JP Morgan Chase creates a sports-focused investment group

Global financial services firm JPMorgan Chase has set up a new sports-focused investment banking team as the Wall Street bank seeks to tap the increasingly attractive industry, as per an internal memo seen by Reuters.

The bank has created a new “sports investment banking coverage group” to offer advisory and financing solutions for activities like investing in sports franchises to clients globally.

“Sports has become an increasingly large asset class, attracting more and more institutional investors,” Fred Turpin, global head of media and communications investment banking, said in the memo.

Eric Menell and Gian Piero Sammartano will co-lead the new investment banking team and report to Turpin. Sammartano will maintain his local reporting line in to Burkhard Koep, the head of Telecoms and Media EMEA.

Red Bull’s Crisis becomes F1’s main event

In this week’s Member Insights piece, David Alexander, founder and MD of Calacus PR spotlights the crisis communication in F1.

The controversial first title win for Max Verstappen at the 2021 Abu Dhabi Grand Prix was a watershed moment for Formula One. 

The Belgian has dominated the competition since then, securing three Drivers’ Championships and 29 out of the past 34 races since mid-2022.

Literally and figuratively, Red Bull is a well-oiled machine, with the company thriving on the track and tightly controlling what information is released into the public domain.

That approach has been threatened since early February, when news broke that Red Bull was undertaking an internal investigation into allegations of ‘inappropriate, controlling behaviour’ by Team Principal Christian Horner.

Horner is something of a pantomime villain in Formula One, unafraid to push technical boundaries and happy to clash with his rivals in search of success.

While acknowledging that an investigation was going on, Red Bull failed to follow a basic rule of crisis communications – do not leave a large information void that can be filled by third parties, lead to speculation and ultimately make the situation worse.

It took two weeks for Formula One and governing body the FIA to make statements, which said little other than that they would be monitoring developments, while Ford, who will become Red Bull’s engine partner in 2026, were more assertive in their demands for a prompt resolution.

In a letter to the Red Bull team, CEO Jim Farley expressed his displeasure with “the unresolved allegations of inappropriate behaviour by Red Bull Racing leadership.”

He said: “As we have indicated previously, without satisfactory response, Ford’s values are non-negotiable. It is imperative that our racing partners share and demonstrate a genuine commitment to those same values. My team and I are available at any time to discuss this matter. We remain insistent on, and hopeful, for a resolution we can all stand behind.”

On the eve of the new F1 season, Red Bull’s investigation dismissed the case against Horner and said in a statement: “The investigation report is confidential and contains the private information of the parties and third parties who assisted in the investigation, and therefore we will not be commenting further out of respect for all concerned. Red Bull will continue striving to meet the highest workplace standards.”

No details of the inquiry were made public, about the process, the legal team nor Horner’s defence and none of the investigation’s conclusions or recommendations were forthcoming.

For such a high-profile case to lack transparency inevitably gave rise to accusations of a whitewash aimed at moving on as swiftly as possible, when all the pithy statements did were raise more questions than were answered.

If Red Bull thought that the new Formula One season would see the investigation forgotten about as fans and media moved on, they were very much mistaken.

After the investigation, an anonymous whistleblower leaked a file of unverified emails, images and messages, purported to be from Horner to a female third party, to a wide range of media, Formula One, the FIA, and the sport’s nine other team leaders.

Horner, having previously refused to comment beyond protesting his innocence and confidence that the investigation would confirm as much, went on the offensive.

He said: “The only reason this has gained so much attention is because of the leakage and the attention that there has been drawn in the media. What has happened then after that is that others have looked to take advantage of it. F1 is a competitive business and elements have looked to benefit from it and that is perhaps the not so pretty side of out industry.”

Could Horner expect his rivals to remain silent, when he as previously been so forthright about other issues that have arisen? And do other team principals such as Mercedes’ Toto Wolff and the McLaren CEO Zak Brown not have a right to comment, particularly given that the tawdry episode has dragged their sport into the gutter?

No wonder that they have urged more transparency, while Formula One and the FIA have requested to see the findings of the investigation.

What the crisis also exposed was the fractious divisions within Red Bull which threaten to hinder its dominance just when it looked as if an era of supremacy was inevitable.

