By Robbie Butler

The Club by Joshua Robinson and Jonathan Clegg is an excellent overview of the rise of the English Premier League told through fascinating stories of those of involved. There is a book review on this site if anyone wants to know more. Gary Neville's recent comments about how English Football League clubs are in grave financial peril got me thinking about one of the stories in the book.

According to Neville the top tier clubs in the Premier League, and not the British Government, should bail out clubs in the lower leagues that face bankruptcy. MP Damian Collins claims this could be 10 clubs in the coming days. Huddersfield Town owner Phil Hodgkinson is far more pessimistic and told the BBC “50 or 60” ELP clubs could be forced out of the game if stadiums are empty when football returns.

The story in The Club that this reminded me of was a meeting of US-based Premier League owners in the early 2010s. I think the book recalls a meeting in a classy New York restaurant which included representatives of the Glazers, FSG and Stan Kroenke. (The book remains locked in my office so I cannot check as I still don't have access).

As the story goes, the owners of bitter rivals Man Utd, Liverpool and Arsenal met to discuss their investments. In years gone by it would have been unheard of for such a meeting to take place with local owners. But the Premier League had changed.

The US ownership model is very different. While owners compete on the pitch, they are committed to cooperating off it. In this sense sports economics is almost unique as it requires competition and cooperation. One of the topics up for discussion at the meeting? Relegation.

For many in the US this is a strange concept. It does not exist in the major leagues. Franchises that finish bottom or near the bottom are not punished by demotion to a lower league. In the Premier League, and other major football leagues, this is the ultimate punishment. For American owners, this is far from ideal. If they could, they would probably undo the 150+ year tradition of promotion and relegation, to ensure their team could never leave the paradise and riches that is the Premier League. The value of their investment would soar.

Unfortunately for them, 72 other clubs in the Football League and hundreds of others in the non-leagues would never allow this to happen. Relegation will remain. The negative consequences of this for team owners each year are there for all to see. Just ask American Ellis Short, the one-time owner of Sunderland, who endured a double relegation before selling the club. The Nextflix series Sunderland Till I Die captures the story.

So when Gary Neville calls for the Premier League clubs to rescue those in the lower leagues, I wonder about the motivations of either side. Neville is a co-owner himself of 4th tier Salford City. Naturally, he would like to see investment flowing from the top tier to the lower leagues.

But if Huddersfield Town owner Phil Hodgkinson is right, and 92 clubs were to become 42 or even fewer, this would dramatically alter the competition structure. Imagine if just 30 clubs survived. Could relegation be scrapped? Could two equal conferences emerge with a play-off system. Sounds familiar. It's the MLS and other major sports leagues in the US.

If only the Premier League survived, the owners of each club would see the value of their assets soar. Relegation would be no more. Just guaranteed top flight income and revenues indefinitely.

By Robbie Butler

Under any criteria, the rise in the economic value of football in my lifetime has been remarkable. Two of the most obvious examples of this can be the found in transfer fees and broadcasting revenue.

In 1982, one of the greatest players of all time, Diego Maradona, left his native Argentina and signed for Barcelona. The cost of the transfer fee - just £3 million. That was almost 40 years ago. What about inflation? This must be a £100 million today, no?

Using UK data, and pound sterling fees (the euro was only created in 1999), Diego Maradona's real fee today is just £10.65 million. Just £10.65 million! In the most recent transfer window, Championship side Fulham signed Portuguese winger Ivan Cavaleiro for about the same real price as Maradona.

The rise in the real cost of footballers has been truly astonishing over the past 40 years. Data on this, considering each time the nominal record fee was broken, is presented below. As I pointed out in a post a number of years ago, on three occasions the nominal record was broken, but the real fee remained below the record price. 

The real increase in transfer fees is remarkable when compared to the 1982 Maradona fee which Barcelona paid to Boca Juniors. For example, by 1992 one Gianluigi Lentini of AC Milan was worth roughly 2.5 Maradona's. I doubt there is a football fan anywhere, ever, that could make a case for this. The Italian was good but a shadow of the player the great Argentine was. 

Zinedine Zidane and Kaka are the equivalent of 7 Diego's. Gareth Bale and Paul Pogba are today worth 9 Mardona's, Cristiano Ronaldo is worth 10. Neymar almost 20. That's an entire squad of players.

What funded this extravagant increases can be found in the far right columns - broadcasting fees. My data is only for English top flight football but is a reasonably good comparison. In 1982 Maradona's fee was worth more than the entire 1st Division broadcasting agreement between the FA, BBC and ITV. 

