Financial Football News Round-Up Edition 12

Financial Football News Weekly Round-Up 12

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 Sports

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 Hotspurs

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

CAA Sports Manchester City

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:

  1. Manchester United
  2. Real Madrid
  3. Bayern Munich
  4. Arsenal (I know!)
  5. Liverpool

Surprisingly the German Bundesliga came in as the most popular league while the top 5 players were surprisingly as followed:

  1. Lionel Messi
  2. Cristiano Ronaldo
  3. Anthony Martial
  4. Paul Pogba
  5. 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

Premier League Match of the Day

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

Premier League Ecatel

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 

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

MediaPro Serie A

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

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Financial Football News Round-Up Edition 11

Financial Football News Weekly Round-Up 11

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 22nd January 2018, featuring Deloitte’s Money League, David Beckham, Chelsea, Arsenal, UEFA and Serie A.

Deloitte 21st Money League Released

Deloitte released the 21st annual edition of their Money League, where they analyse the financial performance of the biggest clubs in world football.

Manchester United topped this years Money League, beating Barcelona and Real Madrid to top spot, edging Real Madrid mainly due to their Europa League triumph which also sealed a return to the Champions League.

A record 10 clubs from the top 20 came from the Premier League, boosted by record broadcasting revenues with Everton and Southampton both entering the top 20.

The Top 10 remained unchanged from last year however a strong year for Leicester due to their incredible Champion League exploits moved them 6 places to 14th.

You can see a list of the top 20 at the bottom of this article.

Beckham’s MLS Dream Is Close

MLS Beckham

David Beckham is due to finally announce the launch of his long awaited MLS Franchise in Miami. The launch of the team has been delayed significantly due to stadium location issues, however after 4 years of setbacks David Beckham is edging closer to his MLS dream.

This will be first time since 2001 that an MLS team will be based in Miami after the Miami Fusion folded due to poor attendances, something David Beckham will be all too aware of, however with his star power and the financial backing of his partners he will optimistic of the teams chances.

The MLS is in the process of increasing the number of teams in it’s divisions from 23 to 28, with Beckham’s Miami team due to be the 25th team in this plan.

Scottish Football Bets On Ladbrokes

The Scottish Professional Football League (SPFL) have renewed their partnership with official sponsor Ladbrokes on improved terms until 2020.

The new deal is worth around £5m over two seasons and sees a improvement over their previous £2m a year deal.

The new deal will boost finances at the Scottish league clubs as they look to improve the quality and competitiveness of the league, and despite this being a small step they will be hopeful of further commercial deals being struck.

Chelsea Players Go Doyen Global

Chelsea Doyen Global Deal

Chelsea have announced a two year deal with Doyen Global to be their players exclusive endorsement agency.

The deal will see Doyen Global work with Chelsea’s commercial team to maximise the revenue potential of their football players image rights.

This will be a huge coup for the advertising agency who already boast world renown stars such as Usain Bolt, Neymar and David Beckham.

This is a bold strategy by Chelsea as they look to exploit the growing commercial opportunities available as football continues to grow internationally.

UEFA’s Agent Fee Crackdown

UEFA is sensationally considering capping player agent fees due to agents being “disproportionately” well paid and the general belief that the quality of their work is falling. There seems to be a clear conflict with agents receiving their big pay days on the back of transfers that may not always be in the best interest of the player.

UEFA president Aleksander Ceferin said that clubs have told them they have been held “hostage” by agents.

Sanchez’s representative Fernando Felicevich received around £15m in his recent move to Manchester United, while Paul Pogba’s agent Mino Raiola gained an even more eye-watering £24m in his previously world record move to Manchester United.

With Financial Fair Play 2.0 reportedly in the works, agent fees will be near the top of the agenda.

Arsenal Sign Cryptic Deal With CashBet

Arsenal CashBet Deal

Arsenal have become the first club to sign an official Blockchain partner in software company CashBet who released their own cryptocurrency called Cash Bet Coin (CBC) on 24th January.

CashBet is a platform that helps facilitate the purchase of bets with cryptocurrencies in mobile games. They now hosts over 450 mobile games worldwide.

The Initial Coin Offering (ICO) of CBC is hoping to raise $40 million which should be boosted by the recognition gained from their partnership with Arsenal.

