FootBiz newsletter #33: Bumper Xmas edition as Netflix enter football

Merry Christmas to all readers. In a surprising twist, we have a jam-packed, newsy edition of the newsletter for anyone who is stuck in an office today or otherwise avoiding Uncle Jim and Aunt Moira.

Yes, somehow we’ve got nearly 3,000 words of news, views and analysis to send you into the Festive period with.

There won’t be a Boxing Day newsletter, but we’re back up and running on Tuesday and we’ve also got a special limited series for you between now and New Year where leading figures from around football will give us their Christmas wish - the one thing they would change about football.

So keep your eyes peeled for that as if they were potatoes ready for the goose fat.

That’s nearly enough festive references, but here’s a table of contents as long as Santa’s naughty list. Ho ho ho and thanks for reading FootBiz.

Table of Contents

• Netflix enters football

• EFL tighten financial controls

• European Leagues reject A22 plan

• PL search for judicial lead

• Sky targeting new anchor?

• More questions for MLS

• M&A Murmurs

• Windfall for Liverpool, Arsenal

• Saudis invited into Gold Cup

• Forest hire new CEO

Netflix enters football

Leagues, governing bodies and those selling broadcast rights in football have been desperate for Netflix, the big beast of global streaming, to enter the fray for some time.

Well it looks like the time is now.

FIFA and Netflix have signed a deal to broadcast the Women’s World Cups in 2027 and 2031.

For rights-holders, the appeal of Netflix has always been its incredible household penetration around the world (270m subscribers), and the possibility of selling a multi-territory or even global deal but for now FIFA will have to be content with just the US market.

Nevertheless, it is a firm step into the football world for Netflix.

Multiple sources with knowledge of the discussions have told FootBiz that Netflix's financial offer to FIFA for the live rights in the USA was extremely modest, but the streaming platform's willingness to produce documentaries promoting its tournaments and the women's game in general was just as significant.

The streamer already boasts a reality-style TV show on women’s soccer called The Offseason that follows 11 NWSL players during the… period of the year when they’re not playing.

FIFA are not thought to have run a formal tender process in the USA, but turned to Netflix after being unimpressed at the valuations made by other broadcasters during an initial round of talks. Netflix have partnered with FIFA in the past and made a joint documentary, Captain's of the World, based on profiling the leaders of each team that qualified for the 2022 men's World Cup.

FIFA's valuation of some of their own tournaments has been at odds with that of the market for some time. After failing to sell any TV rights packages for next year's Club World Cup six months before it starts, streaming service DAZN were announced as the global rights holder in an extraordinary $1billion deal earlier this month, which it is widely anticipated will be funded by investment in the company from Saudi Arabia.

The TV rights auction for the 2023 women's World Cup in Australia was even more last-minute, with some of the deals for major European nations, including France and Italy only concluded a month before the tournament started. FIFA president Gianni Infantino had threatened a TV blackout in some countries after describing the some of the offers FIFA had received as "a slap in the face" for women's football.

By doing the Netflix deal in the USA over two-and-a-half years before the 2027 competition in Brazil FIFA have avoided a repeat of such last-minute brinkmanship, if not swelled their coffers. 

The women's World Cup is unlikely to be a money spinner for FIFA in the UK either, as since 2022 it has been on the government's list of so-called crown-jewel events that must be available free-to-air. As a result the BBC and ITV are likely to share coverage of the tournament in a move that will keep costs down for both.

EFL tighten financial controls

The EFL have amended their rules around cost controls in League One and League Two to promote more sustainably run clubs.

Their so-called Salary Cost Management Protocol (SCMP) gives you another acronym to remember, and will first be assessed on the 2025/26 season.

League One clubs can spend 60% of their turnover and League Two clubs just 50% of their turnover on “player-related expenditure” while the rules have also been amended to stagger how equity injections from owners are included in the calculation.

Competition prize money, which was previously recognised in full in SCMP, will now instead be included in turnover “at the relevant SCMP percentage for their division” - meaning clubs in League One would only see £60,000 recognised from prize money of £100,000 for progressing in the Carabao Cup (by way of example).

“In agreeing to the amendments, Clubs recognise that decisions to invest have to address all areas of Club operations, not just on field matters, and these rule changes will help ensure they can work to that objective.”

As someone who is very pro-sustainability and thinks it’s insane to have all these clubs running at a loss, this seems like positive news for EFL fans and owners. Overspending on squads is the number one financial issue for most English clubs.

European Leagues reject A22 plan

European Leagues, the group that represents 39 domestic competitions across the continent, has come out against A22’s Unify League proposal.

La Liga and the Union of European Clubs were the only organisations willing to go on-record in rejecting the Unify League on the day of its announcement last week, but European Leagues has followed up by emphasising the need for more consultation and less football.

“The European Leagues notes this week’s announcement from A22 and reject any suggestion that a consultation took place with our organization.

“The leagues reaffirm their commitment to the current professional football structure in which clubs qualify for UEFA Club Competitions through annual domestic performances.

