FT Business of Football Summit 2022: Three key takeaways

This month saw the return of the Financial Times Business of Football Summit in London, where I had the chance to (re)connect with professionals in the football industry. Here are my three key takeaways:

Trophy(less) assets – private equity’s focus beyond silverware in its football investments

It is clear that the industry’s interest in football goes beyond the on-pitch performance of Europe’s elite clubs.  

Several clubs were described by their investors as, variously, “a real estate business”, “a media company” and “a community asset”, measured not only by reference to their trophy cabinets, but also by their level of fan engagement or the strength of their academies. Some investors say this approach could better manage the downside risks of poor performance or relegation of their team.

Private equity has also extended into the European leagues themselves, spearheaded by a top-tier sponsor’s recent investment into La Liga. Panelists agreed that this trend would continue as football’s stakeholders realise the value of bringing in sophisticated private equity investors (with knowledge of managing media rights and improving governance) to increase a league’s revenue.

Don’t call it a comeback – the return of the European Super League

“There’s no such thing as bad press” goes the old adage. Try telling that to Andrea Agnelli who, with eleven other clubs over an ill-feted weekend in April 2021, tried to launch the breakaway European Super League (ESL). You may have thought that the swift and apoplectic reaction to the proposal from fans and pundits, not to mention intervention from several European leaders including Boris Johnson, had killed off the idea entirely. However, coming away from the summit, it is clear that the battle for European football is only just beginning.

Whilst notable opponents to the ESL (including Gary Neville and Tracey Crouch MP) continue to argue that the ESL is merely a way for an outdated and elite football hierarchy to make themselves even richer and more powerful, an alternative theory is quietly emerging – that European football needs significant reform, and that the ESL is one possible solution to this. Agnelli (backed by many existing investors in European football) himself appeared at the summit to give a polished, and at times confronting, defence of the ESL. We will continue to watch Agnelli’s comeback tour (as well as the upcoming ECJ case between UEFA and the ESL) with bated breath.

“You can’t watch anything with kids” – the evolution of content delivery

How to engage with the younger generation was quite literally the age-old question being asked at several of the panel sessions at the summit. It is clear that the days of traditional sport broadcasting are now long gone. Instead, fans are simultaneously seeking more in-depth access to their teams and favourite players, as well as a customizable match-day experience tailored to their preferred matches and players.

This shift in dynamic away from traditional media and marketing strategies has led to the emergence of a raft of new entrants to the sports industry – including independent content creators, NFT providers and digital media platforms. This will create an exciting opportunity for, among others, lawyers to help create the framework in which these new entrants and technologies will operate, whilst finding a balance with the existing football ecosystem.

These are just thee headline trends from a fascinating and lively summit. I’m sure the debate will run and run. If you have any thoughts, please get in touch.