The deal will see CashBet featured prominently around the Emirates Stadium at Arsenal home games as Blockchain infiltrates the Premier League for the first time.

There is no news on whether Arsenal fans will be able to begin purchasing tickets and their halftime pies with cryptocurrency yet however …

Serie A TV Rights Disaster

Serie A TV rights bidding underwhelmed to such an extent that the bids failed to meet the reserve price set. This is the latest embarrassment for the once great league which is struggling to keep up with their European rivals financially.

Bids reached around 800m Euros, around 250m Euros below the reserve price. Serie A will now negotiate separately with clubs in a bid to achieve their financial targets.

The TV rights were for the 3 seasons between 2018 and 2021, and such low bids pale in comparison to the Premier League who received in excess of £4bn in their last deal, with an increase on that expected in their latest TV right package.

DHL Deliver New Chinese Super League Deal

Chinese Super League DHL Deal

The Chinese Super League have renewed their partnership with official sponsors DHL for another 3 seasons until the end of the 2020 season.

The deal continues as DHL look to further increase ties with the Chinese markets by getting a strong foothold in the league should it take off after the huge spending and investments that has gone into the league.

Aberdeen New Stadium Boost

Aberdeen have received a huge boosts as their plans for a new stadium have been backed by Council planners.

The plans for the £50m stadium and training facilities at Kingsford, were put on hold back in October after Aberdeen council rejected the plans, being told to look elsewhere for a suitable stadium location.

It has been claimed the stadium and training ground would create in excess of 400 jobs and bring millions of pounds into the local economy, however this has not be readily accepted by the local community with a huge objections to the plans being seen with the creation of the No Kingsford Stadium (NKS) group being totally against the plans.

Aberdeen see this move as a way to compete with Celtic and Rangers to avoid clubs pulling away from the club after all the hard work to remain competitive.

It is yet to be seen who will win this battle with the two sides not looking to back down, however this positive news will go along way to Aberdeen receiving permission to build their new stadium.

Deloitte Money League Top 20 (amounts in Euros):

1 – Manchester United (676.3m)

2 – Real Madrid (674.6m)

3 – Barcelona (648.3m)

4 – Bayern Munich (587.8m)

5 – Manchester City (527.7m)

6 – Arsenal (487.6m)

7 – PSG (486.2m)

8 – Chelsea (428.0m)

9 – Liverpool (424.2m)

10 – Juventus (405.7m)

11 – Tottenham (355.6m)

12 – Borussia Dortmund (332.6m)

13 – Atletico Madrid (272.5m)

14 – Leicester City (271.1m)

15 – Inter Milan (262.1m)

16 – Schalke (230.2m)

17 – West Ham (213.3m)

18 – Southampton (212.1m)

19 – Napoli (200.7m)

20 – Everton (199.2m)

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Financial Football News Round-Up Edition 10

Financial Football News Weekly Round-Up 10

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 15th January 2018, featuring Newcastle, Manchester United, Huddersfield, UEFA, Chelsea and Brighton.

Brighton Financial Results Released – Analysed by FFN

Brighton 2017 Financial Results

Brighton released their financial accounts for the promotion winning 16/17 season. The accounts saw losses grow by 50% despite record revenue as the club ambitiously sought Premier League football and set to reap the rewards in next years accounts – full analysis here.

Financial Fair Play 2.0?

UEFA Financial Fair Play 2.0

French newspaper Le Parisien are reporting that reforms on Financial Fair Play are looming due to Historically large clubs such as Real Madrid, Barcelona and Bayern dissatisfied with the current rules.

There are various changes being considered with a major one being to limit spending that isn’t matched by increased revenue to EUR 100m. This would be of particularly difficulty to the ‘new rich’ who won’t be a able to spend large sums without a rise in revenues first.

Sanctions to control debt are also under consideration that would specifically target debt heavy Manchester United.

A limit may also be imposed on limiting players at a club to stop the likes of Manchester City and Chelsea stockpiling youth players the loaning them in the hope of profiting in the future.

There is also took of redefining the meaning of ‘related parties’ in order to reduce the ways owners can pump money into the club without raising Financial Fair Play Issues. Manchester City and PSG both have large deals with Etihad and Abu Dhabi respectively, who are both related to their owners.

