Here is your weekly financial football news round-up to keep you up to date with all things financial football! This is your round-up for the week commencing 29th January 2018, featuring Match of the Day, The Premier League, Tottenham, BT Sports, Manchester City, CAA Sports and the London Football Exchange.
BT Sports’ “Plan B”
BT Chief Executive Gavin Patterson this week declared his company do not need the Premier League rights for 2019 – 2022 to be competitive and that they have a “plan B” as companies plan their bids for the Premier League rights.
BT will most likely win a fair amount of games, however should they not they can point to their hugely successful Champions League deal as an indicator of their non-reliance on the Premier League after seeing BT Sport viewership up a record 22% last quarter.
BT paid £960m for 42 live games as part of the £5bn deal last time, with Sky taking 126 live games for over £4bn. The deal is likely to be around £6bn this time around with Amazon and Facebook potentially in the running.
We will follow this with great interest.
Record January Transfer Window
Premier League clubs spent a record £430m in the 2018 January transfer window, smashing the previous record of £225m with ease, spending over £150 million on deadline day alone.
This record breaking feat started early in the window after Liverpool paid £75m for defender Virgil Van Djik which was a new record for a defender and represented a fifth of the previous record by itself.
Two thirds of the amount was spent by top 6 clubs with Liverpool, Manchester City and Arsenal all buying a player for over £50m.
This record spend was helped by a record in player sales with around £340m received by Premier League clubs with the notable sales of Coutinho (£145m) and Diego Costa (£60m), meaning the net spend was only around £90m.
Tottenham Record Attendance
Tottenham this week beat the Premier League record attendance with 81,978 fans watching their 2-0 victory over Manchester United at Wembley.
This beat the previous record they set this season in their impressive 4-1 victory over Liverpool in October.
They have room to even beat this attendance with England’s home stadium seating 90,000 which if filled would be an incredible feat for Tottenham.
We at FFN have estimated the takings for this game in our weekly Matchday Money article, click here to see how much this record breaking feat banked the club.
FIFA Transfer Market Report
Fifa this week released their Global Transfer Market report which showed an astonishing 32.7% increase in global transfer fees as transfers swelled to an eye-watering $6.37 billion.
The top 50 clubs spent around two-thirds of this amount, however this doesn’t take into account the transfer fees they also received.
The amount of players transferred also grew to record numbers as 15,624 players swapped clubs in 2017.
Interestingly of players transferred, a fifth came from South American giants Argentina, Brazil and Columbia, with over 3,000 players swapping clubs from these three nationalities.
Manchester City and CAA Sports Join Forces
Creative Artists Agency (CAA) Sports have been appointed by Manchester City to lead their commercial drive to create global partnerships as the race to commercial success and revenue heightens.
The deal is actually with Manchester City’s owners City Football Group (CFG) so CAA Sports will develop a global strategy for the whole group including Spanish side Girona, New York City, Melbourne City, Japanese side Yokohama F Marinos and Uruguayan side CA Torque.
This is a logical next step for City as they look to consolidate their place as a world-leading side by better competing with commercial giants such as Manchester United, Real Madrid, Barcelona and Bayern Munich.
Manchester United’s Chinese Influence
Manchester United once again showed their commercial dominance by retaining their position as the most popular online team in China in a new report by Red Card as the riches that can come from being popular in China increase.
The top 5 were as followed:
- Manchester United
- Real Madrid
- Bayern Munich
- Arsenal (I know!)
- Liverpool
Surprisingly the German Bundesliga came in as the most popular league while the top 5 players were surprisingly as followed:
- Lionel Messi
- Cristiano Ronaldo
- Anthony Martial
- Paul Pogba
- Wayne Rooney
Many clubs have recently opened offices in China as they look to exploit the growing support with China that brings new commercial opportunities for both players and clubs, with Rooney and Martial being surprising names in the top 5.
Manchester City, Chelsea and Tottenham all made the top 10.
Match of the Day Renewed For Three More Years
Popular BBC football highlights programme Match of the Day has renewed its rights for the 2019-2022 seasons as part of the Premier League TV tender process.
The deal is moderately up from last season at £211m from £204m, with the deal also including coverage of Match of the Day 2, Football Focus and The Premier League Show.
Match of the day has been running since 1964 for all but 3 seasons, with the show very popular in the UK with over 37 million people viewing the show last year.
This is the first part of the tender process with the rights for live games currently being negotiated.
David Beckham Miami Dream Realised
As mentioned last week, David Beckham officially announced his Miami franchise, exercising an option within his contract at former side LA Galaxy.
The yet to be named club will play in a 25,000 seater stadium, with the land purchased in 2015 after fierce and still fierce opposition from residents.
David Beckham’s attention will now turn to readying the team for their MLS debut in 2020 and growing their commercial revenue with current MLS clubs having an unsustainable over-reliance on ticket sales with 80% of revenue coming from this source.
The Miami team will be joined by a new team in Los Angeles, bringing the total teams in the MLS to 23, with plans to eventually increase this to 28.
Premier League Piracy Battle Win
The Premier League have won a huge battle in the crackdown on piracy after a Dutch court ordered internet hosting company Ecatel to stop providing services for streaming Premier League matches or face a €1.5m penalty.
This is a crucial judgement that will lead to similar sanctions placed on other internet hosting platforms as the Premier League look to stop potential leakages that reduce TV revenues.
This has been a long, enduring battle with the Premier League continuously making headway as less and less services provide illegal streams, this is a huge issue for all TV programmes and may require a combined effort to eliminate the act of piracy.
ESports Rapid Growth
The booming E-Sports market hit $700 million revenue in 2017 with the industry expected to be worth more than $1.5 billion by 2020.
The market has achieved hyper growth in the last few years with many clubs now employing players to play as their football team in tournaments to take advantage of the growing market.
The E-Sports market is dominated by first-person shooters, however football is also growing with the FIFA franchise currently conducting their annual FIFA tournament to great fanfare, with the winner last year earning a cool $200k – more than the average league 2 footballer.
The Deloitte Money League specifically focused on the growing market with many teams joining the action early in order to gain a foothold before it takes off with the likes of Manchester City, West Ham and PSG all owning E-Sports teams while Stan Kroenke also has invested in the industry.
London Football Exchange
The London Football Exchange (LFE) has revealed plans to launch its own crypto-currency as the growing industry sees another entrant with the aim of creating a global football community while allowing individuals to take part in various club and fan experiences from match day tickets, tours, VIP experiences and other offers.
The exchange will facilitate the raising of finance for football clubs, with fans able to take small equity stakes in the clubs.
LFE has said they are in talks wit over 50 clubs, including a number of Premier League clubs with the hope of raising $350million initially.
This would open up a whole new world for football clubs looking to grow with the most popular clubs most likely to benefit from this move. It will be interesting to see how such a move would interact with Financial Fair Play.
Serie A Mediapro Lifeline
After the embarrassment of their failed TV rights auction, where no companies met the $1.05bn reserve price, Media Pro are in talks over a $950m for the 2018 – 2021 seasons.
Media Pros initial offer which involved the creation of a TV channel in partnership with Serie A which would be incredibly innovative and could be distributed on various platforms was rejected so talks will continue with a potential deal of around $1bn