Skip to main content

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.

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more