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Seifert gives it large

There's been some interesting interviews at the Financial Times Football Business summit today, not least an interview with the chief executive of the Bundesliga, Christian Seifert.

Much of the talk today has been about a European Super League and Seifert made it clear that he had no time for some of the so-called super clubs, no names, no pack drill, but it was evident that Barcelona and Real Madrid were not too far from his mind.   Some of these clubs, he argued, were poorly managed cash burning machines and were not even close to a sustainable business model.

Just like Serie A, the Bundesliga is going to start talking to private equity companies (apparently as many as 40 have expressed an interest).  The test will be whether they can help the Bundesliga to grow in the long term on a global scale.   It is likely that what would be on offer would be a minority stake in a company dealing with international rights.

Asked if the league would be more competitive without the 50+1 rule he said that it was currently being reviewed by the Bundeskartellamt and they were expecting an outcome within four months.   Some clubs would welcome investors and it would be possible to have a 80+1 rule with a 90 per cent decision point which would still give fans a stake.

Asked about a salary cap, he said that would have to be discussed with the European Commission as there are clearly potentially anti-trust issues.   He was in favour.  It would still be possible to have very well paid players, but he wouldn't be drawn on what the cap should be.  At the moment all the risk was with the clubs rather than the players and without a cap one couldn't get a sustainable business model.

Later an American participant said that the top 50 European sports franchises were of interest.  They were an appreciating asset class with unique characteristics.  Materially they had out performed other asset classes such as equities.  60 to 70 per cent of annual revenues were guaranteed.  Sports was crucial content for the media.

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