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European Super League (again)


Spurs - we had to do it and we shouldn't be punished.
Liverpool - this is on FSG, not my club.

And that is why this will happen again within a year. Everybody is focused on themselves rather than making an actual functioning competition.
 
Too much of a club punishment and it'll make it worth their while to resurrect the idea.
Thats going to happen anyway. This isn't a sudden thing, they've been gradually moving towards it for years. The history of the champion's league is the history of UEFA frantically trying to appease them at every turn.

Either you give in or you kick them out of the competition. You're not going to persuade them that actually things would be better if they didnt control all the money.
 
I am out of loop, but I had chance to skim-read the entire thread and didn't find it comfortable reading—I have to tell you. I feel this has echoes of the 2008 mortgage crisis about it; big business can't put its house in order, wants to repackage the cost onto someone else.

Now my question is this: If the ESL project had had a sweet-heart deal, pre-signed with Murdoch—Skysports, The Sun et al; and the Murdoch press would have been vocally in favour, would this have tanked?

I am not convinced it would have. And I worry this ESL thing will come back again.
Sky would not have got a look in on tv rights. The buying power is with Netflix, Amazon and Disney. Considering the driving forces behind this I think tv rights were more likely to vest in the USA.
 
All good points, but Murdoch only needed a backhander and the dynamic would have been less favourable to everyone bar the small cabal concocting this.

Do we know who they were wanting to sell TV rights to?
 
A long C&P of The Athletic article. Bit more balance and insight than the UK MSM.

Over a week has passed since the proposed Super League fell flat on its face and the ire and resentment lingers across European football. For the 12 clubs that attempted to break away from UEFA and its competitions, the blowback remains significant.

In the delusion that blinded the Dirty Dozen, owners such as Liverpool’s John W Henry or Manchester United’s Joel Glazer might have imagined that the beginning of May would herald a new era. They envisaged a world where billions would be distributed between the Super League’s 15 founder members, where the losses sustained during the pandemic would be swiftly wiped out and where their clubs, or their assets, would add billions to their value due to their new permanent residence in the world’s elite club competition.

Instead, these owners have encountered carnage.

After torching relationships internally (within their own clubs) and externally, with governments, sporting bodies, rival clubs, media partners, sponsors and supporters, European football finds itself at a moment of inflection and reflection.

The Athletic breaks down some of the more pressing repercussions and looks at where European football may go next.

Is the Super League, in its imagined form, completely dead?

This would appear to be the case, although several clubs continue to hold out hope. While Real Madrid and Barcelona are still to publicly declare an intent to withdraw from the Super League, the 10 other clubs involved have indicated that the proposals, in their current form, are unworkable. Juventus and AC Milan chose their words carefully, though.

Juventus chairman Andrea Agnelli insisted he remained committed to the “beauty” of the project but conceded the plan is unfeasible, while Milan issued a statement citing how they had listened to the “voices and concerns of fans around the world” before adding they will work towards a “sustainable model for football”. Neither club specified that they had begun discussions over the legal formalities of withdrawal from the Super League.

The Super League proposal would have been funded by the American investment bank JP Morgan but even it issued an apology for its involvement in the scheme and insisted it will “learn” from the experience. Additionally, the bank’s investment was due to be set against future broadcast revenues, yet the Super League did not announce a broadcast partner. As such, in the absence of a bank and the apparent absence of a broadcast partner, the plan would seem to be in tatters.

In the Premier League, Manchester United, Manchester City, Chelsea, Liverpool, Arsenal and Tottenham Hotspur have all issued statements to explain they have begun the process of withdrawal from the Super League. The Athletic understands that the Liverpool and United legal teams are working together on a complicated extrication process, while sources indicated that the law firm Freshfields has been enlisted to work on a joint approach for Chelsea, Arsenal, Tottenham and Manchester City. Freshfields declined to comment.