Red Bull founder Dietrich Mateschitz, who died last year, left his 49% share to his family, while Thai pharmacist Chaleo Yoovidhya owns a controlling 51%, with Horner’s future very much a point of conflict between them.

Yoovidhya backs Horner, no doubt convinced by the Englishman’s track record of building a dominant race team that he has led since 2005, while Mateschitz’s family are said to want him out. 

Matters took another turn when Red Bull’s long-term special adviser Helmut Marko, known for his indiscretion towards media and other Formula One stakeholders, came under the spotlight with initial reports suggesting he may be suspended.

That triggered emphatic vocal support from ally Max Verstappen, who warned that his future was closely linked with that of Marko.

After qualifying, Verstappen was asked what he thought about the threats to Marko and responded: “My loyalty to [Marko] is very big. It’s very important that he stays within the team. If such an important pillar falls away, that’s not good for my situation as well. So, for me, Helmut has to stay, for sure.”

Not only was that a clear threat to the Red Bull senior leadership, it was also in stark contrast to Verstappen’s carefully worded answer when asked about Horner’s position.

Whether he was speaking as a proxy for his son or not, Jos Verstappen then made it clear that he saw Horner’s position as untenable, that the Horner controversy was “driving people apart” and that the team would “explode” if their principal remained.

“In the press conference Horner gave the other day it was all about him and his problems when we should be talking about Max, the car, his performance and the race. I’ve already said I think it is causing problems if he stays.

“There is tension here while he remains in position. The team is in danger of being torn apart. It can’t go on the way it is. It will explode. He is playing the victim, when he is the one causing the problems.

“I think it’s too late for Christian to say ‘leave me alone’ but he has the support of the Thai owner so I think he will stay for the rest of the season. I said it would bad if he stayed, it really isn’t good for the team, this whole situation.

“But the most important thing for me is that Max is happy. That’s what counts for me. I just want him to be happy.”

It can’t have helped Red Bull fans that Verstappen was linked with a move to Mercedes amid the in-fighting within the team, with Horner admitting that they could not force an unhappy driver to remain regardless of a long contract.

To make matters worse for Red Bull, they chose International Women’s Day to suspend the woman at the centre of the controversy, with the team again offering no detail for the grounds of her suspension. 

Could there be a more effective way to remind women in motor sport that they need to stay in their lane? 

Unsurprisingly, the accuser then lodged an official complaint about Horner’s behaviour with the FIA’s ethics committee, which the BBC reported was not the first complaint made to the governing body amid concerns that Red Bull might try to cover the story up.

It was left to Lewis Hamilton, who has urged more diversity and better governance within the sport, to underline the problems the Horner crisis has caused.

He said: “As someone who loves the sport it’s definitely disappointing to see what’s going on right now. I think transparency is really key and I’m really, really hoping to see some progress moving forwards. 

“We always have to do more to try to make the sport and the environment people work in feel safe and inclusive. It will be really interesting to see how it’s dealt with in terms of the effect it may or may not have on the sport moving forwards. It’s a really important moment for the sport to make sure that we stand true to our values.”

The information vacuum, coupled with a lack of leadership from the sport’s governance serves as a stark reminder of the fragility of reputation in top-level sport and Red Bull’s apparent lack of preparation for an internal issue when it has previously been readied for external issues combat.

The lack of transparency and suspension of the complainant have shown a lack of awareness, and a somewhat tone-deaf strategy that has raised questions about the team’s integrity and damaged Red Bull’s reputation with its partners and fans which extends way beyond motorsport.

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AFCON 2023: A Data-Driven Masterclass Unveiling Africa’s Booming Football Market for Sports Business Executives

In this week’s View From Africa piece Cynthia Mumbo, CEO of SportsConnect Africa pens takeaway from AFCON 2023.

The echoes of a captivating Africa Cup of Nations (AFCON) 2023 in Cote d’Ivoire are still resonating, leaving behind not just memories of thrilling matches, but a treasure trove of data that speaks volumes to sports business executives around the globe. This data unveils a dynamic and rapidly growing African football market, brimming with potential for savvy investors and brands.

