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    The German 50+1 Rule for Football Club Ownership and What the Rest of Europe Could Learn

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    Introduction

    In April of 2021, the plans for a European Super League spread around European football and globally. It was widely opposed by fans who feared for the integrity of meaningful competition in football and for their own clubs. Some of the biggest footballing giants from Manchester United and Arsenal to Madrid and Barcelona to the Milans and Juventus had agreed to become a part of the breakaway league and leave behind their national association leagues. It was a treacherous time for European football that upset a great volume of adoring, sceptical fans.

    Noticeably, the German giants, Bayern Munich, Borussia Dortmund and RB Leipzig were absent from the list of clubs that had agreed to the European Super League. They each spoke out to confirm that it was not something their clubs would be associated with. This begs the question as to why, when the rest of Europe’s biggest clubs immediately demonstrated enthusiasm and support for the concept, were the German clubs the distinct anomaly? Although the ESL never materialised, the clubs that were listed were originally committed to the idea whereas German clubs, from the beginning, were never involved.

    This blog will explore the 50+1 club voting ownership rule that is implemented under the Deutscher Fußball-Bund (DFB; the German Football Association) and applies to all professional German football clubs. This is the predominant reason as to why none of the German clubs were ever a part of the ESL plans. I will also analyse whether or not this rule could be applied in and benefit other football National Associations and clubs across Europe and globally. There are legal complications and other complexities that the rule and governing bodies must consider but it has widespread support in Germany and is attributed with being an integral part of the admirable traditional fan engagement and adoration that clubs in the country attract, but is it supported for the right reasons?

    50+1 in Practice

    In German tradition, Vereins (associations) have existed as clubs or societies that dedicate themselves to a specific entity or activity. To form an official Verein, the group must consist of more than seven people and must maintain a non-profit status. Their role is to represent an audience or fan-base and give a voice to those who believe they are entitled to having a meaningful opinion within their particular environment.

    Vereins, as well as almost anything, are involved in German football clubs including all those in the Bundesliga. These are made up of between 267 and, in Bayern Munich’s case, 290,000 people who take on varying responsibilities at the clubs. The role of the Vereins can extend as far as maintaining budgets, organising club events and other opportunities beyond just football. The leadership of the Vereins is democratically elected and provided a voice for the devoted fan-base.

    In 1998, the DFB offered a solution to the inflation that was being seen in football that challenged the non-profit approach of Vereins with German football clubs. Transfer fees, player wages and commercial finances were all rising exponentially and for German football to keep up, it seemed unfeasible for clubs and Vereins to continue to operate purely as non-profitable organisations. The rules were adapted for German football that allowed for German clubs to involve profit-seeking corporations as part of their ownership structure. The one condition stipulated by the DFB was that the clubs must allow their Verein to maintain majority control of the voting rights in the club. Hence, the 50+1 rule was born:

    50+1 Rule:
    50% of a German football club’s voting rights plus an additional 1 share

    must be possessed by the Verein. This applies solely to voting rights rather than financial shares of the entity. Put simply, the fan-base of the club must have more control of a club than the corporate owners.

    What Can Other National Associations Learn and Benefit From?

    In the face of foreign ownership, the 50+1 rule can be seen as the greatest solution to giving a voice to the previously voiceless fan-base. Take the examples of Newcastle and Mike Ashley which was recently resolved or the ongoing situation at Manchester United. The fall out between the Glazers, United’s owners, and the fans has not been good. Fans have protested relentlessly and pleaded for change of the club’s ownership from an American family blamed largely for the recent failings of a global giant. In this instance, were the fans entitled to a majority of the voting rights there would be a chance for them to remove the Glazers from power and reinstall an ownership structure that they believed wanted the best for the club rather than one that took dividends and profits from their shares during the club’s darkest times.

    This was the case for Hannover in 2019 when 2,100 of the Verein voted to remove the then Club President, Martin Kind. They pointed towards his excessive power and dictatorial approach to owning the club as the reason and the 50+1 rule allowed the fans to express their concerns and reach a solution that suited them. Although Kind has recently been victorious in court after expressing his distain at his dismissal; it was eventually decided that he can be reinstated within the club and that his dismissal was unjust. Nevertheless, the broad foundation principle of the 50+1 rule is simple; that football is for the fans and is impossible without them, hence they should have a proportionate level of power that reflects this.

    The 50+1 rule could have benefits across football globally by its enhancement of fan engagement for any club. A fan is more likely to dedicate themselves to a club at which they have a custodial role and responsibility. The 50+1 rule allows for fans to cultivate and maintain a system that suits them. For example, in German football, season tickets and matchday tickets are incredibly cheap, as voted for by the fans, and often includes public transport to and from the matches. The comparison can be seen in the graph below which shows the average matchday ticket price for the biggest clubs in Europe and quite clearly demonstrates how far below Premier League prices the Bundesliga giants are (source: Statista):

    Season tickets are much the same. At Bayern Munich, one of the biggest clubs in the world, fans can purchase a season ticket from less than €150 whilst a club like Manchester United charges at least £530 and Tottenham Hotspur top-end season ticket fees peak at over £2,000! Elsewhere across Europe the prices remain higher with Barcelona charging a minimum of €250, Juventus is at least €650 and to watch PSG across the season you would have to spend at least €490. The 50+1 rule can be extended as far as voting for cheaper food or drink at games as well as official team merchandise and preventing a club from engaging in discussions for the European Super League. This is only possible due to the power that fans are given to maintain these low ticket brackets and improves the overall fan experience of their beloved club.

    The outcome of enhancing fan engagement is of course protecting the emotional and unbreakable connection between the fan and the club. It could be greatly advocated that owners should establish and integrate fan clubs or bodies into their ownership structure even without the 50+1 rule in place. This style of relationship allows for fans to feel as though they are not voiceless and they can reclaim some level of control over their club. By giving fans this ‘nominal seat’ within the decision makers of a club fosters a healthy environment for fan engagement and could produce an overall more sustainable and attractive football club. The 50+1 rule does not have to be officially regulated or a law within the national association for clubs across Europe and globally to learn from and reproduce at least some of its benefits.

    The further benefit that the 50+1 rule, or at least the principles behind it, may produce is a more balanced and competitive league. If clubs are not reliant upon, nor allow, ‘budgetless’ approaches by billionaire owners bringing in the best players from around the world, the likelihood is that the advantage of the richer clubs is reduced. Fan bases or Vereins are likely to advocate for financial fair play and consequently, the leagues will become more competitive. However, this is a debatable presumption as I will now go onto explore the loopholes within the 50+1 system and the problems that arise.

    A Flawless System?

    So far it may seem that the 50+1 rule is the perfect solution to the lack of control and power that fans across Europe, other than Germany are positioned as having. However, the system is far from flawless and some German clubs have found areas of the legislation which can be exploited to find ways around it. Some of these were unavoidable whilst others clearly identified methods which could be adopted that expose the loopholes of the 50+1 rule.

    There are two major exemptions, known as lex specialis, under the 50+1 rule in the Bundesliga; Bayer Leverkusen and Wolfsburg. These clubs were originally founded as clubs for workers of corporations. Bayer Leverkusen was founded by employees of the Pharmaceutical company, Bayer, whilst Wolfsburg was formed by car manufacturer, Volkswagen employees. As these clubs were already majority owned by corporate companies, they are considered an exception to the 50+1 rule and are far harder to regulate. The level of fan power and control within these clubs cannot be judged as factually as in other clubs which have corporate ownership and shares whilst giving at least 50+1 voting rights to their fans.

    Two other clubs have also found ways in which they can adhere to the use of Vereins for 50+1 of voting shares in the club without sacrificing the possibility of substantial investment. Firstly, Hoffenheim, which began as a village club with a population of 3,000 people, revealed a flaw in the DFB’s ‘20 years of investment’ rule. A member of the Hoffenheim Verein, Ditmar Hopp, has been investing into the Hoffenheim club for far more than 20 years. Since he surpassed this length of time he became exempt to the financial fair play clauses that are a part of the 50+1 rule and was able to gain significant power and investment capacity over the club.

    Fortunately, having been a longstanding member of the Hoffenheim Verein, and a devoted fan, this was of enormous benefit to the club. Hopp invested a valuable proportion of his billionaire status into the club which saw them rise from an amateur village club to an all-time-high of third in the Bundesliga in 2018. Whilst this was brilliant for Hoffenheim and its loyal following, other clubs in the Bundesliga and German football fans cited an unfair competitive advantage that they had gained from having such a powerful figure as part of the Hoffenheim Verein.

    A similar advantage has been gained by RB Leipzig. The club, sponsored by Red Bull, is associated with the RassennBall Sport Verein (As they officially can’t call themselves Red Bull, this translates as ‘Pitch Ball’) which is limited to just 21 people but has 50% plus one share of the voting rights at the club. This ‘fan-base’ consists solely of employees of Red Bull, mostly those that are very high up in status within the company and hence they are likely to favour the decisions made by the club’s ownership and support them by also contributing significant investment. Therefore, by proxy, Red Bull have majority control over the club and it seems as though the ‘real fans’ are excluded. Once again, this has been heavily criticised as unfair and seems to negate the desired benefits of the 50+1 rule.

    Other Potential Problems

    One of the first considerations that must be made for the 50+1 rule if there was potential for it to spread beyond Germany is the legal implications. Despite it being granted as legally acceptable in Germany, fundamentally, the 50+1 rule undermines wider European competition and trade laws as it prohibits investment and free trade. The German court of law adjudged that the rule is acceptable as it is deemed as unproblematic; its primary objectives are for good and desirable sports policy. The 50+1 rule aims to achieve social and ethical objectives and has a positive impact on the sport. However, it is unlikely to be able to withstand scrutiny in a European court which would make it difficult to implement outside of Germany.

    Another concern is whether the rule makes it far more difficult for clubs to compete with other clubs that are in national associations that do not use the rule. In other words, clubs that give the majority voting power to fans are likely to deter major investors into the club at the risk that they could be removed if they upset the fan-base.

    An individual or group with business acumen would wisely choose not to invest if they don’t actually get to make the rules and the major decisions at the club.

    The problem that arises then is whether German clubs, or others in the future that are under the 50+1 Rule, are disadvantaged whilst lacking this level of investment that equals other European clubs. Perhaps Borussia Dortmund and Bayern Munich, who regularly compete with the best clubs in Europe in the latter stages of the UEFA Champions League, are proof that the rule does not prohibit or restrict the success of clubs adhering to it. Clubs like RB Leipzig, Schalke and the 2022 Europa League winners, Eintracht Frankfurt act as additional evidence to this theory.

    The detrimental effect of the 50+1 rule is more clearly seen at a league level. Bayern Munich have won the Bundesliga every year since 2012. The uncompetitive and one-sided nature of the competition seems to imply there is a fault in the system that is not functioning as it should. The 50+1 rule is supposed to put all clubs on a level playing field but it seems in this case that it unbalances competition and creates a problem. This would be a worry for other national associations that are considering implementing the rule. For example, the Premier League is already known as the most competitive football competition in the world, why would they consider adopting a rule that has removed the element of unknown and intense competition in the country in which it already applies?

    Perhaps a solution that allows clubs to exercise their own judgement as to whether or not to welcome foreign and lucrative investment may succeed in overcoming this. Without the 50+1 rule in place, some clubs would attract large investments and be able to rejuvenate the Bundesliga, with previously low performing sides competing against the German giants.

    If clubs were to choose for themselves, there should be several conditions and new rules attached. For example, stricter club ownership laws such as an owner not selling the club for a minimum of 10 years. This would translate into a better quality of ownership and avoid issues or poor ownership. There must also be greater scrutiny around where the investment money comes from in order to further protect the club. Next week’s blog will investigate club ownership and its trials, tribulations and flaws and what can be done to overcome these. This blog will be relevant to this week’s and an extension of the solution and compromise to the 50+1 rule.

    Conclusion

    Following the European Super League debacle, the 50+1 rule, on the face of it, provides an attractive and sustainable solution for football fans around the globe. Many believe that if the club was to adopt such a rule, they would feel as though they would be granted the control and voice that they deserve within their beloved club. Football is made by the fans and a system that enhances their experience of the game, their club and the connection and the relationships they have, seems to be only positive.

    I have identified within this blog that the system is, however, fundamentally unfair. Many. Clubs can find loopholes in the flawed system and the integral competitive nature of the sport could be undermined. Nevertheless, I believe that the 50+1 rule is something that could be moulded, adjusted and adapted to perfection and help fans re-engage meaningfully with their clubs whilst upholding the principles of competition and fairness.