The cost of withdrawal for the English clubs is likely to be a matter of contention in the coming months. Real Madrid president Florentino Perez has insisted penalty clauses are owed by clubs who deserted the Super League. The agreement states that “the early exit by an exiting founder at any time but, particularly within the 23-season period, would result in material and irreparable economic, reputational and operational damages to the SL Project, SL Clubs, AgentCo and relevant creditors under the debt facility credited to AgentCo”.

Perez says penalty clauses are owed by the clubs who have turned their backs (Photo: Mateo Villalba/Quality Sport Images/Getty Images)
The Athletic has seen documents that outline the situation and aspects have previously been reported by the Financial Times and elsewhere in the European media.

In the event that the Super League had launched and a club sought to exit, the punitive clauses were severe. If, for example, a club exited the Super League a couple of years into the competition, the club would have been contractually bound to return 50 per cent of their fee for participating in their final campaign. In addition, they would have been required to pay a €150 million exit clause (or 25 per cent of the fees earned by a club during the previous four seasons).

As it transpired, of course, the Super League did not launch and therefore these clauses do not apply. In addition, sources close to several English sides suggested that lawyers may highlight a line in the agreement that says that 70 per cent of the founding clubs needed to serve notice of their intention to continue in the project before July 10 or “the SL project would terminate with immediate effect”

At a fans’ forum on Friday, Arsenal director Josh Kroenke, son of owner Stan, conceded that some fees would need to be paid back and he insisted they would be returned from his father’s personal business empire, rather than out of club accounts.
 
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Several sources close to the English clubs feel they are likely to escape with reasonably low penalty clauses. A well-placed source suggested that lawyers representing the clubs could be within their rights to invoke a force majeure in order to limit the costs to the English clubs. A force majeure refers to unforeseeable circumstances that prevent an individual or entity from fulfilling a contract.

The English clubs could, theoretically, seek to argue that they did not foresee prime minister Boris Johnson declaring he would be prepared to implement legislation to prevent the proposals from going ahead.

The source continued: “If there is a way of getting out of a binding Letter of Intent, which can cause serious financial issues if you tear it up and walk away, then it would need to be a force majeure as a get-out. This would include, by any definition, the emergence of a serious threat of unimagined legislation. It may just give the English clubs quite a nice get-out. They would surely have known the fans would go mad but government legislation appears to be a more reasonable argument.”

Clubs across Europe feel hurt and betrayed. How do the 12 Super League clubs recover their reputations, and will there be major sanctions?

On Tuesday night, Chelsea and Real Madrid, two Super League clubs, faced off in the semi-finals of the Champions League, UEFA’s flagship competition. There had been moves late last week by major European clubs to ban Super League entrants from UEFA competitions. This, however, is now highly improbable.

A degree of pragmatism must be applied to the next step. If UEFA threw three of the Champions League semi-finalists out of this season’s competition, or removed all 12 from next season’s Champions League and Europa League, they would face demands for rebates from major broadcast partners who want the biggest clubs, the most venerated coaches and the most famous players on their platforms.
 
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As such, sanctions from UEFA and the European Club Association (ECA) will be directed firmly at individuals who are perceived to have breached trust and showcased staggering disloyalty.

As such, individuals such as Agnelli, Arsenal’s Vinai Venkatesham or Manchester United’s Ed Woodward are likely to be cut adrift. Woodward, of course, has already resigned.

A senior club executive on the ECA board told The Athletic: “It’s important to look forward as well as looking back. We have to manage the future. We do have to remember it is the people who take decisions, not the clubs, so punishments should be against those individuals.

“If your brother has betrayed you, you don’t want to see him for a very long time. It’s personal.

“We have no trust in these people. They would never be elected to positions again. Would they really want to walk back in the room anyway? Would Agnelli like that? He would need the best speech in human history and still nobody would trust him!

“Juventus, as a club, would be welcome but the damage on himself is beyond repair. Many on the ECA board feel this way.”

