• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
Nairametrics
No Result
View All Result
Home Business News Sports
A £250 million yearly payout too hot to handle for Europe’s biggest clubs

MANCHESTER, ENGLAND - OCTOBER 20: The badges of Manchester City, Bayern Munich, Real Madrid, Liverpool, Paris St-Germain and FC Barcelona, the top teams in the Champions League on October 20, 2020 in Manchester, United Kingdom. (Photo by Visionhaus)

A £250 million yearly payout too hot to handle for Europe’s biggest clubs

Ademola Kadiri by Ademola Kadiri
3 years ago
in Sports, Spotlight
Share on FacebookShare on TwitterShare on Linkedin

The football world was stunned late on Sunday evening when the European Super League announced its formation, with 12 teams from 3 European nations, namely England, Spain, and Italy confirming their participation, with no representatives from Germany and France.

The founding teams are AC Milan, Arsenal, Atlético de Madrid, Chelsea, FC Barcelona, FC Internazionale Milano, Juventus, Liverpool, Manchester City, Manchester United, Real Madrid and Tottenham Hotspur. Three more teams will announce their participation before the end of the season while there will be 5 slots for qualifying teams.

The clubs will play midweek fixtures while continuing to play in their national leagues.

The ESL: A background

The competitive nature of the leagues around Europe has meant that a number of top teams miss out on playing in the Champions League, thereby affecting their finances, as well as the ability to attract top talent. Teams such as Arsenal and AC Milan, will mostly benefit from this, as they have been out of Europe’s top competition for a while, although they are European superpower teams.

The ESL offers a lucrative incentive: they won’t need to worry about qualification, which means that income is almost guaranteed. The Super League also offers a chance of regularly playing against the best teams on the continent, which will offer timely reminders on the gaps to the best teams, and also showcase in real time what needs to be done to close this gap.

Different schools of thought

The formation of the European Super League has been met with a lot of criticism by different sections of the football world, namely fans, pundits, the press, former players, as well as other stakeholders. The argument is that it favours the big clubs who will permanently be at the top table regardless of their final league positions.

The other condemnation is that it takes away the excitement many small clubs enjoy from testing their might against the big teams. Gone will be the archetypal fixtures of “good” vs evil”, a scenario in which a modest club through sheer financial prudence can test itself against teams who have oligarchs in charge with an almost inexhaustible pool of resources.

UEFA’s stance

UEFA released a strongly worded statement about its opposition to the competition, which would obviously threaten the popularity and relevance of its own flagship competitions, the UEFA Champions League and Europa League. A part of its statement, also signed by the Premier League, La Liga and Serie A, reads, “If this were to happen, we wish to reiterate that we – UEFA, the English FA, RFEF, FIGC, the Premier League, LaLiga, Lega Serie A, but also FIFA and all our member associations – will remain united in our efforts to stop this cynical project, a project that is founded on the self-interest of a few clubs at a time when society needs solidarity more than ever.”

What the clubs stand to benefit

In its inaugural statement, the ESL said that the new tournament would provide significantly greater economic growth and support for European football, as well as include uncapped solidarity payments, which would be substantially higher than those in the current European competition.

Although the amount was not specified, it is believed that the amount will be expected to be in excess of €10bn (£8.6bn) during the “initial commitment period.” The founding clubs have also been promised a further €3.5bn (£3bn) for founding clubs to “support their infrastructure investment plans and to offset the impact of the COVID pandemic.” The Covid-19 pandemic affected the revenues of major European teams who rely on matchday revenues to augment other income streams.

The potential TV rights from the ESL is also an attractive proposition, as it hopes to generate €4bn (£3.5bn) annually from broadcasters, with the founding clubs taking the greatest slice.

According to SkySports News reporter, Kaveh Solhekol, the European teams which make between £50-70 million a year from playing in the UEFA Champions League could be making as much as £250 million a year in the European Super League.

Final Thoughts

It is believed that the European Super League will not see the light of day due to stiff opposition from different quarters, but the groundworks have been laid already. If UEFA doesn’t try to make the big teams, who are the top draw of the competition, they would just become more disgruntled. It might not happen now, but it would, eventually. The incentives are too many to gloss over.


Download Nairametrics App for breaking news and market intelligence.
   
Tags: European Super LeagueUEFA
Ademola Kadiri

Ademola Kadiri

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
Glo
Kwakol
Abbey
Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • HIV vaccine trial stopped in Africa as data suggests ineffectiveness 
  • Investments in environmentally harmful activities hits $7 trillion annually- UNEP 
  • UN’s urgent $46B fund to aid 300 million people in 2024 

Follow us on social media:

Recent News

African scientists from nine countries collaborate to develop an HIV vaccine

HIV vaccine trial stopped in Africa as data suggests ineffectiveness 

December 11, 2023
Investments in environmentally harmful activities hits $7 trillion annually- UNEP 

Investments in environmentally harmful activities hits $7 trillion annually- UNEP 

December 11, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up
  • Cart

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In