performance of the Premier League clubs is shocking when you consider it generated £33.5 billion of revenue in the period
Agreed, and ours is a mere half billion (£522m) of that total Revenue, I think.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 11:03 am

If you didn't understand why all those Asian based betting companies sponsored Premier League clubs them this will help you - in many ways the clubs don't get enough - from the South China Morning Post

Jockey Club suffers HK$2 billion hit from loss of football betting
Executives believe the loss in revenue caused by Covid-19 only emphasises the importance of horse racing in Hong Kong
by Trenton Akers - on Tuesday, June 2, 2020 7:50 AM

Football’s global shutdown has cost the Jockey Club in excess of HK$2 billion with local punters only able to bet on horse racing for almost two months.
Fixed-odds football betting had become one of the most lucrative operations for the Jockey Club since it was legalised in 2003, but it has collected next to nothing since the major leagues shut down in mid-March.

The Jockey Club raked in HK$15.3 billion in revenue from $114.1 billion in turnover on football betting in 2018-19 alone, but that figure is set to be significantly less this year with professional leagues only now slowly beginning to come back.

“With no football product the impact has been significant,” Jockey Club chief executive Winfried Engelbrecht-Bresges said. “It is around HK$1 billion per month.

“You can see now with the Korean league back and the Bundesliga going again, some of it is coming back but it is not even 30 per cent.”
It is hoped that the resumption of some of the world’s major leagues this month, including the Premier League, Serie A and La Liga, can help reduce the shortfall.

While football betting revenue has almost matched that of horse racing in recent years, Engelbrecht-Bresges said the crisis caused by Covid-19 has only emphasised the importance of horse racing in Hong Kong.

Football betting operates at a fraction of the cost to that of horse racing and has a much more lucrative tax proposition for the Jockey Club, but do not expect to see a change in focus according to Engelbrecht-Bresges.

“From a revenue point of view you can say ‘oh football is more important because you get more revenue from a $100 bet’, but we can’t look at it in a purely financial way,” he said.

“The core of what we do revolves around horse racing, even if our cost structure and taxes are much higher.

“Even if you look at football customers, 75 per cent of football turnover comes from original racing customers.

“With that in mind, we have to look at them as one customer base, not two separate ones. The core, the heart of the Jockey Club is horse racing and the charities.”

Another black hole for the Jockey Club is the Mark Six lottery, which has been closed down since February 1.

Last year, more than HK$8 billion was wagered on the Mark Six by locals and Engelbrecht-Bresges said he was hopeful to get the popular product and running again by July.

“The biggest elephant in the room is the Mark Six,” he said. “On a normal Mark Six day we have 400,000 to 500,000 people going into the off-course betting branches.

“They only go in and out but they are still going in. I get multiple requests about the Mark Six so maybe in six weeks we can open that back up.”

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 11:10 am

Much has been written and spoken about the impact of the pandemic on professional football - here is a stark piece from Wycombe Wanderers advising all staff on furlough to start looking for alternative employment for when the furlough ends and explaining the stark financial condition that has led to that - remember earlier in the season the club was still fan owned before it agreed to a takeover

https://www.wycombewanderers.co.uk/news ... ob-couhig/

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 11:18 am

Wednesday this week is supposed to be cold and wet, if you are still at home you may want to give this a try - you have to register but it is free -

SIGA - Soccerex Webinar Episode 3 | Club Football: The New Normal
discussing the future of football from the perspective of clubs and their supporters.

more details and link to registration here https://www.eventbrite.com/e/siga-socce ... 6951542944

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 12:04 pm

Not quite sure how I missed this last month but it does make for Interesting reading

CIES (of Football Observatory fame) have a sporting Intelligence arm and they released a report looking at the "Governance and Financial Landscape of Top European Football Clubs"

https://www.cies.ch/fileadmin/documents ... Final_.pdf

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 12:35 pm

Last week FIFA released is vision for a truly global football - aimed at bringing more countries up to the level of the elite

Infantino's self-aggrandising intro https://www.fifa.com/who-we-are/vision/

The full document - https://resources.fifa.com/image/upload ... xrudiu7iym

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 12:45 pm

We all know that the life of a coach/manager is difficult in terms of employment security and seemingly more so as this post for CIES Football Observatory shows

https://football-observatory.com/IMG/si ... /wp297/en/

the detail as to Europe's big 5 leagues is explained here

https://www.soccerex.com/insight/articl ... ve-manager

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 5:13 pm

An article from FootballLaw.co.uk on the NUFC Takeover and the Owners’ and Directors’ Test - I have linked rather than transcribed the article because it contains a lot of reference links within it

https://www.footballlaw.co.uk/articles/ ... ctors-test

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 10:22 pm

Chester Perry wrote:
Mon Jun 01, 2020 6:35 pm
Vysyble with their now daily post in review of the Premier Leagues 2018/19 financial performance - today the gap between the 6th and the 7th ranked by revenue viewed over the last decade - the escalation in creased is huge - also interesting that Newcastle where once regularly the 7th placed

https://twitter.com/vysyble/status/1267456957482483712
today's post from Vysyble the dramatic difference in the uplift of staff cost for the big 6 and the 14 in 2018/19

https://twitter.com/vysyble/status/1267916119043649537

obviously they don't like being challenged for those European places. though other factors in place - such as revised formulas for TV distribution coming in the next (now current cycle) being anticipated

