tag:theconversation.com,2011:/ca/topics/champions-league-10033/articlesChampions League – The Conversation2022-08-17T14:53:28Ztag:theconversation.com,2011:article/1888262022-08-17T14:53:28Z2022-08-17T14:53:28ZA lucrative new African football league is coming: the pros and cons<figure><img src="https://images.theconversation.com/files/479352/original/file-20220816-26-vqj8jb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Zouhair El Moutaraji celebrates Morocco's Wydad AC winning at the Caf Champions League in 2022.</span> <span class="attribution"><span class="source">AFP via Getty Images</span></span></figcaption></figure><p>The Confederation for African Football (Caf) recently <a href="https://www.cafonline.com/press-release/news/caf-launches-groundbreaking-africa-super-league">announced plans</a> for a continent-wide Africa Super League. It will kick off with 24 clubs from 16 countries in August 2023. </p>
<p>The new tournament will run annually from August until May, with 197 games in a format much like the European <a href="https://www.uefa.com/uefachampionsleague/">UEFA Champions League</a>. It starts off with the teams grouped in three zones – North Africa, West/Central Africa and East/Southern Africa. The top 16 clubs move into a knockout phase.</p>
<p>The enticement is a projected <a href="https://qz.com/a-super-league-is-promising-to-make-african-soccer-cl-1849404513">US$200 million windfall</a> from Caf with 25% of the funds going to the development of women’s and youth football. The rest goes into prize money for participating clubs. The champion club will receive US$11.5 million and all members of Caf will get US$1 million each. This is much bigger than the US$2.5 million received by current winners of the African Champions League club tournament. The <a href="https://www.cafonline.com/total-caf-champions-league/">African Champions League</a> and the <a href="https://www.cafonline.com/total-confederation-cup/">Confederation Cup</a> will continue with entries from all African countries but the format for both competitions will return to the earlier iteration of two-legged elimination contests. </p>
<p>For Caf, which lost an <a href="https://www.bbc.com/sport/africa/62478024">estimated US$45 million</a> in 2020-21, the league is a way to earn big money from television rights. However, Caf provided very few answers to questions about the practical realities of the league when its plans were announced in Tanzania on 10 August. </p>
<p>There are pertinent questions that need clarifying, but even at this early stage it’s clear that there are strengths and weaknesses to the shiny new Africa Super League.</p>
<h2>Issues to be clarified</h2>
<p>There are at least two major issues that Caf should clarify. The proposed Super League, which runs for the entire football season, involves 24 clubs that will, at the same time, be playing in their national club competitions. Continental competitions often disrupt local leagues. In places like the Democratic Republic of Congo and Nigeria, clubs sometimes <a href="https://theconversation.com/how-transfers-negatively-affect-nigerian-footballers-families-148298">travel by road</a> three times the distance clubs in England travel for league games. With these clubs being away from local fixtures for long periods, the travel arrangements for local competitions become more complex. </p>
<p>Furthermore, African players travel frequently to seek <a href="https://www.vice.com/en/article/y3vjm7/african-football-trafficking">contracts abroad</a>. This affects the squad sizes of local clubs that are being asked to participate in expanded fixtures at the continental level.</p>
<p>A second question is whether the winner of this competition will automatically have a place in the expanded <a href="https://pledgetimes.com/the-new-version-of-the-club-world-cup-between-2023-and-2024/">World Clubs competition</a> that world football body Fifa is reportedly amending. This is important given that the current representative to the global competition from Africa is the winner of the African Champions League.</p>
<h2>There are benefits</h2>
<p>The predicted US$200 million windfall from this competition is not as steep as many may think. As far back as 2015, Caf signed a US$1 billion <a href="https://www.usatoday.com/story/sports/soccer/2015/06/12/caf-signs-new-marketing-deal-with-sportfive-until-2028/71131504/">TV rights deal</a> with the Lagardère Group for a little less than US$100 million a year for 12 years. Although Caf <a href="https://www.egypttoday.com/Article/8/77592/CAF-terminates-billion-dollar-contract-with-Lagardere-Sports">cancelled</a> the deal a few years later, it was clear that the money had become a pittance considering similar TV rights contracts signed elsewhere. A US$4 billion deal was <a href="https://www.sportspromedia.com/news/ddmc-fortis-pay-us4-billion-afc-rights/">signed</a> by the Asian Football Confederation in 2018. </p>
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<a href="https://theconversation.com/the-four-big-challenges-facing-patrice-motsepe-africas-new-soccer-boss-157015">The four big challenges facing Patrice Motsepe, Africa's new soccer boss</a>
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<p>Seven years after the Lagardère contract, there is every reason to expect Caf to earn an improved television contract to support a proposed African Super League that offers more games with the assurance of the better-known teams participating. The new Super League is far better suited to TV interest and better placed to attract bigger rights deals than existing continent-wide competitions for clubs. </p>
<p>Of course, an African league is not nearly as popular as the champions league in Europe, where <a href="https://www.bloomberg.com/news/articles/2022-07-11/champions-league-soccer-rights-expected-to-top-2-billion-in-us">US$2 billion in rights</a> was earned in 2022 and close to $1 billion brought in via <a href="https://www.elfutbolero.us/competitions/The-8-sponsors-of-the-UEFA-Champions-League-How-many-millions-do-they-spend-each-season-20210826-0029.html">commercial rights</a> alone. </p>
<h2>But also downsides</h2>
<p>Caf is <a href="https://qz.com/a-super-league-is-promising-to-make-african-soccer-cl-1849404513">selling</a> this competition as one that would make African clubs more attractive to players by dissuading many from travelling outside the continent to earn a living. However, the Africa Super League payoff to most of the participating clubs will not be significant enough to keep players home. </p>
<p><a href="https://worldsoccertalk.com/2022/02/10/north-africas-dominance-entering-the-caf-champions-league/">North African clubs</a> that currently keep most of their players and even poach from other African countries will be advantaged. With Caf’s proposed formula for sharing prize money, they will be able to widen the gap between themselves and clubs from other regions of the continent. Keeping players in sub-Saharan African clubs will continue to be a struggle, even with this new league.</p>
<p>Further, Caf could have used this opportunity to strengthen <a href="https://www.aclsports.com/is-a-continent-wide-football-league-viable-in-africa/">privately owned clubs</a> by granting access only to them. But this is not the case. It has instead sought to include clubs based on current strength of performance even if these clubs are state supported. </p>
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Read more:
<a href="https://theconversation.com/for-footballers-of-african-descent-playing-in-euro-2020-will-be-a-double-edged-sword-158462">For footballers of African descent, playing in Euro 2020 will be a double-edged sword</a>
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<p>The problem, across the continent, is that state-supported clubs are not compelled to develop commercially and become trapped in their dependency on state doles. Establishing financially strong and business-focused clubs is not supported by this new league.</p>
<h2>To sum it up</h2>
<p>Overall, the African Super League will bring more funds to African football – if Caf works hard on securing top TV and media rights. Clubs, especially in northern Africa, will likely expand their revenue. </p>
<p>Unfortunately Caf has, with the current plan, missed an opportunity to develop commercially focused club competition in Africa. Allowing state-owned clubs to participate is a missed opportunity for clubs to develop revenue sources that are needed to make them competitive at a global level.</p><img src="https://counter.theconversation.com/content/188826/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chuka Onwumechili does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The Africa Super League brings big money but a logistical nightmare and a missed opportunity for commercial club development.Chuka Onwumechili, Professor of Communications, Howard UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1832462022-05-26T13:05:42Z2022-05-26T13:05:42ZChampions League final 2022: the economic tactics that drive Liverpool and Real Madrid<p>Liverpool against Real Madrid in the <a href="https://www.uefa.com/uefachampionsleague/final/">Champions League final</a> is a fixture for football fans to savour – two giants battling it out for one of the most prized trophies in the game. And regardless of the result, some will also see this match as a win for football over geopolitics and big money. </p>
<p>For these two sides making it to the final means that other powerful teams were knocked out along the way. There is no Manchester City, a club <a href="https://www.marca.com/en/football/premier-league/2021/08/15/6118f43f46163fdb708b4577.html">much criticised</a> for the lavish resources it receives from the Abu Dhabi governnment. There is no Paris St-Germain, which is funded by the vast <a href="https://www.cnbc.com/2018/09/18/paris-saint-germains-qatari-owners-on-players-and-champions-league.html">wealth of Qatar</a>. </p>
<p>No sign of Chelsea either, the defending European champions, who <a href="https://www.theguardian.com/football/audio/2022/mar/03/what-will-be-roman-abramovich-chelsea-legacy-football-weekly-extra-podcast">until recently</a> enjoyed the financial backing of a billionaire with strong connections to Russian leaders and Russian gas.</p>
<p>So perhaps this year’s Champions League final is indeed a victory for football purists – a chance to support traditional clubs, untainted by the vast wealth and questionable politics of their rivals.</p>
<p>But before a wave of nostalgia washes over anyone, it is worth remembering that Liverpool versus Real Madrid is not a simple matter of old fashioned sporting values lifting up the beautiful game. </p>
<p>For a start, both clubs have traditionally had strong political associations; the Reds with <a href="https://www.thisisanfield.com/2019/10/is-liverpool-fc-a-socialist-football-club/">the left</a> and Los Blancos with <a href="https://www.nplhmag.com/franco-fascism-football">the right</a>. </p>
<p>And the two sides have openly embraced free market ideology, making them among the wealthiest clubs in the world. In the 2022 ranking of <a href="https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/deloitte-football-money-league.html">clubs by revenue</a>, Real Madrid (which has topped the list 12 times in the last 25 years) ranks second, with earnings of €640.1 million (£544.2 million), while Liverpool are seventh with €550.4 million (£467.9 million).</p>
<p>Both teams, then, earn and spend vast amounts of money. For instance, Liverpool has one of football’s most <a href="https://www.liverpoolecho.co.uk/sport/football/football-news/liverpool-see-rise-217m-revenue-22088144">commercially lucrative</a> kit deals (with Nike), while Real Madrid still has an appetite for spending vast sums on <a href="https://www.theguardian.com/football/2022/may/16/real-madrid-optimistic-signing-kylian-mbappe-psg-forward-says-its-almost-over">top players</a>. </p>
<p>And it would be naive to think that the clubs are uninterested in becoming even wealthier. Indeed, just over a year ago, Liverpool and Real Madrid were among the eight football clubs which <a href="https://www.espn.co.uk/football/blog-marcottis-musings/story/4647009/european-super-league-one-year-after-its-collapsewhere-does-everything-stand">announced controversial plans</a> to form a European Super League. </p>
<p>This was <a href="https://theconversation.com/european-super-league-collapse-us-football-owners-badly-misread-supporter-culture-in-england-159476">a scheme</a> clearly designed to accelerate the flow of revenues into already rich clubs, at the expense of other sides across Europe. </p>
<p>Liverpool’s owners eventually stepped back from the proposal, at least for the time being. Real Madrid president Florentino Perez however, <a href="https://www.eurosport.co.uk/football/liga/2021-2022/real-madrid-president-florentino-perez-insists-super-league-would-bring-financial-fair-play-to-europ_sto8634011/story.shtml">still seems</a> intent on getting his way and launching a breakaway league. </p>
<p>So while it is true that neither of this year’s Champions League finalists are fuelled by oil and gas revenues, they remain prime examples of free market football, and the cash it brings in. </p>
<h2>Moneyball</h2>
<p>The graphics below allow us to take an overall view of the investments and sponsorship surrounding both clubs, all of which are in the public domain. Each circle represents an economic “actor” (a club, a business or an individual), while each connecting line represents a significant economic transaction. </p>
<p>A closer look at Liverpool’s most lucrative commercial deals reveals that the club’s owner, <a href="https://fenwaysportsgroup.com/">Fenway Sports Group</a>, which also boasts the Boston Red Sox in its portfolio, has assembled a sizeable network of entertainment businesses and properties in the US. </p>
<p>This includes <a href="https://redbirdcap.com/strategy/">RedBird Capital Partners</a>, a “high-profile dealmaker” in the professional sports world, and RedBall Acquisition Corp, spearheaded by Billy Beane (of <a href="https://www.imdb.com/title/tt1210166/">Moneyball</a> fame) and Gerry Cardinale, the co-founder of the Yankees Entertainment & Sports Network.</p>
<p>Another business of note is SpringHill Company, an entertainment development and production firm headed by basketball star LeBron James, which has tennis player <a href="https://www.tennisworldusa.org/tennis/news/Serena_Williams/88969/serena-williams-named-to-the-board-of-lebron-james-sprnghill-entertainment/">Serena Williams</a> on the board of directors. James is also a <a href="https://www.thestandard.co.zw/2021/03/20/lebron-james-increases-stake-in-liverpool/#:%7E:text=LEBRON%20James%20has%20upped%20his%20stake%20in%20Liverpool,in%20the%20English%20Premier%20League%20champions%20since%202011.">shareholder</a> of Liverpool FC.</p>
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<img alt="Graphic showing business connections of Liverpool FC." src="https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=369&fit=crop&dpr=1 600w, https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=369&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=369&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=464&fit=crop&dpr=1 754w, https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=464&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/463979/original/file-20220518-23-m6htsc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=464&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Liverpool FC’s financial links.</span>
<span class="attribution"><span class="source">Paul Widdop/Simon Chadwick</span>, <span class="license">Author provided</span></span>
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<p>Though not overtly political, Liverpool’s private ownership and US focused operations embody a free market ideology that has become increasingly prominent across European football over the last two decades. </p>
<h2>Real fortunes</h2>
