FootBiz newsletter #67: Chelsea stadium project to force sale?

Occasionally — though increasingly — there are those moments in life that make you feel incredibly old and out of touch.

Judging by how many times it has been brought up to me in recent weeks, the Sidemen selling out Wembley (90,000 capacity) and racking up nearly 15 million views for a YouTuber charity match earlier this month has had that effect on a number of people from all different parts of the sporting landscape.

It popped into my mind again on Saturday night, when I saw there were an incredible 890,000 fans concurrently tuned into the Barstool Sports live stream as Dan ‘Big Cat’ Katz watched his Wisconsin Badgers crash out of March Madness, America’s beloved college basketball tournament.

There was no actual basketball on the stream. Just a room full of internet personalities gambling on games that Barstool didn’t have the rights to show. Nearly 1 million people glued to the tiny portion of this face that isn’t hidden by sunglasses or a hood.

And to put those concurrent numbers into context, the total views on that stream would be far greater than:

• the most-watched Premier League match in US TV history

• the most-watched MLS game ever

• any regular season NHL game since ESPN won back the rights in 2021

• any regular season MLB game

When people wonder about the reasons for broadcasting rights deals going down for professional leagues (piracy is the fashionable one you hear a lot currently) it is important not to overlook the broader picture of content creation and the scale of audiences that companies can attract for a fraction of what it would cost to lock yourself in to a four-year broadcasting contract with a sports league.

Even if you did decide to commit hundreds of millions per year to rights fees, and you market the hell out of your offering to pick up the subscribers and/or advertisers needed to make the numbers work, who is to say the league won’t say “thanks, but we’re going with somebody else” next time the tender process happens?

It is why the very few companies who can even afford to bid for these rights are taking a step back and re-thinking how they approach sports competitions. Even companies like DAZN who have locked themselves into rights agreements are looking to renegotiate or get out entirely. There are opportunities, of course, in broadcasting sports leagues but the commitment to the partnership from both sides may need to be longer-term and a deeper relationship going forward than has been commercial practice in the last decade or more.

In the US, the NFL and NBA have held talks with ESPN about equity stakes, which would (near-)permanently cement the parties into a mutually beneficial relationship. In that picture, huge rights fees can still make sense and it shows that there is some creative thinking going on as to how to solve these issues.

Many in the industry have convinced themselves that sports are the only thing that guarantees viewership (and specifically live, concurrent viewership) anymore, and to an extent that is correct. 75% of the top 100 most-viewed television broadcasts in the US last year were sports.

However, it is not only sport in terms that the traditionalists think of it. And the same applies to broadcasting. Streaming matters every bit as much (maybe more!) and adjacency to sport appears to be enough. People aren’t sticklers for rules written centuries ago. The Kings League’s immense success in Spain and Latin America is another great example of a sporting competition that injects personalities and technology into sport more effectively than the professional leagues.

Their new CEO Djamel Agaoua was managing director for Europe and the Middle East at the NBA and describes their 7-a-side, free-to-stream format is “showing another way of creating emotions through sports”.

That almost perfectly describes what Barstool does too, or the Sidemen.

The emotions and the sports are the same, but how and what people are consuming is changing. The good news for those feeling threatened, or old, amid the flood of new ideas is that the cost to create new things yourself is at an all-time low.

Come up with an idea and compete, or get used to it. But it is vital to know that the business model is changing and the broken ones very rarely get fixed.

Table of Contents

• USMNT flops in Nations League

• New stadium could hasten Chelsea divorce

• FIFA tame the León

• ECA criticised for lack of transparency

• Everton brace for legal action

• Rodman next USWNT star to Europe?

• FA rile England Women again

• World Cup could include Caribbean  

• If UEFA did beer sponsorships…

• 2026 host cities in funding plea

Sorry about that long intro. That’s what happens when you get me started on content and media business models.

Back to the football….

USMNT flops in Nations League

So the good feeling around US soccer and the US Men’s National Team (USMNT) lasted all of a couple of months.

