Business of Sport

This week we’re delighted to welcome EFL Chair Rick Parry to the show. Rick has seen it all in football; The first CEO of the Premier League, CEO of Liverpool (1998-2009), and now Chair of English Football League. It can easily be argued that overseeing the interests of 72 clubs ranging from Leeds to Morecambe, is the hardest job in football. But Rick would never look at it like that. When we asked why take this job now having been offered it in the past, he simply responded ‘because I believe I can make a difference’. Football in the UK is at an interesting junction; the Premier League has never been more successful, financially and engagement wise, but there are question marks over its long term stability. The EFL has recently agreed a mega £1bn broadcast deal with Sky with the quality of football on the rise, yet the financial chasm to the Premier only increases.  How do you make clubs sustainable businesses? How do you bridge the financial gap between the leagues? How do you protect a community’s most socially valuable asset? The challenge was laid out perfectly: ‘We want sporting jeopardy without financial catastrophe’. Rick’s assessment of the health of the infamous football pyramid alongside the power of enterprise Premier League asks the key question: should the Premier League do more to support the football structure that enables its success?  On today’s show we discuss: Forming the Premier League: How was the world’s most successful league created in a few hours with a new set of groundbreaking regulations to govern it? The importance of the relationship with Sky in building a business model that supported the global growth of English football and its assets. How much money did the Premier League make compared to the EFL in the first season and what has that gap grown to now? What makes English football so unique and special compared to other leagues?  The essence of the game is opportunity; anyone can reach the Premier League and anyone can win it. Rising through the pyramid (and falling down it) is the jeopardy we all want! Financial Successes and Challenges: The Premier League was productised to create a marketable and best in class football product, but did Rick ever expect the gap to the EFL to be so big? How much does the EFL generate today and what does it need to do to ensure the sustainability of its 72 member clubs? “We must create sporting jeopardy without financial catastrophe”; why owner financing cannot be the model to build a club on. The Premier League makes £2.2bn more than any other League. Why does it need to be spending more money that it’s earning? Distribution & Regulation: Should the Premier League be paying more money to the EFL to share in the spoils of the success it achieves as part of the English pyramid? Does football need an independent regulator? What would a regulator be able to do that the current governance structure is incapable of implementing? “You don’t need a parachute to fall off a step. You need a parachute to fall off a cliff”; Why parachute payments are a problem. The Premier League has chosen to spend £850m more on wages when the EFL asked for £300m to support their business. What does that mean? Our Partners: Orreco  https://www.orreco.ai/ Scan.com https://uk.scan.com/  

We’re back with a bang as we welcome Harlequins CEO Laurie Dalrymple to the show. This is one of English sport’s most historic organisations. Laurie has been in charge of the Premiership Rugby team for over 5 years, establishing them as one of the leading commercial entities in the game while delivering huge success including league titles and European Cup semi-finals on the pitch.  We’ve had some incredible rugby chats on the show in the past. This is no different. From the viability of teams as sustainable businesses to the development of more players as ‘sporting icons’, Laurie gave us a compelling review of what it means to run a historic sporting organisation fighting to remain at the forefront of sporting entertainment. But can one club achieve real success if the league isn't set up to facilitate it? Our age old ‘rising tide lifts all boats’ discussion. We also recorded this a few hours after the club announced a bumper new deal for Marcus Smith; couldn’t have timed that better. Before joining Quins Laurie was previously Managing Director of Wolves, overseeing the signings of Ruben Neves, Diogo Jota, and Nottingham Forest’s high flying manager Nuno Espirito Santo. Rugby fans, football fans, there’s something in here for everyone. Importance of Talent Top talent on your roster is essential to building a better commercial vehicle that brands want to interact with. From Marcus Smith to Alex Dombrandt, how have Harlequins looked to enhance the profile of their star players to build value into the club. Is rugby capable of delivering global superstars? When the sport is all about the importance of the team, is there a place for ‘superstar’ personalities? Is there concern that the salary cap and spending restrictions placed on English clubs causes the top talent to move abroad or not come to the Premiership in the first place? The importance of legacy and ensuring the players appreciate what has gone before them at this historic club. Financial Management Is Laurie a supporter of the salary cap model and why was it introduced in the first place? Can the financial challenges experienced by clubs in recent years be purely attributed to spend on the pitch or are there other factors at play? How does the salary cap work? What are the budgets and how can they be spent? How have Harlequins built the most valuable club in England with the highest revenues? From enhancing fan experience to trusted brand partners. What are the financials of the club? Despite performing very well in the existing environment they are still not profitable. Rugby vs Football What did Laurie bring into rugby from his time as Managing Director at Wolves? Where were there direct crossovers and what was the biggest difference? What is a better investment? Buying a rugby club or buying a football club? What are the differences between owners in rugby and football? How does the business model change? Should football have a salary cap? Reflecting on the signings of Neves, Jota, and the Wolves team that returned to the Premier League  Our Partners: Orreco  www.orreco.ai Scan.com https://uk.scan.com/

