Football: how much can the game be protected from the business?
Sanyade Okoli - Transformation agent
Senior finance executive | Transformational life coach |Inner healing expert| TV analyst | Speaker | Writer
The legacy of the European Super League debacle might be a looming debate about the soul of the sport
Regardless of where you get your news from, it would have been hard to miss the unfolding story of the European Super League this week.
For non-football fans like me, 12 of Europe’s most elite football clubs — including six English teams — signed up to compete in a breakaway annual tournament. Backed by $6bn in debt financing from JPMorgan, the contest was also designed as a revenue-booster for wealthy clubs financially staggered by Covid-19.
But it was badly misjudged. The condemnation was as swift as it was unifying — from fan groups, football governing bodies, even politicians. Prime Minister Boris Johnson threatened to halt British participation with a “legislative bomb.”
Ultimately it worked. As of today, all six English teams have pulled out, along with two from Italy, and one from Spain. But why was the Super League idea, in its current form, so doomed?
Perhaps I could offer a British view: Four of the six UK clubs involved are owned by Americans. Their frame of reference for the sporting business is evidently different from that of their country, and continent, of investment. They likely failed because they allowed a commercial imperative drown out a visceral passion for the spirit of their clubs.
The emotiveness of the last few days had me thinking:
1. To what extent can a sport like football be legally classified as an area of cultural and/national interest? Like something akin to the UK’s National Heritage Protection Plan. Should it be pursued, and what form would that protection take? Are all football teams of national interest? If not, what would be the determinants?
2. What mitigants can be put in place to prevent investors with misaligned interests from owning a significant stake in a football team? Whose responsibility would it be to manage the conflicting interests of key stakeholders in such companies? Should there be specific criteria for investing in UK football clubs, and how far can they go?
3. What impact would protectionist legislation — which could be deemed discriminatory — have?
As the world celebrates action against systemic injustice with the conviction of George Floyd’s killer, would protectionist legislation in sport be a step backwards? What other sectors could follow?
The European Super League may have collapsed for now, but its legacy might yet be a debate about the soul of the sport. And even legislative bombs wouldn’t resolve it without the risk of opening a bigger can of worms.
Financial Sector & MSME Access to Finance Consultant; Leadership Coach.
3 年The genie is out of the bottle. Football is business, big business.
I help High-Net-Worth Investors Preserve & Grow Their Wealth through Niche Real Assets Investments | Leading A $50M Carwash Roll-up Strategy | Private Equity | Real Assets | Investment Management
3 年I think protectionism would spell a doom. Interests misalignment is/was the major problem with this whole debacle. Thanks for sharing Sanyade Okoli