Defeats at home to Panama and then Canada were about as bad as things could have gone for a much-lauded (excessively lauded) golden generation.

When Mauricio Pochettino was hired, it was undoubtedly a coup ahead of a home World Cup where there is a lot at stake for the sport of soccer in North America and globally.

Indeed, it isn’t crazy to argue that Pochettino’s hiring and the performance of the USMNT in next summer’s World Cup could be one of the most significant forks in the road for the future of world football. Hear me out…

Should the US go deep, even an entertaining run to the quarter-finals, then you can picture a country inspired, where football establishes even deeper roots domestically and gains further magnetism in the global landscape. A disappointing group stage exit, however, would likely mean a whole generation or more of Americans brushing off soccer and reverting to type.

If you project out the financial repercussions of those two different scenarios then you see how great the divergence could be: in 20 years, the USMNT as a footballing superpower vs several decades of further underperformance. More widely felt would be a doubling down on the US as the premier global soccer venue (Champions League finals, major tournaments etc) or whether a poor showing in 2026 and general waning of interest would sees a shift back eastward - most likely to the Middle East.

That’s a lot on Mauricio’s shoulders, but Pochettino was never going to be able to fix this all himself. That said, he did make some problems for himself with comments last week.

“I think we can dominate soccer, football, maybe in 10 or 15 years’ time, or maybe less: five, six, seven years. The potential is massive,” Pochettino told English media. ”In five or 10 years, for sure we can be No1 in the world.”

The difficult balance for the Argentine is that this is the strongest US squad ever, but it’s still probably outside the top 15 or so in the world. Domestic expectations are elevated by having their stars playing at big European clubs, but few, if any, of the USMNT starters would find their way into an England, France or Spain squad… let alone the starting XI.

15 months to go, Mauricio.

New stadium could hasten Chelsea divorce

In the first year (well, eight months) of FootBiz, we have spoken a lot about the new era of stadium-building as a financial imperative for bigger clubs.

With broadcast revenues flattening and/or declining, teams are being forced to diversify revenue streams and find new ways to make the graph go up and to the right 📈 … otherwise people in suits start getting fired.

Ed wrote for the New European last week about the rise of the Superstadium and Rob wrote on these pages a couple of months back about the stadium arms race, which it sounds as if Chelsea are about to jump into.

While the west London club have been talking about a new ground for over a decade, the financial imperatives (and wildly capitalist, mildly warring American owners) mean the urgency is much more obvious now. Chelsea’s revenue is the sixth-highest of the Premier League’s ‘big six’.

Todd Boehly told Bloomberg’s David Hellier on Monday that “we have to think about long term, what we are trying to accomplish” and suggested that building a new ground could be the eventual catalyst for a divorce from his group’s marriage of convenience with Clearlake Capital.

“We have a big stadium-development opportunity that we have to flesh out. And I think that is going to be where we are either aligned or we ultimately decided to go different ways.”

Clearlake owns 61.5% and Boehly’s group owns 38.5% of Chelsea. The former have insisted they have no intention of selling up, with both parties hoping to buy out the other but neither willing to budge with insiders describing it as “Behdad’s club”.

“Inside of London, it is really complex,” added Boehly.

“It’s not as though we’re building something in the middle of a rural environment.

"Long term, I think we are going to be building something new and we will figure it out.”

Boehly’s preference would appear to be for a multi-sport arena and he has a particular sport in mind.

Given recent whispers and Boehly’s links to parties who have worked with the NBA, it is interesting to note that he discussed the NBA’s European expansion as if it were a done deal.

“Stadium development is definitely a theme. You’re going to see the NBA go to Europe, they need stadiums, they need arenas. We’re just on the very front end of the sporting wave and sporting infrastructure is going to be a big thing about it.”

FIFA tame the León

Mexican side León will appeal FIFA’s decision to boot them out of this summer’s Club World Cup.