The potential sanction that most gravely concerns the six English clubs centres on the controversial decision to award two places in the Champions League group phase to clubs based on historic performance, rather than their domestic finish in the previous campaign.

Over the past month, UEFA agreed European club competition reforms with the ECA, which represents around 240 clubs. This was then backed by UEFA’s congress, comprised of 55 European member associations. These reforms, due to come into effect in 2024, would see the Champions League become a 36-team group stage under the Swiss model.

This included a plan for two of the new spots in the tournament to be reserved for teams with the best record in UEFA competitions in the previous five seasons — but who had not managed to qualify for the Champions League through their position in their domestic leagues. If the system was to be applied for next season, Liverpool and Borussia Dortmund, underperforming in their domestic leagues, would still qualify for the Champions League.

These two places are particularly alluring to the six Premier League clubs as the division is highly competitive and clubs such as Arsenal, Manchester United and Spurs have spent considerable time outside of the Champions League in recent seasons. If the system had been applied last season then Arsenal and Tottenham, who finished eighth and sixth respectively, would each have qualified for the Champions League, ahead of fifth-placed Leicester City.

In an interview with The Mail On Sunday, UEFA president Aleksander Ceferin warned the English clubs: “There’s always a chance to do changes. Any changes are possible.”
 
At the ECA, the composition of the board has dramatically altered since the 12 Super League clubs quit their positions on the ECA and UEFA after announcing their plans. As such, they have also removed their clout and influence. Those who remain on the ECA board are keen for the extra guaranteed group-stage places to be given to more champions of domestic leagues, particularly those in Scotland, Turkey and the Netherlands.

A source close to the ECA said: “We now have a different board. It is not a punishment to the six English clubs — it is more whether it was right to start off. Those two spots are the real controversial part of the 2024 reforms.

“They change the way you qualify — basically, you do not need to qualify for the tournament. It is unpalatable that Arsenal could come eighth and go straight into the group stage of the Champions League. It makes no sense. It’s never going to be acceptable to us to have English teams getting places despite underperforming in their domestic league. There will be discussions over amendments and the composition of the ECA board is now such that the big clubs are not there, so the perceived smaller could run them over.”

The English clubs become a little more vulnerable as Bayern Munich and Paris Saint-Germain, the two major clubs who refused to elope with the Super League, are now senior statesmen at the ECA and they do not require the coefficient places as they almost always finish top of their domestic leagues.

Intriguingly, however, separate sources countered that the coefficient places may yet be protected by UEFA, as the increased likelihood of an extra English team or two in the competition is perceived to add value to the competition when selling broadcast rights and seeking sponsorship

A well-placed source added: “These places are most important to the English clubs — and UEFA. This is the thing being missed. Those spots are a significant value driver to a new Champions League. The revenues from UEFA club competitions… when they grow, the distribution to European football as a whole grows significantly. UEFA’s desire to grow the value of the Champions League, which these four spots are very important for, is unabated.”

Where do the Dirty Dozen go next?

For those betrayed by the 12 clubs, there is a sense that the threat has passed. For decades, the menace of a Super League has hovered over UEFA and domestic leagues as the sword of Damocles with the potential to disrupt the status quo. Now, however, the 12 have blown their great escape.

“The key thing was always leverage,” explains one executive close to the situation. “And leverage always remains more powerful when the thing remains a spectre, when it remains a ghost. When the ghost becomes an actual thing, it must work. It becomes binary: success or failure. And they failed.”

There are aspects of the proposals that are still to be ruled out. For example, the Super League proposals also included a suggestion that a women’s equivalent of the competition would be launched.

The Athletic understands several clubs remain keen on this idea, as they argue there would not be the same level of history to disrupt, while domestic women’s leagues are even more dramatically stratified than they have become in the men’s game.

Barcelona’s women’s team, for example, have won all 25 domestic league games this season, conceding only five goals and have a goal difference of plus-122. In the French league, PSG are ahead of Lyon by a single point but both sides have only dropped points in one league game each this season.