    A solution to the current unfairness of the 50+1 rule could be to leave the judgement for implementation of the law to the individual clubs to decide. At the moment there is a possibility that the rule is being supported by some of the biggest clubs in order to maintain the current status quo, undermining fair competition. Furthermore, there are so many clubs that find ways around the system, it has become obsolete and instead should be amended to be based upon the independent decision of the club.

    It is a complex consideration as to whether or not there is a possibility for clubs to self-regulate. The 50+1 rule itself could be abandoned in legislation but instead could be individually adopted as the norm within clubs. I believe that it should be the role of the clubs themselves as well as the national associations to fairly manage financial fair play and club ownership and investment. Whilst this is optimistic, perhaps in the future clubs and associations will give a respected voice and opportunity to their fans without it having to be stipulated by law and attract good, proper investment that doesn’t threaten the club or football.

    Summer Transfer Window from a Football Agent’s Perspective

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    Introduction

    For many involved in football to any extent, the summer transfer window can be the busiest and most turbulent period of football in a calendar year. Away from the rollercoaster of on-pitch activity, the transfer window is an exhilarating off-field source of entertainment, or stress, for concerned parties from sporting directors to football fans to coaches. In this blog, however, I will provide a behind-the-scenes insight into how the summer transfer window takes shape for the agents that conduct business on behalf of their clients.

    The Window

    For any transfer that takes place, the window must be open for the National Association to which the player involved is moving to. For example, a player may move from Europe to the MLS during their ‘pre-season window’ which is between February and May in the USA, despite the window being closed in European associations. This is also the same in European leagues; so for a country like Turkey which has a later transfer deadline day in September than most other European associations, they are still able to sign players from these other countries. The only exception to this rule is for free agents who can be signed at any point during the football year. This has been the case since the 1995 Bosman Ruling by the Court of Arbitration for Sports to protect a player’s right to free movement and employment legislation.

    Whilst the Southern Hemisphere (January to March) and the US are different, I refer to the ‘summer window’ as the period of time between the start of June or the start of July and September which is when European associations open their windows in the build up to and start of their seasons. During this time, agents must work tirelessly to seek and agree upon the best possible deal and opportunity for their clients, whether this be finding a player a suitable new club, getting them the wages that they deserve for a contract renewal or acting on behalf of a club in sourcing and bringing in new talent to sign.

    Pre-Window Preparation

    The work for the summer transfer window is not within such a narrow time frame, it is constant throughout the year. It is not widely known that the norm in global football is that many deals and negotiations have taken place prior to the window opening and are ready to be confirmed once it is finally open. This is within the laws of the game and allows for clubs, players and the agents to engage in discussion at any stage of a season. This prevents such a mad and desperate rush within a short time-scale for a proposal to be made and for a fair agreement to be reached.

    There are only two stipulations to this. Firstly, that the deal cannot be officially confirmed and signed unless it is within the transfer window. The agent must also reinforce that the buying club obtains approval for the selling club to speak with the player and their agent and engage in proposing a move and negotiating personal terms in order to avoid any breach of their current contract and regulations if they have more than six months left on their contract. If a player has less than half-a-year left on their contract then they and their agent are already eligible to engage in conversations with prospective buyers.

    An example of this pre-window preparation in action is Erling Haaland’s recent move to Manchester City in the Premier League from Bundesliga club, Borussia Dortmund for an estimated £51million that will eventually end up at around £85million once agency fees, signing-on bonuses and other payables have been met. The five-year contract is also understood to be worth wages of £375,000 weekly for the 21-year-old forward.

    Haaland’s move was announced by City just a few days after the transfer window opened. He had been a point of discussion in English football for over a year and was always tipped for a move to his father’s former club. However, a transfer and contract of such magnitude could not have been through the entire proposal and negotiation process in mere days. This epitomised the pre-planning and preparatory work that goes into these transfers. The hard work and intricate details had already been finalised by the time the transfer window began in the UK. Even the most complex and sensitive areas of negotiation such as wages and release clauses would have been discussed and decided upon far before this date.

    This is a lesson for agents that, particularly for high profile or complicated deals, preparation and negotiation outside of the window is vital if it is at all possible. It helps mitigate against stressful and time-sensitive situations in which the ability to reach a desirable outcome may be compromised due to factors outside of the control of an agent. Agents that work hard to bring deals as close to complete as possible and prepare adequately for the window are more likely to serve the best interests of their clients.

    Even if there is not a ready-made transfer that just needs preparing ready for finalising once the window opens, there is still plenty of preparatory work an agent can carry out before the business end of things begins. The agent should be proactive rather than reactive. Entering a new transfer window, agents will often have already identified opportunities that they will aim to capitalise on. The behind-the-scenes graft involves pinpointing clubs that require certain positions or a certain kind of player and an agent may be able to present one or more suitable options to the club. Furthermore, the agent must have access to such players which may involve reaching out to their agent and obtaining a mandate as well as communicating with the club to ensure that a potential deal is possible.

    The Window

    For agents, the transfer window is often manic. At any one time, an agent could have several ongoing deals and negotiations that require attention. It can be months of hundreds, if not thousands, of phone calls with various concerned parties from the player, to their families, to the sporting director and coach of a club. The research and investigation into finding opportunities for clients never stops. Whilst I explained that many deals are built upon foundations laid far before the window opens, there are still an extensive number of transfers that begin during the window.

    There are major factors that an agent must have knowledge, understanding and an insight of that influence and change the opportunities that are available. For example, clubs may delay engaging in transfer negotiations until they have sold a player in order to free up funds to invest elsewhere. Big deals often have a collateral impact and create a knock-on effect that initiates many other discussions and deals. On the opposite end of the spectrum, an agent should also be able to identify that clubs may also be experiencing financial difficulty for a number of reasons such as being newly relegated or under financial fair play pressure and even sanctions that prevent certain deals being possible.

    A further event that might alter the transfer window landscape is preseason injuries, unhappy players handing in late transfer requests or other unforeseeable incidents that suddenly creates a missing element for a club. As this is likely to occur nearer the end of a transfer window, this becomes somewhat of an emergency transfer. However, most clubs will be eager to commit a significant level of back-up investment funding to ensure they are not left short on a certain position. This is what an agent is paid for, operating under highly time-pressured situations and complex environments and producing a successful outcome for a client.

    Agents must not be seen as wasting the time of people within clubs or a player. This will damage the relationship one might have with prospective clients and be detrimental to the reputation that the agent holds within the industry; meaning that future deals with these clients are less likely. A lot is to be considered and many conversations are necessary to establish where an agent can offer their services in order to obtain a desirable outcome for all parties. Whether representing clubs or players, attributes such as age, personality, skillset, strengths, contract status, wage demands, loan or buy, and other clauses play a part in whether a deal is feasible and likely rather than being unrealistic. An agent must have a profound ability to monitor and study the market and have a high standard of comprehension of what certain clubs look for which is affected by their culture, owners, team chemistry, manager, formation, finances, style of play and otherwise.

    Deadline Day

    Deadline day, in any national association, is often the most eventful day in the footballing calendar for the majority of fans. It can be an emotional rollercoaster filled with hope and despair. For agents, it is just as eventful and can test their professional aptitude to the limit. It is the last chance to finalise deals and as if they hadn’t had enough phone calls already during the window, deadline day can reach a whole new level.

    Hopefully everything has been put in place that is needed beforehand and sometimes it might be a matter of putting pen to paper and passing a medical. However, it is not uncommon for a deal to almost start from scratch in the early hours of deadline day and be concluded, or sometimes fall through in the dying hours. An agent has a large responsibility in mediating all of the activity during deadline day and ensuring that their client is looked after and their best interests are protected.

    It is possible that the rushed nature of deadline day can cause an agent to compromise to an extent that they would not have gone to if it wasn’t for the high-pressure circumstances. It is integral to remember to serve the best interests of their client and to not agree to a deal that is not absolutely suitable and reflects the value of their client. The agent must have enough knowledge and information to prevent such an occurrence and to know the value and interests of the client that withstands the intensity of deadline day.

    Further Considerations

    Football transfers are complex entities in themselves. However, an agent must account for a far broader spectrum of factors when serving the best interests of their client. These additional considerations are a vital part of any transfer, particularly relevant when representing a player, but could also be seen from the opposite side of the deal for a club looking at prospective signings. They go far beyond football yet can play a significant deciding factor in whether the transfer materialises as a success on the pitch.

    For a foreign player moving to a new national association, an agent must ensure they have thoughtfully discussed the lifestyle that the player would move into. There have been well-documented examples of players who have struggled to settle into new countries and leagues for a variety of reasons. Fitting into a new culture and society and sometimes a new language can be difficult for anyone, especially when they have to go out and perform in front of audiences in the millions.

    It may seem simple but it is absolutely fundamental to show a player that they are going to enjoy where they are moving to. This includes, but is not limited to, their living situation, their religious beliefs, the coach that they will be playing under and often most importantly, does it suit their young family.

    Consequently, agents will have to deal not just with the player themselves. Families have a large influence on whether a player is willing to move to a certain club. In order to carry out their roles and responsibilities most effectively, the agent must have a strong relationship with the family of the player as well. They must openly communicate with them and unbiasedly decide whether or not this is a sensible and family-friendly move for them.

    Similarly, the agent must open up a dialogue between the coach and the player and maybe the sporting director and other staff. This is important as the coach or club staff member may have had a previous relationship with the player and can help them to understand the club that they might be moving to. Even without this prior relationship, it is an opportunity for the player to suss out and consider the coach they would be playing under and the club they could be a part of. This should take place over a transfer window as it can enormously help the client make an informed decision and agree personal terms in order to complete a deal.

    The other considerations that an agent must make are also related to off-field business. In the modern era of football, commercial value, image rights and boot deals are the norm and have a perhaps surprisingly large effect on negotiations. The agent must also obtain knowledge prior to the transfer window that helps them implement these factors into negotiations and the contract that is eventually agreed upon or rejected. Knowledge of the value of their client is imperative.

    Conclusion

    In summary, the summer transfer window presents an array of opportunities for an agent. This is their chance to play a large part in progressing the career of their client. Its importance must not be overlooked and an agent must do their due diligence to ensure they are appropriately and adequately prepared for the window.

    There is a lot to consider for a transfer window from the eyes of an agent as the busiest time of the year. Whilst keeping the family up to speed as well as appeasing and negotiating with sporting directors and other staff, it is a balancing act to maintain the chances of a successful outcome that fulfils the best interests of their client.

    The Future of Football Agents: Predicting the Unpredictable

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    Introduction

    Over the last three weeks we have delved into two different areas of football agency; the history of the profession and where it all began, and more recently we assessed the work of a modern agent plying their trade in the present era of football. These were objective accounts of what has happened before and what is happening now in the ever changing and evolving world of football agents and the sport itself. The internet has many accounts of both of these topics and the facts, figures and details are documented and expressed to explain every aspect of the past and the present.

    Whilst the fundamental skills and knowledge required of an agent have remained constant over time, I demonstrated last week that the scope of the work that an agent applies these assets to has broadened exponentially as agency has become a multifaceted profession. Additional capabilities have become integral to the role that an agent plays in the career of their client; from commercial and business knowledge to legal understanding and a savvy prowess over social media. Regardless, we are able to define and outline what the agency profession entails in the modern era of the beautiful game.

    Perhaps, then, the most important question is where is the football agency occupation heading next? The answer is not objective and calls for calculated speculation. It is not possible to research factual information on what future awaits the profession. However, it is an intriguing proposition that presents several undisputed predictions. It can be guaranteed that, inevitably, the role of an agent will continue to expand and adapt in alignment with the evolving nature of football. Furthermore, the outlook and positioning of agents inside the sphere of football will change, which I will explore in more depth.

    In this blog I will offer my attempt to make some other, more debatable, key predictions for the future of my profession. Some of these predictions might seem to imply drastic changes to the industry whilst others are simply a continuation of the pattern of change that has already been seen in recent years and since the emergence of agents in football and wider sport. Some are more speculative than others but all of them are alterations to the role of agents that I believe warrant genuine consideration as possible outcomes which may be reached from the direction in which football agency is going.

    From Player Representatives to Sports Agents and Club Agents

    There has been a gradual move in this direction already over the last few years. Player agents at the top end of the industry have begun to act on behalf of clubs, coaches, TV presenters and even sporting directors. I believe it is just the beginning of a limitless diversification in the clientele that current football agents will face in the future.