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 11:00 pm

The mail with their version of the Premier League rebate (remember Matt Lawton thinks it will be half this amount - at least it looks like it will be applied to individual clubs with current payment formulas being adhere to as I suggested last week


£35m a WEEK! That's what Premier League clubs MUST refund broadcasters on top of £330m rebate if season is delayed any further - and Liverpool are set to repay largest chunk at £24.5m if they win the title
- Restart delay would cost top-flight clubs £35m a week in broadcasting rebates
- Premier League have already agreed to pay a rebate of £330m to broadcasters
- It is understood Liverpool will repay £24.5m if they win the Premier League title

By Matt Hughes and Sami Mokbel for the Daily Mail - Published: 22:30, 2 June 2020

Premier League clubs will be warned on Thursday that any delay to Project Restart would cost them an extra £35million a week in broadcasting rebates.
Sportsmail revealed on Monday that several clubs have reservations over a number of proposed rule changes to be discussed at Thursday's meeting. But the dissenters will be told by the Premier League board to stop squabbling and get behind the plan, which aims to complete the season in six weeks between June 17 and July 26.

The Premier League have already agreed to pay a rebate of £330m to domestic and overseas broadcasters even if the season is completed, but the clubs will be told on Wednesday that the refund will be far higher if there are further delays to the revised schedule they announced last week.

The £330m figure is based on three rounds of fixtures having been scheduled for after July 16 — the original completion date in all of the Premier League's broadcasting contracts — and it will rise by £35m for every week the season extends beyond the weekend of July 25-26.

The best-performing clubs will pay more of the rebate, as part of the broadcast fees is based on league position and TV appearances.
It is understood Liverpool will repay £24.5m if they win the title, while bottom club Norwich would pay just £7.1m.

The average repayment would be £15.7m, but it will be closer to £20m for the top six. Of the £330m, £223m will go to domestic broadcasters and £107m to overseas rights holders.

The worst-case scenario — curtailment — would cost clubs £762m. The Premier League will use the prospect of financial disaster to push for a speedy resolution to outstanding issues on Thursday before a final vote on returning to action, set for next Thursday.

In addition to the issues revealed by Sportsmail, such as more substitutes, re-registering players and a multi-ball system, the most heated debate will be over deciding league positions if the season is not completed.

An unweighted points-per-game system, as adopted by the EFL, is the most likely solution, which would currently relegate Norwich, Aston Villa and Bournemouth.

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Re: Football's Magic Money Tree

Post by Royboyclaret » Tue Jun 02, 2020 11:06 pm

Chester Perry wrote:
Tue Jun 02, 2020 10:22 pm
today's post from Vysyble the dramatic difference in the uplift of staff cost for the big 6 and the 14 in 2018/19

https://twitter.com/vysyble/status/1267916119043649537

obviously they don't like being challenged for those European places. though other factors in place - such as revised formulas for TV distribution coming in the next (now current cycle) being anticipated
More thought-provoking stuff from Vysyble.

That latest % increase for the other 14 of 5.76% is pretty much in line with ours (£81.6m to £86.6m). But the interesting one is at the other end of the graph for the 2009/10 season, where Wages for the other 14 appear to have reduced by 2.23% from the previous season. That, of course, was our first season in the Prem and we bucked that trend by increasing our Wage bill by 67% from £13.4m to £22.4m. Numbers that are hard to believe now we contemplate our current Wage bill some 10 years later of £86.6m.

Perhaps history will eventually show Burnley's latest figure of £86.6m will remain our highest of all time.

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Re: Football's Magic Money Tree

Post by Chester Perry » Tue Jun 02, 2020 11:12 pm

Royboyclaret wrote:
Tue Jun 02, 2020 11:06 pm
More thought-provoking stuff from Vysyble.

That latest % increase for the other 14 of 5.76% is pretty much in line with ours (£81.6m to £86.6m). But the interesting one is at the other end of the graph for the 2009/10 season, where Wages for the other 14 appear to have reduced by 2.23% from the previous season. That, of course, was our first season in the Prem and we bucked that trend by increasing our Wage bill by 67% from £13.4m to £22.4m. Numbers that are hard to believe now we contemplate our current Wage bill some 10 years later of £86.6m.

Perhaps history will eventually show Burnley's latest figure of £86.6m will remain our highest of all time.
that will come down to the bonuses this season Roy as our basic wages will be similar if not a little bit more than last season - it all depends on the formula that is used - we know TV income is down by up to £15m or so (depending on who you believe) so if that is the prime denominator in bonuses it will be less - if not this season could actually touch £90m- which doesn't look too good at the moment

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 10:59 am

This is a truly fascinating article about whether the Middle East countries can maintain their "rentier states model" - Investing in offshore assets/businesses to generate funds that allows for the absence of personal taxation at home. This is important as it maintains acceptance of the absolute monarchy - it is viewed that personal taxation = personal representation. It is also significant for football, particularly at the European elite level, where sponsorship(think of those airlines and tourist bodies that pumped huge amounts into the game) in particular and club ownership would be severely impacted by the end of the model.

https://www.middleeasteye.net/opinion/c ... atter-time

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 11:08 am

A decision by the Italian heritage authorities appears in direct conflict with the Milanese city authorities and Mayor who wanted to preserve the shell for cultural purposes in any new Stadium development - "Milan's San Siro has 'no cultural interest' and can be demolished" - the two plans currently under consideration kept part of the shell for that purpose, demolishing the rest (as I have previously posted) one these can now effectively go ahead.

https://www.sportsmanagement.co.uk/news ... eid=345565

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 11:16 am

Something to watch with interest - Canal+ and BienSport are being hit with a legal compensation claim from subscribers in France - from SportsBusiness.com

Compensation sought for beIN Sports and Canal Plus subscribers
SportBusiness Staff - June 2, 2020

French pay-television broadcasters beIN Sports and Canal Plus have been hit by a legal claim launched on behalf of subscribers aggrieved at their lack of compensation offered amidst the shutdown of sports events, including Ligue 1 and Ligue 2 football.