Let’s delve into the heart of the matter – the impressive statistics released by CAF:

  • Digital Domination Redefined: Get ready to be amazed. AFCON 2023 witnessed a colossal 2.2 billion video views across all digital platforms, a monumental leap from the 350 million views recorded in 2021. This translates to a staggering 657% increase, showcasing the immense growth of the African digital audience.
  • Social Media Mania: The influence of social media cannot be overstated. AFCON 2023 generated a remarkable 2.1 billion impressions across all platforms, highlighting the power of social media engagement. This presents a golden opportunity for brands to build awareness and connect with a passionate fanbase.

A Windfall for Sponsors:

  • Commercial Boom: The message is undeniable – sponsors are taking notice. AFCON 2023 secured a remarkable 26% increase in commercial revenue compared to 2021. This significant growth signifies a maturing market ripe for brand investment. For sports business executives, this translates to lucrative sponsorship opportunities within a highly engaged fanbase of over 1.2 million match attendees.
  • Ticketing Triumph: The excitement wasn’t limited to the digital sphere. AFCON 2023 witnessed a staggering 800% increase in ticketing revenue, a testament to the unwavering passion of African football fans. This presents a unique opportunity for rights holders to explore innovative ticketing models and maximize revenue streams.
  • Sponsor Surge: The number of sponsors has witnessed a healthy 65% rise, jumping from 10 in 2021 to an impressive 17 in 2023. This influx of brands further validates the growing commercial appeal of AFCON.

Reaching New Heights with TV:

  • Broadcast Bonanza: While audience figures aren’t available, a significant 33% year-on-year rise in TV revenue paints a promising picture. This viewership growth is further amplified by a staggering 65% increase in the number of territories broadcasting the games. New heavyweights like BBC, CANAL+, and Sky Sports joining the roster signify a global expansion of the AFCON fanbase. This presents a unique opportunity to tap into new markets and maximize viewership.
  • Partnerships Proliferate: The number of TV partners has skyrocketed by 65%, growing from 68 to an impressive 110. This signifies a growing interest from broadcasters around the world, eager to capitalize on the rising popularity of African football. With 41 free-to-air broadcasters reaching 171 territories (a 15% increase from 2021), AFCON is ensuring accessibility for fans across the continent and beyond.

Digital Revolution Takes Center Stage:

  • OTT Streaming Soars: The data confirms a phenomenal 90% increase in content streamed on Over-the-Top (OTT) platforms compared to AFCON 2021. This trend aligns perfectly with global viewing habits, where fans crave flexible and personalized experiences. Sports business executives would be wise to consider strategic partnerships with OTT platforms to reach this growing audience segment.
  • Website Traffic on the Rise: CAF’s online presence mirrored the overall success. Website traffic surged to a whopping 8 million page views, with a remarkable 2.6 million new users joining the CAF store. This digital upswing presents a lucrative opportunity for brands to leverage CAF’s online platforms for targeted marketing campaigns.

A Gateway to a Lucrative Market

AFCON 2023 has been a resounding success story, both on and off the pitch. The data presented is a compelling argument for sports business executives. Africa boasts a passionate and rapidly growing football market, fueled by a young and tech-savvy demographic. With strategic investments in digital platforms, OTT streaming, and innovative social media engagement, AFCON can become a global phenomenon.

This is an opportune moment for sports business executives to seize the initiative. By understanding the evolving African football landscape and its fans’ preferences, brands can establish themselves as key players within this dynamic market. The future of African football is undeniably bright, and AFCON is its sparkling crown jewel. Don’t miss out on the opportunity to be

ECB extends Vitality partner for three years

The England and Wales Cricket Board (ECB) and Vitality have announced the extension and expansion of their partnership for a further three years.

The announcement will see health and life insurer, Vitality, continue to be the title partner of Men’s and Women’s International T20s, the T20 Blast and recreational T20 cricket, alongside it being the Official Wellness Partner of The Hundred and Test cricket. Vitality branding will continue to be on all The Hundred players’ back of shirt and training wear.

The announcement also sees the current partnership expanded, to include title sponsorship of the Vitality County Championship in 2024.