    First and foremost, ‘club agents’ will likely become set as a norm within the agency profession. With FIFA’s new regulations coming into force imminently, there is a higher rate of commission remuneration obtainable through representing the selling club or the exclusively permitted dual-representation of the player and buying club, and I expect agents to become the representatives of clubs more frequently than of players. This will see a shift in the primary roles and responsibilities of an agent as the job is no longer caring for an individual human being but instead, the task is representing and attaining the best interests and outcomes of an entity, in the form of a football club.

    For similar reasons, I also believe that agents will also be more prone to representing clients commercially rather than concerning themselves with employment contracts at football clubs. Those agents that continue to represent players are once again restricted on the percentage of commission they can take from the contracts that they negotiate with clubs. A far higher commission of up to 20% from commercial endorsements and player sponsorships is likely to be far more attractive to agents.

    The commercialisation of football shows no sign of diminishing. More and more commercial opportunities are becoming available to players as the age of technology, social media and the extraordinary fame and public spotlight that accompanies being a professional footballer, comes with the perks of attracting interest from major sponsors. The marketability of player clients is continually improving as they develop their own personal brand through the most modern and popular forms of promotion such as Tik Tok, Twitch and Instagram.

    The increasing number of platforms on which players can have a presence and influence on wider society correlates with a rise in commercial interest and the value of endorsement contracts as brands vie for the best talent to push their products into the public sphere. The modern world of football and wider sport encapsulates a significant commercial aspect and agents will continue to broaden their roles to fulfil these demands. Importantly, this is likely to also be a growing aspect of representing female clients. The rapid growth and expansion in the financial backing and popularity of the women’s game will be reflected in a rise in the number of agents that represent female players and invest vast amounts of time in seeking commercial endorsements for their clients.

    There are other unpredictable elements that may play a significant role in the future of football and, consequently, for agents. Cryptocurrency, NFT’s and e-Sports are examples of relatively new phenomena that are gradually becoming intertwined within football and other sports. Once more, one would imagine that these will have a part to play in the future and agents will have to add yet another skillset to be able to fulfil their role in acting in the best interests of their client. Whilst already playing a role in financial guidance for clients, agents may, to some extent, engage with ventures such as crypto or NFT-asset management or perhaps securing a source of income for their clients in futuristic technological areas such as e-Sports and Twitch.

    Evidently, agents will no longer be just ‘football agents’. I believe the more appropriate term in future will be ‘sports agents’. This incorporates more of what the work of an agent will likely entail across all of the sports world. From representing clubs to advising their clients on developing as a brand and commercial entity, agents must understand how best to serve their client in the future world of sport.

    This future world incorporates the commercial side of sport and I also believe will lessen the narrowed approach of agents to a singular sport. As the more prominent responsibilities of an agent become dealing with off-field activities and interests of their clients, the sport they play is less important. Instead, I predict that agents will broaden their client base across many sports, from athletics to basketball to golf. I think that agents operating in a singular sport will become less common and less focussed upon the sport being played but rather the off-field opportunities of their clients.

    Importantly, as I mentioned last week, a good agent will not endeavour to carry out all of these responsibilities in all of these sports and areas alone. Whilst I’d advocate for possessing a basic overview or understanding of every venture the client goes for, the skill in the task lies in the ability to delegate to experts. It is the agent’s role to manage all of these outsourced and external team members and ensure that everyone is working in conjunction; aiming to achieve the best possible outcomes that are in the interests of the client. It would be ludicrous to think that one individual could be an expert in every facet or every sport I have mentioned but they must be an expert in directing and leading a team with the same mutual goal on behalf of the same client.

    The Issues in the Lower Leagues

    From what I have predicted so far, a lot of the extra responsibilities that I suggest will become an integral part of an agent’s career rely on the client having a considerable amount of public popularity and global status in order to build up off-field opportunities such as personal brands and monetising social media channels. However, the future of lower leagues in football has a collateral impact on the agency world too. Many agents operate solely within these leagues during their careers and this is an area that could suffer in the future.

    With the new commission cap regulations implementing a hard cap on agent remuneration, it may prove difficult to make a living from clients in lower divisions of football. The consequences of this may be a fall in the number of agents, particularly those working within lower leagues, as they are unable to achieve financial sustainability through the profession. Alternatively, this could have an additional negative effect as agents in that region could seek to find different ways of sourcing more income or unethical practices. Perhaps they will simply have to take on large volumes of clients which inevitably is of detriment to the holistic and personally-targeted service that they would be able to provide to each individual client.

    This may further encourage agents to adapt into different areas of the industry such as representing clubs or other more lucrative clients rather than players at the lower end of professional football. However, it is my hope that this concern and genuine fear might be realised and acknowledged by the policy makers within football. A revision of the regulations to include factors such as tiered commission cap restrictions in order to maintain the survivability of agents operating in lower divisions may occur at some point. This would avoid these negative outcomes and the decline of agents that are vitally willing to work with players that are not in such a category that opens up a vast array of off-field opportunities.

    Political Advisors

    Another significant trend that has emerged as a component of the growing fame and attention that players receive is an increasing readiness to openly express their opinions of the world. Well-known players are utilising their position to share their thoughts about topics far away from the world of football such as politics, economics, inequality, religion, world hunger, animal cruelty and other global points of public discussion.

    In the future, I believe this pattern will continue. The power, status and influence that players possess will become extortionate. This will open up an array of opportunities that can reflect positively upon the player or can jeopardise their careers. It will become a part of the remit of an agent to have an acute awareness of the personal beliefs and opinions that their clients hold.

    Agents will come to have distinct responsibility in ensuring that their players feel empowered to use their position to have a positive impact on a matter that they feel passionately about and that is important to the world beyond football. However, they are also responsible for assessing the consequences of being outspoken on sensitive topics and suggesting the best manner in which a player can deliver their opinions to the world. In this situation, the agent will have to offer informed guidance to try and achieve the outcome that their client desires such as meaningful change or positive political action.

    The future magnitude of ‘player-power’ offers dangers and rewards aplenty. The future agent will likely be obliged to carry out the thankless task of monitoring how their client conducts themselves and uses, without abusing, this power. Ultimately, the

    agent’s main role is to care for the client. In the future, the extent of this care across elements of their client’s lifestyle outside of football or the sport that they play, will broaden, and the agent must keep up with such changes and be able to fulfil their overriding duty.

    Incorporating Data and Analytics

    One of the major driving factors behind the future of agency is technology. The advancement of all things tech-related underpins the growth in social media platforms and the ability to market clients. However, another area that technology is increasingly having a presence within is in contract negotiations for employment contracts and transfer deals. There have already been examples of how data and analytics that are collated by technological computer programs and analyst teams can be used in contract negotiations. Most notably in recent times, Kevin De Bruyne of Manchester City, one of the finest midfielders in the game, negotiated a contract worth an estimated £83million after bringing in data scientists as part of his team which saw him become one of the highest paid players in the league.

    A drastic, sceptical suggestion to this example could be that there is no future for agents as data analytics and experts can be used instead to demonstrate to the club the on-field and off-field value that a player holds. However, there are two significant factors in this proposition which I argue make this an unlikely eventuality.

    The four-year deal that ‘data’ obtained for KDB was not solely thanks to the analysts who presented the statistics. He still entered the contract negotiation with a team around him; his father, his lawyer and importantly, his two agents from Rockstar Sports. This is a telling indicator that players still seek the advice and knowledge of agents.

    Whilst data played a vital role in helping the agents, alongside De Bruyne, to demonstrate to the club that he was worth forking out £83million (an extra 30% on what he was earning previously) for over four years, it was still the agents who played the pivotal role of getting the deal over the line. The bottom line is that footballers do not want the burden of responsibility for this aspect of the industry to lie with them. Their job is to focus upon performing on the pitch and even if they can call upon data to help with finalising contracts, there will always be a desire for agents to take on the responsibility of ensuring they are getting the best deal possible for their client.

    Secondly to note on such a deal is that the level of data and off-field value that the data scientists were able to present to Man City were only possible because of the calibre and status of a player such as Kevin De Bruyne. It is far-fetched to think that, in the future, players that are in a lower division or even those not in the top bracket of top divisions will also call upon data and statistics. This would most likely not be the most realistic and cost efficient way of finalising a new contract and would fail to produce any significant advantage over what an agent could have done. Hence, I conclude that the future of data statistics and agency is, instead, one of harmony and mutual benefit. Agents can utilise data as a useful tool as and when it is appropriate and advantageous in reaching a more preferable and lucrative agreement for their client.

    Summary

    Over the last three weeks our blog has transitioned from the birth of football agency to a look far into the future of the fascinating profession. It is clear that no one day is ever the same in such a role and the responsibilities demanded within the remit of the job are ever-evolving and moulding in alignment with the flow of the beautiful game. It is difficult to predict which direction football agency is headed next or which upcoming phenomenon will have an impact on our careers but hopefully the insights we have shared provide food for thought for how agency might look in the near and further future.

    The Work of Football Agents: What We Do, The Skills Required and How it Has Changed

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    Introduction

    Last week, we explored the foundations, evolution and history of agency in football. The blog went on a journey from the first examples of football agents to the ‘superagents’ that are labelled in modern football. Whilst the terminology has remained more or less the same over this time; the roles, responsibilities, opportunities, challenges and demands that are encapsulated under the job title of ‘Football Agent’ have altered and diversified dramatically.

    In this blog, I will firstly go into more detail of the disparity in the shift between traditional and original agency and the work that football agents do today. Then I will go on to breakdown and assess the broad scope and tasks that are within the remit of a modern football agent.

    Then Versus Now

    As I touched upon last week, the work of football agents began in contracts and transfers of players between clubs in the day and age of wage restrictions and narrow trade streams and channels. The crux of the role hasn’t changed, many football agents still engage in sourcing and negotiating suitable transfers or contract extension deals for their player clients. The major difference is that they now have an additional list of opportunities that they must consider for their client and some may even choose to work just in these other areas rather than on the contractual playing side.

    The role of an agent has become holistic and all-encompassing. Whilst the fiduciary responsibility of holding a sense of duty and loyalty to their client to act in their best interests remains the absolute imperative principle of representation, this applies across an unprecedented scope of opportunities. An agent’s ability to act as a legal representative in procuring and negotiating deals and contracts remains paramount and integral to the role. However, more so for agents who manage clients that are particularly in the public eye, their job involves far more than simply negotiating a three-year extension on their employment contract or a possible transfer to a rival second-tier side on behalf of their client.

    In one sentence, the modern definition of a successful agent that could thrive in the present era of football is an individual who has a diverse skill set across finances and investments, legal comprehension, contractual knowledge, commercial business, social media, branding and marketing, multi-lingual, personability and, of course, a refined and enthusiastic understanding of football.

    The slight change in terminology for the ‘middlemen’ in football may go some way to showing the extent to which the job of an agent has altered. There is a debate in modern football around using the term ‘intermediary’ to describe the work of football agents. It is a new term that has been used and implemented by FIFA. The definition of intermediary is a person who “acts as a link between people in order to try and bring about an agreement”. In other words, they are a mediator. This seems to imply that agents are proactive in their role. Previously this may not have been the case as agents represented clients and negotiated contracts to transfer teams or to stay at a club as and when it was required. Nowadays, an agent must be forthcoming in going out and finding further opportunities, particularly outside of football that their client might benefit from.

    The Age of Social Media and Commercialisation

    Modern football has globalised and commercialised exponentially over the last couple of decades. As a result, the potential of commercial partnerships, sponsorships and endorsements that comes as part of the package of being a top level footballer in this era has integrated itself into the demands of an agent from their client. They are tasked with seeking, handling and establishing these relationships and sources of income for their client and must have a commercial business understanding of which opportunities are best suited to the ‘personal brand’ of their client.

    Helping a client to develop and grow their personal brand is something that agents can and should play a big part in. A successful agent is able to relate to and understand the player that they are representing and the personality, motivations and aspirations behind them as a human individual and as a high-performing athlete and competitor. By being able to do this, the agent can skillfully mould and present the personal brand of their client in alignment with the real person rather than a false pretence. This brand is then promoted to the public in a manner that helps the client establish themselves in the mainstream of the public eye and facilitates appropriate endorsement opportunities and other revenue streams.

    A branch of promoting the individuality of a client is encouraging them to utilise their position in the spotlight for the greater good. Previously, footballers were focused almost solely on the sport that they played. As times have changed in football, the influence that the players have on the public domain has increased. There is a rising number of footballers who outwardly express their passionate opinions and beliefs around political issues, religious faith or charitable initiatives. This allows the public to relate to them as ordinary humans and connect with them based upon mutual thoughts and feelings.