<p>At first glance, Real Madrid would appear to be a very different beast. The club is owned by its members – known as “socios” – who get to vote club officials into and out of office.</p>
<p>But the graphic of its commercial deals and relationship shows how closely linked to foreign wealth it has become. There are connections with <a href="https://qiddiya.com/">Qiddiya</a>, an entertainment “mega-project” under construction in Saudi Arabia, and with a Chinese bank which issues a Real Madrid branded credit card. </p>
<p>There are also commercial relationships with Abu Dhabi Bank and Emirates Airline in the UAE, Sela Sports, an event management company based in Saudi Arabia, and technology firms in South Korea and China. </p>
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<img alt="Graphic showing business links of Real Madrid." src="https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=340&fit=crop&dpr=1 600w, https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=340&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=340&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=428&fit=crop&dpr=1 754w, https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=428&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/463980/original/file-20220518-17-uuv6tc.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=428&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Real Madrid’s business connections.</span>
<span class="attribution"><span class="source">Paul Widdop/Simon Chadwick</span>, <span class="license">Author provided</span></span>
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<p>Overall, there’s a lot of money invested in the two sides playing for the trophy. And the political side of the game is arguably more obvious than ever. </p>
<p>This year’s Champions League tournament started out with Russian energy giant Gazprom as a principal sponsor, with the final due to be held in Vladimir Putin’s hometown of Saint Petersburg. </p>
<p>After the invasion of Ukraine, the final was <a href="https://www.skysports.com/football/news/11945/12551034/champions-league-final-moved-to-paris-from-st-petersburg-after-russian-invasion-of-ukraine">moved to Paris</a>, and the deal with Gazprom terminated. So despite being sanitised of Russia’s influence and of fortunes made through oil and gas, the match still represents two of the key players in the modern game: politics and business.</p><img src="https://counter.theconversation.com/content/183246/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Simon Chadwick teaches on UEFA's Certificate in Football Management programme.</span></em></p><p class="fine-print"><em><span>Paul Widdop does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>They may not be funded by gas and oil, but these two sides are big money players.Simon Chadwick, Global Professor of Sport | Director of Eurasian Sport, EM Lyon Business SchoolPaul Widdop, Researcher of Sport Business, University of ManchesterLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1782552022-03-04T14:39:12Z2022-03-04T14:39:12ZBanning Russia from world events will help to alienate Putin<p>A world fair is currently being held in Dubai, with delegations from 192 countries celebrating and promoting their nation’s place in the global community. Among the attractions at Expo 2020 is Russia’s intricately designed pavilion, where visitors are <a href="https://www.expo2020dubai.com/en/understanding-expo/participants/country-pavilions/russia">invited to consider</a> two pertinent questions: </p>
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<p>How do we find our place in an interconnected world, and how can we better understand each other despite our differences? </p>
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<p>Meanwhile, as missiles land on Ukraine, Vladimir Putin has completely disconnected his country, and shown no interest at all in understanding difference. </p>
<p>Perhaps then, Russia will not be invited to Japan’s <a href="https://www.bie-paris.org/site/en/2025-osaka">2025 World Expo</a>, in the same way that it is now being excluded from many of the world’s major events. Formula One, for example, has <a href="https://www.bbc.co.uk/sport/formula1/60601632">terminated</a> its long-term contract to hold races in the country. This was announced shortly after <a href="https://www.bbc.co.uk/sport/disability-sport/60599739">Russia was banned</a> from taking part in the Winter Paralympics in Beijing. </p>
<p>The 2022 Champions League final was also <a href="https://www.skysports.com/football/news/11095/12551034/champions-league-final-moved-to-paris-from-st-petersburg-after-russian-invasion-of-ukraine">moved from St Petersburg</a> to Paris, and Russia’s football teams <a href="https://www.msn.com/en-gb/sport/winter-olympics/fifa-and-uefa-suspend-all-russian-football-teams-from-competition-after-invasion-of-ukraine/ar-AAUqtJ1?ocid=uxbndlbing">were suspended</a> from all Uefa and Fifa competitions. Such moves may seem trivial as Ukranian lives are lost and ruined, but they do matter – and are key to a county’s economic and political success.</p>
<p>In peaceful times, major sporting and cultural events are important tools of “<a href="https://link.springer.com/chapter/10.1007%2F978-981-13-7952-9_3">soft power</a>”. They provide an international spotlight on a country for a fixed period of time, when a carefully curated image can be projected to a global audience. </p>
<p>They are also moments when countries come together to celebrate national identity and make international friends. Russia could find itself alienated indefinitely if it continues to be excluded from these social and political spaces. </p>
<p>It is likely even Putin himself understands this. He is thought to have been <a href="https://www.thesun.ie/sport/8440970/f1-russian-gp-putin-ukraine-ben-hunt-column/">personally involved</a> in getting Formula One into Russia, while hosting the men’s football World Cup in 2018 and the Winter Olympics in 2014 connected him to the international community. </p>
<p>Those same events, which Putin repeatedly used to legitimise his foreign and domestic policy agendas, are now being used to isolate him. And in a globalised society, with a globalised economy, this is a more powerful tool than it has ever been before. </p>
<p>So while political coalitions (the EU, Nato) squeeze Russia’s economy, powerful <a href="https://www.theguardian.com/business/2022/mar/03/ikea-closes-all-stores-and-factories-in-russia-amid-exodus-of-western-firms">multinational organisations</a> (Ikea, Apple, <a href="https://www.msn.com/en-us/money/companies/exxon-is-quitting-its-last-russian-project/ar-AAUuv0J?ocid=BingNewsSearch">Exxon</a>) and an entire global sports industry can also land powerful blows. </p>
<p>And these are blows which will last, as <a href="https://olympics.com/ioc/human-rights#:%7E:text=At%20all%20times%2C%20the%20IOC%20recognises%20and%20upholds,Olympic%20Charter%20and%20the%20IOC%20Code%20of%20Ethics">hosting privileges</a> for many of the biggest world events will be denied to a president responsible for invading a country and <a href="https://www.abc.net.au/news/2022-03-04/putin-ukraine-accused-war-crimes-international-criminal-court/100879230">accused of committing</a> war crimes. </p>
<h2>Travel and tourism</h2>
<p>Then there is the economic fallout. Hosts of an Olympic Games or a World Cup often embark on ambitious infrastructural projects, attracting international investment. The economic damage of not hosting major sports events can be significant and long-lasting.</p>
<p>For example, last year the Dutch Grand Prix Formula One race saw €44.5 million (£36.7 million) of additional spending <a href="https://corp.formula1.com/positive-economic-and-social-impact-of-2021-f1-heineken-dutch-grand-prix/">around Amsterdam</a>. Hosting the Uefa Champions League final is a lucrative opportunity too, with an estimated €80 million injected into Porto’s <a href="https://www.sportsvalue.com.br/en/estudos/champions-league-economic-impact/">local economy</a> last year. The 2018 Russia World Cup attracted more than a million tourists who spent more than <a href="https://www.statista.com/statistics/884506/international-visitor-spending-habits-during-russian-world-cup/">40 billion roubles</a> (£27 million).</p>
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</figure>
<p>These sums are primarily generated by a significant flow of spectators, fans and tourists visiting the event destination – and a central objective of hosting events in <a href="https://doi.org/10.1016/j.jdmm.2020.100486">the last decade</a>. This is important to Russia, where until recently, the tourism sector <a href="https://ec.europa.eu/growth/sectors/tourism/business-portal/getting-know-potential-clients/emerging-markets_en#:%7E:text=Russia%20is%20the%20fastest-growing%20tourism%20market%20in%20Europe%2C,to%20grow%20by%209%25%20per%20year%20until%202020">was growing fast</a>, worth approximately <a href="https://www.statista.com/statistics/895110/travel-tourism-total-gdp-contribution-russia/">3 trillion roubles</a> (£20 billion) a year.</p>
<p>But no events mean no spectators, no fans and fewer tourists. Depending on how long Russia is banned from hosting major events will determine how deep the negative impact will be. In the meantime, tourist numbers will fall dramatically in response to the current political instability and <a href="https://www.telegraph.co.uk/business/2022/02/27/aeroflot-forced-divert-flights-eu-bans-russian-jets-airspace/">banning of Aeroflot</a> flights over EU airspace. If the war is prolonged, this will have serious implications for sectors like hospitality which are reliant on a buoyant tourism industry. </p>
<p>It is entirely possible that Putin considered all of this before he chose to invade Ukraine. Perhaps he decided that attempting to expand his sphere of influence through brute force was more important to him than tourists, football tournaments or good international relations. Yet having previously enjoyed the soft power benefits that sport and other events can bring, it is encouraging to the rest of the world to see those powers united – and turned against him.</p><img src="https://counter.theconversation.com/content/178255/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Dr. Mike Duignan has previously received funding from the International Olympic Committee (IOC), but for a topic unrelated to this article. Mike is also the Director of the Observatory for Human Rights and Major Events which is the UK's official Olympic Studies Centre, which is affiliated to the IOC's academic Olympic Studies Centre. However, the nature of this relationship is academic with the view to disseminate good social science concerning how we can enhance the social and economic benefits of hosting the Olympic Games for the host country, city and its citizens. This article was based on work funded by 2020 Marie Skłodowska-Curie Actions, Research and Innovation grant agreement no. 823815</span></em></p>It may be soft power, but it still packs a punch.Mike Duignan, Head of Department, Reader in Events, and Director of the Observatory for Human Rights and Major Events, University of SurreyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1710212021-11-25T11:48:34Z2021-11-25T11:48:34ZTen years of financial fair play: has it been good for European football?<p>Even in a sport as old as football, the rules of the game <a href="https://www.thefa.com/football-rules-governance/lawsandrules/laws/football-11-11/2021-22-law-changes-explained">can change</a>. The same is true off the pitch, as with the introduction ten years ago of regulations known as <a href="https://www.uefa.com/insideuefa/protecting-the-game/financial-fair-play/">financial fair play</a>. </p>
<p>Designed to ensure that clubs spend within their means, the rules were implemented by Uefa in 2011 to stop European teams from running up huge losses and debts, and encourage them to be financially prudent. </p>
<p>The warning signs had been on the cards for some time, and <a href="https://www.uefa.com/insideuefa/protecting-the-game/news/01e8-0e75476a3d3c-dc511c8ea618-1000--financial-fair-play-crucial-for-football-s-future/">Uefa wanted</a> to “improve the overall financial health of European football”.</p>
<p>In England for example, Chelsea FC, had <a href="https://find-and-update.company-information.service.gov.uk/company/01965149/filing-history?page=3">debts in 2004</a> of £295 million (up 67% from the previous year). Leeds United, with debts of <a href="https://www.investegate.co.uk/leeds-united-plc--lufc-/rns/final-results/200209260700586671B/">£78 million</a> in 2002 (up 50% from 2001) was having to sell its star players at a <a href="https://www.researchgate.net/profile/Stefan-Szymanski/publication/239808074_The_Financial_Crisis_and_English_Football_The_Dog_That_Will_Not_Bark/links/60340f9b299bf1cc26e44cb3/The-Financial-Crisis-and-English-Football-The-Dog-That-Will-Not-Bark.pdf">huge discount</a>. Elsewhere in Europe, similar cases in Spain (<a href="https://www.tandfonline.com/doi/abs/10.1080/14660970.2012.655503">Deportivo La Coruna</a>), and Italy (<a href="https://www.tandfonline.com/doi/abs/10.1080/14660970.2012.655503">Parma</a>) had also caught Uefa’s attention.</p>
<p>By 2009, Uefa felt compelled to intervene. Net losses across Europe stood at <a href="https://www.uefa.com/MultimediaFiles/Download/Tech/uefaorg/General/01/74/41/25/1744125_DOWNLOAD.pdf">€1.6 billion</a> (£1.3 billion, up 33% from 2008), and on average, clubs were spending <a href="https://www.uefa.com/MultimediaFiles/Download/Tech/uefaorg/General/01/74/41/25/1744125_DOWNLOAD.pdf">64%</a> of their income on player wages. In 78 extreme cases, it was more than 100%. </p>
<p>The cornerstone of financial fair play (FFP) is what’s known as the “break-even requirement” which requires every team participating in Uefa competitions (238 clubs in 2020) to keep losses down to no more than €5 million over three years. </p>
<p>Crucially, this only takes into account what is considered “relevant” income and expenses – what clubs earn from normal football business activities – to prevent the wealthiest owners from funding clubs’ player investment. The idea is that this will encourage clubs to spend within their means and provide a level financial playing field.</p>
<p>So, ten years on, has it succeeded in its goals?</p>
<p>In 2019, the net loss in European football was <a href="https://editorial.uefa.com/resources/026a-128c5dffdb5f-64d49e6e5300-1000/210615_ecfl_pandemic_eng.pdf">€125 million</a> (a 92% fall from 2009) following the first-ever consecutive years of overall profitability in 2017 and 2018. These figures suggest that FFP has had the desired effect in moving clubs away from losses.</p>
<p>Some of the growth in income is partly attributable to the introduction of the rules. Sponsorship agreements – which must meet a fair market value assessment carried out by Uefa – with brands have replaced the loans previously relied upon to fund club operations. </p>
<p>Another important source of income, which adheres to the requirement of breaking even, is selling players for profit, even (though not always) to clubs considered close rivals.</p>
<h2>Winners and losers</h2>
<p>Chelsea, for example, which made £94 million in profit in the nine years before FFP, made £623 million in the same time period afterwards, according to our assessment of the club’s own statements. The new laws prevented its wealthy owner, Roman Abramovich, from directly funding the club’s investment in star players, so instead it successfully adopted a model of buying young players, sending them out on loan to gain experience, and then selling them for substantial transfer fees. </p>
<p>But not everyone has enjoyed this kind of financial success, and one of the biggest criticisms of financial fair play is that it leads to a freeze on competition. Some think that historically successful clubs with elite footballers and the financial power to acquire new talent will dominate because the rules restrict non-football income for investment in the playing squad. </p>