The Athletic has been told several investors are continuing to explore possibilities to enhance the women’s game, particularly amid a perceived dissatisfaction around the television deals secured for the women’s Champions League and the schedule of the fixtures. This is more contentious for English clubs, who were impressed by the Football Association’s recent domestic WSL deal.

For the men’s game, the Super League clubs are now reassessing their objectives.

The Premier League is serving up doses of humble pie. They asked Chelsea chairman Bruce Buck to step down from the league’s audit and remuneration committee while Venkatesham, the Arsenal chief executive, and his Manchester City counterpart Ferran Soriano were ordered to resign from the club strategic advisory group. Manchester United executive vice-chairman Woodward and Tom Werner, the Liverpool chairman, are to leave the broadcast advisory group.

The Italian FA (FIGC), meanwhile, has amended article 16 of its licensing and registration regulations for clubs. This seeks to discourage teams from joining a Super League-style equivalent in the future. Signing up for private leagues not recognised by FIFA, UEFA and the FIGC would result in the club forfeiting their affiliation to, in this case, Serie A.

Dr Andrea Cattaneo, an EU and Sports Law lecturer, expects the conversation to move towards greater cost controls within football, with a broader discussion about the earnings of players and commissions paid to agents.

He says: “We are moving towards a discussion about the regulatory instrument of cost-control measures. Financial Fair Play has been successful to a certain extent, looking at the balance between cost and revenues, but it will be relaxed due to the effects of the pandemic. In the battle between stakeholders, some clubs are now trying to reduce the cost they sustain against players and agents. Agents might be the next goal; to remove the power of agents and cost of agent’s commission. Barcelona, Madrid and Juventus appear to be clinging on to the Super League, perhaps so that it is an idea that remains in the mind of people, and so some arguments may be accepted more easily over time.”

Kat Pijetlovic, who wrote the book EU Sports Law and Breakaway Leagues in Football, argues that there is a means by which the clubs could develop a Super League but she says that it must be approved by UEFA, while she also points to articles in the Treaties of the European Union that could be used to block leagues which restrict access to a closed shop of founder members.

“To have been a serious project, the Super League should have applied for approval from UEFA under article 49 of UEFA’s own statutes,” she tells The Athletic. “Instead, the Super League ignored the need for prior approval and just went and set up the competition, where the format does not only appear to be in breach of the law but also in breach of regulatory rules.”

The 12 clubs, it should be said, insisted the Super League was built on firm legal foundations.

Pijetlovic counters: “I have researched this for years. I have written a book on this. I spoke to a lawyer at a German club today and we cannot figure out why they thought it would work. They just tried to force it through. They may have been testing the waters. Definitely, they could not have thought this would work. This was flawed, because it was not in accordance with competition law. It was flawed in a regulatory sense, it was flawed in its marketing, it was flawed its PR and it was flawed in its communication with any stakeholder. It looked as though they had decided to do it in the space of one hour. It did not seem to be a serious project.

“In the format it was proposed, the Super League will never work in Europe. They miscalculated something massively. There is a way to set up an alternative league and that is to apply to UEFA for approval. This throws the ball to UEFA’s side of the court, so UEFA then has to come up with proportionate, transparent, non-discriminatory conditions for access to the market. Then they are in the game.

“The law would have supported UEFA. It is because UEFA is the governing body, mandated not only to make money but also to protect the game. They are mandated to finance the structure of European football, including a responsibility to grassroots and infrastructure. These are public interests that cannot be left in the hands of private entities that are strictly commercially orientated.

“In article 165 of the Treaty on the Functioning of the EU, there is also a statement about the openness of competition, so promotion and relegation must be in place. It is even in the law that promotion and relegation is part of those things that must be protected. So if there was a future Super League, it would look rather different to the one proposed.”
 
Very much looking forward to more patronising social media posts from liberal types regarding this btw. Really enjoyed all the stop Brexit sorts the other week being snide about football fans and their ability to actually make an impact when they don't like something
 
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