UEFA are due to vote on a reform on 24th May with a draft report rumoured to have already been created.

Newcastle Sale Stalemate

The long running saga involving the sale of Newcastle by Mike Ashley to Amanda Staveley continues to rumble, with talks currently hitting a roadblock and no sale in sight any time soon after a £250m offer was rejected. The current plight of the troubled Geordie side cannot of given prospective owners much confidence in taking over, with Mike Ashley not wanting to reflect this in his pricing.

This is also a difficult time for the manager Rafa Benitez, who is experiencing uncertainty in terms of transfer money available to spend in a bid to move the club clear of the relegation zone, something their owner will want to do but not a huge costs that will dent any sale proceeds he may gain.

Huddersfield Hydrated By Coco Fuzion 100

Huddersfield Coco Fuzion 100

Huddersfield have announced another commercial partnership with drinks company Coco Fuzion becoming their official hydration partner. The company produces carbonated coconut water drinks that naturally hydrate consumers with the electrolytes it contains.

The brand fits well with the Huddersfield playing style who will need a great deal of hydrating due to the all action pressing style the club implements.

This is the latest in a number of commercial deal Huddersfield have signed, taking advantage of their new found Premier League status.

Oops I Did It Again! – Chelsea Back In Trouble Over Youth Players

Fifa are reported to be investigating Chelsea for the third time in eight years for possible breaches of signing under-age players. The club deny any wrongdoing.

Previously the club have been banned for two transfer windows when in 2009, they were sanctioned for the purchase of Gael Kakuta, the ban was successfully overturned on appeal however.

Fifa have been a lot tougher on such punishments recently with Real Madrid, Barcelona and Atletico all receiving bans in recent years and Chelsea will hope they have not fallen foul of the rules to avoid a similar fate.

Man United Striker SIS Partnership

Manchester United SIS

Manchester United have signed a three-year partnership with Science In Sport (SIS), a sport nutrition company based in Lancashire. This represents another major coup for the company, with Manchester United become the 10th Premier League club to sign with the sport nutritionist.

As part of the deal SIS will provide Man Utd with a dedicated performance nutritionist, as well as installing a Fuel Station within the club’s training ground, giving players and staff direct exposure to SIS products at all times.

UEFA Release Huge Report On Football Landscape

UEFA last week released their annual report analysing the financial performance of all clubs in the 55 UEFA member associations in the 2016 financial year. The report details areas such as fan support, sponsorship, transfers and wages plus more. Stay tuned for analysis of this interesting report over the next week.

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Financial Football News Round-Up Edition 9

Financial Football News Weekly Round-Up 9

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 8th January 2018, featuring Chelsea, Tottenham, Wembley, Everton and the NFL.

Chelsea Have A New Chief In Town

Chelsea have announced the appointment of Guy Laurence as the club’s new chief executive effective as of February. 56 year-old Guy is the former CEO of Vodafone UK and also has sporting pedigree, having been director of Maple Leaf Sports and Entertainment, covering NBA, NFL and most relevant, the MLS.

Arsenal Meets Egypt In New Deal

Hyde Park Developments Arsenal

Arsenal, despite a difficult week have announced their first Egyptian commercial partner in retail company Hyde Park Developments as they look to gain a solid base in the growing African market.

As part of the deal, Arsenal will co-host quarterly training camps at two of Hyde Park Developments projects for marketing purposes, while also giving the company player access or marketing content.

The deal makes great sense for all concerned, especially with Mohamed Elneny, a key player for Egypt, playing for Arsenal.

Tottenham In Race Against Time For New White Hart Lane

Tottenham face a race against time for their new stadium, New White Hart Lane to be ready for next season as planned.

There is still considerable work to be done internally and getting the roof on the stadium that may be subject to unexpected delays. Levy has mentioned a contingency plan of another year at Wembley, further costs that the cub will be hoping to avoid.

There is also the possibility to rearrange the venue of the first few Premier League games of next season if the stadium will be ready shortly after season starts.

This will be a similar arrangement to Liverpool who played the first 3 games away from home last season while they redeveloped Anfield. Tottenham will have to reach an agreement with the applicable teams for the switch, if any is required, to happen.