<p>This means that new money arriving at old clubs – such as the <a href="https://www.bbc.co.uk/sport/football/58826899">Saudi backed takeover</a> of Newcastle United – may struggle to immediately make an impact. The new owners will be unable to invest extra funds if the club qualifies for European competition (FFP only applies to clubs involved in Uefa organised tournaments like the Champions League).</p>
<p>Careful financial planning was also mightily undone by the impact of COVID. With fans unable to attend matches, income dropped dramatically, so <a href="https://www.uefa.com/insideuefa/news/025e-0fb60fd017ba-82857c2a2217-1000--temporary-emergency-measures-for-financial-fair-play/">Uefa announced</a> a break in the monitoring period to isolate the years 2020 and 2021. (As expected, most clubs reported significant pandemic related losses, but Barcelona FC’s <a href="https://www.fcbarcelona.com/fcbarcelona/document/2021/10/17/aefc9921-bf56-406c-ae05-3581e1de2a12/MEM_CLUB_2020_21_ENG.pdf">€555 million</a> pre-tax loss (up 317%) still raised eyebrows.)</p>
<p>Aside from the effects of coronavirus then, taking its overarching objective of reducing losses and promoting overall profitability, FFP regulation must be considered a success. The evidence suggests that the business model modification it encouraged – player sales and sponsorship income – is responsible for overall improved profitability in European football. </p>
<p>However, the regulation has not been able to curb high wages and transfer fees inflation, which could yet threaten club finances. There have been <a href="https://www.thetimes.co.uk/article/uefa-plans-salary-cap-and-luxury-tax-for-teams-who-breach-it-5vrwf8cm7">reports suggesting</a> that Uefa is looking to replace FFP with a salary cap and a luxury tax on transfers, but the organisation has dismissed the idea of abolishing FFP, saying it will <a href="https://www.skysports.com/football/news/11095/12380096/uefa-set-to-overhaul-financial-fair-play-rules-later-this-year-with-a-luxury-tax-and-salary-cap-being-considered">“adapt”</a>. It may be that the upward trajectory of wages and transfers fees ends up being one aspect of the football business that the regulator will just learn to live with, and decide to play on.</p><img src="https://counter.theconversation.com/content/171021/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Adrian R Bell receives funding from the AHRC.</span></em></p><p class="fine-print"><em><span>Andrew Urquhart and Mobolaji Alabi do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>An effort to protect clubs from going into administration.Mobolaji Alabi, PhD Candidate, Finance, University of ReadingAdrian R Bell, Chair in the History of Finance and Research Dean, Prosperity and Resilience, Henley Business School, University of ReadingAndrew Urquhart, Professor of Finance & Financial Technology, ICMA Centre, Henley Business School, University of ReadingLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1609392021-05-27T15:37:35Z2021-05-27T15:37:35ZChampions League final 2021 – a game of two sides powered by gas and oil<figure><img src="https://images.theconversation.com/files/402635/original/file-20210525-19-4c4z6d.jpg?ixlib=rb-1.1.0&rect=78%2C0%2C5719%2C3389&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/london-england-may-8-2021-manchester-1970696186">Shutterstock/kovop58</a></span></figcaption></figure><p>On the night of the 2021 UEFA Champions League Final, Chelsea and Manchester City will battle it out for European glory. Only one of the two English teams will walk away with the trophy – but despite the rivalry on the field, both sides have plenty in common off the pitch. </p>
<p>They were, for instance, part of a <a href="https://www.bbc.co.uk/sport/football/56824628">doomed attempt</a> to usurp the very tournament they are trying to win, with the establishment of a <a href="https://theconversation.com/european-super-league-owners-have-witnessed-the-power-of-fans-and-should-listen-to-them-to-avoid-future-failure-159469">European Super League</a>. That plan, involving 12 of the biggest clubs in the world, collapsed in the face of unfiltered outrage from <a href="https://www.euronews.com/2021/04/20/football-vs-greed-what-is-behind-the-outrage-over-the-european-super-league">fans, pundits and politicians</a> – and crucially, a change of heart at Chelsea and Manchester City. </p>
<p>The Super League house of cards seems to have truly started falling when Chelsea announced its intention to <a href="https://www.espn.co.uk/football/chelsea/story/4365461/chelseas-landmark-super-league-withdrawal-a-victory-that-overshadows-draw-vs-brighton">withdraw from the competition</a>. Their move was followed a few hours later by a similar <a href="https://www.independent.co.uk/sport/football/man-city-withdraw-european-super-league-b1834691.html">statement from City</a>. </p>
<p>There have been <a href="https://tribuna.com/en/news/chelsea-2021-04-23-putin-reportedly-behind-chelsea-withdrawal-from-super-league-for-3-key-reasons/">reports</a> that Chelsea’s U-turn was prompted by a telephone call from Russian president Vladimir Putin to his compatriot Roman Abramovich, the billionaire who owns the London club. Some media outlets have even suggested that Putin declared a super league would be <a href="https://www.rt.com/sport/522011-kremlin-abramovich-chelsea-super-league/">“against the spirit of the fatherland”</a>.</p>
<p>But however those decisions came to be made, the reality of the geopolitical and economic basis of European football is clear. And this is where the Champions League action becomes particularly interesting, especially in its associations with oil and gas. </p>
<p>Russia’s Gazprom – a corporation with origins as a state energy producer dating back to the old Soviet Union – has been a major sponsor of the competition since 2012, and has just announced a <a href="https://www.uefa.com/insideuefa/about-uefa/news/0269-124ffe0cee51-2308c1da4764-1000--gazprom-partners-with-uefa-national-team-football-and-renews-ue/">big new deal with UEFA</a>.</p>
<p>Gazprom was privatised during the early 1990s reform period in Russia, but Putin’s ascent subsequently led to a majority of the company’s shares being taken back into <a href="https://www.piie.com/commentary/op-eds/folly-renationalization">state ownership</a>. Gazprom later acquired a rival energy company, the oil firm Sibneft, <a href="https://www.theguardian.com/business/2005/sep/29/oilandpetrol.russia">owned at the time by Abramovich</a>. </p>
<p>Gazprom, which is based in Putin’s home town of St Petersburg, also owns the local club, <a href="https://grantland.com/the-triangle/gazprom-zenit-st-petersburg-and-the-intersection-of-global-politics-and-world-football/">Zenit Saint Petersburg</a>. The former president of Zenit is Alexander Dyukov, a man who is also <a href="https://www.sportspromedia.com/movers-and-shakers/russian-football-president-dyukov-mutko-gazprom">president of the Russian Football Union</a>. In addition, Dyukov is chief executive of Gazprom and, in the middle of the Super League debacle, he was elected to the <a href="https://www.uefa.com/insideuefa/news/0268-12163b1d0543-7ab0ff2e27b1-1000--alexander-dyukov/">executive committee of UEFA</a>.</p>
<p>If Putin really did call Abramovich about the Super League, it could be seen as yet another episode in Russia’s engagement with football as a geopolitical and diplomatic tool. </p>
<p>For many years, <a href="https://www.iris-france.org/154279-gazprom-and-its-sponsorship-of-football-from-sex-without-a-condom-to-major-strategic-threat/">some observers have wondered</a> why an organisation that sells gas to governments sits alongside the likes of McDonald’s and Coca Cola as a Champions League sponsor. But the answer to this can be found in the way that Gazprom enables Russia to <a href="https://www.tandfonline.com/doi/abs/10.1080/15377857.2020.1723781?journalCode=wplm20">project soft power and build legitimacy</a> through its associations with the world’s favourite game. </p>
<p>During his time as US president, <a href="https://fortune.com/2020/09/08/trump-pipeline-russia-germany-natural-gas-merkel-navalny-poisoned-nord-stream-2/">Donald Trump was bullish</a> towards Russian energy suppliers, and even imposed sanctions upon Gazprom. <a href="https://www.reuters.com/article/us-usa-defense-congress-nord-stream-idUSKBN28E31I">Trump claimed</a> that Europe’s growing dependency on Russian energy supplies, especially in Germany (where <a href="https://theconversation.com/how-russia-has-devoted-its-energy-to-the-beautiful-game-46174">Gazprom sponsors FC Schalke 04</a>), constitutes a strategic threat to the continent’s security. The Joe Biden administration <a href="https://www.politico.com/news/2021/03/05/biden-ted-cruz-russia-pipeline-473910">holds similar concerns</a>. </p>
<p>But perhaps being a sponsor of the tournament and having a strong relationship with both UEFA and Chelsea isn’t enough. For Gazprom also continues to strengthen its relations with Abu Dhabi, the small Gulf state which, via a member of its royal family, owns a majority stake in Manchester City. </p>
<h2>Gas goals</h2>
<p>Like Russia, Abu Dhabi owns some of the world’s largest carbon fuel reserves. In this sense, the Champions League final will therefore be a game powered by gas and oil.</p>
<p>Over the last decade, relations between Russia and Abu Dhabi have strengthened, leading to a series of strategic agreements, the most significant of which was <a href="https://gulfnews.com/uae/government/uae-russia-forge-strategic-partnership-1.2230246">signed in 2018</a>. <a href="https://lobelog.com/understanding-russia-and-the-uaes-special-partnership/">Described</a> as a watershed in bilateral relations, it covered all manner of issues in investment, trade, culture, space, tourism and security. </p>
<p>One outcome of this was the acquisition by Abu Dhabi’s state-owned Mubadala Investment Company of a $US271 million (£191 million), 44% stake in one of Gazprom’s subsidiaries. In 2019, the Abu Dhabi National Oil Company then signed a <a href="https://www.thenationalnews.com/business/energy/adnoc-signs-strategic-framework-with-russia-s-gazprom-neft-1.924222">strategic framework agreement</a> with Gazprom to explore for and extract new oil reserves. </p>
<p>This led to a <a href="https://ntc.gazprom-neft.com/press-center/news/gazprom-neft-i-mubadala-petroleum-razvivayut-tekhnologicheskoe-sotrudnichestvo/">2020 announcement</a> that Gazprom and Mubadala will engage in technological cooperation in Siberia, where coincidentally Abramovich began building his gas powered fortune.</p>
<p>Come match day, most fans of City and Chelsea will not be overly concerned by the origins of the cash that has fuelled their clubs’ success. And with talk of a super league fading and many football fans hailing its defeat, some will see the Champions League Final as a victory parade for normality.</p>
<p>But this would be naive and misguided. For football has not merely been commercialised and industrialised over the last 30 years. It has also become intensely geopolitical, and sits at the heart of a complex global network of interests and investments. Indeed, for some powerful players, the sport has become a tactically astute means to extremely lucrative other ends – as epitomised by this year’s Champions League final.</p><img src="https://counter.theconversation.com/content/160939/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Chelsea and Manchester City have similar goals on and off the pitch.Simon Chadwick, Global Professor of Eurasian Sport | Director of Eurasian Sport, EM Lyon Business SchoolPaul Widdop, Senior Lecturer in Sport Business, Leeds Beckett UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1594762021-04-21T15:44:20Z2021-04-21T15:44:20ZEuropean Super League collapse: US football owners badly misread supporter culture in England<p>Barely two days after it was unveiled, the European Super League (ESL) is dead in the water. All six of the English clubs who made up the 12 founding members of the proposed breakaway competition pulled out, following loud opposition from everyone from the FA to Uefa to the UK government to fans. With the owners now hastily apologising and trying to make amends, the ESL founder and Juventus chairman, Andrea Agnelli, <a href="https://www.theguardian.com/football/2021/apr/21/european-super-league-vows-to-reshape-after-english-clubs-pull-out">has conceded</a> defeat. </p>
<p>There is much discussion about what exactly the owners of these 12 clubs were hoping to achieve with their ESL announcement, but it surely wasn’t this debacle. One aspect of this story that is particularly noticeable is that American owners figured heavily in the English end of the breakaway, with Liverpool, Arsenal and Manchester United all controlled from the US. </p>
<p>While England and the US have a lot in common, the design and administration of field sports is not one of them. This very short-lived super league has demonstrated just how big these differences are.</p>
<h2>Place power</h2>
<p>The franchise model of the US is as much about cooperation off the field as it is competition on it. Things that would be unconscionable in England are commonplace in the US. Relocation is probably the best example.</p>
<p>Beginning in 1936, the National Football League’s Los Angeles Rams have also been called the Cleveland Rams and St Louis Rams. Most recently, the NFL’s Oakland Raiders <a href="https://www.sbnation.com/nfl/2019/12/15/21020536/las-vegas-raiders-oakland-explained-relocation">have shifted</a> to Las Vegas (they also had a stint in Los Angeles in the 1980s and 1990s). </p>
<p>And it doesn’t end with American football. In baseball, the Salt Lake City Trappers <a href="https://www.deseret.com/1992/12/3/19019425/trappers-proud-of-their-part-in-triple-a-plan">were forced</a> to move several hours away to Pocatello, Idaho in 1993 and then Ogden, northern Utah in 1994. This was because the Portland Beavers, who played in a superior league, did a deal with Salt Lake City officials to move to the city and use the Trappers’ baseball park. The Beavers renamed as The Salt Lake City Buzz, and following several more name changes, they are now known as the Salt Lake City Bees. </p>
<p>English football fans do not tolerate this kind of thing. In June 2012 the Malaysian owners of Cardiff City announced that the club would be changing from their traditional blue jerseys to a new red kit, emblazoned with a dragon rather than the bluebird that had first appeared in the 1960s.</p>
<p>Outrage immediately ensued from the supporters. The blue of Cardiff, first worn around 1908, was not for changing. A statement issued by the club at the time, focusing on broadening the club’s appeal to “international markets” and “major and significant” investment, did nothing to appease the fans. The red jersey had to go.</p>
<p>Following two and a half years of pressure from fans, Cardiff City announced on January 9 2015 that the “club will wear a blue home kit and red away kit next season (2015/16)”. The crest was also going to be redesigned to feature the traditional bluebird. So much for Welsh dragons. </p>
<p>Around the same time, Hull City supporters entered a protracted battle with the Allam family, which owns the football club. Hull’s chairman, Assem Allam, a British-Egyptian industrialist, was seeking to change the name to Hull Tigers. After more than two years of protests and disagreement, a vote confirmed that the change had been resisted. The fans had won again.</p>
<p>What both owners apparently failed to appreciate were the historical roots of these clubs, stretching back more than 100 years. Supporters have deep emotional attachments to club colours or names that are intertwined with customs, habits and ways of behaving. </p>
<h2>Why the ESL got relegated</h2>
<p>The owners of England’s big six clubs seem to have made a similar mistake on a massive scale. The idea that six clubs, all members of the oldest set of interconnected leagues in the world, could simply walk away from nearly 140 years of tradition, league design and competitive behaviour as well as unravel 70 years of European competition by moving to a system with no promotion or relegation, was never going to work.</p>
