From Front Office Sports <[email protected]>
Subject FOS PM: Super League Strikes Back
Date December 21, 2023 9:09 PM
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December 21, 2023

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International soccer might never look the same after today’s landmark ruling paving the way for the return of the European Super League. … The NHL will regain the local media rights of 11 teams at the end of the season, but big questions await. … And Barca is so strapped for cash it will play on back-to-back nights in games more than 5,000 miles apart.

— Eric Fisher [[link removed]]

The Super League Rises Again: Wins Legal Battle Against FIFA, UEFA [[link removed]]

Kevin Jairaj-USA TODAY Sports

A new, uncertain, and financially driven era for European soccer is set to begin as a court ruled that the European Super League can proceed—and that FIFA and UEFA restrictions against it were “unlawful.”

The European Court of Justice, the continent’s top court, said that the governing bodies’ efforts to expel ESL clubs and participating players from their own competitions represented an illegal monopoly under European competition law.

“FIFA and UEFA are abusing a dominant position,” the court said.

The ruling marks the most dramatic step in what has been an unlikely comeback [[link removed]] for a project previously thought to be dead. The original ESL proposal faded in 2021 in the face of heated public criticism across Europe. But La Liga rivals FC Barcelona and Real Madrid have quietly spent more than two years in an extended legal effort to revive it, successfully arguing that FIFA and UEFA engaged in anticompetitive behavior.

“We’ve won the right to compete,” said Bernd Reichart, CEO of A22 Sports Management, a company formed to aid the development of the ESL and a co-claimant in the case. “UEFA’s monopoly is over. Football is free. Now, the clubs won’t suffer threats and punishments. They’re free to decide their own future.”

A New Competition Structure

Just hours after the court ruling, the ESL unveiled plans for a three-league, 64-team men’s competition and a two-league, 32-club women’s competition. Those structures are aimed at replacing the UEFA Champions League and would include promotion and relegation between those leagues, with initial access based on domestic league performance.

But several top European clubs, including Manchester United and Bayern Munich, as well as the European Club Association and various supporters’ groups, quickly issued statements in support of UEFA and the Champions League and dismissing the new ESL.

“This does not change FC Bayern’s and the ECA’s position that such a competition would be an attack on the importance of national leagues and the structure of European football,” said Jan Christian Dreesen, Bayern Munich CEO and vice chair of the European Club Association. “We are committed to the European club competitions under the umbrella of UEFA.”

The question now is whether the potential riches of the ESL will ultimately prove too good to ignore. Barca and Real Madrid are set to receive more than $1 billion each from a revived ESL, and A22 is already touting the prospect of income guarantees during the first three years of competition, though other crucial details have yet to be disclosed.

“It is a project that will bring financial sustainability for all clubs, and first and foremost, one which will protect the players and excite fans across the globe,” said Real Madrid president Florentino Pérez. “We are at the dawn of a new era.”

NHL Regains Local Rights in Revised DSG Deal. Now Comes the Hard Part [[link removed]]

Kirby Lee-USA TODAY Sports

The good news for the NHL is that it has reached a deal with Diamond Sports Group regarding the local media rights of 11 teams. That might be the bad news, as well.

After more than six weeks of anticipation, DSG court filings late Wednesday showed that the NHL reached an agreement with the bankrupt parent of the Bally Sports regional networks to regain the local rights of 11 teams. Those rights will revert back to the league after the 2023-24 season in return for contract “modifications” that remain under court seal, similar to terms the NBA reached [[link removed]] last month with DSG. The agreement remains subject to court approval.

In the short term, the deal provides a crucial dose of certainty for the NHL and ensures that DSG will not drop any of its NHL teams in the abrupt fashion in which it rejected its rights to the San Diego Padres [[link removed]] and Arizona Diamondbacks [[link removed]]. NHL Commissioner Gary Bettman said [[link removed]] earlier this week that maintaining fan access to the games was a key priority.

“The term sheet provides the NHL through the 2023-24 season and allows them to transition operations, with the debtors’ cooperation, before the start of the 2024-25 season, thus minimizing potential disruption to fans,” DSG said in a court filing.

The NHL’s next steps with these local rights are unknown, and its future options are likely more limited compared to the NBA. That league will regain the local rights to half its teams while in the market for its next round of national rights, offering the possibility of an unprecedented combination of local and national agreements. Amazon in particular could be a player for a blended NBA deal given that it is reportedly considering [[link removed]] an investment in DSG.

The NHL, conversely, has locked in its national-level contracts with Disney and Warner Bros. Discovery through the 2027-28 season.

“It’s a resolution that we are comfortable with in light of the totality of circumstances,” NHL deputy commissioner Bill Daly said about the DSG deal to The Athletic [[link removed]].

Differing Circumstances

The NHL-DSG agreement involves the Anaheim Ducks, Carolina Hurricanes, Columbus Blue Jackets, Dallas Stars, Detroit Red Wings, Florida Panthers, Los Angeles Kings, Minnesota Wild, Nashville Predators, St. Louis Blues, and Tampa Bay Lightning.

Those teams are in varying situations. The Kings struck [[link removed]] a long-term extension with DSG in September, and the company had intended that deal to be a cornerstone of a reorganization plan. The Panthers signed [[link removed]] their own extension with Bally Sports in 2022. Several of the other teams were closer to the end of their current contracts with Bally Sports and had been dealing with fan unrest in recent weeks stemming from multiple outages on the Bally Sports+ streaming service.

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For Cash or Glory? Barcelona Makes Unprecedented Midseason U.S. Trip [[link removed]]

Kevin Jairaj-USA TODAY Sports

On Wednesday night, Barcelona defeated Almeria at its temporary home while Camp Nou is being renovated, vaulting to third place in La Liga’s table through 18 matches. Its opponents won’t play again until Jan. 4, but Barcelona is back in action again on Thursday night, this time in Dallas—yes, the city in Texas, more than 5,000 miles from Barcelona.

Barcelona is playing a friendly against Liga MX powerhouse Club America. The 27-time La Liga champions will reportedly receive $5.5 million to play in the match in front of an expected crowd of 90,000 fans at the Cotton Bowl Stadium. It’s the latest cash-grabbing attempt for the club, which reported [[link removed]] an operating loss of $212 million last season and has operating debts of $1.27 billion. Other recent efforts have included:

Selling equity in a new media entity valued at $1 billion Selling 25% of its future TV rights revenue to investment firm Sixth Street Taking on a further $1.6 billion in debt connected to its stadium project

This latest money-motivated trip “will, temporarily, help the club navigate a financial mess of its own making,” as Yahoo’s Henry Bushnell noted [[link removed]], but it “will not help the team climb out of [third] place in La Liga. It will not help Robert Lewandowski recharge his aging, misfiring legs. It will not keep Ilkay Gündogan or Frenkie de Jong fresh for a Champions League run this winter. It will not help current stars whatsoever.”

After losing Lionel Messi in 2021 over Financial Fair Play issues, Barcelona remained competitive domestically, winning La Liga last season following a second-place finish in 2022. However, Barca crashed out of the Champions League group stage the past two years (before advancing this season), which never happened when Messi was on the team.

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