Amazon To Bid For Premier League Rights

Amazon Premier League

Amazon have held talks and plan to bid for a share of the Premier League TV rights for the 2019 – 2022 seasons. Amazon have longed to enter the football market and may look to final realise those intentions for the current tender. The current total TV deal is over £5.1bn and is sure to increase in this tender.

Amazon will be competing with the dominant Sky and upcoming BT for the rights – although they have significantly more financial muscle than both of these companies, they lack the know-how and experience in the market that may reduce their willingness to go all out for the TV rights.

FA New Funding Boost For Grass Roots, Women’s Football and The FA Cup

The FA have announced an ambitious new funding package for financing the development of football in England from £123m to £180m.

The funding proposes to pump an additional £9m into grassroots, aiding over 20,000 affiliated clubs. There are also plans to set up Community Club Hub networks to help clubs have access to more direct investment.

Women’s football should benefit substantially with a commitment of an additional £50m over 6 years.

The FA also plan to double the FA Cup prize money from £15m paid out in the completion currently to £30m. This will enhance the importance of the cup which has diminished due to the growing financial importance of the Premier League and Europe.

The plan to finance this involves repaying the debt in relation to the building of Wembley Stadium, totalling £142m, with interest savings of around £3m once repaid. They are also in talks of entering an agreement with Chelsea, similar to the current deal with Tottenham, for Chelsea to rent Wembley while Stamford Bridge is rebuilt.

La Liga Overseas TV Rights Tender

La Liga have announced they are tendering the media rights for India, Europe and Oceania as they hope to bridge the growing financial gap between themselves and the English superpowers.

There has long been a sizeable gap between the TV right deals obtained in the two nations however the growing competitiveness of the league may lead to more interest in the competition for games other than between Atletico Madrid, Barcelona and Real Madrid.

Football Meets Football At New White Hart Lane

Tottenham NFL

The NFL have announced that a game will be played next season at Tottenham’s New White Hart Lane, despite an agreement for two a season.

The current agreement has led to increased speculation of the creation of a London Franchise club entering the NFL in the coming years due to the sheer demand and success of the games held in London so far.

Liverpool’s City Council Bail Out Everton

As mentioned last week the spiralling costs of Everton’s new stadium meant new financing was required, which has come in the form of a £280m land from the City’s council over a 25 year period for the stadium which is now projected to costs £500m.

The Council were quick to quash tax payer fears, claiming they will make a profit over each year of the repayment period, with an estimated £175m in profit. While also stating the loan will not come from any already committed funding in the local community.

Lack Of Sunlight Leaves Chelsea’s Stamford Bridge Plans in Turmoil

Chelsea’s rebuild of Stamford Bridge has been halted due to a family dispute due to the plans expected to lead to a ‘loss of sunlight’ caused by the stadium.

An injunction has been filed and will only be overturned if the stadium can be proved to be of social and economic benefit to the local community.

Chelsea will be hoping for a quick resolution to avoid missing any hard deadlines in the rebuild process that could set the project back severely.

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Financial Football News Round-Up Edition 8

Financial Football News Round Up

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 1st January 2018, featuring the Chinese FA, Manchester City, Barcelona, Real Madrid and Everton.

Swansea US Owners Hit a Brick Wall With Supporter’s Trust

Swansea City’s US owners hit a stalemate with Swansea’s Supporters Trust over a deal to buy the Trust’s shares. The US owners currently own around 68% to the Trust’s 21% and were looking to buy at least half of these.

The current plight of the relegation threatened team has left the Trust to reconsider their position, whilst the start of the transfer window strengthened the view for a ‘wait-and-see’ approach.

There has been said to be no breakdown in relations between the parties, which have been built back up after a tense beginning after the US takeover in June 2016 where the Trust felt left out of sale negotiations.

Soccerex Index Brings Surprising Results

Soccerex Manchester City

Soccerex, the organisers of the world’s largest football finance forum, this week announced the results of their first ever football finance index that ranks clubs by their financial muscle.

The index ranked Manchester City as the having most financial clout, followed surprisingly by Arsenal. Shockingly, 4th place goes to Chinese club Guangzhou Evergrande, with Barcelona not even making the top 10 despite flexing their financial muscles this weekend to purchase Phillipe Coutinho for £146m, the second largest transfer in history.