The French league has been the outlier amongst Europe’s ‘big five’ after its 2019-20 season was terminated in April when French Prime Minister Édouard Philippe announced that the current campaigns of professional sports, including football, would not be able to resume because of the spread of the Covid-19 pandemic.

BeIN and Canal Plus have since reached deals with the French Football League (LFP) over rights fee payments, but their apparent unwillingness to compensate their customers has led to the action launched by lawyers Vincent Durand and Pierre-Henri Julliard on behalf of a group of subscribers.

The lawyers have been gathering complaints from subscribers, according to Le Parisien. A statement on behalf of the lawyers cited by the newspaper reads: “The subscribers to Canal Plus and beIN Sports have been deprived of the matches of Ligue 1 and Ligue 2 which should have been broadcast between March 14 and the end of May, without any financial compensation being offered to them.

“At the same time, the broadcasters categorically refused to settle the balance of television rights for the current season and jeopardised the finances of many clubs, asserting that the consideration for paying the rights was absent.

“A collective action is launched today (Monday) against Canal Plus and beIN Sports to request the reimbursement of paid subscriptions for the months of March, April and May.”

If the procedure is successful, subscribers have been asked to either keep the compensation paid out or direct it to their favourite club to help them during the Covid-19 crisis.

The statement added: “A legal action against each channel will be brought by means of a summons on behalf of the subscribers registered in the collective action before the appropriate courts.”

The LFP and beIN last week settled the thorny issue of outstanding international broadcast rights fee payments. The LFP announced on Friday that its board finalised an agreement with beIN that “definitively settles the rights owed” for the 2019-20 season.

The compromise deal reportedly means that beIN will pay €16.5m ($18.3m) instead of the €35m owed. Qatar-headquartered beIN holds the Ligue 1 international rights in six-year deal from 2018-19 to 2023-24 worth an average of €80m per season. The deal was agreed in 2014.

The fee instalment of €35m due at the end of April was not paid by beIN amid the suspension of the French top flight. An accord with beIN on the international rights followed on from agreements with beIN and Canal Plus over domestic rights fee payments. BeIN also missed a €42m fee instalment for its domestic rights before reaching a €10.6m settlement for matches already played.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 11:31 am

Some interesting thoughts on investing in the rebuilding of sport - this is very applicable to football - from SportsBusiness.com

The long view – investment opportunities in the rebuilding of sport
Nic Couchman, head of sport at Charles Russell Speechlys, considers the role that private equity might play in the building of ‘Sport 2.0’
June 3, 2020

As the impact, operationally and economically, of Covid-19 continues to rampage through the sports industry, restructuring and new investment will now be essential to achieving a sustainable and profitable future. Sports bodies, events and leagues own unique assets of considerable attraction to investors, from control of sporting calendars, regulations and commercial rights, to valuable data sets and heritage brands. For well-funded private equity investors with the right ‘partnerial’ approach and long-term vision, opportunities exist to benefit significantly from a new sport industry environment.

Sport in crisis
As we gaze around the Covid-19 battlefield at the charred and damaged remains of sport, it might be hard to imagine the reset and rebuild that inevitably will now take place. Sport has been sideswiped in the most brutal way and yet the continuing appetite to play and watch sport is such that even virtual horse racing and charity golf matches are gaining record audiences, and immense efforts are being made to get top level football games behind closed doors back on our screens.

The sports industry saw decades of more or less continuous growth but is now experiencing its worst economic disaster in recent times. The growth story, however, obscured some financial truths which are now becoming increasingly apparent. For all of its many successes in creating revenue streams from commercial rights exploitation, the sports industry is in most areas undercapitalized. Most of the income that comes into the sports goes out into event operations, player wages/athlete prize money, agency commissions, infrastructure investment and grassroots development. Reserves in most sports are minimal, with many highly reliant on Olympic distributions or public subsidies.

The sports industry essentially has mass social gatherings at the very heart of its business model and so Covid-19 is about the worst unforeseen event that could have hit it. For sports with an international dimension, the problem is exacerbated. Different and changing pandemic situations and regulations in different countries mean that border closures and major travel disruption will likely continue for an indefinite period to come, making international fixtures, series and tournaments very difficult to organize profitably.

The ensuing, highly probable global recession presents a ‘double whammy’, as corporates and brands will look to control or reduce their level of investments in sports marketing in favour of focusing on business survival.

Added to this the ongoing risk of second and third waves of viral escalation, the rigid and much restricted regulatory environment in which sports will now have to operate even as lock down measures ease, and the understandable fear factor that will no doubt continue to permeate the sports fan community, and the return to anything resembling normal conditions for sport looks a very long way off.