    An agent now carries the burden or advantage (depending on perspective) of advising their clients on how best to go about expressing potentially controversial statements. The agent must offer guidance and ensure that whilst the player feels comfortable and able to use their position to try and achieve what they believe is the greater good or at least a positive change, they must also reinforce the appropriateness of delivery that prevents any threat to or detrimental impact upon the client’s career. This extends to keeping their employers, football association, sponsors and, sometimes most importantly, their fans, happy.

    There have been several driving factors behind the changes seen in the positioning of players in the public sphere and consequently, the role of an agent in looking after them. The globalisation and commercialisation of football has been a gamechanger for the possibilities for a client. As the popularity, financial wealth and commercial value of the sport has grown across the world, more corporations and industry-leading businesses are willing to invest substantial sums of money into the game. This began with major sponsorship deals for shirt sponsors, stadium naming rights and television broadcasting. The scope for these sponsorships has now extended to almost every element of a football system such as trophies, training kit, boot deals, leisurewear, matchday programmes and stadium advertising and links football with clothing, airline, timekeeping and even betting and alcohol partners. These endorsement deals can target and benefit players and it is the role of a modern agent to identify which ones to engage with.

    Football as a whole has become extraordinarily popular. However, the impact has filtered down onto players and their agents. The emergence of social media has been a forceful driver of this. Players themselves have become heavily commercialised and some could claim to have more power than the clubs they are a part of. Players are accessible by millions of fans all across the world through engaging with them on social media. In instances where players have more of a following than the club they are a part of, they are able to influence decisions and their commercial value to the club is exceedingly high.

    This popularity can be channelled and materialised in various ways. Especially for the top players, their position facilitates a diverse range of personal branding and promotion opportunities. In my case, identifying the status that Mesut Ozil held after winning the world cup was enough to warrant a major launch of a personal trademark brand and logo in 2015. This developed into the M10 brand and opened up new and exciting avenues through things such as clothing lines and sports apparel as well as the future of NFTs which I will detail in the next edition of the blog. With Mesut, I also manufactured a boot deal agreement with Concave which takes a similar structure to Michael Jordan’s deal with Nike and Air Jordan. It was important that I had the knowledge and ability to be able to support this venture and advise and assist in a productive manner whilst also outsourcing to social media and marketing experts.

    The role of the agent here is to ensure that their player is properly valued. Traditionally, the signing of a player by a buying club would be based upon their ability to perform on a football pitch. In the modern era, this is no longer the case. Players have their own commercial value that they can bring to a club which creates nuances and opportunities that an agent must understand in order to ensure a fair deal is reached. A player with a large fanbase and a global influence can attract large sponsorship deals and sources of revenue through things such as shirt sales for the buying club. A knowledge of image rights and commercial value as well as general business and financial aptitude is imperative for an agent to achieve a desirable outcome for their client in these situations.

    Club Agents

    In any single transfer deal in history, several agents may have been involved. In recent times it has become more common for buying and selling clubs to seek a more simplistic process by using the same agent in a multiple representation agreement. However, with the new regulations coming into force set to prohibit this it is likely that more than one agent will be involved in any transfer deal once more. Importantly, the new legislation prevents multiple representation in every circumstance except for acting on behalf of the player and the buying club. Any other conflict of interest will no longer be possible and will alter how agents operate within a deal.

    One way that the responsibilities of agents have changed is that there is now more of a tendency for operatives to take on the role of representing the clubs involved in a deal. They have created an alternative version of the profession that can be referred to as ‘club agents’. This line of work involves the same duty of acting in the best interests of the client but in order to achieve the most desirable outcome for the buying or selling club.

    Mandating has become a norm within football agency. Clubs are identifying players that they are interested in and providing mandates to agents in order for them to try and push for a deal that suits the club. This is a further reason that emphasises the importance of agents establishing networks within clubs as it gives them access and credibility in order to be well-equipped to carry out such a deal. Whilst agents that represent players are still very common, the emergence of club agents has increasingly widened the scope of demands upon the ability of football agents in the modern era. However, the underlying principles of the profession remain the same; to procure and negotiate a contract in the best interest of their clients, whether that be for a player or for a club.

    Summary and the Ability to Collaborate

    This blog has examined the work of a football agent in this modern era of the game. It is evident that to be a successful agent requires a diverse and comprehensive range of skills and knowledge to allow individuals to operate in football and achieve the best outcomes for their clients.

    An important point to note is that whilst it is integral for agents to hold a diverse range of skills and at least a foundational understanding and comprehension of many facets that modern football players are involved with; it is important to recognise that in order to best serve their client, an agent must be prepared and willing to outsource work to experts in certain fields. It may be required, particularly for the top players, to form a suitable team around them in order to support the range of their ventures. For example, using social media companies, marketing specialists, lawyers and financial advisors can only enhance the service that the player receives from a supporting team which is constructed and managed by the agent who themselves have a brief understanding of each specialist area but will most likely only provide basic preliminary advice before bringing in experts.

    Next week I will delve into how the role of an agent might continue to alter alongside the ever-evolving world of football. What do you think the next 50 years of football agency might look like?

    The History of Football Agency: The Journey of Scouts, Lawyers, Intermediaries and Middlemen

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    Introduction

    The history of football agency, and sports agency in general is fascinating. Since before the start of the 20th century, individuals have taken on roles and responsibilities that are often attributed to our modern concept of what an agent does. After the first half of the 20th century, several names began to emerge as the dominant forces across the sports industry in the talent management field. The work of an agent has also progressed and evolved alongside the changing dynamic and norms of modern sport. Many new skill sets, challenges and responsibilities have become a part of an agent’s duty whilst others that may have been integral to the traditional role of an agent in the beginning are no longer a significant component of the job. The future of agency is unpredictable but there are several possible pathways which the profession might go down and different areas it might venture into.

    In the next three blogs, under the umbrella of the new series, ‘The World of Football Agents’, I will be exploring these ideas. In this blog I will endeavour to examine the history of the field of football agency. From the moment men, external to a football club, became involved in scouting, to the days of Gigi Peronace in the 1950’s, right up until the deregulation in 2015 and the modern era of ‘superagents’. In doing this, I will also refer to the emergence of ‘intermediary work’ and talent representation in other sports and the impact this had upon football. I will follow this up next week with a detailed insight into how the roles, responsibilities, duties, tasks and generic job description of a football agent has changed so dramatically over the last century and the reasons behind this continually-adapting and evolving field. The trilogy of the series will culminate in suggesting the possible futures that might await football agency and what factors influence the journey the profession continues on.

    In the Beginning

    It could be argued that some men that operated within football from around the beginning of the 20th century up until 1950 were a form of football agent. These men conducted work on behalf of clubs in scouting players and had a role in mediation for their contracts and transfers. This was particularly prominent in England as well as some other European countries. During this time, football had not reached its professional era. Whilst players were paid, the wages were minimal and capped and they all worked other jobs on the side. Football was more of a hobby but the involvement of external third-parties in the movements and loyalties of the players was beginning to emerge.

    Back in this era, players were viewed as commodities. This is an accusation that is often made in the modern era as well. It is an age-old worry that with clubs exchanging money (and large sums of it in the modern era) for the services of a human being, it is possible to lose sight of their rights, footballing autonomy and ‘humanness’. Consequently, an anti-intermediary sentiment began to rise within football as clubs and fans believed they were an unhealthy addition and encouraged the commodification of young men playing a sport they enjoyed.

    The term ‘agents’ wasn’t used during this time and still seemed an alien concept. On the face of it, all that was happening was a handful of men willing to involve themselves in a football club would take on some kind of scouting or mediation capacity within the club. In a pre-professional era, there was no regulation in place to control, guide or restrict their activities. At this stage, it was a very primitive and basic occupation rather than a professional livelihood and commissions in the millions seemed an unrealistic development.

    The earliest indication of the future that sports agency might present was through the work of the legendary Gigi Peronace. In 1957, his first ever deal broke the football transfer record as he moved John Charles from Leeds United to Juventus for £65,000, an enormous transfer fee at such a time. Peronace identified that he could utilise his status and power to entice players in the UK to opportunities in Italy. The biggest selling point was that the wages limits were still in place in the UK at the time whilst the salaries available in Italian football were unrestricted. This was epitomised when Charles collected £10,000 as a signing-on bonus at Juventus when the norm for signing-on fees in the UK was £100. Peronace had leaped at the opportunity and went on to represent clients such as Jimmy Greaves and Denis Law, continuing his pattern of finding them buying clubs in Italy where they could earn far more for their services as football players. Peronace had begun to pave the way to the future of the agency field in football.

    The 1960’s: The True Birth of Agency

    In 1961, the maximum wage legislation in UK football was abolished and the FA adopted the same regulation as the Italian system which Peronace had used to his advantage. Playing football in the UK became more attractive as the average salaries of footballers rose by 61% by 1964. For agents, this meant there was a far greater extent of bargaining and negotiation power for them to become useful to clients. Their importance and value to players increased in direct correlation with the rise in professionalism of football and the income that they could earn from the game.

    Across the pond, Mark McCormack was bringing the profession of sports agency and talent representation into the eye of the general public for the first time. Beginning in 1960, having graduated from Yale University with a degree in Law and meeting golfer Arnold Palmer on the golf circuit, McCormack rose to fame by taking on the responsibility of representing some of the world’s major sports stars at the time.

    As his career developed, McCormack diversified his client roster across several sports, particularly tennis and became the agent of Brazilian football legend Pelé. He founded the International Management Group (IMG) which continues to be a global powerhouse in the modern era of talent management and was part of a major merger with William Morris Endeavor (WME) as detailed in the previous blog.

    One of the biggest progressions in sports agency that was made by McComack was his extension of the agency profession into client endorsements and sponsorships. He reframed an agent’s perspective of their responsibilities to their client to include prioritising boosting their marketability and popularity. He believed that in the era that sport had entered, the concept of an athlete as their own popular personal brand could “transcend borders, language, cultures and even sports itself”. It was a revolutionary approach to agency and he can be credited with laying the foundations for the role of agents in modern sports and in football.

    Football underwent the process of globalisation during this period of time. The sport had become a regular on television and was being viewed across the world. As a result, the popularity of football itself and the players that played it was rising exponentially. This presented further opportunities and possibilities for football agents. The metaphorical ceiling to what agents could achieve for their clients was disappearing and the scope of their responsibilities in the job description was lengthening almost endlessly.

    This idea grounded itself in the 1970’s. Football agents were tasked with continuing the promotion of internationalisation for the sport and the players that they represented. Their clients were now globally marketable and a new age of commercial deals and endorsements added an additional area of expertise and negotiation aptitude demanded of agents. Furthemore, part of the sport’s globalisation was a relaxation in transfer restrictions and overseas deals. Agents began to ignore the traditional transfer channels within individual countries and went about forging new pathways between football clubs from across their continent and beyond.

    During this decade, a couple of major figures emerged in the world of football agency. Dennis Roach was one of the best known agents at the time. He began in 1973 with none other than Johann Cruyff as his first client which helped to quickly establish himself as a desirable agent for footballers globally. Before the decade was up, Roach claimed the very first £1million deal in football as he transferred Birmingham’s Trevor Francis to Nottingham Forest for the groundbreaking fee. Over his 20-year career, Roach continued to represent top talents such as Glenn Hoddle, Mark Hughes and Harry Redknapp.

    Elsewhere, the now world-renowned Pini Zahavi started out on his journey in football agency in 1979. After managing clients such as Rio Ferdinand and brokering Roman Abramovich’s acquisition of Chelsea Football Club, many acclaim that Zahavi is the true godfather of modern football agency and he continues to represent players of the calibre of Polish superstar, Robert Lewandowski. He has operated through the height of the transition period for agents as a broad focus across legal advice, contractual negotiations, client branding and endorsement deals became the norm of an ever-increasingly professional and lucrative sport.

    Professionalisation: The 1990’s and Millennial Boom

    The agency field had to keep up with the evolution and modernising dynamic of football as the 21st century approached. Agents had become an integral part of football by the 1990’s and after a period of many players receiving inadequate salaries after naively appointing close family relatives as representatives, they had been rightly recognised for their importance and value to players. Consequently, by the beginning of the decade, the majority of players called upon the services of an agent to assist with contract negotiations with clubs and legal advice as a minimum; and for those that were more marketable and popular with the public, also to help seek lucrative and appropriate endorsement opportunities. The number of agents in the world of football had soared as many hopeful individuals cited it as an opportunity to make a desirable income in one of the top sports in the world. It was only a matter of time before the football industry recognised agents as professionals of the sport.