Here is your top 10:

  1. Manchester City
  2. Arsenal
  3. PSG
  4. Guangzhou Evergrande
  5. Tottenham Hotspur
  6. Real Madrid
  7. Manchester United
  8. Juventus
  9. Chelsea
  10. Bayern Munich

China Transfer Tax To Continue

The Chinese Football Association (CFA) have confirmed the ‘transfer tax’ will remain in place for the 2018 winter transfer window in a bid to further strengthen the growth of domestic players in the Chinese League. The ‘tax’ applies to any foreign signing of Yuan 45m (£5.1m) or domestic player signing of Yuan 20m (£2.3m), with the club having to pay the equivalent transfer to the CFA for youth development, essentially doubling the fee.

The move will, and has, slowed down players joining the Chinese league with the huge expense of involved after an initial flurry last year with the likes of Oscar joining for outrageous fees. This will inevitably slow down any shift in football power to China despite the financial power the clubs have been shown to have.

Barca Beat Madrid In La Liga TV Revenue

La Liga TV Revenue

Despite beating Barcelona to the La Liga title last season, Real Madrid were bested by their bitter rivals in terms of TV revenue for the 16/17 season. Barcelona pocketed 146.2m compared to Madrid’s 140.1m.

At 1.2bn, La Liga total TV revenue given to La Liga clubs surpassed 1bn for the first time ever despite the Premier League deal being more than 4 times bigger showing the issues Spanish clubs have to compete financially. Interestingly, the disparity in TV revenue is between the La Liga giants and the smaller clubs is huge, with the Spanish top two capturing over 20% of TV revenue in the 20 team league.

The TV revenue is split evenly for 50% of the amount, with the other half calculated based on performance on a rolling five year basis and television audience for televised games.

Huddersfield Shoe-In A New Sponsor

Huddersfield Goodwin Smith

Huddersfield have announced a new commercial partner in designer footwear company Goodwin Smith until the end of the season.

The deal will provide the players with the footwear to increase brand exposure while they are out and about. Huddersfield fans will also receive exclusive offers, competitions and giveaways from Goodwin Smith.

Everton’s New Stadium Cost Rise

Everton Stadium Costs

Everton’s new stadium is expected cost significantly more than the initial £300m budgeted for. The stadium, to be located on the Liverpool waterfront at Bramley Moore is expected to have planning permission granted soon, with completion expected in time for the 2022/23 season.

The stadium is expected to see a significant capacity increase on their current home Goodison Park that seats 39,572 fans.

Rising stadium costs hit Tottenham earlier this season as well due to rising inflation and the sheer complexity of building a stadium being underestimated by these clubs.

 

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Financial Football News Round-Up Edition 7

Financial Football News

Here is your (slightly light) 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 25th December 2017, featuring Chelsea, Virgil Van Djik and Celtic.

Chelsea Announce Financial Results

Chelsea Financial Results

Chelsea this week announced their financial results for the Premier League winning 16/17 season. Chelsea recorded a £15.3m profit due to profit on player sales of £69.2m, largely due to Oscar’s move to China for £60m which has only just been included in the accounts.

Turnover rose 9.8% from £329.1m to £361.3m, stemming largely from increased broadcast revenue and winning the after mentioned Premier League title.

A full analysis of Chelsea’s financial performance will be conducted once these accounts are made public.

Virgil Van Djik Celtic Christmas Gift

Virgil Van Djik Celtic Windfall

The big news of the week was undoubtedly Virgil Van Djik’s move from Southampton to Liverpool for a world record fee of £75m for a defender.

Southampton will obviously be satisfied with the fee, however a seemingly unconnected party in former club Celtic will also be counting the money.

As part of his move down south, Celtic negotiated a 10% sell on clause, meaning a £7.5m windfall for the Scottish Champions who will be hoping to use it in the upcoming transfer window.

Transfer Window Opens

Transfer Window Opens

The transfer window opens today with clubs looking to acquire players to meet their season targets. We have probably already seen the largest transfer of the window confirmed in Virgin Van Djik, however we should expect other big deals with the rumours swirling.

These transfers can have a large impact on the finances of each club and their compliance with Financial Fair Play as previously discussed here.

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Financial Football News Round-Up Edition 4

Financial Football News Round-Up 4

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 4th December 2017.  Featuring Tottenham, Crystal Palace, La Liga and the Premier League.