Grupo Pachuca, which owns both León and Pachuca, could take things as far as the Court of Arbitration for Sport in their bid to have both of their teams included in the tournament.

FIFA’s rules seem pretty clear that this isn’t allowed, but if we look at the wider landscape of regulation in football over the past year or two there are plenty of examples of the rule-setters losing on a technicality. With a huge prize pool, Grupo Pachuca are likely willing to pull every lever available in order to try and secure the FIFA windfall.

Until the process has concluded, FIFA is not expected to announce a replacement but Costa Rican champions Deportivo Alajuelense have previously threatened action on the basis that they should have been in the competition and are considered a strong shout to step in.

CONCACAF president Victor Montagliani has publicly backed León’s appeal bid, causing much consternation and a statement from their Costa Rican rivals.

"The club strongly condemns the public statements made by Mr. Victor Montagliani,"

“He explicitly expressed his support for Club León - an institution currently excluded by FIFA due to the violation of integrity rules related to multi-ownership - and expressed his desire for the club to be reinstated in the tournament."

ECA criticised for lack of transparency

The European Clubs Association (ECA) has once again been called out for its lack of transparency, this time with regards to its memorandum of understanding with FIFA and the Club World Cup.

Alex Muzio is the president of the Union of European Clubs (UEC) and has long sought answers from the ECA on a number of topics affecting his constituent members, this time addressing ECA chief executive Charlie Marshall by name.

The UEC’s general secretary Dennis Gudasic was also at the European Parliament last week pleading for political help in the regulation of football.

“Current self-regulation is proving flawed,” he said, in something of an understatement.

Everton brace for legal action

Everton have engaged Mark Howard KC to lead their defence against a potential claim from Burnley for compensation as a result of their profit and sustainability rules breaches, which could go to arbitration this summer. Leeds and Leicester have withdrawn previous threats to sue after Everton were found guilty breaching the Premier League’s spending cap in the 2021/22 financial year, a season in which Burnley were relegated to the Championship.

Everton were docked points the following season, but Burnley claim their rival’s overspending enabled them to stay in the Premier League at their expense, and that as a result they deserve to be compensated. A financial claim would be heard by an arbitration panel, although as yet it has not been appointed.

Everton sources told FootBiz that, as Burnley have not formally withdraw their claim, they have appointed counsel to protect themselves in case the matter goes to arbitration.

Everton have appointed a new director with Eric Williamson joining the Board as a representative of the club’s new owners, The Friedkin Group.

Williamson has an an executive vice-president at Friedkin Group for the last decade, having spent 35 years working for Gulf States Toyota, a Friedkin owned company that distributes vehicles and parts. 

Friedkin is also joining the Board at Everton, who have recruited Angus Kinnear from Leeds as the club’s new chief executive. 

Rodman next USWNT star to Europe?

America’s NWSL fears losing more top talent to Europe, with multi-club owner Michelle Kang warning that the league can’t afford USWNT star Trinity Rodman to join the exodus.

Kang is one of the most influential figures in the game, and while she isn’t totally impartial as Rodman plays for the NWSL franchise she owns - the Washington Spirit - Kang also owns the London City Lionesses and French giants OL Feminin so has feet in both camps.

Striker Rodman brought fears over her future into the public eye recently by saying she had “always thought about playing overseas at some point”. The 22-year-old was once the highest-paid player in the NWSL but is now in the last year of a three-year contract with the Spirit.

Kang says she is doing “everything in [her] power” to keep the USWNT forward but a truly worrying development for American soccer would be Rodman following her international teammates Naomi Girma and Jenna Nighswonger, who recently made the move to Europe, and creating more momentum for players leaving North America.

Industry executives polled by FootBiz gave a number of reasons for the increasingly one-way traffic. Cam Novak of women’s soccer consultancy Rexana Ventures tells us that the opportunity to compete in the UEFA Champions League is one of the biggest attractions for the American stars, with the competition now considered “a platform that brings both prestige and global exposure.”