<p>The sanctity of promotion and relegation is what sets European football apart from most American team sports. A super league in which the biggest teams automatically took part would have had devastating consequences for domestic leagues: weakened teams, meaningless fixtures, reduced attendance demand – the list goes on. </p>
<p>While the fallout from this is yet to be known, almost everyone agrees that European football needs to change to reflect the modern game. There are too many international commitments for players, and the group stages of the Champions League have become largely uncompetitive. This is down to both the seeding of the draw by Uefa and the large number of top clubs in the competition, many of whom appear every year, since three or four clubs from each league qualify each season. </p>
<p>However, the <a href="https://www.telegraph.co.uk/football/2021/04/21/future-champions-league-will-revamp-work-will-breakaway-rebels/">new Champions League system</a> that is due to begin in 2024-25 looks like a move even further in this direction. It will expand the competition in a way that will make it possible for two or three more big clubs to qualify even if they don’t finish in the top four places in their domestic league the previous season (or win the previous year’s Champions League or Europa League). </p>
<p>It means almost twice as many European matches each year and moves closer to a system in which the biggest clubs are always guaranteed to qualify – though clearly not guaranteed enough from the perspective of the breakaway 12. It is not clear whether they these teams will now accept this system or insist on further negotiations with Uefa. </p>
<p>Whether the collapse of the ESL could now change the direction of travel to reduce the dominance of the top clubs in this system is an interesting question. The fabric of the game and the wishes of supporters throughout Europe should be protected, though there is not much sign of opposition to the Champions League reforms. </p>
<p>At any rate, Uefa and the breakaway clubs are co-dependent and will inevitably have to come back together. The European Super League was not the answer but it may still act as the catalyst for a way forward.</p><img src="https://counter.theconversation.com/content/159476/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Butler does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Two days after 12 of Europe’s leading clubs broke away to launch a new competition, they appear to be back in the fold.Robert Butler, Director of the Centre for Sports Economics and Law, University College CorkLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1180872019-05-31T11:25:31Z2019-05-31T11:25:31ZChampions League final: how money buys success on the pitch<p>Following Chelsea’s victory over London rivals Arsenal in the <a href="https://www.bbc.co.uk/sport/football/48451536">UEFA Europa League final</a> in Azerbaijan, attention has now turned to the upcoming UEFA Champions League final, which is taking place on June 1 in Madrid. This final will see yet another two English teams battling for the trophy, in a country where European competition trophies tend to stay.</p>
<p>It’s the first time that all four teams in the European finals <a href="http://theconversation.com/premier-league-how-englands-clubs-swept-to-european-football-dominance-117030">have been English</a>. And the English Premier League’s commercial success begs the question of whether money has been the driving force for the success of these teams on the pitch.</p>
<p>In terms of overall league success, the English Premier League dominates European football when it comes to income, leaving the rest of the leagues far behind. According to the latest <a href="https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance.html#">Deloitte Annual Review of Football Finance</a>, the English top league had a total revenue of €5.44 billion in the 2017-18 season. This is almost the same as the next two leagues in the rankings put together, Germany’s Bundesliga (€3.17 billion) and Spain’s La Liga (€3.1 billion). </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=369&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=369&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=369&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=464&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=464&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277355/original/file-20190531-69055-wtp06f.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=464&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The English league’s revenues are far greater than their European rivals.</span>
<span class="attribution"><a class="source" href="https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance.html#">Deloitte</a></span>
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<p>But the EPL’s astonishing commercial success is an older phenomenon. It has topped football finance rankings for the last decade. Seeing this translate to success on the pitch in European competitions is relatively new. After all, historically, it has been <a href="https://www.theguardian.com/football/2018/may/22/has-one-league-ever-dominated-european-football-like-la-liga">Spanish clubs</a> that have dominated the European competitions, winning trophy after trophy since the early 2000s. </p>
<p>When we look at the revenue of specific clubs, the picture becomes a bit more complex. The most financially successful English club has always been Manchester United, which also historically topped Europe’s money rankings and only made it to the quarter-finals of the Champions League this season, while failing to qualify for it in 2020. </p>
<p>According to Deloitte’s detailed breakdown of club financial performance, the <a href="https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/deloitte-football-money-league.html">Football Money League</a>, the best performing European team was Real Madrid, followed by Barcelona and then Manchester United. The revenue generated by the two Champions League finalists, Liverpool and Tottenham in the 2017-18 season ranks them seventh and tenth respectively. </p>
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<a href="https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=348&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=348&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=348&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=438&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=438&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277357/original/file-20190531-69071-1bnhx9n.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=438&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Liverpool and Tottenham are the seventh and tenth biggest earners in Europe.</span>
<span class="attribution"><a class="source" href="https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/deloitte-football-money-league.html">Deloitte</a></span>
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<p>While both clubs increased their income and subsequent ranking from the season before (2016-17), they still rank well behind Spain’s Real Madrid and FC Barcelona, and England’s Manchester United. Tottenahm’s revenue of €428.3m was nearly half that of top ranking Real Madrid’s €750.9m.</p>
<p>In fact, the clubs that appeared in the top six positions in this year’s revenue table did not participate in either UEFA competition final. So it seems that money does not automatically equal success.</p>
<h2>A competitive ecosystem</h2>
<p>Nevertheless, money clearly plays a role in today’s competitive sport ecosystem. While this relationship might not be a direct analogy of “money equals automatic victory”, with a number of the clubs appearing on the Deloitte list having not won a European trophy for years, it does suggest that the two are related. Liverpool and Tottenham may not top the financial league tables, but they still rank fairly high. </p>
<p>It’s also useful to look at how clubs spend their revenues and the extent that they can buy success through buying top players. Tottenham did not spend any money on new players in 2018-19, but <a href="https://www.transfermarkt.co.uk/tottenham-hotspur/alletransfers/verein/148">did spend €123.4m in 2017-18</a> including €28.9m on player Lucas Moura who was instrumental in getting them to the final.</p>
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<p>Liverpool on the other hand spent €185.7m on new players in the 2018-19 season and €177.2m the year before. This included more than €60m on a much-needed new goalkeeper and more than €40m on star striker Mo Salah. So arguably their success has come at greater cost. In 2018-19, only Chelsea outspent Liverpool in terms of <a href="https://www.transfermarkt.co.uk/premier-league/transfers/wettbewerb/GB1">transfer market activity</a>. </p>
<p>Of course, buying top players can only get you so far. They need to play well together and there is also the role of luck when it comes to whether or not players get injured – something Tottenham have struggled with this season, with top striker Harry Kane and others out for much of the season.</p>
<p>Looking at it from a non-football perspective, <a href="https://www.tandfonline.com/doi/abs/10.1080/19406940.2017.1387587">research</a> I’ve carried out into sport governing bodies underlines the challenges that sports bodies are faced with in terms of securing profitable revenue streams. Colleagues and I found that there is a virtuous (or vicious) circle in sport where money leads to success and then success to more money, and vice versa. We found that a number of sport governing bodies have been hit by the government’s austerity policies. These cuts mean a lack of secure funding which led to an unavoidable and dangerous vicious circle of less success. </p>
<p>So Tottenham – the underdog in terms of historic financial performance and on the pitch – will be hoping to develop a more virtuous cycle in the club’s first ever Champions League final. Meanwhile, Liverpool will hope to build on their experience and past successes in Europe’s top flight. Money may not be the only key to sporting success, but it is certainly an important ingredient to it nonetheless.</p><img src="https://counter.theconversation.com/content/118087/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Argyro Elisavet Manoli does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The English Premier League has long topped the football finance rankings but seeing this translate on the pitch in Europe is relatively new.Argyro Elisavet Manoli, Lecturer in Sports Marketing and Communications, Loughborough UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1180562019-05-30T18:07:39Z2019-05-30T18:07:39ZCome On You Reds! A Liverpool fan dreams of Champions League glory<figure><img src="https://images.theconversation.com/files/277276/original/file-20190530-69087-1hzcwoe.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Mohamed Salah shows us how it's done.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/manchester-england-april-10-mohamed-salah-1067486108?src=YjoZWMNvWqN0B0Db9jePxw-1-7">Shutterstock</a></span></figcaption></figure><p>I’m a lucky man. A sports sociologist by trade, I’m in Madrid to see my eighth European Cup final involving my club, Liverpool FC – “the Mighty Reds”. For people my age (65) and from my city (Liverpool), this competition will always be known as the European Cup – rather than the Champions League – because of its history and character. And we’ve won it five times, after all.</p>
<p>This time, I have an assured match ticket to Saturday’s game – a cool £154 dropped into UEFA’s coffers – and even somewhere to stay. I booked up in December: you do need outrageous hope in football, even if only to avoid the <a href="https://theconversation.com/premier-league-how-english-footballs-top-flight-favours-fans-of-london-clubs-113066">crippling costs of support</a>.</p>
<p>In 2018, when the <a href="https://www.bbc.co.uk/sport/football/44258022">Reds played Real Madrid</a> in the final in Kiev, Ukraine, I paid £1,000 for flights, slept overnight in Warsaw airport and later on a friend’s apartment floor. Was I mad? All that suffering, just to see our star forward, the Egyptian Mo Salah, being ruinously fouled after only 30 minutes. It looked like game over – and just to confirm it, our young goalkeeper, Loris Karius, decided to throw two Real Madrid attempts into his own net. He (and we) ended up in tears.</p>
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<p>Quite by chance – and considerable good fortune – I managed to miss Liverpool’s terrible 1985 Heysel Stadium final in Brussels, when hooliganism and inept organisation rendered the whole thing catastrophic and meaningless as sport. Tragically, <a href="https://www.liverpoolfc.com/news/announcements/350670-lfc-marks-34th-anniversary-of-heysel-stadium-disaster">39 fans were killed</a>. But – and all academic objectivity goes flying away here – I have cried with joy in Rome (1977 and 1984); cavorted at Wembley (1978); jigged in Paris (1981); and gasped in amazement at the miracle of Istanbul (2005) when we came back from
three goals down. I even <a href="https://www.goodreads.com/book/show/1855670.The_Miracle_of_Istanbul">wrote a book about it</a>. In 2007, in Athens, it was only <a href="http://news.bbc.co.uk/sport1/hi/football/europe/6669039.stm">defeat and chaotic despair</a>. You might say I have some experience of the highs and lows of these events.</p>
<p>And yet the 2019 final is entirely different, even for me. Because this time, Liverpool is <a href="https://www.telegraph.co.uk/football/2019/05/30/champions-league-final-tottenham-vs-liverpool-kick-off-time-venue-predictions/">facing another English club</a>, Tottenham Hotspur – a talented team, but rookies when it comes to top-flight European football.</p>
<p>This <a href="https://theconversation.com/premier-league-how-englands-clubs-swept-to-european-football-dominance-117030">England takeover</a> of the final has happened only once before, in 2008 in Moscow. Then, <a href="https://www.theguardian.com/football/2008/dec/30/manchester-united-chelsea-champions-league-moscow">Manchester United defeated Chelsea</a> on penalties in the Russian rain. That final seemed strangely lacking in the contrasts and exotica which makes the European competition so special because of its usual international flavour. </p>
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Read more:
<a href="https://theconversation.com/premier-league-how-englands-clubs-swept-to-european-football-dominance-117030">Premier League: how England's clubs swept to European football dominance</a>
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<p>Indeed, it feels like we have been cheated of a proper European occasion in 2019, too. Spurs are high-class opposition, for sure, but we can play them any time at home. I’ll bet our north London rivals feel exactly the same.</p>
<h2>What about the Greens?</h2>
<p>Environmentalists might wonder, not unreasonably, at the carbon bootprint left by flying tens of thousands of fans from England across Europe to play a match that could so easily (and much more cheaply) have been decided in the UK. But a global game will always involve international travel.</p>
<p>Smart alecs might also argue that mixing it in Madrid with our London rivals in 2019 is a sort of Champions League final for the Brexit era. Why do we need continental opponents when it is so obvious that we, the English, are the best? </p>
<p>The commercial power and strength of the club game in England is clear. But this is different, of course, from talking about the English game, because our coaches and key players are drawn from distant parts of the globe. Liverpool FC has as many Brazilians and Africans as Englishmen in its first team. Indeed, England manager Gareth Southgate <a href="https://www.theguardian.com/football/2019/may/18/gareth-southgate-premier-league-english-players-warning">recently predicted</a>, glumly, that soon only 15% of top Premier League players might qualify to play for England.</p>