    This momentous occasion came in 1994 as FIFA formally repositioned agents as professionals. With this, they implemented regulation, guidelines and criteria. This included a structured licensing system in order to obtain a licence that granted permission for individuals to operate as an agent. Many national associations implemented their own examinations that agents were required to pass, incorporating FIFA’s legislation. This was in recognition of the alarmingly high rate at which new agents were entering the industry. The hope was that the exam, licensing and application fees would discourage those that were entering the industry for the wrong reasons or with an insufficient and inappropriate skillset from ever applying.

    In 1996, one of the first well-known agents to pass the exam and to obtain his licence was Jorge Mendes. He has been a mainstay in the world of football agents ever since and has represented or continues to manage some of Portugal’s finest footballing talent and beyond. His clients include Cristiano Ronaldo, Ruben Neves, Angel Di Maria, Joao Cancelo, Darwin Nunez and manager Jose Mourinho, to name a handful of superstars on his roster. He entered the field at a time when agency was undergoing a distinct stage of reformation but Mendes established himself as a major figure and has experienced great success since the turn of the century.

    Several factors over the next few years before 2000 further added to the attraction of being a football agent and the potential lucrativeness of the profession. In 1995, the Bosman Ruling once again caused a significant alteration to the pattern of transfers in global football and the freedom that players and their agents had. With ‘free agents’ able to negotiate higher wages for a free transfer, the bargaining power of agents was enhanced even further and the possible commission remuneration for themselves rose in situ.

    Paid television also emerged in the world of sport. Paying subscriptions to broadcasting companies in order to watch football and other sports was a new concept but one that immediately caused a jump in the financial value of the sports. Broadcasting and television rights payments were distributed amongst football clubs and player salaries benefited substantially. As always, with more money available to players, there was also more money available to their agents. Despite the implementation of licensing and examination, the number of agents in football continued to rise as the chance of representing a client who earned a large sum of money each year was too attractive to ignore.

    Needless to say, popular culture also played its part in launching the agency profession into the public spotlight. The 1996 Tom Cruise film, Jerry Maguire, was Hollywood’s interpretation of the world of agency. Modelled upon the life and career of NFL agent Leigh Steinberg, the film depicted agency as a glamorous, exhilarating, ultimately rewarding and lavish lifestyle. It was very successful at the box office and exposed the general public to the life of an agent, or at least what Hollywood made it out to be.

    The result of this decade of change was a new wave of agents entering the business. Agents were now coming from all walks of life. Lawyers, bankers, ex-footballers, scouts, marketers, journalists, directors and almost any other profession were trying their hand in the football agency field. There was a large list of transferable skills from other industries that were readily applicable to the agency profession. However, the vast scope of agent responsibilities, capabilities and services they were demanded to provide to their clients meant that very few reached the top level and worked with the best clients. Nevertheless, across the first decade of the century and the start of the 2010’s, the full force of the new wave was felt. In 2001, FIFA had 631 agents registered globally under their relatively new licensing system. By 2009 there were 5,193 across the world.

    2015-2022: The Age of Deregulation

    Prior to 2015, an emerging trend presented itself that coupled with the other areas of evolution in the field of football agency. There was an alarming volume of ‘player representatives’ that were operating without a licence. These individuals were often carrying out the same responsibilities and services for players that a licensed agent was. The difference lay in the way that they sought remuneration and commission through other forms away from the contracts and below the books through kickbacks or ‘benefit in kind’ payments. However, this was easy enough and meant that fans, media and football authorities observed that the growing value of agency fees being paid by clubs each year were perceived as leaking money out of the game.

    This was recognised in 2009 and plans were made to change the regulation system for agents to try and encourage all agents to work above the books in accordance with FIFA’s legislation. These plans came to fruition in 2015. They materialised in the form of a complete deregulation. National associations were given the option of generating their own individual regulations for agents. Apart from France and Italy who upheld their exam processes, other footballing nations withdrew such requirements. Instead the process of becoming an agent became astoundingly straightforward. An aspiring agent simply needed to pay a relatively small fee and verify that they do not have a criminal record and they were able to obtain a licence. As expected and as I have discussed in previous blogs around the football agent regulation system, the number of agents has inevitably risen once more and the money spent by clubs on agency fees continues to rise. The number of agents operating in the UK alone peaked well over 4,000 during this time.

    There has been new terminology adopted within the world of football due to the altered positioning, regulation and hierarchy of the field. Agents became known and referred to by FIFA as ‘intermediaries’ to indicate their change in role and perception as mediators and ‘middlemen’ for transactions. Some individuals at the very top of the agency industry have also become known as ‘superagents’. They boast some of the biggest names in the sport as their clients and have a significant level of power over major football clubs and control over transfers whilst collecting enormous commissions, having acted on behalf of more than one party in a single transaction. One of our previous blogs has explained how multiple representation manifested itself in transfers and how FIFA plans to prevent it.

    FIFA has recently done a U-turn and as our exploration of the history of football agency reaches the present, 2022 is the year when regulation will come back into force. These regulations extend further than before in recognition of the relentlessly increasing commissions and power that agents receive in football. The regulations establish new laws regarding commission caps, licensing, a new exam and a ban of multiple representation. The details of this can be found in our previous blogs.

    Summary

    Beginning from the 20th century, this blog has followed the journey which football agency has taken. It is obvious that the profession has experienced drastic changes and evolution as the game of football itself has altered. It is important to provide context to the agency industry before our next episode which will assess how the exact responsibilities and job description of a football agent has adapted to modern football. We will follow this by exploring how the future of football agency might unfold.

    Uniting Forces, Power and Income: Why Do Football Agencies Merge?

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    Introduction

    Forbes has estimated that the market for football or soccer agencies globally stands at a value of around $7billion. Many modern agencies do not simply stop at football. The global powerhouses such as Octagon, Wasserman and CAA venture far beyond football into the realms of golf, rugby, boxing, American sports and athletics and even into different spheres in the music and entertainment industry. These agencies grow in physical size, employing thousands around the world, and in terms of power, control and wealth. The overall value peaks far past the $7billion for soccer alone and it can be an attractive financial proposition for businessmen and women looking to enter the unique industry of sports agency and talent management and representation.

    Over the last decade or so, a pattern has begun to emerge. The opportunity of wealth and power within the agency industry has materialised in the willingness of many well-established and financially gifted agencies to enter into mergers. In this blog I will analyse the reasons behind why agencies are choosing to merge with previous competitors and rivals, the benefits and issues that might arise as a result and will demonstrate these through the use of case studies.

    Where Merging Began

    In April of 2009, the William Morris Agency (WMA) merged with Endeavor Talent Agency in a landmark case in the history of talent representation. Endeavour had formed almost 15 years prior to the merger and had established itself as Hollywood’s major talent representation company. The William Morris Agency also operated within the entertainment sector and had done so for over 50 years. The opportunity was identified that if the two were to merge, it would create what has become known as a modern ‘superagency’. An agreement was reached and the company became William Morris Endeavor (WME) and was the single dominant force in talent representation in Hollywood.

    So why is a monopoly over Hollywood’s best talents relevant to football and sport? Well, following the first few successful years of WME in the world of entertainment and Hollywood, a new and exciting opportunity rose once more. In 2013, a second merger took place as WME combined with the International Management Group (IMG). They acquired IMG for $2.4billion and consequently expanded far beyond their previous boundaries of Hollywood and entertainment talent.

    IMG itself was already established as a major player in the world of sports talent management. The agency looked after clients from a wide array of sports from football, basketball, motorsports and tennis to the likes of martial arts, surfing and figure-skating. The merger was part of the ambitions of the Endeavor Holding Group, as it was now known, to position themselves as the very first ‘mega-agency’. This dream materialised as over the following years the group continued to expand and their power, control and wealth grew in situ. For example, in 2015, WME/IMG purchased ownership of the Miss Universe contest from Donald Trump in the entertainment industry, swiftly followed by acquiring the Ultimate Fighting Championship (UFC) ownership in 2016 for $4billion. As time has continued they have also developed other initiatives within the agency such as an Esports division and established control in the National Football League (NFL) and National Hockey League (NHL).

    The extraordinary presence and volume of power that had been generated by WME, as a single organisation in the sports and entertainment sphere triggered a movement in the world of talent management. As I will explain, it demonstrated that there was a significant benefit to companies who were able to merge with other agencies in order to increase and improve their business. I will analyse more recent examples of major mergers within the sports world although I will also demonstrate that the impact of such a business move is not all positive.

    Why Merge?

    There are several significant attractions for agencies looking to enter into merger agreements with other similar companies. The American model resonates around diversifying the network and clientele that the company has access to. This involves merging into other industries such as the entertainment and music sector. Agencies such as Octagon have been successful across several industries and merging can help companies access areas they were previously not established within.

    In the world of football, however, the motivation behind merging with other agencies is slightly different and can occur on a smaller scale. In a football talent agency the earning potential is very simply directly correlated with the volume and value of clientele. More players means an increased market share, more income, more influence, more control, more power and a wider network. It helps football agencies to not only survive from being driven out of business if their players move elsewhere, it provides additional finances and sources of income. The greater security of their business is amplified by a growing volume of clients that results from merging with other agencies.

    In this modern era of football, the significance that players/clients possess and their worth as a financial asset is ever-increasing. As shown by the extraordinarily high player wage bills that clubs are obliged to pay each year, a lot of money is being distributed to the players at the heart of the game. The value that players come to have has further risen in recent times through off-field opportunities in commercial and business deals. Furthermore, as demonstrated in the recent case of Kylian Mbappe at Paris Saint Germain, players are also granted greater power and control over the proceedings and decisions that are made at their clubs. For agencies, this means that merging with other companies can enhance their accessibility to these players, opening up new and more powerful streams of revenue and control in transfer windows and contract negotiations.

    2021 Mergers: Case Studies

    In 2021, there were two significant mergers that took place in the world of football and sport. As the financial impact of the COVID-19 pandemic had been felt across the globe, it initiated a desire for agencies to unite forces in a bid to reignite their business and achieve greater financial and functional stability and robustness. The advantages of merging agencies were even more attractive after the pandemic and I have outlined the two most significant case studies below:

    1. Creatives Artists Agency (CAA) acquired International Creative Management (ICM)

    CAA, as the name suggests, was originally more concerned with representing talents in the world of arts and boasted several large names in the Hollywood industry. However, in 2019, prior to the pandemic, CAA had acquired Base Soccer, the UK based football agency. Base became known as CAA Base and continued to represent over 300 players and managers under the new umbrella of CAA. Sports was not an entirely foreign concept to CAA at this point having already ventured into Basketball by acquiring the Los Angeles-based Kauffman Sports Management agency as part of its plans to diversify the company’s power, network and clientele.

    Meanwhile, International Creative Management had been doing some of their own diversification. As another music and entertainment focused organisation, they had added sport to their list of expertise after acquiring the Stellar Group at the beginning of the pandemic in 2020. Stellar had a respectable reputation, led by the agent, Jonathan Barnett, and represented over 800 athletes across multiple sports. The most notable clients in the world of football include Gareth Bale, Jack Grealish and Eduardo Camavinga. They had also merged with the Select Sports Group in the US which added several NFL clients to their roster.

    In 2021, CAA reached an agreement with ICM to acquire part of the agency. It was an equity based deal which meant a significant increase in control, revenue and power and a step towards reaching the heights of a ‘mega-agency’. The executives of the agencies described it as a chance to broaden the scope of opportunities for their clients. It is obvious to say that two major agencies merging in such a manner facilitates access to almost every corner of the sports, entertainment and music worlds.

    As expected, the merger was identified by the Wall Street Journal as the largest merger since WME/IMG in 2013. They estimated the value of the conjoined agencies to be at around $10billion across all the industries that they were now a part of. The clientele of each agency as well as the staff remained largely the same. However, the global outreach raised the limits and prospects of what could be achieved within the agency.

    2. Unique Sports Management (USM) joins International Sports Management Group (ISMG)

    This collaboration demonstrates a slightly different style of merger that a collective of agencies can enter into. Perhaps this example epitomises the benefit of business security that merging can provide as well as opening up further opportunities across Europe.

    The example of CAA and ICM demonstrated how agencies that begin in the world of entertainment and music can also establish themselves in the world of sport and gain traction and clients through merging with previously established sports agencies. However, this case study varies in that it occurred between two well-known and already football-focussed agencies in an attempt to respond to growing global powerhouses such as CAA, ICM and the likes of Wasserman and Octagon.