Public funding of sports will also no doubt be under enormous pressure, whether for vulnerable mega events or grassroots sports, as other calls upon the public purse take precedence in depressed economies. And there will be a limit to the extent that the larger sports bodies, such as the IOC, can provide financial support to their membership.

It has yet to be seen how much damage has been inflicted on this $700bn industry, but it will clearly run into multiples of billions. In this very challenging environment, sport is having to look at the new realities – cancelled events, massively reduced income, cash flow shortages and staff lay-offs, etc. – and examine their strategies both to meet the immediate challenges, and to reset and rebuild.

A new, entrepreneurial mindset, with a spirit of innovation at its core, will be needed to get the industry back on track.

Investing in ‘Sport 2.0’
A new, and potentially radically different chapter for sport is beginning to emerge. Tougher market and regulatory conditions, reduced budgets, tighter cost control and fewer events will all feature together with the acceleration of phenomena that were already impacting on the sector, in particular digital and technological transformation, and private equity investment.

US sport, football clubs and motor racing have long embraced private investment and ownership, especially at a team level. Specialist suppliers to sport, such as agencies and tech providers, have also long had private investment or have raised funds on the capital markets. Outside of these categories, however, there has been reticence from some areas of sport to engage seriously with private capital providers, and for private equity to see a compelling investment case to invest in sport itself.

There has been a cultural clash in many instances between sports stakeholders and private equity, not least because many sports are not run as businesses with profit as a primary driving motive, and private equity has not been able to perceive of sport, for all its ubiquity and growth trends, as something it could reliably quantify, sufficiently control and generate investment returns from.

All that is set to change, for a number of reasons:
- Sport is in distress; under-capitalized and concerned for its future, it needs security and cash resources to stabilise and underwrite its short to medium term position, and to rebuild

- Moreover, for the reasons set out above, resistance to change amongst leaders in sport will be much lower. Change is being forced upon sport, and it will need to adapt speedily to stay afloat

- As global digital transformation is accelerated by the impact of the pandemic, the value of content and strong, monetisable fan bases in the longer term becomes more pronounced. Customer, athlete and live data become increasingly exploitable and sports asset valuations potentially carry a long term digital premium as a result

- Rarity – sport comprises a limited number of available assets, some of which have decades of heritage and very deep roots, and some being internationally known brands with substantial legacy value, which have endured previous economic traumas and survived. Sports assets are not easily substitutable or replicable. Latent brand value and exclusivity are undoubtedly attractive features for investors. Investors may need to act now, or miss a ‘once in a lifetime’ opportunity.

New investment models
There have been several impediments to private equity investment in sports, some less apparent than others. Sports have not typically been structured as businesses and don’t have the governance arrangements that financiers would expect to see. They wish to retain autonomy over sporting and regulatory affairs, irrespective of the commercial implications. The integrity breaches in sport, from doping to corruption, have been a deterrent to investment. Governance frameworks in sport have not kept pace with the growth and globalization of sport. Good governance is, however, a pre-requisite for good investment. The Covid-19 crisis will accelerate changes to sports governance, eliminating some of the ‘old ways’, and making sport more investable.

Equally, the complex nature of sports structures and revenue streams can be a deterrent for outside investors. They naturally want to understand what they are investing in, who owns which IP, where the value lies and who controls it. The commercial frameworks, and collectively bargained arrangements between sports bodies, events, leagues, clubs and athletes, may well need to be remodeled and rationalized to optimize the conditions to attract private investors.

On the flip side, one of the fundamental problems for private equity investment in sport has been its own business model, typically requiring a buy out, followed by a three to five year drive to enhanced profitability and an exit for their investors, and to earn the coveted ‘carried interest’ for fund managers. Sport does not lend itself at all easily to this investment model – it essentially doesn’t want to be bought, built up and sold on. Nor does it want to part with, or be perceived as having sold, the ‘family silver’. In many cases, sports bodies will look at themselves as custodians, rather than owners of the sports they manage. In a sports context, successful private investment has to be attuned to this philosophy. There are signs that it is doing so. Having initially been reported as seeking a majority stake in Premier Rugby, for example, private equity giant CVC finally settled on a 27-per-cent stake in the league, and more recently on a 28-per-cent stake in Pro 14 rugby. CVC is now reported to be exploring a minority investment into Serie A in Italy.

A ‘partnerial’ approach
A more partnerial approach, helping sports to reset and develop their commercial platforms, providing the financial security from which to build value over the long-term, and without undue interference in sporting or regulatory affairs, is the formula likely to find most acceptance with sports current stakeholders and owners.

Investment funds are increasingly looking at a more blended approach, for example with minority equity stakes combined with debt finance structures, allowing some protection against the downside, whilst maintaining a sizeable interest in the upside. These are rare and complicated transactions. Our own experience advising the International Tennis Federation on its investment arrangements for the Davis Cup, for example, involved a challenging process of balancing and reconciling the interests of sports custodians and investors.

The sports market has now, finally, reached the stage where intelligently crafted, bespoke investment partnership arrangements are achievable to enable sport to continue to grow and to meet its many objectives, from elite competition to grassroots development. To some extent, private equity can replace the role customarily played by the larger agencies as long term business partners to sport, bringing both capital and commercial acumen to the board table, and allowing sports to structure more flexible and discrete arrangements with commercial agencies and partners. Investors can seek to achieve a measure of protection from going ‘all in’ in these hazardous times by linking some of their funding to performance metrics, e.g. the unfettered return to live sport.