<p>So why does the current version of European football still matter, even though we are playing all-too-familiar Premier League opposition in its blue-riband event? Perhaps because, against all reason, a club such as Liverpool still overwhelmed mighty Barcelona <a href="https://www.bbc.co.uk/sport/football/48179167">by four goals</a> in the semi final, in the same raucous working-class location it has played in since 1892, and in only the tenth competitive meeting between these clubs in their entire combined histories (I so wish you could have been there).</p>
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<p>Or, because the commercially modest Dutch masters, Ajax – a truly great name in European football’s past – can, even in the age of billionaire oil and state club ownership and Premier League power, build a thrilling young team and come within seconds of beating Spurs <a href="https://www.theguardian.com/football/live/2019/may/08/ajax-v-tottenham-hotspur-champions-league-semi-final-second-leg-live">in their semi-final</a>. Now, if Liverpool were playing Ajax in Madrid that would be a proper European Cup final – sorry, Spurs.</p>
<p>It is that precious uncertainty and search for collective glory which is why we still watch. And why misguided, ageing, supporters spend mad money to sleep fitfully overnight in Eastern European airports and Kiev floors. Because, my friends, that is emotionally invested sport, not business.</p>
<p>Come on, you Reds!</p><img src="https://counter.theconversation.com/content/118056/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Williams does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It can be difficult, emotional and expensive following a football team. A sports sociologist explains why it’s worth it.John Williams, Senior Lecturer in Sociology, University of LeicesterLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1170302019-05-28T12:01:59Z2019-05-28T12:01:59ZPremier League: how England’s clubs swept to European football dominance<p>Imagine the archetypal Hollywood blockbuster, where heroes battle adversity and come out on top. This is the kind of movie laden with star names and big brand product placements. Like an addition to the Star Wars franchise, it stirs emotions while turning over massive business worldwide.</p>
<p>This is the level of entertainment currently provided by English football. So much so that it should be considered one of Hollywood’s biggest rivals – positioned to take a massive bite out of the movie industry’s never-ending pursuit for the public’s attention (and cash). </p>
<p>After a series of games packed full of drama and commercial opportunities that would make a Beverley Hills producer salivate, English Premier League (EPL) clubs secured all four places <a href="https://www.bbc.co.uk/sport/football/48218123">in the finals of Europe’s top club competitions</a>, UEFA’s Champions and Europa Leagues. This is the first time in history that one nation has dominated in such a way, with Liverpool, Tottenham Hotspur, Arsenal and Chelsea securing the available slots. </p>
<p>Football fans in Liverpool and north London have inevitably revelled in the victories of “their” clubs. So too has much of Britain, even those who might normally have little interest in football. For the purists, this has been the stuff of legend. It plays to a self-perpetuating idea that frequently casts England as the home of football. </p>
<p>It has also been an opportunity for long-term club loyalists to claim the victories as a reinforcement of their community’s identities. There was even some respite from the tortuous Brexit political impasse. For once, England feels on top of the world.</p>
<p>But the less glamorous truth is that the passage of the four English clubs into the European finals was the result of industry, money and politics. English football’s success is an entertainment product nearly three decades in the making, and comes via smart commercial management, international free trade, and developments in broadcasting and globalisation, all of which have been helped by a prevailing free market ideology. </p>
<h2>A cosmopolitan affair</h2>
<p>The EPL was established in 1992 to do exactly what it is now doing. The essence of its formation was an emphasis on improving performance (both in international competitions and financially), stronger management, and commercial development. Nobody should therefore be surprised about the success English clubs are enjoying. However, it seems fanciful – disingenuous even – to claim that this is a success for English football. If anything, the country is merely the location for production of a global entertainment behemoth. </p>
<p>Only one of the clubs (Tottenham) is British owned – albeit by someone who <a href="https://www.football.london/tottenham-hotspur-fc/news/joe-lewis-tottenham-transfer-rumours-12773340">resides in the Bahamas</a>. The others are owned by <a href="https://www.bbc.co.uk/sport/football/45102559">Americans</a> <a href="https://www.goal.com/en-gb/news/who-are-liverpools-owners-fenway-sports-group/1rag4ff3i7jor19zqk3csntasm">and</a> a <a href="https://www.thetimes.co.uk/article/sunday-times-rich-list-chelsea-owner-roman-abramovich-wealth-vvsx2sv55">Russian</a>. All four team managers are from overseas (an Argentinian, a German, an Italian and a Spaniard). The shirt sponsors take in a Japanese tyre brand (Yokohama), a Middle East airline (Emirates) and a Hong Kong insurance company (AIA). Most of the players appearing in the semi-final games were from elsewhere – only eight players out of the 44 who started on the pitch were English. </p>
<p>The EPL’s inception coincided with both the European Union’s Bosman ruling (which boosted the <a href="https://www.skysports.com/football/news/11095/10100134/how-the-bosman-rule-changed-football-20-years-on">free movement of footballers</a>) and with globalisation, which has dramatically increased cross-border business, from talent recruitment to securing commercial partners. Hence, it is no surprise that the EPL has become such a cosmopolitan affair. </p>
<h2>Big money</h2>
<p>Every drama needs screen time to sustain its success, and satellite broadcasting to global audiences has brought in vast revenues for EPL clubs, which in turn sustains player acquisitions and major infrastructural investments. All of which has been enabled by the British government’s prevailing laissez-faire approach to industrial policy, characterised by <a href="https://www.vice.com/en_uk/article/4x9kxn/how-football-explains-capitalism">financial gain and capitalism</a>.</p>
<p>As a result, the EPL has not only developed as a big brand in its own right, it has induced a clustering effect, helping the brands around it grow. The likes of Manchester United and Manchester City are now among some of the world’s most valuable sports brands, while players appearing in the league routinely appear on lists of the world’s most marketable athletes. In turn, sponsorship consultancies, stadium design companies, data analysis agencies and more have all been able to build their businesses on the back of links to the Premier League. </p>
<p>Yet in the league’s brand constellation, it is not just the football business that has benefited. Brand Britain has become a star too. In rankings of soft power, the UK’s often pre-eminent position is partly <a href="https://www.newsweek.com/football-uk-brexit-soft-power-arsenal-premiere-league-527228">attributed to the EPL effect</a>. Politicians have been quick to take advantage of this; Tony Blair used it <a href="http://news.bbc.co.uk/1/hi/world/asia-pacific/189217.stm">to strike trade deals with China</a>, while the current government often enlists the help of clubs when it goes on <a href="https://www.gov.uk/government/news/british-embassy-doha-hosts-sport-is-great-event-in-qatar">overseas trade missions</a>. </p>
<p>Football helps sell what the rest of Britain also has to offer. So compelling has the EPL’s economic impact become, that it now publishes details of its contribution to <a href="https://www.ey.com/Publication/vwLUAssets/EY-Premier-League-economic-and-social-impact-January-2019/$FILE/EY-Premier-League-economic-and-social-impact-January-2019.pdf">national income and employment</a>.</p>
<p>The 2019 Champions League and Europa League finals may nevertheless mark the highest point of English football’s industrial success story. Clouds are gathering on the horizon – one outcome of which has been the EPL’s failure <a href="https://www.theguardian.com/football/2019/jan/17/premier-league-tim-davie-declines-chief-executive-richard-scudamore-susanna-dinnage">to recruit a new chief executive</a>. </p>
<p><a href="https://theconversation.com/british-sport-on-uncertain-legal-ground-as-brexit-looms-61655">Brexit</a>, changes in <a href="https://www.theguardian.com/media-network/media-network-blog/2013/jan/31/mobile-changing-face-broadcast">broadcasting technology</a>, shifts in the <a href="https://www.telegraph.co.uk/business/events/business-of-sport/what-is-the-future-of-sports-consumption/">consumption of content</a>, and growing competition from rivals <a href="https://www.bbc.co.uk/sport/football/47710833">such as Spain’s La Liga</a> all threaten English football’s global competitive advantage. Whoever replaces outgoing CEO of the EPL, Richard Scudamore, has a big job on their hands.</p><img src="https://counter.theconversation.com/content/117030/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Simon Chadwick does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The English Premier League was established in 1992 to do exactly what it is now doing.Simon Chadwick, Professor of Sports Enterprise, University of SalfordLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/744752017-03-16T12:29:14Z2017-03-16T12:29:14ZBT has made a huge gamble on sport – but will it win?<figure><img src="https://images.theconversation.com/files/160939/original/image-20170315-5324-17453un.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Game time.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/watching-smart-tv-translation-football-game-410515714?src=bII6r3MbbmgenOotgfWUuA-1-23">Shutterstock</a></span></figcaption></figure><p>For the top football clubs in Europe, it was another great result. The telephone company BT was so determined to keep broadcasting Champions’ League and Europa League football, that <a href="http://sport.bt.com/football/bt-retains-exclusive-rights-to-uefa-champions-league-and-uefa-europa-league-S11364161627708">it forked out £1.18 billion</a> for the privilege.</p>
<p>The eye-watering contract between British Telecommunications PLC and UEFA for exclusively live rights to the UK market, will last for three seasons from 2018 to 2021. The deal, which means not even highlights programmes are shown on terrestrial television stations, represents a massive 32% per cent price rise on the current deal in place from 2015. </p>
<p>So was it a winning move? Or an own goal? How can BT possibly make an economic return on such a large outlay?</p>
<p>The company already has a commanding industry position as the largest telecommunications company in the UK. <a href="https://www.ofcom.org.uk/about-ofcom/latest/media/facts">According to Ofcom</a>, in 2016 BT had a 32% market share of internet broadband services, 37% of landline provision, and 33% of the mobile market. Its closest rivals that year were Sky in broadband (23%), Virgin Media in landline services (13%), and O2 in mobile phone networks (21%). </p>
<p>The ongoing and major challenge for BT is to sustain these high levels of market share (and profit) across its range of services. And this is no easy task. <a href="https://www.ofcom.org.uk/about-ofcom/latest/media/media-releases/2017/bt-agrees-to-legal-separation-of-openreach">Ofcom ruled</a> in early 2017 that BT’s Openreach cable and landline provision should be separated from the rest of BT. This followed <a href="http://www.bbc.co.uk/news/business-38141510">complaints about the charges</a> to telecommunications partners, combined with <a href="http://www.ibtimes.co.uk/bt-openreach-draws-flak-poor-broadband-service-new-homes-1540786">poor service </a>. Openreach <a href="http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/11819236/BT-should-be-stripped-of-Openreach-says-Chris-Bryant.html">was accused</a> by Labour MP Chris Bryant of behaving like a “natural monopoly”, restricting competition and charging high prices. </p>
<p>The company’s relatively recent (2013) entry into the UK sports broadcasting market is best seen as a strategy to fend off competition in the broadband market from Sky, its nearest rival. The initial foray was into Premier League TV rights, facilitated by European Union pressure to allow a second broadcaster into the UK sports TV market following <a href="https://www.theguardian.com/football/2005/nov/18/sportsrights.sport">concerns</a> over Sky’s previous monopoly position. </p>
<p>BT had the advantage of established telecommunications networks with considerable management and technical expertise that could be applied to its move into sports broadcasting. Consumers were then enticed with free subscriptions to those signed up for BT broadband contracts. </p>
<p>BT paid £620m a year for these rights from 2015 to 2017, split roughly equally between Premier League and UEFA competitions. Again, huge amounts of money – but once the fixed costs of rights acquisition are paid for, the remaining variable costs are actually rather low (equipment, production crew and pundits), at least compared to creating drama or documentary programmes. </p>
<p>BT makes money from sports broadcasts through viewer subscriptions and selling advertising. But <a href="http://www.telegraph.co.uk/football/2016/02/12/uefa-concerned-by-bt-sports-dismal-champions-league-viewing-figu/">figures from the 2015-16 season</a> do not point to substantial returns. Manchester United versus Brugge in a playoff match prior to the Champions League group stage drew a total of 988,000 viewers to BT’s new channels. A Champions League group match between Manchester City and Borussia Moenchengladbach generated 651,000.</p>
<p>In the world of TV ratings, these numbers compare unfavourably with the 5m viewers who tuned in to the previous ITV terrestrial provision for a typical Champions League group stage match featuring a British club. Not an appealing prospect for advertisers who want a substantial audience reach. </p>
<p>Since 2015, BT has repackaged its channels and raised its marketing efforts. It has <a href="http://www.thedrum.com/news/2016/07/11/bts-first-major-content-tie-ee-will-offer-mobile-customers-free-bt-sport">moved into smartphones</a> and apps as media for its Champions League and Premier League coverage. Certainly, UEFA was not disturbed by the threat of low audience reach for advertisers when awarding its latest UK contract to BT rather than Sky or ITV. It even removed the popular late night Champions League highlights show from ITV.</p>
<h2>Turn on, tune in, pay up</h2>
<p>But BT will find itself constrained in raising subscription fees. Around 80% per cent of UK homes already have broadband so the scope for market growth is small. The company then has to appeal to consumers’ sense of value and their willingness to pay. Both BT and <a href="https://www.theguardian.com/money/2015/mar/19/sky-raises-sports-and-entertainment-package-prices">Sky have raised subscription fees</a> across the whole range of services substantially over the last two years. </p>
<p>When Sky bid aggressively to retain Premier League TV rights from 2016 it raised subscription fees by around 10% and claimed that costs would be cut by rationalising call centre operations. </p>
<p>Similarly, <a href="http://www.moneysavingexpert.com/news/phones/2016/04/bt-announces-steep-price-rises-for-home-phone-and-broadband--how-to-beat-the-hikes">BT raised</a> landline telephone and broadband rates by around 15% in 2016. But the scope for price increases is limited by consumer willingness to pay. After all, watching sports on TV is hardly a necessity. Further price increases will lead to households cancelling TV contracts from both BT and Sky, regardless of what is on offer in the TV bundle. </p>