    ISMG is a Germany-based football agency with a well-established and recognised network throughout European football. It has access to all of Europe’s top leagues and clubs although the agency itself did not have a particularly highly valued clientele base. It was spotted by UK-based USM as an exciting business opportunity that would enable them to improve their handhold in the European market.

    USM concluded a deal with ISMG to unite with the agency. The 300 players that were a part of USM and worth a total market value of over £670million, are now also registered under the joint umbrella with ISMG. This includes the likes of Reece James, Aaron Wan-Bissaka and Callum Wilson. The partnership is now branded as Unique Sports Group (USG) and is acclaimed to have been a part of over £1billion in football transfer transactions across 12 different European countries.

    A CEO of USG explained that the merging was part of a “joint vision to maximise the European network of both agencies”. The potential is great, especially with an agency that operates within the Bundesliga, the league that boasts the youngest average player age and has received UK youth talent such as Jadon Sancho and Jude Bellingham, as well as the other major European leagues.

    Whilst mega-agencies are emerging as a result of billion-dollar mergers that span across all talent management industries, football agencies are holding their own by uniting with each other to secure their business status and grow their power and network within the game. The USG merger demonstrates how merging with other football agencies can bring financial and business benefits to the companies.

    Another Case Study: Wasserman acquires Key Sports:

    At the beginning of March 2022, prior to the pandemic, the globally-renowned Wasserman agency acquired the UK-based Key Sports. Wasserman began as a Media Group in 1998 and quickly established itself as a major corporation in the world of agency. The focus of the company began in sponsorships before venturing into NBA and MLB clients at the beginning of 2006. Their first venture into soccer occurred towards the end of that same year as they acquired SFX, another UK-based soccer agency which represented the likes of Steven Gerrard, Jamie Carragher. Michael Owen, Emile Heskey and Park Ji-Sung. Over the next decade or so they also acquired agencies in other areas such as Golf, Boxing, media rights and a social media influencing agency.

    By 2020, they were once again looking to expand their foundations within football in the UK and Europe. The aim was very clear, to boost the business, revenue and power of their football division. Key Sports presented a fitting purchase. Key already represented some big names in English Football such as Jamie Vardy, Harvey Barnes Nathan Ake and Tyrone Mings. Such an acquisition inevitably strengthens the position of Wasserman and its respectability within football agency. The CEO of Wasserman acknowledged the ease of taking over an agency that had already become well-established by itself and amassed a highly-valued client list. It was seen as a suitable next step forward for Wasserman. On the other hand, for Key Sports it also provided many potential benefits. By joining with one of the most global sports agencies, Wasserman facilitates Key Sports and its clients to have access to the worldwide network of football and of endorsement deals. This will add to the wealth of services and opportunities that they can provide to their clients.

    The Issues

    There are several worries and concerns that may arise as a result of this new pattern of merging agencies. The danger is summarised in the possibility for agencies to lose sight of their principles and the primary objectives of talent management and representation. For example, it is almost an inevitability that large increases in the volume and status of clientele in a merged agency will result in clients, particularly less lucrative clients, not being given the services and personal attention that was previously provided.

    It could be argued that smaller agencies are much more readily able to provide personal and holistic services to their clients to ensure that they are dedicating themselves to finding the best opportunities and achieving the best outcomes for each individual. In a large, global agency it may no longer be possible to establish a sense of a personal, direct service and relationships with clients who become a part of a large corporation.

    The importance of valuing the purpose of talent management is integral and imperative for a successful sports agent and agency. Their role is to care for their clients and enhance the rewards that their clients obtain throughout their career in football, other sports, entertainment or music. No matter how large an agency might become through merging with other companies, this purpose does not change; there should be an emphasis on personal and dedicated care and services to the clients.

    Trials, Tribulation and Termination: Football Coach Employment Contracts and How Sacking Has Become the Norm

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    Introduction

    Chants of “you don’t know what you’re doing”, “you’re getting sacked in the morning” or banners inscripted with “*insert boss’ name* out” are non-existent in everyday industries and offices. It is unheard of for people to take such an aggressive and undermining approach towards the individual who is in charge of their team. However, in the football industry, the sacking of coaches, and the outspoken displeasure expressed towards the job they are doing or have done is commonplace. Consequently, employment contracts are often unfulfilled and the sacking of coaches in the football world year upon year is almost inevitable.

    In this blog, I will outline the modern approach to coaches, otherwise known as managers in the UK particularly, the structure of modern managerial employment contracts and assess the inclusion of clauses that are known as ‘ejector seat clauses’. I will also attempt to explain the legalities and intricacies that may justify the termination of a coach’s contract and the impact of managerial dismissals upon commercial and financial sustainability.

    The Situation

    The ‘sacking’ of coaches has become a regular and accepted occurrence in the modern game. This is epitomised in the UK where clubs in the top four divisions have spent upwards of half a billion pounds sterling on dismissing nearly 1000 coaches since the appointment of Arsene Wenger in 1996. A club enduring a single coach for a significant duration of time has become unheard of. The days of Wenger and Sir Alex Ferguson serving for almost a quarter of a century have disappeared. Instead, clubs seem to be demanding almost immediate success and if this is not achieved, they simply move on to the next coach in the hope that they can deliver. Some clubs are more prone to a change than others. Since 2000, Crystal Palace have accumulated the most coaches with 28 different appointments, closely followed by Leicester (27) and Southampton (24). It is not uncommon for over 100 coaches to be sacked in a single season across the four English Football League divisions.

    The longest serving coaches in the Premier League at the moment; Jurgen Klopp, who is about to serve his eighth year at the helm of Liverpool since 2015 and Pep Guardiola entering his seventh year at Manchester City, have gone well beyond the expected lifespan of a modern day Premier League coach. Whilst this is, of course, due to some incredible feats, successes and achievements, some are not so lucky to have been given the chance to enjoy such a lengthy tenure at a single club before they are passed on.

    In 2012, the average ‘sell-by date’ of a Premier League coach was over two and a half years. Now, a decade later in 2022, achieving two seasons at one club is an impressive accolade with the average stay now less than a measly one and a quarter seasons. This is despite the traditional managerial contracts that are signed being multi-year fixed contracts. For example, Alan Pardew signed an eight year contract with Newcastle in 2012 after a couple of seasons of considerable success although he failed to serve more than two years of this extension before he was sacked. Similarly, David Moyes signed a lengthy 6-year contract in 2013 with Manchester United after leaving his decade-long tenure at Everton. His contract at Everton had expired and as a rarity for coaches in modern football, Moyes made the personal decision to explore a different venture. This time round, Moyes was sacked after the first year for reasons that I will explain later. It seems peculiar that coaches might sign such lengthy contracts despite the high possibility and likelihood that they will fail to keep their job for this period of time.

    The Causes and the Legalities

    As mentioned, coaches are often moved on after failing to appease the owners and decision makers within their club. These sackings have become more regular than coaches retiring or freely choosing to take on new opportunities. Owners and fans have varying amounts of patience and a prolonged period of drought of wins or successes will ultimately lead to the coaches being widely condemned by the fan base and shown the door by the owners. Often, teams that are teetering on the edge of relegation battles have new coaches introduced due to the historic reputation of some kind of ‘new coach syndrome’ that causes a short term but relegation-avoiding boost to the team. Whilst there is no exact or obvious explanation for this, psychologists have pointed towards the intrinsic human nature of trying to create good first impressions and players outperforming their average displays in front of a new audience. Those that bring in a fresh change in coach whilst in a dismal spell of form will often observe a dramatic improvement in performance.

    The dismissal of any individual under contract will be scrutinised legally and ethically in any industry. This is the same in football and is more regularly considered due to the normality and regularity of sackings. Football legislations and the Court of Arbitration for Sport (CAS) analyse the proportionality and enforceability of dismissing a coach under contract which are encouraged as imperative elements. The sacking is supposed to be a last resort option rather than a compulsory response to losing several matches. However, the routes around these regulations are to include clauses within coach contracts that allow for early dismissal and termination.

    Any coach that has a contract that is prematurely terminated will be entitled to compensation. However, if their contract contained details that are termed ‘ejector seat clauses’ or underperformance criteria, the remuneration they are entitled to is mitigated and may not be as high as a coach that is unfairly dismissed out of accordance with their contract would be eligible to receive. For example, David Moyes was able to be dismissed by Manchester United after a single season due to his failure to obtain a UEFA Champions League place which his contract clearly stipulated was a just reason for dismissal before the end of his five-year contract. Rather than the rest of his contract being paid out as compensation, the clause allowed United to legally give Moyes a single payout of just £5million; a single year’s salary.

    Some clubs do not include such clauses and consequently, as well as opportunity costs, sacking coaches can accumulate extortionate financial costs. Chelsea have a history of large compensation payouts to coaches such as Luis Felipe Scolari in 2009 (£12.6million) and a further £12million to Andre Villas Boas in 2012. This demonstrated Roman Abramovic’s reign of Chelsea in which he happily dismissed coaches that didn’t meet his extraordinarily high expectations and standards. The questions over the commercial and financial sustainability of such a relaxed approach to sackings are considerable. Under financial fair play rules and unstable economic circumstances in football, splashing millions just to sack a coach and bring in a new one can lead to financial trouble. This is compiled and accentuated, for example, if a club brings in a coach to try and save them from relegation and they then fail to do so. This was the case for Wolverhampton Wanderers who brought in five different coaches in 13 months and slid from the Premier League into League One; the English third tier.

    There can be many reasons for a coach being sacked by a club’s board. Owners have given causes that have spanned across ‘losing the dressing room’, an inappropriate embedded culture, overwhelming fan disapproval and questionable strategies as well as the obvious shortfalls such as winless campaigns and relegation scares. Clubs may still aim to adopt a policy of planning and building for the long term although this may no longer be the reality with the seemingly revolving door of coaches that come into and out of the club.

    In the press and amongst fanbases, it only takes a small series of losses or an unattractive style of play for debate, speculation and rumours begin to circulate that question and undermine the respectability of the coach. However, legally there must be a proportionate and enforceable reason to be a final straw for the coach to be sacked. The legal issues that might arise include restraint of trade and unfair dismissal or breaches of contracts which have to be addressed and suitably compensated. Release and underperformance clauses may well be the best way of overcoming such possibilities although clubs and owners must tread carefully and ensure that coaches are suitably remunerated once they are moved on.

    Conclusion

    This blog has outlined much of what avid football fans will already know; that coaches are readily sacked more often than ever and that some clubs are more than prepared to dismiss numerous coaches over short periods of time in the hope of finding the perfect match to achieve success. Fans, owners, the board and the press play significant roles in the dismissal of a coach. However, losses and underperforming along with other factors mentioned in this blog are often to blame for a premature termination of a coach’s contract.

    I have also shown within this blog that there is a significant financial impact and consequence that results from a club sacking a coach. Clubs have begun to include ejector seat clauses in order to legally and contractually justify early dismissals. However, ultimately there is compensation that is due to be paid out to departing coaches. It is far less taboo to sack coaches in the football industry than in other areas of employment; it is a well documented and accepted factor of football but it often comes under scrutiny and club and ownership policies are questioned by fans and the press. This was epitomised in the backlash to Marcelo Bielsa’s departure from Leeds this year and Rafa Benitez’s drawn out exit from Everton.

    It is apparent that the ever changing list of coaches of football clubs globally is likely to continue. Clauses that avoid extortionate compensation are now commonplace and coaches seem prepared to take on jobs that may possibly not last more than a season. It is a part of the modern game and as long as legal legislation is adhered to, it will continue to be regularly practised.

    A final point to note, after the new FIFA agent regulations are implemented, for the first time, agents will be able to represent coaches as long as they are licensed. This will alter how coaches operate within football and it will be interesting to see the impact this has on the stability of their careers. Perhaps this might be a significant level of power to the coaches. However, there must also be concerns over an agent managing both players and the coach in a single team. This would create a conflict of interest although FIFA has not stipulated that this is disallowed.

    Is the UEFA Nations League Necessary for Football?

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    Photo by Nazionale Calcio (https://www.flickr.com/photos/nazionalecalcio/) on Flickr (licensed under CC BY 2.0)

    Introduction

    Following discussions and a decision made back in 2013, the inaugural UEFA Nations League took place across 2018 and 2019. It consisted of four tiers, A,B, C and D which was made up of 12, 12, 14 and 16 teams respectively from 54 European national football associations. League A was won by Portugal who became the first UEFA Nations League Champions.

    In this blog I will explore the motivations and reasons behind the creation of this new format of international football and will attempt to understand the potential and possible obstacles or challenges that it has faced or may have to overcome in the future. I aim to assess the necessity and extent of the impact that this new competition has had and will have.