The ratio between this and subsequent agreements makes the increase in the real cost of transfers seem small. It is astonishing growth. Today, the Premier League broadcasting rights are worth more than 200 times what they were when Maradona left Buenos Aires in 1982. And this is in real terms! It is what largely continues to fuel transfer fees and salary increases.

Will Covid-19 lead to a transfer fee correction? There are many factors at play, but it is possible.

To what extent, will depend on changes in the broadcasting fees paid by providers and the impact of the crisis on the wealth level of rich owners. Any correction may also be a short run effect. If broadcasting fees are unaffected, 'normal' service will likely resume sooner rather than later.

By Robbie Butler

This post builds on the two most recent on the site. Again, promotion and relegation is the central issue. It is this that is, and will continue, to pose the greatest level of difficulty for sports administrators in the wake of Covid-19.

Earlier this week I argued that leagues would be better off finishing 2019/20 before attempting to start 2020/21, whenever that may be. Those in Scotland think otherwise.

The Scottish Professional Football League (SPFL) has now voted to end a number of domestic leagues. This decision covers the 2nd, 3rd and 4th tiers of Scottish football and means various clubs will be promoted and relegated based on current league position, even though the seasons were all cut short.

Enter Heart of Midlothian (Hearts). The Edinburgh club are currently bottom of the Scottish Premiership. While the  SPFL decision is not currently in place for the Premiership (1st tier), Hearts must fear it will be extended in time if things do not improve in the UK. A ready-made replacement is now waiting in the wings. Dundee United have now been promoted from the 2nd tier following the decision to end the season and will expect a place in the Premiership in 2020/21.

Fearing that Hearts will be the one to drop out, Hearts owner Ann Budge has said:
"I have said from the outset that it was imperative that we find a solution that ensures no club is penalised by relegation in a situation where the leagues cannot be finished. The financial consequences are enormous."

It is hard not to have sympathy with Budge. However, the sentence also holds for the soon-to-be promoted Dundee United. The financial consequences of not being promoted are enormous. 

Something has to give. I get the feeling sports lawyers in Scotland are going to be extra busy very soon!

By Robbie Butler

The 25th season of Major League Soccer will kick-off at the end of next month and will include David Beckham's new franchise Inter Miami CF and Tennessee franchise Nashville SC. This will bring the total number of teams to 26 – the highest to date.

Inter Miami will form part of the Eastern Conference, while Nashville SC will join the Western Conference. This, despite the fact that the Nissan Stadium, home of Nashville, is more easterly than Soldier Field, the home of Chicago Fire who play in the Eastern Conference. The arrival of the new franchises, and the division they play in, got me thinking about the distances these teams must travel weekly in order to fulfill fixtures.

I recall Steven Gerrard’s time with LA Galaxy and comments by the former Liverpool player that the travel involved playing MLS was exhausting. This is especially true when one compares it to the Premier League in England.

In early January, Liverpool played Everton in an FA Cup 3rd round game. During a stoppage in play, a drone above the stadium moved slightly northwards, and Everton’s Goodison Park came into view. There is less than 1 mile between the two stadiums. For newly recruited players of Inter Miami, their 'derby match' with Orlando City SC will require a 205-mile journey north. This is just shy of Liverpool visiting a London club, which is hardly a derby.

The distances a franchise will travel in the MLS arequite something. In this post I considered only the Eastern Conference. The Western Conference would appear far worse. New players for Inter Miami have some serious travel ahead, given Miami’s location. After Orlando, the next closest venue is the 580-mile trip to the magnificent Mercedes Benz Stadium in Atlanta, a round trip of nearly 1,200 miles. This is like Liverpool heading to Cologne in Germany.

Inter Miami players will have at least seven trips in the Eastern conference that exceed 1,000 miles one way! The longest being the 1387-mile distance to play Montreal Impact – the greatest distance between two franchises in the Eastern Conference. Liverpool to Rome is almost the exact same distance.

Considering all franchises for the conference, there is probably just one derby, by European standards that is. The 20 miles separating the Yankee Stadium from the Red Bull Arena in New Jersey, homes of the New York City and New York Red Bulls.

Travel distances can be found to have significant impact on performance. I will consider the impact this has on match outcomes in the MLS in a future post. For new recruits of Inter Miami, they better be ready to travel. Although, Nashville SC will make this look short. More to follow on this. 