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<p>For BT, making an economic return out of sports broadcasting is difficult but not impossible. They will certainly be hoping that the quality of the football it broadcasts remains high, with more games like Barcelona’s <a href="https://www.fcbarcelona.com/football/first-team/news/2016-2017/the-world-s-press-reacts-to-fc-barcelona-s-historic-comeback-psg">recent remarkable comeback</a> against Paris St Germain. It also helps if British teams do well and progress in the competition. The telecoms giant has placed a big bet on an exciting European future – with as few footballing Brexits as possible.</p><img src="https://counter.theconversation.com/content/74475/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert Simmons does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>How to get the best result from a £1.1 billion bet on football.Robert Simmons, Professor of Economics, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/660002016-09-26T13:17:57Z2016-09-26T13:17:57ZVideo refereeing could be a major own goal for football – here’s why<p>Ajax’s 5-0 cup victory against fellow Dutch premier division side Willem II on September 21 <a href="https://www.theguardian.com/football/2016/sep/22/anouar-kali-first-player-sent-off-video-assistant-referee">saw a first</a> in football: the official world debut for a video assistant referee in a competitive game.</p>
<p>Sitting in a van with six TV screens inside the stadium, the assistant quickly proved his effectiveness. He recommended by headset to the on-pitch referee that his initial decision to give Willem II midfielder Anouar Kali a yellow card for kicking an Ajax player’s ankle was too lenient, and Kali was dismissed a few seconds later. </p>
<p>While video refereeing is already routinely used to review decisions in sports like rugby and hockey, football has been late to the party. Ahead of the Ajax-Willem II game it was <a href="http://www.telegraph.co.uk/football/2016/09/02/video-replays-used-for-first-time-during-frances-3-1-friendly-wi/">trialled</a> first in a friendly between Italy and France earlier in September, successfully resolving claims in respect of a yellow card and a penalty. </p>
<p>It was then <a href="http://uk.reuters.com/article/uk-soccer-netherlands-video-idUKKCN11Q0TN">tested again</a> after the Ajax game in Feyenoord’s 4-1 cup victory over FC Oss on September 22, also in the Netherlands. More tests are <a href="http://www.fifa.com/about-fifa/news/y=2016/m=6/news=first-participants-of-video-assistant-referee-experiments-announced-2799518.html">set to follow</a> in different competition formats in Australia, Brazil, Germany, Portugal and United States and there have also been discussions about introducing it in <a href="http://www.dailymail.co.uk/sport/football/article-3607437/Video-technology-aid-referees-FA-Cup-season-replays-used-goals-penalties-red-cards-mistaken-identity.html">England</a> and <a href="http://www.scotsman.com/sport/football/competitions/premiership/scottish-cup-could-trial-video-replays-for-referees-1-4046050">Scotland</a>.</p>
<p>In the system being trialled, the video referee communicates with the referee on the pitch within a few seconds of any incident. As well as advising on penalty and card decisions, they might help clear up cases of mistaken identity or infringements in the lead-up to a goal such as offside or foul play. If the on-pitch referee wishes, they can also review the video footage themselves before making a final decision. </p>
<h2>Goal-line technology</h2>
<p>Video refereeing is a more intrusive extension of goal-line technology, in which video enables football referees to instantly make an accurate call about whether the ball crossed the goal line. Though again arriving much later than in other sports, goal-line technology recently became a feature of top European leagues like the <a href="http://quality.fifa.com/en/News/English-Premier-League-kicked-off-with-goal-line-technology/">English Premier</a>, the <a href="http://www.bundesliga.com/en/news/Bundesliga/Goal-line-technology-to-be-used-in-2015-16.jsp">German Bundesliga</a> and <a href="http://www.espnfc.co.uk/italian-serie-a/story/2297461/serie-a-approves-goal-line-technology-for-next-season">Italy’s Serie A</a>. </p>
<p>It is <a href="http://www.uefa.com/uefaeuropaleague/news/newsid=2365654.html">used</a> at the Champions League and Europe League finals, and was also used at the <a href="http://quality.fifa.com/en/News/GoalControl-confirmed-as-goal-line-technology-provider-for-Brazil-2014/">Brazil World Cup</a> in 2014 and <a href="http://www.dailymail.co.uk/sport/football/article-3632303/Euros-goal-line-technology-used-time-holding-set-pieces-come-close-scrutiny-France.html">Euro 2016</a>. In Germany’s 2-0 group win over Ukraine at Euro 2016, for example, the technology vindicated the referee’s <a href="http://www.dailymail.co.uk/sport/football/article-3638236/Jerome-Boateng-overcomes-injury-doubts-shine-Germany-begin-Euro-2016-campaign-win-against-Ukraine.html">decision</a> to reject goal celebrations by Ukrainian players after a shot was cleared right off the line by German defender Jérôme Boateng.</p>
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<p>International football federation FIFA for a long time <a href="http://bmsi.ru/issueview/d650862e-59a7-4990-86bf-9411ba20d57f/files/apr%202010.pdf">resisted</a> introducing goal-line technology, arguing it would threaten the universality and simplicity of football and the pace of the game, as well as removing some of the controversy and debate between fans. </p>
<p>But the federation came <a href="http://www.fifa.com/about-fifa/news/y=2010/m=10/news=ifab-agrees-examine-goal-line-technology-1320761.html">under pressure</a> to reconsider following <a href="http://www.telegraph.co.uk/sport/football/teams/england/9343883/Euro-2012-Ukraines-ghost-goal-against-England-another-example-of-why-we-need-goal-line-technology-says-Sepp-Blatter.html">numerous</a> high-profile incidents such as Frank Lampard’s disallowed goal for England against Germany at the 2010 World Cup. The technology was finally given the <a href="http://www.fifa.com/mm/document/affederation/administration/01/67/59/87/circularno.1315-furtheramendmentstothelawsofthegame-2012_2013.pdf">green light</a> in 2012. FIFA president, Gianni Infantino, has since also <a href="http://www.bbc.co.uk/sport/football/36085289">spoken positively</a> about it, notwithstanding that the accuracy of the technology <a href="http://pus.sagepub.com/content/early/2008/05/22/0963662508093370.short">is debatable</a>. </p>
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<h2>The fans’ view</h2>
<p>So should football now introduce video refereeing across the board? Not necessarily. Managers and coaches <a href="http://www.bbc.co.uk/sport/football/27726631">tend to be</a> supportive, but fans share many of FIFA’s concerns. The worry is that this is not being taken into account. </p>
<p><a href="http://www.thetimes.co.uk/tto/sport/football/article2528057.ece">Various</a> surveys <a href="https://d25d2506sfb94s.cloudfront.net/cumulus_uploads/document/n8btkavhir/YG-Archive-210612-football-goal-line-technology.pdf">have shown</a> a <a href="http://news.bbc.co.uk/sport1/hi/football/scot_prem/7948765.stm">large</a> majority of fans in favour of video technology, <a href="http://pressreleases.responsesource.com/news/72662/england-fans-support-goal-line-technology-and-the-germans-hattrick/">yet one</a> major international survey from 2012 was much more equivocal. <a href="http://www.thetimes.co.uk/tto/sport/football/article2528057.ece">At least</a> one of the more positive surveys also showed that despite fans’ enthusiasm, they fear it could assume too much importance. “Penalty decisions were the only types of decisions where the majority of fans felt using video refereeing was justified”, it said. </p>
<p>Another <a href="http://footballfanscensus.blogspot.co.uk/2007/05/survey-results-goal-line-technology.html?m=0">earlier survey</a> had 90% of fans fearing that players or managers would use video refereeing to gain a competitive advantage, for example by breaking the flow of the game. Elsewhere, fans <a href="https://d25d2506sfb94s.cloudfront.net/cumulus_uploads/document/n8btkavhir/YG-Archive-210612-football-goal-line-technology.pdf">have fretted</a> that the technology could remove the enjoyment and passion from debating key decisions, particularly when the stakes are high. Both <a href="http://www.tandfonline.com/doi/abs/10.1080/17511321.2012.745896">debating</a> and the <a href="http://search.proquest.com/openview/793ed4aa625cbcc49219185599eeb56e/1?pq-origsite=gscholar">atmosphere</a> at games have been demonstrated through research to be important for spectators’ <a href="http://www.naspspa.org/AcuCustom/Sitename/DAM/067/242_Uhrich_Sport_stadium_a.pdf">experience and satisfaction</a> in football.</p>
<p>At the University of Stirling we found a similar mixture of support and concerns when we <a href="http://hdl.handle.net/1893/23229">surveyed</a> 270 Scottish fans about goal-line technology in 2014. The majority thought the technology detracted from the atmosphere created by contentious goals and lessened the debate around crucial decisions. </p>
<p>They weren’t in favour of in-stadium viewing of goal-line technology, which is <a href="http://www.scotsman.com/sport/football/teams/rangers/cost-of-goal-line-technology-prohibitive-for-scottish-football-1-3995796">currently considered</a> prohibitively expensive by the Scottish Football Association, or of any other video technology being introduced. The more a fan identified with a team, the more strongly they tended to oppose the introduction of future technologies. </p>
<p>All these surveys remind us that the debate around video technology is far from over in football. Seriously damaging the atmosphere at games is arguably not a price worth paying to try and improve the game. It could potentially jeopardise one of the world’s most lucrative commercial products. For that reason, the governing bodies need to proceed cautiously. It is important that football decisions are as accurate as possible, but not at any cost.</p><img src="https://counter.theconversation.com/content/66000/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mathieu Winand does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The price of greater accuracy might be to damage fans’ enjoyment.Mathieu Winand, Lecturer in Sport Management, University of StirlingLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/607532016-06-09T15:34:07Z2016-06-09T15:34:07ZHow much is Euro 2016 worth?<figure><img src="https://images.theconversation.com/files/125937/original/image-20160609-7086-12pdfun.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The open goal. </span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/cat.mhtml?lang=en&language=en&ref_site=photo&search_source=search_form&version=llv1&anyorall=all&safesearch=1&use_local_boost=1&autocomplete_id=&search_tracking_id=mgq7sdTpMVig0GumOp0-eg&searchterm=football%20money&show_color_wheel=1&orient=&commercial_ok=&media_type=images&search_cat=&searchtermx=&photographer_name=&people_gender=&people_age=&people_ethnicity=&people_number=&color=&page=1&inline=335684642">Igor.Stevanovic</a></span></figcaption></figure><p>There are two ways of viewing the fact that a record 24 national teams are competing to lift the Henri Delaunay Cup at Euro 2016 in France. Some regard UEFA’s decision to include nearly half of its 55 members as a move to leverage football’s ability to bring people together in a celebration of sport and national identity. </p>
<p>The more cynical argue that inflating the scope and scale of the tournament is driven more by financial motives than sporting or political ones. The <a href="https://theconversation.com/euro-2016-how-uefa-found-the-formula-for-its-toughest-tournament-yet-60661">steady rise</a> from the four teams that contested the inaugural finals of 1960 through the years of eight and 16 teams to the new set-up means more games and therefore more commercial activity. </p>
<p>Adding eight extra teams means an additional 20 matches, not to mention eight extra sets of fans, television territories and commercial domains with a direct stake in who wins. The 2.5m people UEFA expects inside the ten host stadiums, 1.5m of whom will be visitors to France, is a predicted rise of more than 1m on the <a href="http://www.uefa.com/uefaeuro/season=2012/matches/">2012 tournament</a> in Poland and Ukraine (see graphic). No doubt this will see the tournament better the €1.4bn (£1.1bn) in revenues <a href="http://www.statista.com/statistics/279103/uefa-euro-revenue/">generated</a> last time around. </p>
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<a href="https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=320&fit=crop&dpr=1 600w, https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=320&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=320&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=402&fit=crop&dpr=1 754w, https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=402&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/125780/original/image-20160608-3481-1kjpznu.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=402&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Source: UEFA.</span>
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<h2>Winner does not take all</h2>
<p>The <a href="http://www.totalsportek.com/football/euro-2016-prize-money/">total prize money</a> for the tournament is to be €301m, a big rise on the €194m in Euro 2012. The overall winners will earn their national association a maximum of €27m, while all participating nations earn a minimum of €8m. </p>
<p>Yet these payments are dwarfed by the prize money in Europe’s top domestic leagues. Aston Villa <a href="http://www.sportsmole.co.uk/football/premier-league/2015-16/">came last</a> in this year’s English Premier League <a href="http://www.totalsportek.com/football/premier-league-prize-money-table-2015/">but pocketed</a> more than €80m in prize money. This year’s fairy-tale winners, Leicester City, won in excess of €100m.</p>
<p>The Premier League is a bigger beast, of course. It generates TV rights of €2.2 billion a year whereas the rights associated with the Euro finals are estimated at around €1 billion – though the Euro finals are worth much more per game: about €20m vs the Premier League’s €6m. </p>
<p>To put the Premier League into context, UEFA <a href="http://www.espnfc.co.uk/barclays-premier-league/story/2676914/premier-league-clubs-to-overtake-nfl-tv-earning-by-2017-uefa">has said</a> that when the new TV rights deal raises the pot to around €3.3 billion a year from the 2016/17 season, it will probably outstrip the media rights associated with the National Football League (NFL), the home of American football in the US. This is expected to help the combined financial earnings of European football overtake America’s big four: American football, basketball, ice hockey and baseball. </p>
<p>As for other major football tournaments, the UEFA Champions League <a href="http://www.uefa.org/MultimediaFiles/Download/OfficialDocument/uefaorg/Finance/02/33/53/58/2335358_DOWNLOAD.pdf">produced revenues</a> from rights and sponsorship of €1.5 billion in 2014/15. Brazil’s World Cup of 2014 was even more lucrative, <a href="http://uk.businessinsider.com/fifa-brazil-world-cup-revenue-2015-3?r=US&IR=T">producing revenues</a> of €3.5 billion from rights and sponsorship (plus another €465m from ticket sales). </p>
<h2>Five gold rings</h2>
<p>Also crammed into this summer of sport will be the Olympics in Rio. The Olympics might be expected to appeal to a wider audience both in terms of sporting preferences and geography. As such Rio represents a different league of financial opportunity. Separate figures for the income of the London Olympics in 2012 are not available, but the <a href="http://www.sportcal.com/pdf/gsi/Sportcal_Issue26_6-9.pdf">combined income</a> for that event and the Vancouver Winter Olympics of 2010 was €13.2 billion. </p>