Investors naturally like to reduce risk, and so issues such as cost controls, salary caps, and relegation/promotion rules also play a material role in investor decisions, and it is of course likely that increased investor involvement will lead to changes in traditional formats and approaches to these matters.

Future opportunities
Private equity has large reserves of deployable capital, and looking at long term growth trends for sport as we start to emerge from the depths of the current crisis, will see unique opportunities to enter the sports market at a time of great need at depressed prices.

From once being perceived as controversial imposters or ill suited partners with sport, smart private equity money could yet become the cavalry that an increasingly embattled sports sector needs, assisting in the re-emergence of a viable and profitable sports industry.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 11:56 am

Chester Perry wrote:
Fri May 08, 2020 12:35 am
Somehow I missed this on Monday - Simon Kuper (ESPN) talks to a Barcelona VP about the impact of the Pandemic

https://africa.espn.com/football/barcel ... ght-return

a few takeaways - note the one on the pay cut in particular:

- A slide in Barça's income
The virus has devastated the club's finances. In the 2017-18 season, Barca became the first club in any sport to hit $1 billion in annual revenues. As late as this February, says Cardoner, "we were over budget, it was a very successful position, awaiting a beautiful end of the year." Then football closed down. "We reduced our incomes extremely far," he admits.

Barca have lost about €50 million in ticket sales and its museum, €39 million in TV income, and between €20 million and €25 million in commercial income from its shops, football schools, "legends' activities" and so on. The total hit to revenues is already between €120 and €140 million, he says.

"This is for sure, what we know today. These millions will be in our losses at the end of the year." It's certain the club will make a loss this year, he adds. Spending will have to fall.


- Pay cut for the players
Barca's players have agreed to a 72% pay cut, following teleconferences between Bartomeu and team captains Messi, Sergio Busquets, Gerard Pique and Sergi Roberto. Cardoner notes that the pay cut only applies from the start of the lockdown in March until the season's end, and so, viewed over the whole year, players will only be losing 8-11% of their salaries. Still, this will be enough to allow all Barca's roughly 500 non-playing employees to keep their full pay.


- Debt of €460-470 million
Barca expect lower revenues next season, with fewer ticket sales and museum visitors. Cardoner says, "We are preparing the budget of next season and we will adapt our incomes to our spending."

He also says that the club's debt is about €460-470 million. Clubs report their debts using different criteria, but UEFA's benchmarking report published in January named only two clubs (Manchester United and Spurs) with higher net debts. (For some reason, UEFA's list of Europe's 20 most indebted clubs does not include Barca.)

That said, Cardoner insists the club's debt is manageable. He notes that it amounts to only about half of annual revenues, whereas a decade ago debt was about equal to revenues, at about €400 million.
Seems that Barcelona's finances are not quite as good as suggested above - stories now emerging that they were looking to shave wages in May the same they did in April

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

though it is being said that the players have not agreed to the cut

https://www.en24.news/2020/06/players-w ... -cuts.html

this is amidst other cost-cutting

https://www.insidesport.co/football-bus ... ced-by-50/

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 4:22 pm

Sunderland, whose owners have been causing fans ever increasing disquiet come out with an amazing statement in regards to refunds of season tickets for the rest of the season

https://twitter.com/eaamalyon/status/12 ... 4799262720

at least they have made a communication however poor it is - Newcastle are steadfastly refusing to make any statement on the issue currently

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 4:24 pm

Back to the source of the thread - today is dividend day for Manchester United Shareholders - the second one of the year - it's like having two birthdays for Glazers

https://twitter.com/KieranMaguire/statu ... 7007295489

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Re: Football's Magic Money Tree

Post by claretandy » Wed Jun 03, 2020 6:11 pm

The Athletic are reporting that Sky have deferred the rebate payment until next season.

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 6:48 pm

claretandy wrote:
Wed Jun 03, 2020 6:11 pm
9
The Athletic are reporting that Sky have deferred the rebate payment until next season.
I posted about that previously - here is what the athletic are saying about rebates to rights holders

https://twitter.com/AdamCrafton_/status ... 9637750784

for the sake of clarification - It is the Premier League that pay rebate (or more correctly receive a reduced payment from Sky) - the reduced pot will be distributed in accordance to the rules - which will affect the 20 teams in the Premier League that season (and possibly the Parachute payments of those relegated this season)

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Re: Football's Magic Money Tree

Post by Chester Perry » Wed Jun 03, 2020 7:18 pm

Chester Perry wrote:
Tue Jun 02, 2020 10:22 pm
today's post from Vysyble the dramatic difference in the uplift of staff cost for the big 6 and the 14 in 2018/19

https://twitter.com/vysyble/status/1267916119043649537

obviously they don't like being challenged for those European places. though other factors in place - such as revised formulas for TV distribution coming in the next (now current cycle) being anticipated
Today Vysyble's 2018/19 review shows us the staff costs for all 20 Premier League clubs and overlay that as a percentage of revenue

https://twitter.com/vysyble/status/1268239977122598916

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Re: Football's Magic Money Tree

Post by Royboyclaret » Wed Jun 03, 2020 9:15 pm

Chester Perry wrote:
Wed Jun 03, 2020 7:18 pm
Today Vysyble's 2018/19 review shows us the staff costs for all 20 Premier League clubs and overlay that as a percentage of revenue

https://twitter.com/vysyble/status/1268239977122598916
More food for thought from Vysyble today with the always entertaining Wages/Turnover ratios.