By Robbie Butler

Casual fans of football might have been surprised to see a score line from the Quarter Final of the Carabao (league) Cup that read Aston Villa 5 - 0 Liverpool. The recently promoted team beat the European Champions comfortably to book their place in the last 4.

What the score line doesn't tell you is that the average age of the Liverpool team was a little over 19. Probably more discrete, but equally telling, is that the sum of the squad numbers for Liverpool was just short of 1,300! That's an average of 72. The lowest number on the back of any Liverpool jersey at Villa Park was the "51" visible on the back of Ki-Jana Hoever. 

While the youngsters were battling against Villa the Liverpool first team was busy preparing in Qatar for the FIFA World Club Championship Semi-Final. Unfortunately for the Merseyside club, fixture congestion meant that the only way the club could compete in both competitions was to hold games within 24 hours of one another. 

There are many reasons why the club decided to priorities a trip to Qatar over Birmingham but probably the most obvious is the chasm in prizemoney available in both. The figures below provide sources of prizemoney for the 2019/20 season. Data for the Premier League is taken from 2018/1 as the variability in winnings are based on the number of appearances on television, as well as finishing position. 

On the left, all competitions that Liverpool will compete in are presented. The Premier League was the source of more than £150 million pounds in prize money last season. In 2019/20 success in the Champions League again would results in a windfall of around £70 million. The FA Cup could be worth almost £7 million in prizemoney.

While the FIFA World Club Championship is worth about half of the FA Cup (£3.75 million) it involves just two games. In fact, just showing up is worth in Qatar is worth £1.5 million to the Red. 

Compare this to winning the Carabao Cup. The figure to the right, takes a closer look at the FIFA World Club Championship and Carabao Cup, as the latter is too small to see on the left-hand graphic. At just £100,000 for the winners it is easy to see why Liverpool chose to head to the sun this week. 

By Robbie Butler

Earlier this week, former England manager Sam Allardyce said on TalkSport radio:

"The best way to get a Premier League job if you are British is to change your name to a foreign name. I have always said if I was ‘Allardicio’ I could have managed Manchester United". (The interview can be seen here).

This is quite a statement given that Allardyce, who began his managerial career in Ireland taking charge of Limerick, is the only person ever to manage 7 Premier League clubs over some 512 games (Bolton Wanderers (226), West Ham United (114), Blackburn Rovers (76), Sunderland (30), Everton (24), Newcastle United (21), Crystal Palace (21)). 

10 of the top 12 managers, listed by the number of Premier League games they have managed, are from Great Britain or Northern Ireland. This includes Sam himself, Alex Ferguson, Harry Redknapp, David Moyes, , Mark Hughes, Steve Bruce, Martin O'Neill, Alan Curbishley, Tony Pulis and Alan Pardew.

The overall distribution of managers by nationality is also skewed towards domestic (U.K) managers. In total 204 men have been appointed to 399 positions. The distribution by nationality is presented below.  

At present in the Premier League almost half of the managers are from Great Britain or Northern Ireland. While this is a drop in domestic representation when compared with the overall data from 1992, it is hard to argue that British managers are not well represented in the top league.

Of course, a different argument is that home-grown managers are not given the "top" jobs but this is a different argument entirely.

​The biggest job of them all, the England national team job, has been held by four English men since Italian Fabio Capello left the post in 2012. Alex Ferguson, David Moyes, Roy Hodgson, Kenny Dalglish, Tim Sherwood and Frank Lampard all manage(d) at top clubs during this decade.

As a starting point, the best way to get a job in the Premier League today is probably to be a very good manager.

By Robbie Butler

For UK and Ireland subscribers of live Premier League games, we are now under a month away from the arrival of a third supplier in the market – Amazon, via their streaming service Amazon Prime. For those unfamiliar with the history of the broadcasting of top flight football in England, the game has moved from provision by free-to-air services in the 1980s, to subscription television since 1992.

Our paper in the Journal of Sports Economics this year explains why the BSkyB monopoly from 1992 to 2007 was brought to an end by the European Commission. However, since then Sky Sports has competed with only one other provider at a given time. While the competition has changed from Setanta Sports, to ESPN, to BT Sports, the ending of the 12-year-old duopoly by Amazon next month is uncharted territory.

While the European Commission’s intervention in the market, to break up the monopoly, sought to protect consumers, it has only resulted in making it worse. A 3rd provider may be another step in the wrong direct.