<p>While comparing a European event for one sport and a world event for many sports is only fair up to a point, there is a marked difference in the infrastructure investments that they require of host nations. France has renovated stadia that will likely be heavily used by teams for years to come. Brazil by contrast is <a href="http://www.pri.org/stories/2016-02-22/budget-rio-olympics-16-times-higher-budget-combat-zika-virus">looking carefully</a> at each and every item in an attempt to control costs. The Olympic investment budget is several times <a href="http://www.sportspromedia.com/magazine_features/the_final_countdown">bigger</a> than Euro 2016, <a href="http://www.pri.org/stories/2016-02-22/budget-rio-olympics-16-times-higher-budget-combat-zika-virus">coming in</a> at around €9 billion. </p>
<p>The Brazilian economy was booming in 2009 when it won the right to host the Rio Olympics and politicians there would be forgiven for wondering whether “won” is the right descriptor – particularly after the World Cup. As well as the huge infrastructure project, there will be anxieties over the threat of terrorist attacks and also <a href="http://www.nbcnews.com/storyline/zika-virus-outbreak/zika-unlikely-infect-many-olympics-studies-show-n587211">the challenge</a> of dealing with the Zika virus and its adverse publicity. </p>
<p>Euro 2016 has its own security challenges, coming so soon after three major terrorist attacks in France and Belgium. And UEFA is currently without a leader after Michel Platini <a href="https://www.theguardian.com/football/2016/may/09/michel-platini-cas-appeal-ban-football">resigned last month</a> over an inappropriate payment from former FIFA head Sepp Blatter. Yet there is no sense that hosting this event is a poisoned chalice in the way that the Olympics is sometimes seen. </p>
<p>Football has become a global sporting juggernaut in recent years. Euro 2016 may not be the largest tournament in financial terms, but it just got a lot bigger. It benefits from the global popularity of both individual players and the club teams they normally represent. Whether the action on the pitch lives up to the hype, of course, we won’t know until we tune in.</p><img src="https://counter.theconversation.com/content/60753/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robert MacIntosh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Your guide to how the French extravaganza compares to the other big events in sport.Robert MacIntosh, Head of School of Management and Languages, Heriot-Watt UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/600822016-05-31T12:29:35Z2016-05-31T12:29:35ZManchester United: the press, Louis van Gaal, and what Jose Mourinho must do to avoid a similar fate<p>As Jose Mourinho prepares for life as Manchester United’s latest manager, one enduring memory of his embattled predecessor, Louis van Gaal, must be his <a href="http://www.independent.co.uk/sport/football/premier-league/louis-van-gaal-sacked-watch-his-final-press-conference-as-manchester-united-manager-a7043221.html">final press conference</a>. It should have been the Dutchman’s proudest day in the job, but instead his face was etched with anger as his contempt for the British sports media was laid bare.</p>
<p>Van Gaal’s battling United team had just won the FA Cup at Wembley, the club’s <a href="http://www.bbc.co.uk/sport/football/36292265">first major trophy since the retirement of Sir Alex Ferguson</a>. But the press had moved on. Within minutes of the final whistle, <a href="http://www.bbc.co.uk/sport/football/36351371">the BBC’s Dan Roan and Simon Stone reported that Van Gaal was to be sacked</a> and replaced by Mourinho. Despite an extraordinary live radio rant from former United player and pundit Paddy Crerand that the story (unusually for the BBC based on anonymous sources) was “crap”, <a href="http://www.prolificnorth.co.uk/2016/05/paddy-crerand-show-replaced-by-mutv-following-rant-at-bbc-journalist/">it proved to be spot on</a>.</p>
<p>The exclusive was an example of tremendous journalism but the timing could not have been more embarrassing for the club and an unaware Van Gaal, who was told about the report by his wife. While it was inevitable that the press conference would then be dominated by questions about Mourinho rather than the match, Van Gaal brandished the trophy, refused to answer questions on his future and ended by sarcastically thanking the media for congratulating him.</p>
<p>Of course, the majority of fans and commentators would say his dismissal was inevitable, based on months of dull football and United’s failure to secure a place in next season’s lucrative Champions League. But part of Van Gaal’s frustration was also a six-month tsunami of negative coverage, including premature – and at many times incorrect – <a href="http://www.mirror.co.uk/sport/football/news/manchester-uniteds-louis-van-gaal-7045862">predictions of his departure</a>. </p>
<p>Did the constant media attacks – including the Manchester Evening News calling for him to be axed on its front page – create a climate in which he had no chance to succeed? The answer is no, but a hostile sports media, coming at managers from all angles in the digital world, does surely increase the chances of failure.</p>
<h2>Media scrutiny</h2>
<p>Van Gaal would attract sympathy from other managers who endured similar front-page treatment – such as Aston Villa’s former boss Paul Lambert. But Sir Alex Ferguson himself withstood widespread press criticism in his early years at United to emerge as Britain’s most successful manager. He went on to build a power base on unprecedented success and football played with panache. In the end he was untouchable. His critics would still attack but they had no real ammunition with which to damage him.</p>
<p>In 2016, though, the reach and power of the sports media is huge and growing by the day. With the proliferation and sharing of online, social media and mobile content – on top of saturation TV, radio and newspaper coverage – negative stories can create a spiral of gloom that make it much more difficult for managers to come back from poor performances.</p>
<p>The pen may not be mightier than league table standings at the end of the season, but it can also be as unpredictable as a Leicester City title win – and certainly subjective. In the immediate aftermath of United’s FA Cup victory, award-winning <a href="http://www.dailymail.co.uk/sport/football/article-3603792/Why-Jesse-Lingard-s-FA-Cup-winner-wasn-t-Louis-van-Gaal-s-Manchester-United-master-plan.html">Daily Mail writer Martin Samuel was adamant that Van Gaal should take no credit</a>, because the winning goal – a brilliant first-time volley from youngster Jesse Lingard – went against the coach’s rule to take a touch before shooting. Van Gaal, he contends, got “streaky”.</p>
<p>Mourinho’s United adventure will be determined by results on the pitch and the entertainment his team provides. But his chances of success will surely be lifted if he can win a few more friends in the media than Mr Van Gaal managed to cultivate.</p><img src="https://counter.theconversation.com/content/60082/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The sacking of Manchester United’s Louis van Gaal shows football really is a funny game. But was anyone else to blame?Paul Broster, Director of Journalism, University of SalfordCaroline Cheetham, Lecturer and Visiting Fellow in Journalism, University of SalfordLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/475072015-09-14T15:15:40Z2015-09-14T15:15:40ZAs Champion’s League kicks off, earthquake in sports rights could be next<figure><img src="https://images.theconversation.com/files/94653/original/image-20150914-4698-7y4kyb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">All because we like kicking balls between two sticks</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/cat.mhtml?lang=en&language=en&ref_site=photo&search_source=search_form&version=llv1&anyorall=all&safesearch=1&use_local_boost=1&autocomplete_id=&searchterm=football&show_color_wheel=1&orient=&commercial_ok=&media_type=images&search_cat=&searchtermx=&photographer_name=&people_gender=&people_age=&people_ethnicity=&people_number=&color=&page=1&inline=178481624">Krivosheev Vitaly</a></span></figcaption></figure><p>“Where there’s passion, there’s profit” was a phrase coined by Alex Fynn, the original architect of what would become the UEFA Champions League competition back in 1992. How right he was. </p>
<p>As Europe’s 32 leading clubs begin the group stages of an annual journey that will end with the champions being crowned at the San Siro in Milan next May, no one could have predicted the <a href="https://theconversation.com/hard-evidence-how-much-is-the-champions-league-worth-42376">spectacular success</a> and financial growth of the competition all those years ago. </p>
<p>Media rights are at the core of this financial success, of course. UEFA, the governing body of European football, has told me that rights make up around 80% of all the revenue that the organisation secures. From an era in the early 1990s where rights meant purely television – ITV had the exclusive UK contract in those days – we’re now in a digital era where rights management for sports event has become much more complex. </p>
<p>In an era of streaming and ubiquitous access to digital content, policing the intellectual property from live coverage has become integral to rights holders’ business models. They’re up against increasingly tech savvy fans who are only interested in seeing live sport, wherever and whenever they can – not to mention media organisations seeking new ways to satisfy them. Consequently both in football and elsewhere, some of the most interesting battles are no longer taking place on the field. </p>
<p>Recent 2015 flashpoints include the Rugby World Cup, where <a href="http://www.irishtimes.com/sport/rugby/international/australian-media-groups-opt-out-of-covering-rugby-world-cup-1.2258837">there will be</a> no accredited journalists from News Corp Australia, Fairfax Media or Australian Associated Press. They couldn’t agree with the organisers on the amount of video content they would be allowed to carry on their websites, claiming that the restrictions meant they would be unable to offer their own audience the level of 24/7 mobile multi-platform coverage that they would expect.</p>
<p>Over in PGA golf, American golf journalist Stephanie Wei’s media accreditation <a href="http://www.golf.com/tour-and-news/pga-tour-revokes-stephanie-weis-credentials">was withdrawn</a> for the rest of the season back in May because she used her Twitter feed to <a href="https://www.periscope.tv">Periscope</a> golfer Jordan Spieth during a practice round (for the uninitiated, Periscope is a live DIY video broadcast platform). The PGA said it owned all video rights for the entire week of the event, not simply the actual tournament. </p>
<h2>Territorial pinchings</h2>
<p>Technology has also famously caused headaches for sports organisations who have packaged rights by territory. The modern classic was the case of Karen Murphy, the pub owner from Portsmouth in England who challenged the FA Premier League and its exclusive territorial rights arrangement with Sky Sports in 2005. Fed up with what she saw as Sky’s high prices, she had purchased a subscription with Greek broadcaster Nova, who had the Greek rights to screen English games. Having imported a Greek decoder and card, she broadcast Nova’s coverage in her pub. The Premier League duly took her to court. </p>
<p>The case ended up before the European Court of Justice (ECJ) in 2011, <a href="http://www.dailymail.co.uk/news/article-2045029/Pub-landlady-Karen-Murphy-wins-EU-fight-screen-Premier-League-football.html">which accepted</a> Murphy’s argument that she was entitled under EU competition law to purchase a subscription from another member state. The case was then referred back to the UK High Court, <a href="http://www.theguardian.com/media/2012/feb/24/pub-landlady-karen-murphy-premier-league">which upheld</a> the European ruling but also noted that Murphy’s broadcast infringed the copyright restrictions that applied to elements such as graphics, logos and music, all of which belonged to the Premier League. </p>
<p>This has meant that the impact of the ECJ decision has not been as great as some feared (and others hoped). Contracts were rewritten, forcing foreign rights holders to only broadcast in their own language and heavily restricting the number of games that they could show at 3pm UK time, the time when pub customers would expect to catch a game. <a href="http://www.bbc.co.uk/news/uk-wales-25849670">Numerous pubs</a> broadcasting foreign Premier League streams <a href="http://www.broadbandtvnews.com/2014/11/24/pubs-in-breach-of-premier-league-copyright/">have also been</a> prosecuted for breaching copyright for the reasons outlined in the Murphy case. </p>
<p>Of more recent interest has been <a href="https://ec.europa.eu/digital-agenda/en/news/digital-single-market-strategy-europe-com2015-192-final">EU proposals published</a> in May that intend to outlaw the geo-blocking of content across the EU by the end of 2016. This will potentially prevent the likes of UEFA from selling rights country by country, which would be a huge change to the status quo. If for example YouTube acquired the exclusive rights for a sports event, it would need to make them available to users across Europe. </p>
<p>As you can imagine, this has prompted discussions between various sports rights holders and the European Commission. Watch this space for announcements in the coming months, which may yet see the proposals watered down. Instead of only selling pan-European rights, one lesser option that I understand has been on the table is “portability”. This would mean that if I had a British pay-TV football subscription, Sky or BT would have to enable me to watch online while travelling in other countries. Under such a scenario, rights might still be sold country by country after all. </p>
<p>While there are surely pros and cons to this kind of more modest change, it is worth bearing in mind one legacy of past EU interventions into the sports rights market, such as <a href="http://www.ft.com/cms/s/0/73c030bc-57d8-11da-8866-00000e25118c.html">breaking up</a> Sky’s monopoly of English Premier League games in the UK in 2005. The EU had started out with the intention of increasing competition, but this ironically pushed up the cost of viewing for fans. And the ECJ’s Murphy decision led to the 3pm games restriction, which lessened the range of games available to viewers in Europe. Whatever the downside of the status quo, it has its consolations too.</p><img src="https://counter.theconversation.com/content/47507/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Raymond received funding from RCUK for the CREATe Centre's Copyright, Football and European Media Rights project</span></em></p>Today’s digital morass has made sports rights infinitely more complicated than when Europe’s premier football event kicked off in 1993.Raymond Boyle, Professor of Communications, University of GlasgowLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/423762015-06-02T11:52:55Z2015-06-02T11:52:55ZHard Evidence: how much is the Champions League worth?<p>This year’s UEFA Champions League Final is almost upon us, with Barcelona set to take on Juventus on June 6. It is four years since Barcelona last played for European club football’s highest honour. For Juventus, it is the first time since 2003 that they have reached the final and, should they win, it will be the club’s first Champions League Final victory since 1996.</p>
<p>The commercial returns associated with the Champions League have skyrocketed since then. Such has been the growth of the tournament, that the final is viewed by some as being the world’s <a href="http://www.businessinsider.com/champions-league-facts-2012-5?op=1&IR=T">biggest annual sporting event</a> and <a href="http://www.telegraph.co.uk/sport/10726299/The-10-richest-sporting-events-in-the-world.html?frame=2573777">by others as the richest</a>.</p>