“The A22’s competition model, which is not requested and unsubstantiated, would increase the number of international matches in an already congested calendar.

“Supporters and stakeholders across the game have consistently made it clear that any attempt from existing or new international club competitions to expand their calendars at the expense of domestic competitions will be rejected. Reducing the number of domestic clubs in league competitions to create more space for international fixtures will never be an option for the European Leagues Association and its members.”

PL search for judicial lead

The Premier League have begun the process of recruiting a new Chair of their Judicial Panel, with the incumbent Murray Rosen KC standing down in April. 

Rosen was the first Chair of the Premier League's Judicial Panel, which was given the responsibility of independently adjudicating disciplinary cases referred by the competition's board when it was set up in 2020, and his five-year term is coming to an end.

 Given the huge increase in legal issues facing the Premier League over the intervening period - such as the Profit and Sustainability Rules charges against Everton, Nottingham Forest and Leicester, the so-called trial of the century against Manchester City and the possibility of another Financial Fair Play hearing involving Chelsea - the appointment of Rosen's replacement comes at an intriguing time. 

The Judicial Panel Chair's responsibilities include appointing the rest of the 15-strong panel, as well as determining the make-up of independent commissions, appeal boards and tribunals. Rosen's most significant - and certainly most high-profile - decision during his five years in the role was choosing the Chair of the Independent Commission that is currently deliberating the 130 FFP rule breach charges made against City. 

In one of several legal challenges against the Premier League after they were charged last year, City queried Rosen's involvement in the process on the grounds of his impartiality, as he is an Arsenal fan. Despite this objection City were happy to appoint another Arsenal fan to lead their own legal team, Lord Pannick KC.

The Premier League want an experienced barrister or retired judge to replace Rosen. The recruitment process will be led by the Premier League Board and its independent chair, Alison Brittain.

Sky targeting new anchor?

British tabloid The Sun are reporting that Sky Sports would like to repatriate Rebecca Lowe as a replacement for Kelly Cates if she jumps ship to the BBC.

Cates is understood to be a strong candidate to replace Gary Lineker as presenter of the Beeb’s flagship football show Match of the Day, expanding her workload for the corporation which already includes work for Radio 5 Live.

Should Cates leave Sky, it would open up a significant vacancy as one of the faces of their Premier League coverage and Lowe, who has expertly anchored for NBC Sports since they won the rights in 2013, is reportedly top of that list.

Lowe lives very happily in California with her husband, football coach Paul Buckle, and enjoys working for NBC who admire her professionalism and energy.

The American broadcaster and Sky are both owned by Comcast, and while NBC did not stand in the way of Peter Drury when he replaced Martin Tyler as Sky’s top commentator last year, agreeing to a timeshare, a move for Lowe would be different given the need for her to relocate back to England.

It is worth noting that Lowe recently launched a US-facing digital brand ‘It’s Called Soccer’ with Sky Sports’ top pundits, Gary Neville and Jamie Carragher.

More questions for MLS

The MLS Cup final drew staggering audience numbers and not in the good way.

LA Galaxy’s win over New York Red Bulls should have at least had the fundamentals for a good showing, given the clubs represent the two biggest media markets in the USA, but the game drew just 468,000 viewers across Fox’s English and Spanish-language broadcasts, per Nielsen.

The game was also available on Apple TV, which Nielsen does not measure, but even with those figures added it would struggle to reach last year’s viewership of 890,000 - meaning a near 50% drop.

MLS and Apple entered into a 10-year, $2.5bn rights deal that - from the outside - can’t possibly be working for the tech giant.

It has been reported that there are exit clauses for Apple, but even with such paltry numbers it seems unlikely that Apple would pull the plug on Major League Soccer with a North American World Cup only 18 months away and the promise of a surge in interest.

After that is anybody’s guess, but in broader conversations there is growing momentum for MLS to move its season in an attempt to grab more eyeballs - while murmurs continue about a potential combination with Liga MX further down the line.

The Mexican top division remains the most-watched league in the United States, narrowly ahead of the Premier League, and could help boost flagging viewership.

M&A Murmurs

Sir Jim Ratcliffe has increased his stake in Manchester United to become the biggest single shareholder, with ~29%, while transferring the shares from his Isle of Man-based vehicle Trawlers to INEOS, per SEC filings.

The Glazer family still own ~40% of the club combined and retain control, though they signed over sporting matters to Ratcliffe when he invested in the club last year.

Per his agreement on buying 25% of the club for $1.3bn, Ratcliffe has also invested another $100m in the club, thus increasing his holdings.

Ratcliffe in turn owns 60% of INEOS.

Valencia’s club president Lay Hoon Chan has insisted the club has not been put up for sale, but that unpopular owner Peter Lim would consider any offers for the side that is currently propping up La Liga.

Lim’s ownership has been a disaster, taking over a team that was a Champions League regular and overseeing a decline that no player, coach or sporting director has been able to arrest.