From December 3rd Amazon Prime will show 2 of the 20 live games it has rights to screen during the 2019/20 season. However, unlike Sky Sports and BT Sports it won’t be possible to watch all live games as some occur simultaneously.  Crystal Palace v Bournemouth will kick-off at 7.30pm on December 3rd while Burnley v Manchester City will start at 8:15pm. This means a clash between part of the second half of the 7.30pm game and first half of the 8.15pm game.

Things get worse the following night. On Wednesday the 4th, five games will kick-off together at 7.30pm (Chelsea v Aston Villa, Leicester v Watford, Manchester United v Tottenham, Southampton v Norwich Wolves v West Ham) while the Merseyside Derby between Liverpool and Everton will start at 8.15pm.
​
Given the kick-off times in the second round of games Amazon Prime will show on the 26th of December, it will only be possible to watch 8 of the 20 games in their entirety. All 128 games on Sky Sports, and the 52 games on BT Sports can be watched as they do not clash with one another. The 3rd provider has a different set of dynamics and one has to wonder how customers will react.

By Robbie Butler

During the summer of 2015, I wrote about the Republic of Ireland football team and the number of drawn games the team was involved in. 4 years ago, the Boys In Green led the way for the number of draws during UEFA qualifying for major championships (World Cup and Euros). With Ireland's fate now to be decided next month in the Aviva, I thought it timely to revisit this. The reality is that Ireland have become even more of an outlier.

Let's look closer.

The graphic below presented data on draw (blue)/win(red) /loss(green) outcomes for all UEFA nations between 2002 and 2020 qualifying, as of today. Yet again, the Republic of Ireland appear on the far left.

W​ith a loss rate of just 16 games, only 13 UEFA members have a better record than the Boys in Green over nearly 20 years. Belgium, Sweden, Czech Republic, Turkey and Greece have all lost more times.

However, despite losing more games, Turkey have played at the same number of major finals (3), Belgium 4 (and with Euro 2020 this will be 5), Greece 5 (including winning Euro 2004!), Czech Republic 6 and Sweden 7! 

As I said in 2015, we simply draw too many games. This campaign alone has witnessed three (Denmark, Switzerland and Georgia). As we now know, a draw at home to Denmark next month won't be enough. Let's hope we can avoid, what seems to be, the inevitability of this - a next month a draw is the same as a loss. 

By Robbie Butler

Next year, Club Internacional de Fútbol Miami, more commonly known as Inter Miami will join Major League Soccer (MLS) and become the 26th active franchise in North America. The arrival of the Florida based team is well flagged, even within European circles, as it is linked to the 2007 contract that David Beckham signed when agreeing to play for LA Galaxy. MLS is different to European leagues in regards to many aspects, and here is yet another example.

The goal of most sports franchise owners in North America is to maximise profit. While this is advantageous in European leagues, clubs are more often regarded as 'win maximers'. The reason North American sports can focus on profit (as well as winning) is helped by the behaviour of franchise owners, who often manage or directly influence the leagues they compete it. Acting as a monopsony, owners behave in a manner that reduces the power of other stakeholders. e.g. players.

One way this can occurs is through league expansion. Creating a new franchise is no easy task. As North American leagues generally don't facilitate promotion and relegation, successful entry to a league means 'permanent' status. Such entry is then only permitted with the payment of a sizable fee, and full agreement of the current league members.

For evidence of league expansions one need only look at US soccer. By 2022, the MLS should reach 28 franchises. Inter Miami will be joined by Nashville SC next year, Austin FC (2021) and St. Louis (2022). 28 is a good number and a far cry from the original 10-team MLS that started in 1996. However, as the image below shows, it hasn't been all plain sailing.

​Since the league was inaugurated in 1996, three franchises have gone out of business. Worryingly for Backham and Co., two of these were based in Florida (Tampa Bay and Miami).

The most recent bankruptcy was Chivas USA, which left the MLS in 2014. Sale of the franchise to a group of businessmen, including Cardiff owner Vincent Tan, resulted in the emergence of Los Angeles FC in 2017.

This brings the number of major franchises in LA to 10! (NFL - Rams and Chargers; MLB Dodgers and Angels; NBA - Lakers and Clippers; NHL -Kings and Ducks; MLS - Galaxy). Only New York (11) has more.

One can only guess as to how much more the MLS will expand, but it would seem that 30 to 32 franchises may be the target. This would then put the sport in line with MLB, NBA or NFL. In fact, the current franchise map is starting to look very like the other major sports.