<h2>Prize money</h2>
<p>Barcelona and Juventus though will already be aware of the windfall to be earned. The prize money structure for this year has been: </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=298&fit=crop&dpr=1 600w, https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=298&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=298&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=374&fit=crop&dpr=1 754w, https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=374&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/82961/original/image-20150526-24745-26musk.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=374&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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</figure>
<p>This means that, even before this year’s final, Barca have already earned €38m in prize money alone. A win in Berlin will take this figure to €53m. Juve, meanwhile, have already earned €35.5m in prize money, which could rise to €50.5 million should team captain Gianluigi Buffon lift the trophy on Saturday.</p>
<h2>Market pool</h2>
<p>But for both clubs, the windfall will not end there. At the end of each Champions League campaign, UEFA makes a series of “market pool” payments to clubs, which is based upon the value of the TV market in the country a team is from. For the Champions League finalists during the last three years, this is what it meant for each of them: </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=425&fit=crop&dpr=1 754w, https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=425&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/82975/original/image-20150526-24734-wbm022.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=425&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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</figure>
<p>As such, while it is difficult to place an accurate figure on market pool payments (UEFA does not reveal the precise award until August), it is reasonable to assume that Barca and Juve will earn additional prize money of around €20m.</p>
<p>So the two clubs already have around €70m in the bag. On top of this, both will have played six home games and so have drawn additional gate revenues from ticket sales. Consider this: if a club such as Manchester United charged an average ticket price of €70 for a Champions League ticket, of which they sold 75,000 for six games, that’s an additional €31.5m. For Barca and Juve, it is therefore conceivable that one or both will bank €100m or more.</p>
<h2>Shirt sales</h2>
<p>In addition, there are numerous other revenue-generating opportunities that arise from Champions League success. For example, a club can sell more corporate hospitality packages, turnover more merchandise, charge premium rates for sponsorship and use victory to help build a global fan base. </p>
<p>In terms of say, shirt sales, it is difficult to specifically attribute a sales increase to victory in one game. But the following provides an indication of the possible impact that a Champions League final victory can bring. Among recent winners, it is estimated that clubs sell the following number of shirts worldwide <a href="http://www.dailymail.co.uk/sport/football/article-2738568/Manchester-United-Real-Madrid-continue-replica-shirt-sales-charts-selling-average-1-5m-year.html">on average per annum</a>:</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=254&fit=crop&dpr=1 600w, https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=254&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=254&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=319&fit=crop&dpr=1 754w, https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=319&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/83669/original/image-20150602-13962-1yy1es1.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=319&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>If we assume a modest price per shirt of €50, for a club like Real Madrid this brings in additional annual revenues upwards of €70m. Not all of these shirts will have been sold in direct response to these clubs winning the Champions League, but the magnitude of sales demonstrates its high-stakes nature. Nike executives in particular will be anticipating this year’s contest with glee, as both finalists will be sporting their branding and this will be a bumper sales opportunity for them.</p>
<h2>Social media</h2>
<p>The Champions League final is also a social media sensation. The following heat map of social media activity around the globe during last year’s final shows just how popular it is:</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=328&fit=crop&dpr=1 600w, https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=328&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=328&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=413&fit=crop&dpr=1 754w, https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=413&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/83654/original/image-20150602-7003-a78ufp.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=413&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The moment social media went mad after Gareth Bale’s extra time goal.</span>
<span class="attribution"><a class="source" href="http://cartodb.github.io/lisbon-2014/#/2/5.8/31.1/0">cartodb</a></span>
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<p>The further a club gets in the Champions League (and if they ultimately win it), the more they can build their social media presence. All the clubs have Twitter, Instagram and YouTube followings. The big challenge of course is to monetise this. But <a href="http://www.cisjournal.org/journalofcomputing/archive/vol5no10/vol5no10_1.pdf">social media is a vital tool</a> for any brand when it comes to boosting their visibility, engaging with fans (and, ultimately, customers). </p>
<p>This is hardly surprising though – the Champions League has a seductive social media appeal. <a href="http://www.uefa.com/MultimediaFiles/Download/competitions/Final/02/11/18/28/2111828_DOWNLOAD.pdf">Figures from UEFA</a> emphasise the power and the pull of top-level European football. There were 8.4m tweets about the 2014 final during the evening of the game, peaking just under 210,000 when Gareth Bale scored in extra-time; on Facebook there were more than 67m interactions around the final. Altogether, the final was watched by more than 165m people across 200 countries. </p>
<p>Whatever the precise details of a club’s commercial gains, it is indisputable that winning the Champions League brings with it major rewards. Deloitte in its <a href="http://www2.deloitte.com/uk/en/pages/press-releases/articles/combined-revenue-of-top-20-deloitte-football-money-league-clubs-breaks-6bn-barrier.html">Football Money League</a> explicitly acknowledges: “To gain entry to the top 20 [football club earners], substantial broadcast revenue continues to be critical, especially that generated from participation in the UEFA Champions League.” </p>
<p>Forbes in its 2014 ranking of the <a href="http://www.forbes.com/sites/kurtbadenhausen/2014/07/16/the-worlds-50-most-valuable-sports-teams-2014/">world’s most valuable sports teams</a> also acknowledges the “Champions League effect”, with the following winners appearing:</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=210&fit=crop&dpr=1 600w, https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=210&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=210&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=264&fit=crop&dpr=1 754w, https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=264&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/83656/original/image-20150602-6981-1k97gm5.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=264&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
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<span class="attribution"><a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<h2>Wider gains</h2>
<p>At last year’s final in Lisbon, the IPAM Marketing School identified the <a href="http://www.internationalmeetingsreview.com/portugal/portugal-uefa-champions-league-final-has-economic-impact-lisbon-99063">net economic impact for the city as €45m</a>. More specifically, 54% of the impact generated is believed to have come from overnight stays in Lisbon; restaurants generated nearly 22%; with general tourism accounting for 7% of revenues. Meanwhile, Lisbon Airport handled an extra 10,000 passengers over the weekend of the final – a 20% increase on normal passenger levels. An earlier study of the 2011 Champions League final in London estimated that the windfall for the city would be around €52m.</p>
<p>So where does the ripple effect of Champions League revenues actually end? It is difficult to say; let us not forget too that for UEFA itself the tournament is a cash cow, generating somewhere in the region of €1.5 billion a season for European football’s governing body. </p>
<p>For sponsors, the final is always a boost to their business. When Heineken renewed its deal with UEFA, it recognised that awareness of its brand has grown to <a href="http://www.theheinekencompany.com/media/media-releases/press-releases/2013/10/1739523">60% among UEFA Champions League fans</a>. Even local economic activity in the city from which the winning team originates is likely to increase, with figures suggesting that a <a href="http://www.sportengland.org/media/177230/economic-value-of-sport.pdf">“feel-good factor”</a> may boost spending and consumer confidence. </p>
<p>So, no matter who lifts the trophy in Berlin, we can be sure that the Champions League will continue to be a thriving tournament at the heart of a growing micro-economy that looks set to continue prospering for years to come.</p><img src="https://counter.theconversation.com/content/42376/count.gif" alt="The Conversation" width="1" height="1" />
<h4 class="border">Disclosure</h4><p class="fine-print"><em><span>Simon Chadwick is affiliated with UEFA; he has helped the organisation develop, and teaches on, their education programmes.</span></em></p>The two Champions League finalists already know they have around €70m in the bag.Simon Chadwick, Professor of Sport Business Strategy, Coventry UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/258262014-04-22T12:42:14Z2014-04-22T12:42:14ZDon’t blame Moyes for Man Utd woes: the buck stops at the top<p>Patience at Manchester United has run out. <a href="http://www.theguardian.com/football/2014/apr/22/david-moyes-sacked-manchester-united">David Moyes has been sacked</a> possibly sooner than was expected, but entirely predictably given the huge financial pressures that were looming if the team continued to under-perform. </p>
<p>As Old Trafford veteran, Ryan Giggs, steps temporarily into the hot seat, it is important not to lose sight of the fact that the business model of any sports club is mostly driven by what happens on the pitch. On-field success enhances each of the three revenue streams – match day, broadcasting and commercial. </p>
<p>In United’s most recent financial statement published on February 12, the <a href="http://ir.manutd.com/phoenix.zhtml?c=133303&p=irol-newsArticle&ID=1899266&highlight=">projected revenue for the next financial year was around £420m</a>. But this was predicated on the fact that the team would finish at least third in the Premier League and reach the quarter finals of both the FA Cup and the Champions’ League, only one of which happened. </p>
<p>As a consequence, somewhere in the region of £40m will be wiped off the bottom line of the balance sheet by the club’s failure to qualify for the Champions League alone. Perhaps more importantly, the necessary rebuilding of the team will be more difficult and cost much more than anticipated from a significantly weakened negotiating position. While the immediate financial situation will not be too burdensome – given the fantastic shirt deal already in the bag with <a href="http://www.crainsdetroit.com/article/20140405/NEWS/140409906/chevy-begins-sponsorship-of-iconic-english-soccer-team-by-bringing">Chevrolet</a> and another in the offing with <a href="http://www.manchestereveningnews.co.uk/sport/football/transfer-news/manchester-united-600m-nike-kit-7005901">Nike</a> – the future was beginning to look precarious and more than one year out of the Champions League considered unacceptable.</p>
<h2>Sense out the window</h2>
<p>So, the sacking of David Moyes was clearly a consequence of managerial failure but not entirely, indeed not even predominantly, that of Moyes himself. The real blame lies with the board and the CEO, or executive vice chairman, as Ed Woodward is called. </p>
<p>All normal recruiting and managerial sense seemed to fly out of the window from the moment Alex Ferguson resigned after 26 years in charge. Ferguson himself was permitted an over-powerful influence on the selection process whereas the sensible thing to do is not involve the outgoing person at all. Notwithstanding, the board and CEO sanctioned the selection of Moyes and then compounded that by allowing the incoming manager to bring with him an entirely untried (at this level) back-room team to replace an entirely tried and tested team. </p>
<p>Such mass movements are common in English football and do no favours to either the club or the manager himself. Managers will often demand such deals but they should be resisted. Of course, if at the end of the first season the manager wishes to replace staff that is entirely reasonable. Managers – and apparently Moyes was one – make a rod for their own back by taking on the entire responsibility for everything within the club and see delegation as a sign of weakness whereas it is the exact opposite. Clubs collude in this by abrogating their responsibility to manage the manager. </p>
<p>So, again, the CEO must take responsibility for endorsing the signings of <a href="http://www.football365.com/f365-says/9244765/Marouane-Fellaini-The-Albatross-Around-Moyes-Neck">Marouane Fellaini</a> and <a href="http://www.manutd.com/en/News-And-Features/Football-News/2014/Jan/Juan-Mata-completes-club-record-transfer-to-Manchester-United-from-Chelsea.aspx">Juan Mata</a>, as well as a lucrative new deal for <a href="http://www.bbc.co.uk/sport/0/football/26287482">Wayne Rooney</a>. All three decisions smacked of desperation; it was difficult to see a strategy behind any of them. It was said at the time of Mata’s purchase that it was needed to appease the fans. That is no reason to spend £40m of the company’s money. Fans are appeased by sensible management, not rash, expensive decisions.</p>
<p>Moyes is carrying the can for the dismal performance this season and it is right that he should carry his share of the responsibility but it appears, at least from the outside, that he received scant support from those whose job it is to provide it. It may be a coincidence but when strong oversight and support for the managers is removed (as happened with with the departures of <a href="http://www.mirror.co.uk/sport/football/news/arsenal-news-david-dein-should-3287793">David Dein</a> at Arsenal and <a href="http://www.bbc.co.uk/sport/0/football/21519522">David Gill</a> at United) the omniscience of the head coach is exposed as a facade. </p>
<p>United fans should hope the board and CEO do their jobs better this time around. If not, United may be looking at a repeat of the post-Matt Busby era of multiple managers and chronic underachievement which eventually lasted more than 20 years.</p><img src="https://counter.theconversation.com/content/25826/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Brady does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Patience at Manchester United has run out. David Moyes has been sacked possibly sooner than was expected, but entirely predictably given the huge financial pressures that were looming if the team continued…Chris Brady, Co-Director, Centre for Sports Business, University of SalfordLicensed as Creative Commons – attribution, no derivatives.