    Why Create the Nations League?

    The aim of the biennial UEFA Nations League was to take on the role of reviving international football. There had been widespread criticism surrounding the value and utility of international friendlies. Friendlies were taking place that interrupted and halted the European domestic league fixture schedules and attendances had been wavering. These friendlies sometimes saw European giants such as Italy, Spain, Germany and England take on minnows such as San Marino or the Faroe Islands. These were seen as futile and lacking in any meaningful significance for international football as the games tended to begin with a foregone conclusion.

    This is why the UEFA Nations League was brought in. Its primary goal was to revitalise international football in the eyes of the fans and reintroduce the utmost importance and second-to-none privilege of a player representing their country in highly competitive international football. The tournament aimed to pit national associations against countries of a similar standard and rather than playing simply for a friendly affair, it was hoped that the competition would add a significant amount of meaningful competitive value to more international football fixtures. Furthermore, this has an additional effect of justifying the interruption of domestic leagues in order to stage international fixtures.

    How Does the UEFA Nations League Work?

    After the inaugural 2018-2019 UEFA Nations League, the format was immediately changed. The new regulations and system now facilitates 55 European Football Associations (there were 54 in the 2018-2019 competition). These are still split into the four leagues although the volume of teams in each tier has changed. There are now 16 teams, split into four groups of four, in leagues A, B and C whilst there are just 7 nations in league D. These 7 nations include the likes of San Marino, Faroe Islands and Gibraltar, who are unable to compete on a level playing field with the top ranked countries in leagues A and B.

    The ‘Nations League Access List’ is used to determine which teams are put into which league and which group. Based upon a country’s previous year’s success, results and their national association ranking, they are placed into four pots for each league. The names are drawn from these pots in order to allocate a group to each competing country.

    Each team will then compete against the three other members in their group in both a home and away fixture. In the 2022-2023 edition of the competition, these group fixtures will take place in June and September of 2022, allowing for the winter FIFA World Cup schedule. The knockout finals will then occur in June in the summer of 2023. In total, the competition produces 168 highly competitive and appealing international fixtures. This is demonstrated by the average of 2.41 goals per game, which equates to a goal every 37 minutes on average and hence, has seen consistent interest from European and global football fans.

    There is significant reward or consequence for a national team’s success or failure in the UEFA Nations League. The four group winners in league A qualify for the knockout finals and aim to join Portugal (2018-2019) and France (2020-2021) as winners of the UEFA Nations League. There is an emphasis on motivation to reach this stage as one of the countries in the top four will be given the financial and social benefits of hosting the knockout stages. The group winners of B, C and D will also gain promotion into the corresponding higher league. Similarly, those that finish at the bottom of their group in leagues A and B will be relegated to the lower league. Only two countries will be relegated from league C to take the place of the two group winners of League D that are promoted. These two relegated sides are decided by a play-off process between the four countries that finished last in their groups in league C.

    Is it Necessary?

    The biggest question around the necessity of the UEFA Nations League is whether or not it is having the desired impact upon international football and whether there is an alternative approach to the international stage that is necessary for greater benefit to competing associations. The argument here is whether friendlies are a better way of allowing national team managers to rotate their squads and give sufficient rest to those that play an unforgiving domestic season as well. The competition still facilitates warm-up games for major international competitions but does place more pressure and demand upon the players at other times when they are more likely to be rested or be under less scrutiny in friendlies. It could be argued in this instance that perhaps it indicates another benefit of the nations league in highlighting the depth that countries have. Managers can continue to rotate their starting XI’s but still with the ambition and competitive will to win and hence leading to a rise in the standard and intensity of the international fixtures that was previously faltering through purely friendly games.

    The competition has also been labelled as a response to FIFA’s suggestion that there should be a biannual world cup rather than one that takes place every four years. This claim seems to be materialising as the 10 South American CONMEBOL associations are confirmed to be competing in the 2024-2025 edition of the competition although the exact format it will take has not been finalised. Presumably countries such as Brazil and Argentina will enter league A. It is likely to divide opinion under the possibility that it could be seen as undermining the pinnacle of the world cup and its value as the most important competition in football.

    It has been suggested that perhaps the Nations League could become implemented into the system for European Championship and World Cup qualification that it is currently detached from. This would position the UEFA Nations League as simply part of the stepping stones towards the major tournaments and would avoid the suggestion that it is of similar worth. Winners or overperformers in the Nations League could possibly be given second chances or alternative pathways into the two major competitions.

    Summary and Questions

    In summary, the principle aims and motivation behind the UEFA Nations League is admirable. A competition that improves the standard, attractiveness and significance of international football is positive. However there are several questions that remain around the necessity and impact of the tournament that are worth thinking about:

    1. Does the Nations League prevent players being able to be rotated and places too high of a demand and pressure upon them?
    2. Should the Nations League be completely detached from the World Cup and European Championship qualification process?
    1. Will introducing CONMEBOL nations be counterproductive for the significance of the tournament?
    2. Could the Nations League ever overtake the World Cup as the biggest tournament in football?

    The Future of Footballer Contracts: Mbappe and The Growing Power of Players

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    Introduction

    Despite the numerous finales and events that have taken place across the world of football, from the Champions League Final to pitch invasions, one of the biggest stories that emerged in the month of May was the news that Kylian Mbappe had chosen to stay at Paris Saint Germain(PSG) and had signed a three-year contract extension.

    There have been dozens of reports and articles that presented various snippets of information regarding the Mbappe saga that has continued for years. In this blog I will be assessing the Kylian Mbappe contract saga as part of a wider evolution that is taking place in football. I will aim to explain this change, its impact upon the game and how it could become a part of modern football.

    Kylian Mbappe

    I was fortunate enough to meet Mbappe’s father at the 2018 world cup final and stood in close proximity to him as he watched through tears as his son lifted the greatest prize in football. At 19 years of age, Mbappe became one of the youngest world cup winners in the history of football as France triumphed in the 2018 tournament and was one of their top players. In 330 appearances for Monaco, Paris Saint Germain and his country, Mbappe has already amassed 221 goals and 124 assists and he is still only 23 years old. He seems a top favourite to be a future Ballon D’Or winner. Consequently, he is a player that is in the highest of demands. Any club around the world would love to have his services but very few can afford a young player with such talent.

    Two of the richest club giants in the world, Real Madrid and Paris Saint Germain have always been the more realistic possibilities for Mbappe to commit his future to. He learned his trade in the youth academy of Monaco and developed into a prodigy of superstar potential which was recognised in 2018 when he was sold to PSG for £162million at just 19 years of age and he has played and thrived at the French powerhouse since. However, interest from Real Madrid is not a new phenomenon. Over a decade ago, when Mbappe was just 11 years old, he was approached and invited to join Los Blancos’ academy although this never materialised and he remained in Monaco.

    Madrid’s enthusiasm and desire for Mbappe has never waivered. It reached a critical point last year in the 2021 summer transfer window when a significant bid was made. Mbappe is looked after and advised by his parents and his mother seemed to publicly imply that he was more than open to a move to Spain to join the iconic club. Their bid of €160million was swiftly rejected by PSG in a show of resilience against Madrid. PSG were determined to keep their star and during the financial impact of the COVID-19 pandemic, it was difficult for Real Madrid to match the enormous sum required to prise Mbappe away from his home country and the dominant capital city club.

    Real Madrid had demonstrated their focus on Mbappe by conducting business over the last few years in a manner that was aimed at accommodating for his transfer and wages. This became recognised as ‘The Mbappe Fund’. For example, they had sold players such as Sergio Ramos, Raphael Varane, Sergio Reguilon and Martin Odegaard to accumulate in excess of £100million and their signings have been limited to no further than Austrian International, David Alaba from Bayern Munich. Real Madrid have been formulating a strategy in a post-Cristiano era and Kylian Mbappe was a priority, ahead even of Erling Haaland.

    Another reason why Madrid may not have topped up their original offer of €160million is because Mbappe’s contract with PSG was set to expire in the summer of 2022. It was an attractive option to let the contract run its course and pursue his signature the following year when he became a free agent. This was made more desirable when Mbappe failed to commit his future to PSG despite being offered several lucrative contract renewals and also expressed his dream to represent Los Blancos in the future. Following an unusually unspectacular European Championship, coupled with the rumours of him leaving, Mbappe was booed at the start of the Ligue 1 2021-22 season by his own fans and people speculated that he also felt belittled by the introduction of Lionel Messi to the team as well as his other, preexisting star teammate in Neymar Jr.. It seemed as though everything indicated a likely exit in the 2022 summer transfer window and Mbappe would fulfil his desire to play for Real Madrid.

    On the 21st May, 2022, Real Madrid’s chances of signing Mbappe this summer disappeared. Following their game against Metz in which he scored an appropriately well-timed hat-trick, Mbappe’s new three-year contract extension was announced in front of the home crowd. Details of the contract were reported over the following days:

    ● €100million signing on bonus
    ● Approximately €40million salary a year but this could go up to €1million per week based on performance bonuses

    This makes Mbappe, quite clearly, the highest paid player in the world and completely overshadows his teammate Lionel Messi’s contract which is only worth a ‘measly’ €25million annually. It is a contract that echoes the style of mega-money deals that are agreed with a select number of ultimate superstars, icons and ‘brands’ in the NBA in the US.

    The most significant discussion points around the new contract are the clauses that give Mbappe an unprecedented level of influence, control and power within one of Europe’s top clubs. It was reported that Madrid had offered a contract of similar financial remuneration and had even offered complete control of his own image rights. However, what potentially swayed Mbappe to stay at PSG, other than playing in his home country, may be the opportunity to have such an important role in the club. Mbappe’s new contract grants him a voice that has an influence and impact on many major aspects and strategic components of the club. He will give his opinions on transfer strategies, individual comings and goings of the players and the staff including the manager and the sporting director. Leonardo has just left his role as the sporting director of PSG and has been replaced by a good friend of Mbappe from Monaco in Luis Campos. His job is, at least partially, in the hands of the club’s star player. The contract therefore not only makes Kylian Mbappe the most financially rewarded player in history but also the most powerful and influential upon their club.

    What Does This Mean for Football?

    Could mega-money contracts that position players in a powerful role within a club be the future of football? As I mentioned, Mbappe’s contract extension displayed obvious similarities to the NBA-style contracts that can reach up to $1billion in value. However, it is a relatively new phenomenon in football although it could mark a significant moment in the evolution of the modern era of the beautiful game. There are also questions about whether it is problematic to allow for a player to have an influential role in matters that they may not have the knowledge, expertise or experience for, such as transfers and managerial appointments. Whilst these concessions were made by PSG in a desperate attempt to create an attractive and irresistible offer to persuade Mbappe to remain at the club, there must be important consideration given to such a matter and the impact it could have on football if it was to become the norm.

    There has been an understanding of the concepts of ‘old money’ and ‘new money’ in football for a while. The introduction of billionaire businessmen such as Roman Abramovich was the beginning. This has continued with the likes of Sheikh Mansour and now state-owned football clubs. Paris Saint Germain is one of these, it is Qatari owned and overseen by the president, Nasser Al Khelaifi.

    There was an immediate and damning response from Real Madrid following the announcement that Mbappe would not be moving to the Bernabeu this summer. The La Liga President, Javier Tebas, promptly labelled Paris Saint Germain and their business as ‘dangerous’ and an ‘insult’ to football. The Real Madrid President, Florentino Perez, reiterated Tebas’ sentiments and it was clear that Madrid and Spanish football were not impressed. It was a sporting and political loss for them. With Messi and Ronaldo no longer in La Liga and future starlets choosing Manchester City and PSG over Barcelona and Madrid, the reputation of La Liga as a home to the world’s biggest football names could be seen as diminishing. Politically, there was an element of a Spain versus France battle which led to French President, Jean-Michael Macron, personally ringing Mbappe and urging him to stay. Secondly and arguably more importantly, it indicates the rapidly growing stature, reputation and brand of the world’s richest state-owned clubs and PSG itself.

    Real Madrid’s objections towards PSG’s business are likely grounded in a resentment that they were unable to sign Mbappe. However, there are other factors contributing to the dispute. For example, Madrid continue to voice support for the generation of a European Super League whilst PSG have always advocated against it. The ESL was widely criticised for both financial reasons and accusations that it undermines the fair competition element of the sport. It is possible that Madrid will view PSG in the same light in the face of their business. Paying such extraordinary sums for their players and allowing them to have such an influence could be seen as being problematic in the same manner as it arguably belittles and damages the financial stability of football, the integrity of competition and its sustainability.