On the left, the current locations of the MLS sit reasonably well with the locations of NFL franchises. The return of a second MLS franchise to Florida would appear to make sense. As does the arrival of the first franchises in Missouri and Tennesse. 

The decision to create a 3rd franchise in Texas is a little less obvious but a first for the MLS. No other state will have 3 MLS teams. In fact, the only example of  major US sport with the three NHL franchises in the same city is that of New York - New York Rangers, New York Islanders and Buffalo Sabres.

By Robbie Butler

Recently, former Premier League manager Ian Holloway made some bizarre comments on Sky Sports show The Debate regarding Brexit:

"I hope we get out, Brexit, because that's what we all voted for. And sort that out because you cannot have someone telling us how to do our own game. FIFA and UEFA have brought these rules in, they told us we've got to use VAR that I’ve got no problem with, but that handball rule that they’ve made up, I don’t want to listen to them. That’s nonsensical," 

He later went onto say, "Brexit is nothing to do with the football rules, is it? I’m not that stupid, so I suggest people wash their ears out and listen. As an English person, I’m sick and fed up of being told what we’ve got to do. Our country is fantastic. If you let us make our own rules up, do what we want to do, we’ll be in control of it a lot better. I don’t like UEFA and I don’t like FIFA telling us what we should do in our English football game. We should take control of our own game, then that wouldn’t have happened. Let’s get out and stop the EU dictating to us what we can do. I feel exactly the same with UEFA and FIFA over our football."

Let's take a closer look at how inaccurate these comments are. 

The body with responsibility for developing and preserving the rules of the game are the International Football Association Board (IFAB), founded by the four British football associations. These originally consisted of England, Wales, Scotland and Ireland. However, following the formaiton of the Irish Free State  in 1921, IFAB  became the football associations' of England, Wales, Scotland and Northern Ireland.

Each of these has one vote on the IFBA Board today. FIFA is now also a member and holds 4 votes, or 50% of the voting power. However, the rule changes that Holloway is opposed to needed 6 votes to pass, so at least 2 UK members were required to tell 'England what to do with their football game'. 

So instead of what Holloway is suggesting that "...you cannot have someone telling us how to do our own game. FIFA and UEFA have brought these rules in", they have not. 

He continues "If you let us make our own rules up, do what we want to do, we’ll be in control of it a lot better". But that is pretty much what you have. There are 211 FIFA affiliated associations. Only 4 are members of IFAB. The same 4 countries that voted in the Brexit Referendum. 

Finally, his comments "Let’s get out and stop the EU dictating to us what we can do. I feel exactly the same with UEFA and FIFA over our football", are inaccuarte becasue neither can dictate. In fact, IFAB could never pass another rule change again if just Britain (England, Scotland and Wales) decided to vote against every change. So 3 countries could block 208 others and FIFA. Where is the loss of control?

Holloway is not the only manager to comment on Brexit. Last year Cardiff City's Neil Warnock said:

"I don't know why politicians don't do what the country wanted, if I'm honest. They had a referendum and now we see different politicians and everyone else trying to put their foot in it. Why did we have a referendum in the first place? I can't wait to get out of it, if I'm honest. I think we'll be far better out of the thing - in every aspect, football-wise as well, absolutely. To hell with the rest of the world." The club were quick to point out that "These comments do not reflect the political position of Cardiff City Football Club, nor its board of directors."

While Warnock and Holloway appear to be stanuch Brexiters, Liverpool's Jurgen Klopp takes a very different view. Earlier this year the German said:

"What do you want? A not perfect situation alone or a not perfect situation as a strong partner in a very strong unit. That's only common sense. That's only common sense because history taught us that if you are alone you are weaker than the unit. I'm 51 years old so I have never experienced a war. We are really blessed in our generation, but the past showed us that as long as strong partners are together, Europe is a much safer place...Yes, we have problems but let's solve them...Just calm down and stick together and stop listening to people with no knowledge, from the right side because that's never the solution...I still hope that somebody will use common sense at the end and doesn't use the situation to try and improve only their own position".

While just 51, Klopp must surely have been only too aware of the devastating consequences of World War II and the partition of Germany. As the past 3 years have demonstrated, the UK appears to looks upon the years 1939 to 1945 as to how 'going it alone' in Europe is the key to success. 

I also wonder to what extent the presence of non-British managers in top English clubs, for about the past 20 years, is influencing the views of the likes of Warnock and Holloway. This generation of British managers were the first ever not to be given the chance to manage many of the top English clubs. That must be the EU's fault too.