Today is the milestone 50th episode and we have a guest to match it. Édourard Mendy is a Champions League and AFCON winner. He won FIFA's ‘The Best’ and UEFA Goalkeeper of the year award in 2021. He holds the record for the joint most clean sheets in a single Champions League season. He went from nearly giving up the football dream in a French job centre with a baby on the way to winning the CL with Chelsea in 7 years. And now he's playing alongside Mahrez, Firmino and Toney at Al-Ahli.  Away from the pitch, he is building a reputation as a passionate investor looking to translate the success he has achieved on the pitch to help founders build great businesses. As Édou states, the move to Saudi has also been about facilitating the work he can do away from the pitch as well as being part of an exciting new football landscape; ‘it’s not just about football and not just about money’. This is one of sport’s great stories; a meteoric rise to the top that had to endure countless challenges to achieve Édou’s reality today. From his early days in France to developing football in West Africa, with a big helping of his time at Chelsea, we get a rare insight into the inner workings of a top tier footballer.  On today’s show we discuss: Origins of a Champions League Winner: How did Mendy get his break in France? What is it like to work your way from the bottom? What happened when Édou decided to look at a career outside of football because he wasn’t making it in football? You have to be careful who you put your trust in; when agents promise opportunities that don’t materialise. The role family and humble beginnings have played in keeping him grounded as success has quickly come to him. Signing for Reims and then Rennes which paved the way for his move to Chelsea. The Chelsea Story: From getting a call from goalkeeping coach Christophe Lollichon to eventually signing his contract; the Chelsea transfer story. How long does it take for clubs to agree to a transfer? What did Marina Granovskaia say was unique about his move? What role did Frank Lampard play in helping Édou establish himself as Chelsea’s number one keeper? What happens when a manager changes at a club? From Lampard to Tuchel… The inside story of Chelsea’s iconic Champions League win in Porto. Why Tuchel wanted to play on Chelsea’s underdog status. From Champions of Europe and the World to the fringes of the squad; where did it go wrong? Moving to Saudi Arabia and what comes next: Why this move is not just about football and not just about money; what are the considerations that influence transfers? ‘It is important to feel wanted and I felt that from Al Ahli’. How a conversation with the CEO convinced Édou that this was the club for him. What is most exciting about the emerging league and how is the country preparing for it’s World Cup hosting duties? Playing in a dream team with Mahrez, Toney and Firmino and the star power of the Saudi League. When an athlete becomes an investor; how Édou is building a profile for himself as an investor and what is the value of athletes bringing their expertise to emerging companies? How establishing football in West Africa and Senegal in particular is and will always be a key part of his focus. WSC Sports  https://wsc-sports.com/ Tyndall Investment Management  https://tyndallim.co.uk/

After amazing shows with a number of CEO’s across the football industry, we’re today venturing into the lowest of the English Football League’s with current League Two promotion chasers Port Vale. Matt Hancock has been CEO of this historic club since January. Having been relegated from League One in his first few months in charge, it’s fair to say the learning curve has been steep. But these are the shows we love to do. It’s proper business, not propped up by the billions of international ownership. Understanding how to run a sustainable company that is not eternally dependent on owner financing while constantly trying to win on the field is so difficult. Then add the fact that almost every decision is reviewed under a microscope generally with the benefit of hindsight, you do sometimes think who would take this on. But then you remember that alongside these challenges comes the privilege of looking after the thing that can give people their greatest enjoyment. The lower down the football pyramid you go, being a CEO is about building an environment to sustain a community’s most valued asset. This is a compelling reveal on how you do just that. On today’s show we discuss: Becoming a CEO in Football: How did Matt come to take charge of one of English Football’s oldest clubs? From building community to winning on the pitch, what are the key focuses of clubs the lower down the Football League you go? How important is the relationship between executive and owner? It’s about more than results; why Matt believes his job is to ensure those working at the club know that success can be about more than 3 points on a Saturday.  How to ensure you keep level headed, not getting too high on the highs and too low on the lows. Handling Relegation: Port Vale got relegated from League One in the first few months of Matt’s tenure as CEO. How did he make sure the club recovered to build for the new season? The importance of a great manager in the lower leagues; why Darren Moore has been crucial to the recent development of Port Vale. What attracts players to a club that goes beyond just being paid the most? The financial impact of relegation and trying to move away from a reliance on owner funding to ensure sustainability. Working for the Fans & Community: Is it better to over communicate with fans and open yourself up to increased scrutiny or reduce what you share and lose connectivity? How Port Vale has become an intrinsic part of its community and the importance of the club to the local area. The challenge of ensuring you don’t make decisions based on fan sentiment; how to remain neutral and not be influenced by emotion. The role of lifelong Vale fan Robbie Williams! Communicating spend away from the pitch on infrastructure and development is important to create an understanding around the need to build value in the ‘business’ of the club. WSC Sports  https://wsc-sports.com/ Tyndall Investment Management  https://tyndallim.co.uk/