All Premier League clubs under 100% with the two highest being Everton and Leicester at 85.3% and 83.8% respectively, with the lowest two being Cardiff at 42.8% and Tottenham at 38.8%. All respectable enough with Burnley weighing in at a comfortable 62.9%. Even The esk has us at that figure now.

Much more interesting when comparing with Championship clubs which proves the "anything is acceptable" attitude when attempting to reach the promised land of the Prem. The top/worst five were Sheff Utd (195%), Reading (194%), Wigan (168%), Sheff Wed (168%) and Aston Villa (154%) with Blackburn not far behind on 134%.

Some scary figures there for owners of Championship clubs confirming the harsh realities of competing in that Division. Some 14 clubs have ratios above 100%, much worse than UEFA's recommended 70% upper limit.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 12:08 am

This sounds about right, in terms of what the Premier League have to assist the EFL - nothing more than they committed to at the start of the season (which is higher than the share they are obliged to with the refunds)- from the Mail

Premier League have not offered EFL clubs ANY financial help despite Government insisting on rescue package as struggling teams also face having solidarity payment slashed by 25%
+ Premier League haven't offered EFL clubs financial assistance to mitigate losses
- Top flight told providing rescue package was pre-requisite for returning to play
- EFL clubs face £200m financial black hole, according to chairman Rick Parry

By Matt Hughes and Sami Mokbel for the Daily Mail - Published: 22:30, 3 June 2020 | Updated: 23:22, 3 June 2020

The Premier League have not offered EFL clubs any financial assistance despite demands from the Government to help them through the shutdown, and could even cut their payments to the lower leagues next season.

Last month the top flight were told that providing a rescue package was a pre-requisite for returning to action.

In an analysis of the Premier League's financial position sent to clubs last week, the Board acknowledged the Government's demand that they 'must recognise solidarity responsibilities to the wider football pyramid', but suggested that their offer to advance 50 per cent of next season's £110million payments to struggling clubs, and to keep the fees at pre-Covid-19 levels, should suffice.

In an even more worrying development for EFL clubs, the Premier League plan to cut next season's solidarity payment by 25 per cent if the current campaign is curtailed.

Their justification is that they need to recoup some of the £762m rebate they would be forced to pay broadcasters in the event of abandonment.
The 'Season 2019-20 Rebate and Cash Flow Report', which Sportsmail has seen, states: 'The 25 per cent reduction in central Premier League income for season 2019-20 would require 25 per cent to be reciprocated through the League's solidarity contributions for season 2020-21.'

The Premier League have left open the possibility of clubs choosing to help in the future, but have yet to begin any discussions with the EFL and have made it clear that any talks will have to wait.

'Should the clubs wish to offer any additional financial assistance to EFL clubs discussions will need to take place at a later date,' the report states.
Culture Secretary Oliver Dowden will be questioned by MPs on the subject at a Department for Digital, Culture, Media and Sport committee on Thursday and is expected to reiterate the Government's expectation that Premier League clubs should assist those lower down the pyramid.
EFL clubs are facing a £200m financial black hole as a result of the coronavirus crisis, according to chairman Rick Parry.

The Premier League's offer of a £55m advance on next season's solidarity money has not been taken up by the EFL clubs, who concluded that accepting what is in effect a loan would create a cash shortfall later in the year.

The distribution of this season's £110m solidarity payment works out as £4.5m for each club in the Championship, £675,000 in League One and £450,000 in League Two. In addition six Championship clubs were in receipt of parachute payments of between £15m and £42m depending on when they were relegated.

Recently relegated clubs such as Huddersfield Town, Fulham and Cardiff would suffer considerably in the event of curtailment, as the Premier League would demand the prompt return of a proportion of this season's £42m parachute payment.

The Premier League's position is likely to infuriate many EFL clubs, who also face having to refund broadcasters as well as being denied gate receipts for the foreseeable future.

Match-day income makes up around 25 per cent of income across EFL clubs, and a far greater percentage in Leagues One and Two, compared to 15 per cent in the top flight.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 12:25 am

Interesting article from Miguel Delaney in the Independent looking at the challenges that Premier League Chief Richard Masters is facing

All eyes on Richard Masters with how the world sees the Premier League at stake
The Premier League chief executive has inherited a tricky job amid the coronavirus pandemic
Miguel Delaney - Chief football writer

Over the last two days, the Premier League has done a lot of talking about how they’re going to be watched. The broadcasters have been in intensive negotiations about the TV schedule, and who gets to show what and when. Among the issues is whether the BBC get the first Friday night game, but given that it may be Tottenham Hotspur vs Manchester United means that’s simply a non-starter for the big satellite broadcasters.

The hope is that it will be announced by Thursday. There are meanwhile ongoing discussions about what that TV “product” will look like without fans. The Premier League has been encouraging inventive solutions, and held a conference call with the “big six” to discuss those most desired by broadcasters. Some were demanded. The big six, however, made clear they weren’t doing them.

You start to get a picture as to why the job of succeeding Richard Scudamore as Premier League chief executive was so hard to fill. And that, of course, was before all this.

Over the last two days, the Premier League has done a lot of talking about how they’re going to be watched. The broadcasters have been in intensive negotiations about the TV schedule, and who gets to show what and when. Among the issues is whether the BBC get the first Friday night game, but given that it may be Tottenham Hotspur vs Manchester United means that’s simply a non-starter for the big satellite broadcasters.