“If there is an attractive offer, it will be studied for sure, but there is no hurry to sell. I see him still committed, he supports us, and has extended the loan. The Peter who I know is not selling his assets on the cheap.”

Valencia’s half-built stadium and towering debts have continued to be drag on the club, who were members of the G-14 group of Europe’s most powerful teams that would eventually become the ECA but are now at real risk of dropping into Spain’s second tier.

Carlos Corberan will be the next coach to try and save the club, after local reports confirmed that Valencia paid his £2.5m clause at West Bromwich Albion.

Sheffield United's takeover by COH Sports has finally been completed after the American consortium agreed to increased post-transaction payments to previous owner Prince Abdullah should the club be promoted to the Premier League this season.

The £105m deal had appeared in jeopardy earlier this month after the Saudi Prince demanded increased bonuses in the event of promotion with Chris Wilder's side top of the Championship after 22 matches.

COH Sports were sufficiently frustrated by the delays to go public by announcing they had received approval from the EFL three weeks ago in an attempt to increase the pressure on Abdullah to complete. Negotiations over the promotion bonus schedule intensified last week and the sale has been completed in time for COH Sports to take charge of next month's transfer window, with Wilder to be given a significant budget.

As part of the deal Steven Rosen and Helmy Eltoukhy, who will join the United Board as co-chairmen. Rosen is the founder and chairman of Resilience Capital Partners, while Eltoukhy chairs biotech company Guardant Health.

Windfall for Liverpool, Arsenal

Liverpool and Arsenal have received a significant financial boost worth millions of pounds after agreeing to settle a legal claim against their insurance companies for loss of income caused by the Covid-19 pandemic.

Law 360 reported last week that the Premier League's top two clubs have reached an agreement with their insurers over "significant losses caused by interruption or interference to their businesses" in a case that was due to go to trial at the High Court next year.

Liverpool and Arsenal were among seven Premier League clubs who launched a business interruption claim against insurers, including Allianz, Aviva, CNA Insurance, Zurich and Liberty two years ago after payouts for loss of income due to Covid were capped at £2.5m. 

 The clubs were claiming a total of £98.6m in extra damages due to the impact of suspended games and matches played behind closed doors during the pandemic, but Aston Villa, West Ham, Tottenham, Leicester and Brighton had already agreed to settle.

Sources will knowledge of the case have told FootBiz that following last week's Liverpool and Arsenal will now receive an additional multi-million pound payout. 

The clubs' claim followed a landmark judgement in the Supreme Court which ruled that insurers are "substantially liable" for business interuption losses in most cases, particularly when a policy offers cover for closure because of an outbreak of infectious disease.

The insurance companies had sought to limit payouts by arguing that losses should be grouped together under a “single occurrence” of government decisions to prohibit mass gatherings in March 2020. But the clubs attributed their alleged losses to 22 decisions by the government and footballing authorities, and claimed they were owed multiple payouts.

Saudis invited into Gold Cup

Saudi Arabia will play in the CONCACAF Gold Cup in 2025 and 2027 after the confederation announced the AFC heavyweights would be their guest invitee.

Previous guests include Brazil (1996, 1998, 2003), Colombia (2000, 2003, 2005), Ecuador (2002), Peru (2000), Qatar (2021, 2023), South Africa (2005) and South Korea (2000, 2002).

In August, Saudi Arabia’s Public Investment Fund (PIF) signed a long-term deal with CONCACAF that president Victor Montagliani described as a “strategic partnership which will support the confederation in developing all levels of football across our region.”

Earlier, oil giant Saudi Aramco became CONCACAF’s official energy partner.

Next summer’s Gold Cup will be disputed by 16 teams across 14 stadiums primarily on the west coast of the US and Canada. The tournament clashes with FIFA’s Club World Cup, which will take place primarily on the east coast to better suit TV audiences in major markets.

Forest hire new CEO

Nottingham Forest have confirmed the appointment of Lina Souloukou as the club’s new chief executive. The 41-year-old lawyer previously worked for Forest owner Evangelos Marinakis at Greek club Olympiacos, and was most recently chief executive at AS Roma until standing down in September.

Souloukou is expected to have responsibilities across all of Marinakis' football empire, which will soon include Brazilian club Vasco de Gama as well as Forest, Olympiacos and Portuguese side Rio Ave. She will work closely with Edu, who resigned as Arsenal's sporting director last month for a new role leading recruitment for Marinakis, as well as helping the Greek shipping magnate to acquire new clubs.

Forest have been without a chief executive since the departure of Dane Murphy in almost two years ago, but Marinakis has moved to strengthen the club's executive team recently. Former Labour MP Michael Dugher joined the Board in November, while Paul Tyrell was recruited from Aston Villa as chief operating officer earlier this month.

Souloukou joined Olympiacos in 2016 as a legal advisor to Marinakis having previously worked as legal counsel for Greek second division club Panionios, the Hellenic Boxing Federation and the Hellenic Federation of Football Coaches. She has twice served on the Board of the European Club Association (ECA) as a representative of Olympiacos and Roma.