Gold Hart Lane – Tottenham’s New Stadium Price Has Doubled

New White Hart Lane

Tottenham’s planned new stadium has hit a hitch, with development costs soaring from an expected £400m to an eye-watering £1bn! The news will come as a huge shock to Daniel Levy, with the reasoning being the complexity of the project was more than first thought. The expected £1bn of costs will make the New White Hart Lane the most expensive football stadium in Europe. Tottenham are currently debt-free, however this will no longer be the case with this added costs which is due to be financed in part by investment bank Rothschild and other unnamed banks. This added debt will pull the Tottenham purse strings even tighter, making it even harder for Tottenham to maintain their competitiveness.

Eagles’ Selhurst Park Capacity Set To Soar

Selhurst Park Upgrade

Keeping with the stadium theme of this week’s round-up Crystal Palace have unveiled plans to increase the capacity of their home Selhurst Park to 34,000 from its current 26,000 seats. The development is expected to costs the South London club around £100m and is expected to begin in a year’s time. The developers are KSS, who have re-developed Anfield and Twickenham in the past. A planning application is due for submission in January 2018. Further analysis to follow…

Anfield To Get Bigger?

Liverpool CEO Peter Moore revealed that the club is ‘looking very closely’ at expanding Anfield to 60,000 seats in a bid to meet demand. He boasted that ‘for every seat they’re ten people who want to buy it’. This is despite Anfield only recently being re-developed to 54,000 seats by extending the Main Stand. Liverpool have a permit to increase the Anfield Road end until 2019 and will be looking to exercise that right to keep up with their domestic rivals, with Tottenham and Chelsea both in the process of building new Stadiums.

And It’s Live! Premier League TV Rights Are Up For Tender

Premier League TV Rights

The Premier League have tendered the TV rights for the 2019 -2022 seasons. The deal is likely to exceed the previous record-breaking £5.14bn agreed in 2015, with the deal for an record 200 games – representing over half of all Premier League games. Technology giants Amazon and Facebook are rumoured to be interested in bidding. Further Analysis to follow…

Belgium Are Ousted By England In Euro 2020 Bid

England’s football home, Wembley, will host 7 games at Euros 2020 after Belgium capital Brussels lost their rights to do so over doubts on their planned new stadium. The 2020 Euros will be first of its kind, with the tournament taking place all over Europe across 12 venues. Wembley was already confirmed to be holding the Semi-Finals and Finals; however they will now take over from Belgium by hosting 3 group games and a Last 16 tie to the Excitement of England nationals.

Y Es En vivo! – La Liga TV Rights Are Up For Tender

La Liga TV Rights Tender

Another day, another tender! La Liga are also in the process of sending out tenders for their TV rights for the 2018 – 2022 seasons. The current deal brings in around 1bn a season, with the hope that the new deal will increase that figure to 1.3bn, as they look to close the mounting gap between themselves and the Premier League. Further analysis to follow…

Another Day, Another Tender – The EFL TV Rights Are Also Up For Tender

All good things come in three and here is the third tender in this week’s round-up. The English Football League will also be tendering their TV rights for the either a three or five season period. The deadline for offers is the 15 December, with all rights currently held by Sky Sports.

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Celtic Looking to Invest Down Under

Celtic eye A-League Investment

Scottish Champions Celtic are interested in purchasing an Australian top flight club, with Brisbane Roar and Central Coast Mariners both mooted as possible targets. The move signals a change in business strategy for Celtic as they look to build their global presence by investing in Australia and gaining first-option on any bright young players to come out of the club they acquire.

Celtic are rumoured to be looking at business and investment opportunities in Australian football with Celtic representatives recently travelling to Australia to visit the Central Coast Mariner’s new training centre, a potential target should they make a move. Central Coast is also a former club of Celtic player Tom Rojic, who Celtic brought the player from in 2013, so there is an existing relationship that could provide the foundations for talks.

Central Coast Mariner’s coach confirmed the interest, he stated: “I haven’t personally spoken to anyone at Celtic, that’s been handled by Shaun Mielekamp (CEO) and Kathy Duncan (CFO).”