The partnership reflects Vitality’s core purpose to make people healthier and to enhance and protect their lives and further builds on the insurer’s support of cricket, with the aim of inspiring many more men and women to take up or return to the game, and promote healthy and active lifestyles at all levels.

Alex Perkins, Commercial Director at the ECB said, “We are delighted to renew our partnership with Vitality, who has provided long-standing support for cricket in England and Wales since 2013. The extension of the partnership will see Vitality deepen its commitment to the sport, whilst also continuing to raise awareness of the importance of leading healthy and active lifestyles, as Official Wellness Partner across all formats of the game. We look forward to working closely with Vitality in the years to come.”

Vitality’s CEO, Neville Koopowitz said, “We’re delighted to announce this expansion of our partnership with the ECB today, to further support cricket at all levels and increase visibility of both the men’s and women’s game.

“Through this partnership we hope to inspire many more people to play or return to the sport and think about how getting active can support them to live healthier lives, which perfectly aligns with Vitality’s core purpose”.

Kolkata Knight Rider signs Dream 11 as principal partner

The Indian Premier League (IPL) team, Kolkata Knight Riders (KKR) have signed Dream11, India’s biggest fantasy sports platform as principal partner.

As per the announcement on KKR’s social media platforms, “Dream 11-KKR We’re delighted to announce @Dream11 as our Principal Partner for the #TATAIPL2024! With this dream partnership, we’re all set to bring you closer to the action and passion of the game. Let’s make dreams come true together!”

Saudi Arabia pumps $120 million to boost gaming, esports industry

The National Development Fund (NDF), in collaboration with the Social Development Bank (SDB), announced the signing of two agreements to establish two venture funds with a total size of SAR450 million ($120 million).

The announcement was made during the LEAP 2024 technology conference in Riyadh, marking a significant step towards nurturing the thriving gaming and eSports industries.

The initiative is part of the Gaming and Esports Financing Programme, cooperating with the Saudi Esports Federation. Merak Capital and IMPACT46, the entities managing the two funds, will provide development financing for gaming and Esports companies through equity investments, in an effort to accelerate growth, enhances local content development, and amplifies the industry’s economic and social impact to achieve the objectives of the National Gaming and Esports Strategy and the Digital Content Program (Ignite).

Merak Capital is set to manage the first investment fund, with a size of SAR300 million ($80 million), focusing on establishing a gaming accelerator backed by venture investment to spur growth and cultivate local talent in the gaming industry. The goal is to position Saudi companies as leaders in this vibrant sector.

The second fund, managed by IMPACT46 and totalling SAR150 million ($40 million), seeks to stimulate private sector investment in the local gaming and Esports industry. Additionally, it seeks to attract international firms and studios to establish a more substantial presence in the Kingdom, further enriching the sector’s ecosystem.

Dr. Stephen Grove, Governor of NDF, stated, “The gaming and Esports industry has seen exponential growth globally, generating substantial revenue and job opportunities. With Saudi Arabia’s young demographic and other attractive investment components, NDF and our partners are prioritizing innovative financing solutions for this industry. We aim to ensure its financial sustainability and contribute to the Kingdom’s economic diversification and job creation efforts.”

Eng. Sultan Al-Humaidi, CEO of SDB, emphasized SDB’s commitment to supporting the gaming and e-sports industry, recognizing its potential for growth within the Kingdom. “Our objective is to cultivate the industry to self-sufficiency, positioning the Kingdom as a global hub. We provide the necessary support to ensure this venture succeeds, advancing the Saudi digital economy forward as a key component of the Kingdom’s digital transformation goals aligned with Saudi Vision 2030.”

This comes as part of NDF’s endeavors to develop the Saudi promising sectors and enhance their contribution to the national economy. All of this can be accomplished through empowerment and financial development support, to establish an environment that attracts local talent, deliver promising experiences, and target top-tier game production and development projects.

Wayne Barnes, Kick It Out to find solutions to combat online abuse at SportAccord

Online abuse which has plagued the sport and society – is set for special attention at SportAccord, the year it celebrates its ‘Power of Sport’ theme. The session within the Plenary Conference on Day 4 – Thursday, 11 April  is dedicated to ground-breaking steps being taken to combat online abuse

The session will further look at the state-of-play in terms of online abuse in sport, sharing insights and learning gathered from some of the biggest sporting events on the planet, and showing how technology, sports bodies and law enforcement are working together to create a safer online environment for athletes and officials.

