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, Apr 20, 15:00:50