    The focus of Madrid’s condemnation of the deal is the financial backing and plausibility of such a deal. It is hard to see where and how the contract will be afforded by PSG in a manner that adheres to the Financial Fair Play regulations. This issue is accentuated in the knowledge that PSG’s squad costs a total of €650million and the Parisian club has made a €700million loss over the last three years. This is well beyond the previous FFP rules as well as the new Financial Sustainability and Club Licensing Regulations which only permits a yearly average loss of €70million. PSG has also been criticised for its questionable sponsorship income statistics and other financial infringements.

    The consequences of this financial malpractice could be felt following Madrid’s complaint to UEFA and the European Club Association (ECA) after Mbappe’s new contract was announced. They are determined to ensure that PSG are found guilty of FFP misconduct and it is possible that this will be heard in European courts or the Court of Arbitration for Sport (CAS). However, one obstacle that this challenge faces is that Al Khelaifi, the PSG President himself, is one of the top authorities at the ECA and sits on the executive committee board at UEFA. The first response that PSG could give is to point towards the very similar financial package that Real Madrid had offered Mbappe which is exactly what they are criticising their Parisian rivals for.

    Summary

    It remains likely that Kylian Mbappe will one day be seen in a Real Madrid shirt scoring goals at the Bernabeu. However, the rising reputation and stature of Paris Saint Germain as a European powerhouse has delayed this reality for now. His contract renewal may be looked back upon as a vital moment in the evolution of football towards a system of mega-contracts for the game’s biggest superstars.

    The new contract also opens a gateway for more similarly structured contracts in the future that grant the player a substantial amount of power and an influential role over major club decisions and strategies. The loss of complete control of a club’s sporting director, President and Manager, coupled with an extraordinarily high financial cost could be a slippery slope that ultimately damages the integrity, sustainability and stability of football. Alternatively, it could be an integral step for football to progress and continue to adapt and modernise and this type of contract could become the new norm.

    Away Goals, League Stages and Coefficients: Simplifying the Changes to the UEFA Champions League

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    Introduction

    For the last several years there has been substantial debate and speculation regarding possible alterations to the format of UEFA’s club competitions; the Champions League, the Europa League and, as a consequence of these discussions, the Europa Conference League that has reached its very first conclusion in the 2021-22 season on Wednesday with Roma emerging as champions in the inaugural competition.

    The Champions League (1955) and the Europa League (1971) were both founded over fifty years ago and are historically iconic football competitions. Although their names have been changed over time, they have been mainstayers as highly regarded, top level competitions between the best teams across Europe’s most competitive football leagues. They provide an opportunity for European clubs and domestic champions to showcase their strength against clubs of a similar standard from around the continent. The footballing spectacle of European competition is an enormously attractive entity to football fans, broadcasters and to commercial opportunities.

    In this blog I will lend more of a focus specifically to the UEFA Champions League (UCL) and the format changes that have occurred so far and that are also set to be implemented in the 2022-23 season. I will delve into the main topics of discussion, the motivations for the changes and the impacts that they might have upon the game. However, I will also touch upon the similarities and differences in the changes that are set to be made to the Europa League and the Conference League as well.

    The Away Goals Rule

    A sensible place to begin is the alterations that have already been made to UEFA’s competitions. The newly adapted format for the away goals rule has been in place for the 2021-22 UCL, Europa League and Conference League competitions. Since its introduction in 1965 as a method of removing the need for a ‘tiebreaker’ or ‘replay’ game and to encourage teams to attack away from home, the away goals rule has been an integral part of European football competitions.

    For those that are unaware, the away goals rule fundamentally doubles the value of scoring against an opponent away from home in a European competition. For example, two teams whose aggregate scores are tied over two legs are differentiated based on the number of away goals scored. The team with the most away goals qualifies for the next round ahead of their opponent.

    In recent years, many have argued that this rule has become outdated. The UEFA President, Aleksander Ceferin, conceded that the rule was now contradicting its original aim of increasing attacking-minded sides and was instead dissuading home sides from attacking. This was due to the fear of conceding a goal at home which was a valuable advantage to the away side under the away goals rule. This is evident in the statistics in European competition since the mid-1970’s. Since this time, the average number of goals scored by the home side has fallen from 2.02 per game to just 1.58. Furthermore, the win percentage has similarly dropped from 61% to 47% whilst winning away from home has increased in likelihood. It is an unusual statistic for home sides to be less than 50% likely to achieve a victory. This is the result of the away goal rule creating more defensive minded home teams whilst away teams are more attacking and try to capitalise on the possibility of scoring a valuable away goal.

    After lengthy consultations and on the recommendation of the UEFA Club Competitions Committee and the UEFA Women’s Football Committee, the ‘outdated’ rule was confirmed to be changed for the 2021-22 European football season. Under the new alterations, away goals no longer carried more value than goals scored at home. The aim, as was originally the intention of the away goals rule, is to reopen up the games and to reintroduce attacking tactics. It was hoped that for the 2021-22 season and beyond that home sides would once again become more attack-minded and the opposition would treat scoring in the away leg with equal regard to scoring at home. The aims of the new changes have been reflected in its first season with the average goals per game rising to over 3 and a majority of open, attacking games in the knockout stages. So far, it seems to have had a positive impact on European football competition.

    The New Format: One-Legged Semi-Finals and League Stages

    UEFA Club Competitions have a historic importance in European football. They attract large, global audiences and showcases the best that European football has to offer. The European Clubs Association (ECA) have called upon this significance of the competitions and have urged UEFA to continue with a balanced and progressive evolution that ensures sustainability, inclusivity and success of the competitions. As a result, over the last few years, UEFA have been exploring options to ‘progress’, ‘evolve’, modernise and rejuvenate its competitions. The process has reached its pinnacle and whilst there still may be further changes and adaptations in future, the 2022-23 European football competitions will adopt new formats.

    For the Champions League, the conclusions of the consultations have leaned towards the Swiss model. For the first time, the preliminary stages of the UCL will take the structure of a league phase rather than a group stage. The number of teams participating in the competition will grow from 32 to 36 teams. All 36 teams are guaranteed 8 games, 4 home and 4 away against 8 different opponents, during the league stage. Originally this was proposed as 10 games but this was overruled as it was deemed unreasonable to expect such a high volume of games to take place and it has been reduced to just 8. This differs from the traditional group stage which involves a draw for clubs to be placed into groups of 4 followed by 6 fixtures against the three other teams in the group, an away and a return fixture.

    Once the league phase has concluded, the top 8 teams will automatically qualify for the knockout stages whilst the teams that finish between the ranks of 9th and 24th will compete in a two legged play off process for the final 8 places in the last 16. The format will be the same in the Europa League with 8 league games and 36 teams whilst the Europa Conference League will only consist of 6 games in the league stage and 34 teams. However, despite some concerns previously, UEFA have confirmed that all matches apart from the UCL final will occur on weekdays as they historically have done and will not interfere with domestic league schedules.

    Importantly for the Champions League, the new structure widens the outreach of the competition by opening up four additional spaces in its increase from 32 to 36 teams. These four teams will be decided based upon three distinct criteria:

    1. One spot for the club that finishes third in the top division of the nation that is ranked in fifth position in the National Association rankings. This could possibly be between Ligue. 1 or the Portuguese Primeira Liga.
    2. Another place for the domestic champion of another qualifying country via the Champions path qualifying process.
    3. Two additional positions for the clubs that are part of the two countries that perform best collectively over the previous season. This is calculated by dividing the total number of points for a team in a league by the number of participating clubs. If this rule was to be in place this season, the two clubs would have been admitted from Holland and from England, from the next position outside of the originally allocated Champions League places. The second significant difference is the abolishment of two-legged semi-finals.

    This will now be replaced by a single fixture to decide who progresses into the final. This was an idea that materialised following the COVID-19 pandemic and lockdown which prevented fans and players from travelling abroad. Whilst the rest of the knockout stages will continue to adopt a two-legged format, the semi-finals are now set to be decided based upon one match played at a neutral venue, with the final taking place the following week at the same venue. The aim of this is to reduce the volume of travelling supporters across a more widespread period of time and to different locations.

    There will be several substantial impacts that a single-legged semi-final will have on the UCL, some arguably positive and others that will be of detriment to the competition. For broadcasters and for fans, the new change will mean there are less high quality matches to watch. Furthermore, the historical tradition of fans travelling around Europe to follow their team across the continent in the semi-final of the biggest competition available to them is one that is treasured by many and will be missed as a result of the loss of an away leg in the semi-finals. For clubs and cities, this also means a significant loss of matchday revenue and tourism to the home club’s city, damaging the financial benefits of a club reaching the semi-final.

    An argument in response to this is that the increased volume of games during the preliminary league stage will counteract the losses made at the semi-final phase. However, arguably it is far more attractive to broadcast games of higher quality and at a more critical period of a competition such as the semifinal. Broadcasters will continue to lose out on being able to show higher numbers of higher standard games.

    One outcome that may be seen as a result of one-legged semi-finals is an increased unpredictability of which clubs make the final. This may be seen as enhancing the uncertainty of competition and lessening the advantage to major clubs. For example, it is more likely for an underdog to overcome a European giant in a one-off game rather than having to consistently produce an aggregate victory over two legs. An increased number of upsets and uncertainty could act to benefit the attractiveness and diversity of the competition. However, for broadcasters and for commercial opportunities this may have a negative consequence in that their top earners and attractions to viewers such as Real Madrid, may miss out on a final due to a one-off upset. The worry is that this might also be seen as undermining the historic tradition of the competition as a fair assessment of the best clubs on the European continent.

    Abandoning the Club Coefficient Idea

    The reform that attracted the most media focus, discussion and opinions was the suggestion of using a club coefficient system in order to fill the additional four places available in the Champions League. I have explained how these positions will now be filled but it is worth explaining and understanding this alternative alteration that seemed possible for a significant amount of time.

    It was proposed and seriously considered that a possible method of determining the four additional teams participating in the UCL next year would be selected based upon a club coefficient system. The system formulated those that were “most deserving” of the extra available Champions League places based upon historic success, particularly over the previous five years. This raised concerns from many European leagues as it seemed to hold connotations of the discarded European Super League. The strategy seemed to be purposefully designed to ensure that European giants such as Manchester United or Arsenal would be able to meet the criteria required to qualify for the competition under the coefficient system despite not making the top four ‘Champions League places’ in the English League.

    This is because of the historical significance of clubs such as these and the commercial and broadcasting value and attraction of having them as part of Europe’s major competition rather than the Europa League or below. However, the system would have had many consequences beyond simply belittling the importance of the ‘race for top four’ in the English Premier League. It undermined the value and growth of clubs such as Atalanta or Leicester City and was more concerned with financial benefit rather than footballing merit. The system becomes particularly complicated when having to consider factors such as a club’s commercial status, business appeal, fanbases and broadcasting statistics in combination with the strength of the league they are a part of.

    The coefficient approach would also have been a problematic and unfair system for other, arguably more deserving clubs around Europe that the places could have gone to. Before the final decision on how the additional four places would be allocated as I have outlined above, there were other suggestions that were made that were far better and positive for European football than the coefficient system. For example, the places could have been given to the next best countries that are not currently included in automatic qualification such as Serbia, Ukraine or Belgium. Despite the far lesser commercial and financial attractiveness of this suggestion, it would have enhanced the distribution of the Champions League across more of Europe and encapsulated a wider footballing variety.

    Eventually, UEFA decided to abandon the coefficient idea and publicly announced their reasons for doing so. They had seen the issues that would have arisen as a result of such a system and agreed instead to commit to principles of open competition and sporting merit. Furthermore, it is hoped that the final system for allocating the four additional places will help to protect and promote domestic leagues and will judge clubs on no more than their short-term history from the single previous year of competition. Fortunately, this seems to have overcome the politically-charged and financially-motivated motivations behind a suggestion such as the coefficient system.

    Summary

    There is a significant volume of competing interests within UEFA and underlying factors and considerations that govern the European football competitions. The interests and desires of fans, broadcasters, brands and other commercial entities are taken into account. Often this results in an oversight of what is most beneficial for the game of football, sporting merit and fair competition. It is hopeful that next year’s adaptation of the UCL, Europa League and Europa Conference League, coupled with this year’s abandonment of the away goals rule will enhance the standard and competition across Europe and improve the spectacle of European competitions for all concerned parties. This does not mean that further adaptations cannot be made. UEFA will most likely always be planning and evolving in order to ‘perfect’ their competitions and adapt to an ever changing society and footballing fanbase and this is hopefully a healthy attitude for European football to continue to flourish.