The panel will feature Wayne Barnes – world rugby’s most accomplished referee, who retired after the 2023 World Cup Final due to ‘next-level’ online abuse alongside

Janie Frampton OBE, Vice President, International Federation of Sports Officials (fresh from her investiture at Windsor Castle last week – where she received an OBE for her services to equality for women in sport)

Sanjay Bhandari, Chair, Kick It Out

Sarah Gregorius, Director of Global Policy & Strategic Relations, Women’s Football, FIFPRO

Jonathan Hirshler, CEO of Signify

Wayne Barnes said: “Arsene Wenger famously said that ‘We have gone from a vertical society to a horizontal society where everybody has an opinion about every decision you make…’ and though social media has given individuals the platform to have an opinion, it has also given individuals direct access to people they don’t know and may never meet. That along with a cloak of anonymity and the belief that there will be no consequences for what we say and do online, has led to a dramatic growth in online abuse over the past decade.

“We often see sport lead the way and watch society follow. Society is crying out for someone to say no longer will we accept the abhorrent abuse that has spawned out of social media. This could be a chance for sport to show how powerful it can be.”

Sanjay Bhandari MBE, Chair of Kick It Out: said: “2024 is likely to be the worst year ever for online hate, abuse and misinformation. It is more important than ever that sports work together, using the power of our collective voice, to hold social media, governments and regulators to account and to change the normalised culture of casual online hate.”

Janie Frampton OBE, Vice President of International Federation of Sports Officials said: “As an outcome of this panel, I hope when faced with any form of abuse in sport, we have the tools and skills required to deal with every eventuality.”

SportAccord 2024 info:

Meet renowned global experts in sport, industry and academia and join over 1,500 delegates and exhibitors at SportAccord World Sport & Business Summit on 7-11 April at the award-winning International Convention Centre (ICC) in Birmingham – West Midlands.

Register now:   https://register.event-works.com/sportaccord/birmingham2024/e/ce/

NWSL inks a multi-year deal with Amazon

The National Women’s Soccer League has announced a multi-year sponsorship with Amazon, making Amazon the Exclusive Retail Sponsor of the NWSL.

As part of the sponsorship, Amazon Prime is now the presenting partner for the NWSL’s Best XI Awards. The awards recognize the best players by position on a monthly cadence throughout the regular season and give the fans a voice in selecting the league’s top 22 players in an end-of-season vote for the first and second team Best XI. For Prime, this represents an opportunity to bring fans closer to the players they love and joins them in celebrating the excellence of the athletes selected for this honor. 
 
The sponsorship also names Amazon an official NWSL licensee. NWSL fans can now shop Amazon Fan Shop for hundreds of officially-licensed NWSL products from Merch on Demand, Amazon’s print-on-demand service. Selection includes t-shirts, hoodies, tank tops, and more, spanning every NWSL team, across men’s, women’s, and youth styles and sizes. Prices start at $24.99, with sizes across apparel ranging from XS to 6XL in most colors, with Prime members enjoying fast, free delivery on every order. The selection includes unique kickoff designs to memorialize the debut of Prime Video’s inaugural coverage – the 2024 NWSL Challenge Cup on Friday, March 15 at 8:00 p.m. EDT – featuring Gotham FC vs. San Diego Wave from Red Bull Stadium in Harrison, NJ. Additional styles and product will be added throughout the 2024 season. Browse the latest collection of styles via the Amazon Fan Shop.
 
As part of this collaboration, NWSL will also migrate match content from previous seasons using Amazon Web Services (AWS).  This cloud-based media archive will enable NWSL to easily transfer historical footage and surface highlights, interviews, and behind-the-scenes footage to enhance fan engagement by building a more personalized connection between fans, the league, and the players they love. In addition, AWS and Prime Video will begin testing a cloud-based game production solution for NWSL games to increase efficiency, lower production costs, and improve sustainability.
 
