ESL financial model leaked in FT

Not copy-pasting the whole article but in sum:

Assumed top line (broadcasting+sponsorship) ~€4bn

Split:

- 32.5% to the 15 permanent members
- 32.5% across all 20 particpants in any year
- 20% depending on performance in competition
- 15% pro rata based on broadcast audience size

This gives the winner ~1.5x income of the bottom side, assuming both permanent members. Cf 3.5x in La Liga

Clubs retain their own gate receipts/sponsorship income.

Spending: max 55% of revenus on sport spending (player wages, transfer fees, agent fees). Cf 70-80% in a typical European club. Normalised to assume 45% tax on player wages (rates vary between UK, Italy, Spain so to level the playing field they assume one fixed rate)

EBITDA - must be positive (so no going into debt to sign superstar players)

No detail on "solidarity payments".

So, basically a North American sports franchise model where everyone is guaranteed Lots. player wages are kept down by collective agreements between clubs, revenues and profits are reliable and assured without any messy worrying about having to win games of football or any of that nonsense.

Posted By: Old Man on April 20th 2021 at 15:00:50

Message Thread

ESL financial model leaked in FT (Other Football) - Old Man, Apr 20, 15:00:50
- The question is.... (Other Football) - usacanary, Apr 20, 16:17:09
  - No it isn't a bad thing; FFP was supposed to help but doesn't really (Other Football) - Old Man, Apr 20, 17:02:06
    - The thing is clubs at the lower levels are just as guilty.... (Other Football) - usacanary, Apr 20, 17:39:25
      - Indeed, and as you pointed out yesterday (Other Football) - Old Man, Apr 20, 17:49:02
  - NFL and other US sports operate in an effective closed shop (Other Football) - watfordcanary, Apr 20, 16:29:16
    - CFL? (n/m) (Other Football) - trafford_canary, Apr 20, 16:39:11
      - Canadian Football League - Go Ticats (Other Football) - watfordcanary, Apr 20, 16:54:48
        
        Ah. So the EFL will basically become the CFL (n/m) (Other Football) - trafford_canary, Apr 20, 17:12:10
        
        You could argue that's already happened with the EPL and EFL (Other Football) - usacanary, Apr 20, 17:32:56
  - "Bullshit tricks" (Other Football) - Winged Eel Creosote, Apr 20, 16:25:12
    - The problem with the NFL model is its a closed shop. (Other Football) - usacanary, Apr 20, 17:29:26
      - They also move their clubs between cities at the drop of a hat (Other Football) - Ben, Apr 20, 17:37:58
        
        Frankly they're welcome to all six (Other Football) - Old Man, Apr 20, 17:49:33
- it is laughable (Other Football) - Henclrikus, Apr 20, 15:42:08
  - 32.5 split 15 ways plus 32.5 split 20 ways is a laughable fig leaf (n/m) (Other Football) - trafford_canary, Apr 20, 15:43:42
- An absolute cunts trick of the highest order. (Other Football) - trafford_canary, Apr 20, 15:35:09
  - To be honest it really should burn down. (Other Football) - trafford_canary, Apr 20, 15:38:22
    - thing is we can still have a euro cup league without those bastards (Other Football) - pinkney, Apr 20, 15:44:56
      - Correct. You can't just let them play in the Prem and have a random alphabet result (Other Football) - trafford_canary, Apr 20, 16:02:33
      - Absolutely! Kick them out, reorganise it along fair sporting lines and crack on. (n/m) (Other Football) - trafford_canary, Apr 20, 15:55:00

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