“There's also the appeal of joining historic, globally recognized clubs and the WSL’s ‘soft’ salary cap structure can unlock greater financial potential for players,” she added.

USWNT captain Lindsey Heaps headlines a growing number of the team who are choosing to play on the old continent. Crystal Dunn, Korbin Albert, Catarina Macario, Lily Yohannes and Emily Fox have all made the move already but it is the profile of some of the players moving, young talents like PSG’s Eva Gaetino or potentially Rodman, that is cause for concern Stateside.

FA rile England Women again

England’s Women are engaged in another stand-off with the FA over bonuses with the squad yet to agree to the terms they have been offered for this summer’s European Championship, according to The Observer. 

A row over bonuses interrupted the Lionesses’ preparations for the World Cup two years ago, with the FA initially refusing to offer performance-related payments after FIFA introduced individual player fees.

England’s players made the dispute public on the eve of the tournament by signing a collective statement before their first game against Haiti, and it was only resolved the month after they returned from Australia, where they reached the final. While the initial talks are said to have been more cordial this time around, The Observer claim that the players are unhappy with the FA’s offer, and the matter has yet to be resolved three months before Sarina Weigman’s side begin their defence of the European Championship in July.

World Cup could include Caribbean  

The joint American-Mexico bid for the 2031 Women’s World Cup, which is widely viewed as a done deal, is exploring staging some matches in Jamaica and Costa Rica. Victor Montagliani said last week he would be interested in adding Caribbean or Central American hosts to the bid, with The Athletic subsequently reporting that Jamaica and Costa Rica specifically are under consideration.

FIFA announced earlier this month that the 2031 World Cup will be staged in north America or Africa, with the 2035 tournament to be awarded to Europe or Africa.

US Soccer and the Mexican Football Federation announced their intention to lodge a joint bid for 2031 tournament last April after withdrawing from the race to host the 2017 World Cup, which was awarded to Brazil. With CAF the only other federation permitted to bid, a US/Mexican tournament is seen as a fait accompli though FIFA’s decision will not be confirmed until next year.

CONCACAF’s move to expand their bid book fits with a recent trend from FIFA to award tournaments to several countries. Having multiple hosts enables FIFA to spread the economic risks/benefits and the political capital resulting from staging a major tournament, all of which tends to benefit the world governing body and its president, Gianni Infantino.

The 2026 Men’s World Cup will be first tournament where three countries — Canada, the US and Mexico — are co-hosts. The 2030 World Cup will be jointly hosted by Portugal, Spain and Morocco, while in addition the first three matches will be held in Uruguay, Argentina and Paraguay.

If UEFA did beer sponsorships…

Carlsberg has extended its long-standing partnership with UEFA’s national team competitions.

European football’s governing body split up the beer category to allow it to sell one for club competitions like the Champions League, which is currently Heineken, and one for international football.

The multi-year partnership deal will last until 2030 and includes: Euro 2028, UEFA Women’s Euro 2029, UEFA Nations League Finals, UEFA Women’s Nations League, Men’s and Women’s European Qualifiers and the UEFA Under-21 Championship.

2026 host cities in funding plea

The US host cities for the 2026 World Cup have begun a lobbying campaign to obtain $625 million in federal funding. 78 of 104 matches in the expanded tournament, to be co-hosted by Canada and Mexico, will be held in 11 American cities - including every game from the quarter-finals onwards.

Filings registered at the United States Senate Lobbying Disclosure website, obtained by The Athletic, show that the city committees are seeking “appropriations to support increased security and emergency services associated with World Cup 2026.” The documents say that the lobbying will target the Department of Homeland Security (DHS), the U.S. House of Representatives, the U.S. Senate and the White House.

Funding for host cities dedicated to World Cup preparations has not been included in the 2025 federal budget. As a result the host cities are now targeting the federal government’s funding round for Fiscal Year 2026, for which the legislation must be passed by October 1, 2025.