Celtic target Central Coast's recent league positions
Central Coast’s recent league positions

Central Coast are having a troubling period in the league finishing 8th twice and 10th in the 10 team league. This was after a good spell, finishing 3rd or higher in the 4 seasons prior to this recent dip. The recent dip may be good news for Celtic, making now a great time to buy the troubled team and there is potential if you look at their previous form. They are currently 5th this season as they look to put the last 3 seasons behind them.

The team has had success with high profile players, with former Crystal Palace Captain Miles Jedinak coming through the Central Coast ranks. Brighton Goalkeeper Matthew Ryan is another, as is Celtic’s Tom Rojic. Their most lucrative player was an unknown winger Roystyn Griffiths, who joined a Chinese team for around £1m. The last couple of years have seen little transfer activity for the team outside of Australia, with no monetary purchases or sales in the last year.

Another potential target is Brisbane Roar, whose future under their current ownership is under threat. The owners, Indonesian-Bakrie Group are dealing with financial difficulties, and the club was nearly wound down after threats by the Australian F.A. in 2015.

Celtic Target Brisbane Roar's League Position
Brisbane Roar’s recent league positions

Brisbane Roar have been doing well in recent years, winning the league in 2014 and finishing 3rd in the last two seasons. However this season has taken a turn for the worse in light of their recent financial difficulties, they languish 8th in the table and will hope to turn things around quickly. Such poor league form, combined with their already poor financial situation, make the team a good proposition to buy cheaply.

The team seems to have more talent coming through then Central Coast recently, with promising players moving to Europe in each of the last 4 seasons, bring in around £600k in profit. However their players have not had as much high-profile success in Europe as Central Coast. Tommy Oar, a left winger, played over a 100 games for Dutch side Utrecht and Micheal Theo had a spell at Burnley.

The interest in these clubs is in light of a potential new operating model in the A-League which is set to give clubs more autonomy in their dealings. However the deal failed to pass through Congress this week, meaning further uncertainty around the position of A-League clubs. FIFA are to work with the Australian FA to try and find a resolution, and may even end up taking over the operation of Australian football which could cause huge changes. Such news may delay formalisation of any bids for Australian clubs by Celtic and other interested European teams.

Celtic are in desperate need to grow commercially, with the Scottish Champions having exhausted all possible commercial streams in Scotland. Rangers are yet to provide any such competition to elevate Scottish football, meaning any increases in TV revenue are unlikely to be of any help if they wish to remain competitive in Europe, where their financial success comes from.he current TV deal, which has two years still to run, sees Scotland below the likes of to the Poland, Norway, Sweden and Denmark in terms of TV money.

A potential move to the Premier League was sought after, however the chances of that happening are remote.

Australian football is a relatively untapped market with Manchester City’s owners acquiring Melbourne City in 2014, helping to build their brand over in Australia to increase sponsorship deals and other commercial offerings. Australia are also 39th in the FIFA world ranking and will once again be at the World Cup in 2018, showing their ability on the pitch. Manchester City have already found success here, having sold Aaron Mooy to Huddersfield for £8.2m. City Group brought Melbourne City for around £12m, so this one transfer represents around a 75% return on their capital from that one transfer alone!

There is also huge potential to build brand exposure in the growing market. The A-League recently signed a TV rights deal with BT, representing a chance to increase viewership of Australian football, which will only be enhanced by a good World Cup showing.

Investment wise, increasing TV deals mean there is the potential to realise a share in any revenue growth which seems likely. The A-League agreed a deal with ESPN in Australia worth around £30-£35m a year until 2023, and although it is tiny in comparison to the Premier League, the size of investment required is also relatively smaller. There has been issues however surrounding the distribution of the TV revenue, with A-League clubs dissatisfied with the current arrangement. The TV rights have room to grow with it being dwarfed by the TV deals for Australian football (American football) and rugby.

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Financial Football News Round-Up Edition 3

Financial Football News Weekly Round-Up Edition 3

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 27th November 2017, featuring the Champions League, Manchester City, the London Mayor and Celtic. Stay tuned for further analysis of these developments over the coming week.

Pay day for Eagles as Allardyce Flies North

Allardyce this week joined Merseyside strugglers Everton on 18-month contract. Everton have been lifted by the announcement, recording 2 wins since Big Sam was given the job to move up the table. Also lifted by the news was Crystal Palace owner Steve Parrish, who’s club will net £2m from the deal with Allardyce triggering a clause having moved to another club after his resignation in the summer, supposedly to retire.