The hope is that it will be announced by Thursday. There are meanwhile ongoing discussions about what that TV “product” will look like without fans. The Premier League has been encouraging inventive solutions, and held a conference call with the “big six” to discuss those most desired by broadcasters. Some were demanded. The big six, however, made clear they weren’t doing them.

You start to get a picture as to why the job of succeeding Richard Scudamore as Premier League chief executive was so hard to fill. And that, of course, was before all this.

That now seems so minor against Masters’s first two months, which have been consumed by more direct existential threats, both to the season and what the competition actually is. There was first of all the immediate unprecedented challenge of Covid-19. That has required painstaking diplomacy to get to this point, and obviously remains an ongoing problem. It will be quite a feat if 2019-20 is completed.

There is then the issue that has been greatly delayed as a consequence of the coronavirus crisis, and may correspondingly represent longer-term problems. That is the planned takeover of Newcastle United by Saudi Arabia’s sovereign Public Investment Fund.
It is already a moral problem because of the various human rights abuses the state is responsible for, as well as the murder of Jamal Khashoggi.

It sums up the kind of warped world elite sport exists in, however, that a far greater complication is instead something that threatens the lifeblood of the competition: the signal that carries it to so many TV screens around the world. That, of course, is the piracy problem represented by BeOutQ.

Football has therefore found itself caught in the middle of an economic war between Saudi Arabia and Qatar. BeOutQ – ruled by the World Trade Organisation to be run by the state – completely undermines Qatar company BeIn Sport’s ownership of the Premier League rights in the Middle East and north Africa region.

That may seem the driest of sentences, but its importance can’t be understated. It may well eventually affect who your club can buy and what players they can pay to stay.

“This is the biggest decision the Premier League will have to make, and will affect its future,” one source says.

It’s also an almost no-win situation.

If the Premier League rejects the takeover – as morally should be the case – they leave themselves open to considerable legal challenges. It is why many initially felt the takeover would go through relatively smoothly, because the will was for any rejection to be totally watertight. That was always going to be close to impossible, especially without any “morality” clauses in the regulations. Rejection would also run the risk of dissent from many shareholders – the owners – who want to be able to sell at the highest price.

If the Premier League passes the takeover, however, they leave themselves open to much more than the fiercest criticism from human rights groups and questions over what it would actually take to reject a takeover.

They would be “mere” accusations of moral bankruptcy. This would also affect the bottom line, as well as what the Premier League is.

Because, above anything, it is a broadcasting leviathan. That is why they were so desperate for a media figure to replace Scudamore. This was the foundation of his success.

Scudamore maximised the competition’s earnings by reducing the scope of the Premier League itself as a body, and essentially just making it a selling point for the competition, and its lucrative rights. From there, he had a small team build highly valued relationships with broadcasters all over the world – and that applied to non-rights holders as much as rights holders, given the possibility of any of them becoming future rights holders.

Out of that personal touch, the Premier League became the best in the business at the more sophisticated end.

“It’s one of the most valuable leagues in the world because they protect their content so well,” one source says. “The takeover would be a big blow to the future of intellectual property and commercial rights.”

Sanctioning the deal could threaten scores of those relationships, as well as the business model the competition has been built on.

For their part, the Premier League have already tried to do as much on this as they can, and probably exhausted all avenues.

They have been battling this for three years, lobbied the US and UK governments, issued public statements, and attempted to bring legal action in Saudi Arabia nine times. They just couldn’t get any law firm in the country to take it on – which is telling in itself.

Such vigour has greatly assuaged international broadcasters, particularly BeIn Sport.

But the problem would be if the takeover is then sanctioned. Many would see it as also sanctioning the state responsible for piracy. That decision – expected mid-June – is why this takeover is still unlikely to be settled for some time. The process continues to unsettle many.

“I don’t think it would sit well, and could really impact future relationships,” the source says. “It affects trust. Rights holders invest millions in content protection, and if the end result is a body behind it owns a club, it’s hard to justify.

“You’ll already see anti-piracy clauses, and it could bring the value of deals down. What happens in the next weeks could well determine the next few years.”

Many, appropriately enough, will be watching. It could well affect how we all watch the Premier League moving forward and the product on the pitch

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 12:32 am

Chester Perry wrote:
Tue May 26, 2020 3:20 pm
DAZN owners looking for new funding/investors as the costs of lockdown bite, they are prepared to sell an equity stake for it, would even consider selling the whole shebang.

https://www.sportbusiness.com/news/dazn ... -downturn/
DAZN in talks to sell Goal.com in an effort to raise much needed cash - from the New York Times

TPG in Talks to Acquire Goal, the Soccer Website, for $125 Million
DAZN Group is in final stage talks to sell the popular soccer website Goal.com to the investment firm TPG as it raises cash for its money-losing sports streaming platform.
By Tariq Panja - June 3, 2020, 6:29 p.m. ET

LONDON — DAZN Group, the sports media company owned by the billionaire Len Blavatnik, is in talks to sell Goal.com, the world’s largest online soccer news website, to the investment giant TPG for as much as $125 million, according to executives with knowledge of the discussions.

The sale of Goal, which offers content in 19 languages, comes during continuing financial difficulties at DAZN, which has been among the sports media companies worst affected by the coronavirus pandemic, which has shut down sports leagues and competitions worldwide. DAZN (pronounced da-zone) has invested billions of dollars on sports rights for its eponymous online sports streaming business, which has sustained heavy losses in its efforts to grow its subscriber base.

