With 12 of the world's most powerful soccer clubs joining forces to create the Super League on Sunday, the last 48 hours have been WILD.
Confused about what's going on?
Don't worry, here's everything you need to know.
Time for a thread 👇👇👇
Confused about what's going on?
Don't worry, here's everything you need to know.
Time for a thread 👇👇👇
1) Let's start with the basics of European soccer.
Each country has its own league; an English league for English Teams, a Spanish league for Spanish teams, etc.
The best teams from each league then play each other in the Champions League.
The winner is the best team in Europe
Each country has its own league; an English league for English Teams, a Spanish league for Spanish teams, etc.
The best teams from each league then play each other in the Champions League.
The winner is the best team in Europe
2) The problem with the current format?
The richest clubs end up financially supporting smaller teams in each country.
Also, with access into the Champions League based on recent performance, no teams are guaranteed entry each year.
This is where the "Super League" comes in…
The richest clubs end up financially supporting smaller teams in each country.
Also, with access into the Champions League based on recent performance, no teams are guaranteed entry each year.
This is where the "Super League" comes in…
3) The Super League is a midweek competition, allowing teams to continue to compete in their domestic leagues.
It would have 20 teams, with 15 "founding clubs" & replace the Champions League.
The kicker?
The 15 "founding clubs" are guaranteed a spot, regardless of performance.
It would have 20 teams, with 15 "founding clubs" & replace the Champions League.
The kicker?
The 15 "founding clubs" are guaranteed a spot, regardless of performance.
4) Why is a closed league important to owners?
Let's take the NBA for example:
The Timberwolves have only made the playoffs once since 2005.
If they were a club in Europe, they would have been relegated, not participated in the Champions League, and underperformed financially.
Let's take the NBA for example:
The Timberwolves have only made the playoffs once since 2005.
If they were a club in Europe, they would have been relegated, not participated in the Champions League, and underperformed financially.
5) But since they are in the NBA’s "closed" model, which allows poor performance & has lofty league-wide revenue...
They are being sold for $1.5B.
That's a 466% increase from their $265M valuation in 2010 — despite never winning.
That's what the Super League could do.
They are being sold for $1.5B.
That's a 466% increase from their $265M valuation in 2010 — despite never winning.
That's what the Super League could do.
6) The Super League says, "it's good for the fans," but let's be honest, it's all about the money.
With COVID-19, the 12 founding clubs lost billions of dollars last year.
Even worse?
They have over $3B of debt on their balance sheet collectively, a massive increase from 2019.
With COVID-19, the 12 founding clubs lost billions of dollars last year.
Even worse?
They have over $3B of debt on their balance sheet collectively, a massive increase from 2019.
7) How would the Super League fix that?
Each club gets $400M for joining, which is 4x what the Champions (UCL) League winner took home in 2020.
But TV money is the real prize.
Analysts suggest the league would bring in $3B+ in annual TV rights.
That's 25% higher than the UCL.
Each club gets $400M for joining, which is 4x what the Champions (UCL) League winner took home in 2020.
But TV money is the real prize.
Analysts suggest the league would bring in $3B+ in annual TV rights.
That's 25% higher than the UCL.
8) In summary...
European teams have:
• Declining revenue
• Mounting debt
The Super League offers:
• Guaranteed spot
• Higher % of revenue
Truthfully, it's obvious why these owners are motivated to make the Super League happen.
The part they forgot about?
The fans.
European teams have:
• Declining revenue
• Mounting debt
The Super League offers:
• Guaranteed spot
• Higher % of revenue
Truthfully, it's obvious why these owners are motivated to make the Super League happen.
The part they forgot about?
The fans.
9) When the news broke, fans were furious.
Not only would it widen the financial gap when in domestic competition, but it fundamentally threatens 100+ years of tradition.
Furthermore, who gave these clubs the right to self-appoint themselves as the future of European soccer?
Not only would it widen the financial gap when in domestic competition, but it fundamentally threatens 100+ years of tradition.
Furthermore, who gave these clubs the right to self-appoint themselves as the future of European soccer?
10) In the end, UEFA threatened to ban players from the World Cup, and fans continued to publicly voice their displeasure.
The result?
The majority of teams withdrew from the league today, and the project has officially been suspended.
Now that's "good for the fans."
The result?
The majority of teams withdrew from the league today, and the project has officially been suspended.
Now that's "good for the fans."
11) Enjoyed this thread?
You should follow me @JoePompliano.
I tweet interesting stories about the money and business behind sports every day.
You should follow me @JoePompliano.
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