“We could not be more excited to continue to integrate Amazon more deeply into the NWSL family as they become our exclusive retail sponsor,” said NWSL Chief Marketing & Commercial Officer Julie Haddon. “Amazon’s global reach and customer-centric approach pairs perfectly with the NWSL’s fan-forward ethos. This partnership will not only amplify the NWSL’s fandom and growth, but will also offer our fans an easy and accessible way to support their favorite teams and athletes.”

The US is from Mars, Europe is from Venus

Ian Whittaker, Twice City AM Analyst of the Year pens down the varied television markets in Europe and the US.

One of the themes we are increasingly seeing is the growing divergence between the European and US television markets. One of the areas where this is most noticeable is in the selling of premium sports rights, specifically for things like the NFL rights. Europe, however, is a different matter. While the Premier League saw an increase in the absolute amount paid, the price per game fell while in France, Ligue 1 suffered an embarrassing failure to meet its minimum requirements. The gap between the two markets in being able to monetise rights looks wider and wider.

It could be said that this is unfair on European rights holders as US sporting rights holders are in a much stronger position. 93 out of the top 100 most watched television broadcasts in the US in 2023 were sports related. The US also know they have to change because the dynamics in the their domestic television market are changing more rapidly than in Europe, where traditional broadcast and cable TV barely top 50%+ of all television viewing and the trend is not their friend. But most of all, the economics work. The US Tech giants are prepared to spend major dollars because they know how vital sports are to reach their goal of taking a sizeable chunk of the television advertising market.

In Europe, by contrast, none of these dynamics are in place, The major live football rights are the preserve of the major traditional Pay-TV operators such as Sky and do not have mass market audiences. Moreover, while Pay-TV is under pressure (to varying degrees) in Europe, it is not facing the rapid change being seen in the US market and the platforms are (generally) holding their own or seeing gentle stagnation. Finally, and most importantly, the economics of buying national football rights in each country just do not work for the Tech giants, even in the UK, because the potential advertising/subscription upside is not there and/or would take too long to develop.

However, life is not fair and, more to the point, business deals don’t care about feelings. The simple truth is that the current sets of European rights deals – which involve the same structures as previous deals and with (usually) the same players – are merely kicking the can down the road when it comes to how to monetise their rights in a world when the traditional national-based Pay-TV model is under significant pressure and where a combination of streaming and global preferences makes the old way of selling rights increasingly obsolete.

Of course, there is an argument that what the leagues are doing is buying themselves time to work out a new structure for how to sell rights. If that is the case, what would be the best model moving forwards?

My view would be that it increasingly makes sense – certainly when it comes to the major rights – to look in terms of global distribution via streaming and think less of the old system of national and international sales of rights. To be clear, I do not think the leagues should do this themselves – they do not have the necessary technical competency skills. What I think they should instead consider doing is partnering with the major platforms with global reach such as YouTube, Amazon, Apple and even Netflix.

This is a question more for the medium-term than for the short. But, at some point, it will need to be answered.

Manchester dis-united Club’s Ownership Saga: Ratcliffe’s Entry and Market Reactions

Carlo De Marchis ‘a guy with the yellow scarf pens down this month’s Business Index.

Manchester United, one of the world’s most iconic football clubs, has been the subject of intense speculation and market activity in recent months. The latest development in this ongoing saga is the official completion of Sir Jim Ratcliffe’s 25% buy-in at the club. The Ineos owner’s purchase, valued at just over £1bn, was announced on Christmas Eve and has now been formally confirmed.

Ratcliffe’s acquisition makes him the largest individual shareholder at Manchester United. The deal also includes a further investment of $300m (£238m) for infrastructure improvements at Old Trafford, which will earn Ratcliffe an additional 3% share later this year. The Premier League and the Football Association have both ratified the acquisition after Ratcliffe passed the necessary owners’ and directors’ tests.

Commenting on the deal, Ratcliffe stated, “To become co-owner of Manchester United is a great honour and comes with great responsibility. This marks the completion of the transaction, but just the beginning of our journey to take Manchester United back to the top of English, European and world football, with world-class facilities for our fans. Work to achieve those objectives will accelerate from today.”

Joel Glazer, United’s co-owner, welcomed Ratcliffe, saying, “I would like to welcome Sir Jim as co-owner and look forward to working closely with him and Ineos Sport to deliver a bright future for Manchester United.”