The company last year hired Goldman Sachs to explore fund-raising options, including the sale of an equity stake. The Financial Times last month reported that DAZN’s need for cash had grown during the pandemic, leaving it fighting to secure its financial future. In the absence of live sports events, subscribers have withheld payments or declined to renew agreements, while DAZN has taken its own emergency measures, including furloughing hundreds of staff members and suspending rights payments.

TPG, which has investments in a broad range of other media and entertainment companies, including Spotify and the Creative Artists Agency, would be acquiring Goal through one of its affiliates, according to people familiar with the discussions, who declined to be identified because the deal had yet to close. The talks, the executives said, started late last year as part of DAZN’s plans to focus and grow the cash-intensive streaming business. Under the proposals for the sale, DAZN has committed to continue working with Goal.

Representatives for TPG and DAZN declined to comment.

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 1:05 am

Turkish league leaders Trabzonspor join Manchester City (subject to appeal) in being banned from the Champions League next season for breaching FFP

https://apnews.com/dce7f85b850a20bf15f6a1274bf7593f

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 1:07 am

And with Turkey also likely to lose this seasons Champions League final - Germany and Portugal have emerged as contenders to replace them

https://apnews.com/cf0a5dee37937d49553c ... =AP_Sports

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 10:10 am

A bit of focus on Scottish football

That offer of support from philanthropist James Anderson while welcome is not as big as some hoped - amounting to around £50k per club

https://www.bbc.co.uk/sport/football/52912118

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Re: Football's Magic Money Tree

Post by Chester Perry » Thu Jun 04, 2020 10:15 am

though the finances in Scottish football are a bit different - if you look at the size of their Sky rebate (£1.5m) and the period in which they are being allowed to pay it back (5 years) together with the size of the new TV deal (£26m a season) - here SportsBusiness;com has the detail including info on streaming of home matches next season

SPFL negotiates Sky compensation as clubs to live-stream home matches
Martin Ross - June 3, 2020

UK pay-television broadcaster Sky has reached an agreement with the Scottish Professional Football League over compensation for the truncated 2019-20 season and has also given its backing to clubs to live-stream their home matches to fans when the 2020-21 season begins.
Sky’s exclusive live rights contract kicks in next season and, having fulfilled its final rights payment for the 2019-20 season, the broadcaster has been engaged in talks with the SPFL over money to be returned.
Following the suspension caused by the Covid-19 pandemic, the 2019-20 Scottish Premiership season was declared over on May 18 with eight full matchweeks still to be completed.
Sky and the SPFL have now reached a settlement widely reported to entail £1.5m (€1.68m/$1.89m) being paid back to the broadcaster over five years.
The SPFL and Sky announced today (Wednesday) that they have “agreed to spread the financial settlement for the games unable to be completed in season 2019-20 across the term of the new five-year contract, providing security and financial stability to the competition and its clubs”.
Sky’s new five-year contract from 2020-21 to 2024-25 is worth around £26m per season and includes live rights to 48 matches per season. Pay-television rival BT Sport also held live SPFL rights from 2017-18 to 2019-20 but was comfortably defeated by Sky during the rights auction held in late 2018.
SPFL chief executive Neil Doncaster said that the repayment agreement struck “means that any liability for games not delivered during season 2019-20 has now been settled, on terms that reflect Sky’s status as a committed partner and supporter of Scottish football”.

The live-streaming agreement announced today will allow fans to watch matches that would not otherwise have been broadcast live on UK television. According to the latest estimates, SPFL clubs are not expecting to be able to welcome full crowds back until the start of next year.

Scottish Premiership clubs are to live stream their home matches on their own websites and online TV channels, offering a ‘virtual season ticket’ for the 2020-21 season. Several Scottish Premiership clubs, including leading sides Celtic, Rangers and Aberdeen, already provide live streaming of their home matches to viewers outside the UK and Ireland on a subscription or pay-per-view basis.

Rangers have said that fans who buy season tickets for the 2020-21 campaign will be given free access to the live streaming. Aberdeen said that it would “offer virtual access to season-ticket holders for all closed-door home games and will continue to work with our colleagues at fellow Premiership clubs to explore potential arrangements to show away games”.

Doncaster stated: “This is an innovative and pragmatic solution to the challenges posed by Covid-19 and I’m grateful for the flexibility shown by our clubs and by Sky Sports.”

Rob Webster, managing director of Sky Sports, said: “Sky Sports is proud of our long-standing relationship with Scottish football and we have been committed to finding a positive solution for the SPFL and clubs. The virtual season ticket for the 2020-21 season is an innovative way to maintain the connection with fans and provide economic stability for the clubs, and we are very happy to support it.”

In preparation for behind-closed-doors matches, the English and Scottish FAs last month lifted their bans on the televisual broadcast of Saturday 3pm football fixtures for the remainder of the season. The ruling, which has been enforced in the England and Scotland since the 1950s, forbids live broadcasts of domestic or foreign matches between 2:45pm and 5:15pm on Saturdays as a measure to protect attendances at domestic matches.

No Scottish Premiership matches are currently shown live on free-to-air television. There are highlights broadcast by BBC Scotland, an arm of the UK public-service broadcaster. Delayed coverage of one fixture per match week is available on BBC Alba, the Gaelic-language channel.

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