Santander Banks Champions League Deal

Champions League Sponsor

The Santander Bank is to become an official sponsor of the UEFA Champions League from the 2018/19 season for 3 years, joining Heineken and Nissan as part of commercial sponsorship process currently ongoing for the next 3 seasons. This is a change in sporting direction for Santander, with the deal ending their 11 year association with Ferrari in F1 racing.

West Ham, There is a New Mayor in Town…

And we are not talking about Moysey! Sadiq Khan will from this week take control of the operation of the London Stadium in a bid to get a grip with the stadium’s finances. The London Stadium deal agreed with West Ham under the former Mayor Boris Johnson’s watch, looks set to cost taxpayers £24m in 2017-2018, with West Ham paying just £2.5m-a-year to rent the 60,000 seater stadium. More analysis to follow…

Thai Airways Fly to EFL

English Football League New Sponsor

The English Football League (EFL) have announced a season-long sponsorship deal with Thai Airways, giving the airline a large stadium presence for the EFL Play-off finals at Wembley, as well as the Carabao Cup final. No figures have yet to be announced as the EFL continue to build their presence overseas. More analysis to follow…

Celtic Looking to Invest Down Under

Celtic eye A-League Investment

Scottish Champions Celtic are interested in purchasing an Australian top flight club, with Brisbane Roar and Central Coast Mariners both mooted as possible targets. The move signals a change in business strategy for Celtic as they look to build their global presence by investing in Australia and gaining first-option on any bright young players to come out of the club they acquire. More analysis to follow…

Puma pounce to sign Manchester City

Manchester City Puma Deal

Manchester City have agreed a huge £50m a year deal to replace current kit supplier Nike with Puma. The new deal represents another commercial win for the Premier League leaders, dwarfing their current £20m-a-year deal with Nike agreed in 2012. The Nike deal expires at the end of the current season and Manchester City have moved quickly to exploit their growing global presence after a strong start to the season. Further Analysis to follow…

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Financial Football News Round-Up Edition 2

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 20th November 2017, featuring Manchester United, La Liga, and technology giants Facebook and Amazon. Stay tuned for further analysis of these developments over the coming week.

Manchester United Have a New Barista 

Manchester United New Sponsorship

Manchester United announced their first-ever coffee partner, coffee specialist Melitta on a multi-year contract. The German company will as part of the deal install over 200 coffee machines in the Old Trafford’s hospitality areas. The deal is the 54th commercial deal for arguably the biggest club in the world. More analysis to follow…

La Liga TV Rights Attract Amazon and Facebook

Facebook Amazon La Liga

Amazon and Facebook are set to shake-up the European football TV market with the intention to bid for La Liga TV rights. La Liga TV rights are up for grabs for the 2019 season onwards, representing a great opportunity for the technology giants to further penetrate the sporting industry. More analysis to follow…

It’s a No-Go Staveley… For Now

Amanda Staveley lead PCP Capital Partners have had an offer worth up to £300m rejected for Newcastle United by Mike Ashley. The deal relies on various performance based stipulations to reach that figure, which did not appeal to Mike Ashley. Mike Ashley has warmed to the idea of staggered payments if the overall price is right. More analysis to follow…

EFL Trophy and Chill

EFL Trophy Live Streaming

The Checktrade Trophy will be live streamed by the English Football League (EFL) on their own platform, iFollow. The trial will start with the streaming of matches up to the quarter-finals to the joy of EFL fans. Semi-Finals and the Final will be shown on Sky Sports. More analysis to follow…

ESPN Gets Singapore English Premier League Highlights

Singtel ESPN Premier League Highlights

ESPN have partnered with Singapore TV provider Singtel to show premier league highlights online. The partnership will allow ESPN to charge a subscription to Singapore football fans to see all the highlights from England, further enhancing the football following in Asia. More analysis to follow…

Premier League Players Get Richer and Richer

The average wage in the Premier League surpassed £50,000 for the first-time ever. The survey, conducted by Global Sports Salary Survey (GSSS), stated that the average yearly salary was a cool £2.64m, with Manchester United having the largest wage bill in England. More analysis to follow…

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