Market Reactions and Opinions

Despite the excitement surrounding Ratcliffe’s entry, the market’s reaction has been mixed. Sandy Case, iSportConnect CEO, notes, “The Glazers announce they are willing to entertain buyers and the share price doubles. Ineos steps in and the share price almost halves back to where it had been languishing for years.” Case also raises questions about the club’s complex structure, financial challenges, and the overwhelming nature of the task at hand.

On the other hand, Michael Broughton, another sport industry expert, offers a different perspective. “Buy the Gossip, Sell the News… an old adage in the market place,” he says. Broughton points out that the club is priced at a sponsorship/licensing valuation rather than a consumer or media valuation. He also highlights the impressive revenue growth achieved by the club’s management in the past, even without winning titles.

Broughton adds, “If you want to release valuation metrics you need to be more than a B2B company…not saying it’s easy, just the reality of things. There is value in having access to 1bn people. But until the fans come first it’s unlikely.”

The Chart

Conclusion

The completion of Sir Jim Ratcliffe’s 25% buy-in at Manchester United marks a significant milestone in the club’s ownership saga. While the move has generated excitement among fans, the market’s reaction has been mixed. Questions remain about the club’s complex structure, financial challenges, and the scale of the task ahead.

Ratcliffe has also appointed an external agency to come in and streamline both the business and operational costs. The first area will be the club’s fixed and variable costs (travel, utilities and other external contracts) before looking at the 1,112 staff (as reported Jun 30th 2023) and there are already heavy rumours of 20-25% of these roles being at risk. The accepted view is that the staff numbers are bloated and need urgent attention. These are the first steps to allow the club more breathing room when it comes to Financial Fair Play and it will be interesting how Ratcliffe navigates this cost cutting with the retention of internal culture.

As Ratcliffe and his team begin their journey to restore Manchester United to the pinnacle of world football, the focus will be on addressing these challenges and putting the fans first. The road ahead may not be easy, but with the right strategies and investments, Manchester United could be poised for a new era of success both on and off the pitch. If they can manage to find a way to create more D2C revenue alongside the exIsting B2B revenue streams then the global fanbase that Manchester United have access to, could put Ratcliffe’s investment back into rude health.

Who are these people?

Sir Jim Ratcliffe:

Sir Jim Ratcliffe is a British billionaire businessman and the founder and CEO of the Ineos Group, a multinational chemical company. Born in 1952, Ratcliffe grew up in a working-class family in Manchester, England. He studied chemical engineering at the University of Birmingham and later earned an MBA from London Business School.

Ratcliffe’s career began at Esso and Courtaulds, before he founded Ineos in 1998. Under his leadership, Ineos has grown into one of the world’s largest chemical companies, with a portfolio spanning across various industries, including oil and gas, automotive, and sports.

Known for his entrepreneurial spirit and strategic investments, Ratcliffe has been actively involved in sports, particularly football and cycling. In 2019, he purchased the Team Sky cycling team, renaming it Team Ineos. His recent acquisition of a 25% stake in Manchester United marks a significant milestone in his investment portfolio.

The Glazers:

The Glazer family, led by the late Malcolm Glazer, is an American family known for their ownership of Manchester United Football Club and the Tampa Bay Buccaneers, an American football team in the NFL.

Malcolm Glazer, born in 1928 in Rochester, New York, was a successful businessman with investments in various industries, including real estate, energy, and sports. In 2005, Glazer acquired a controlling stake in Manchester United through a leveraged buyout, which was met with controversy and opposition from some fans due to the debt incurred during the purchase.

Since Malcolm Glazer’s death in 2014, his six children – Avram, Joel, Kevin, Bryan, Darcie, and Edward – have been involved in the management and ownership of both Manchester United and the Tampa Bay Buccaneers. Joel and Avram Glazer have been the most prominent figures in the family’s ownership of Manchester United, serving as co-chairmen of the club.

The Glazers’ ownership of Manchester United has been marked by success on the pitch, including numerous Premier League titles and Champions League victories. However, their tenure has also faced criticism from some fans who have questioned the club’s debt levels and transfer policies.

Here’s the full index: