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    Relevent Wins Champions League Rights in U.S.

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    UEFA awarded its global broadcasting rights to a longtime partner, but granted Relevent, owned by the Miami Dolphins owner Stephen M. Ross, the same deal for the United States.One after another, the executives from some of the world’s biggest sports agencies filed into a basement auditorium at the headquarters of European soccer’s governing body. On their way in, they passed replicas of some of the biggest trophies in the sport, a pointed reminder of why they had traveled to UEFA’s offices on the banks of Lake Geneva to offer large sums of money to some of soccer’s most powerful officials.On offer that week in November? A rare chance, the first in 20 years, to bid for the rights to one of the most valuable properties in sports: the Champions League.For two days, groups armed with slides and projectors pitched a group that included not only UEFA’s leadership but also representatives of Europe’s top clubs, who, for the first time, were allowed to participate in the process. After three rounds of bidding, UEFA and the European Club Association, its partner in the venture, picked the winners.The global rights went to the Europeans’ longtime partner, TEAM Marketing, which now controls the rights for a three-year cycle from 2024 to 2027, the first in an expanded Champions League that will include more matches.The Champions League Is Changing. Here’s How It Will Work.After more than a generation in its current form, the Champions League is remaking itself, and about to become an actual league for the first time.The bigger surprise came in what they will not control: the lucrative rights to the United States. Those were won by Relevent Sports Group, the marketing company backed by the Miami Dolphins owner Stephen M. Ross. Relevent prevailed after it said it could guarantee at least $250 million for the rights in the United States, about $100 million more than UEFA’s competitions currently deliver there.Relevent and rivals like Endeavor-owned IMG, Octagon and Infront Sports & Media also bid for the global rights, which are estimated to be worth as much as $5 billion per season. TEAM, according to people familiar with the bidding process, was selected because it agreed to lower its commission on selling the rights and because it has a dedicated staff on hand to begin sales immediately.An official announcement of the new rights agreements will be made next week, after a meeting of UEFA’s board. The European Club Association’s board was informed of the selections at a meeting in Munich on Wednesday.UEFA, Relevent and TEAM all declined to comment on the deals, which came as part of an unexpected bit of collaboration between European officials and some of the continent’s biggest clubs only months after some of those same teams attempted to form a breakaway Super League.After two decades of frustration, and with clubs growing increasingly concerned that money was being left on the table, the club association finally pushed UEFA to take the rights to market. In the past, the Champions League agreement had consistently rolled over into a new one with TEAM, a company that has historically had just one client: UEFA.Nasser al-Khelaifi, the chairman of the E.C.A. and the president of the French club Paris St.-Germain, and the E.C.A.’s chief executive, Charlie Marshall, joined a UEFA contingent led by UEFA’s president, Aleksander Ceferin, to hear the pitches late last year.A final decision on the winners was made after a meeting Jan. 25 of their new joint venture company, UCC S.A. That company will grow in importance in the coming months: A new management team set to be installed that could reduce the need for intermediaries like TEAM and Relevent, and give clubs an even greater say over the commercial operations of competitions that produce billions of dollars in television and sponsorship revenue every season.For Relevent, the deal is the latest chapter in its efforts to pivot toward a new strategy geared around selling premium soccer rights after a decade in which its highest-profile asset was the loss-making International Champions Cup, an annual off-season tournament that matched top European clubs in exhibition games in North America, Europe and Asia. But it also comes amid a significant bit of price escalation for soccer rights in the United States; the Premier League recently agreed to a six-year deal with NBC worth almost $2 billion.In 2018, Relevent signed a 15-year collaboration with Spain’s top league, an agreement that essentially turned the company into La Liga’s commercial operation for North America in exchange for a guarantee that it could generate business worth a minimum of $2 billion during the term of the contract. Three years later, Relevent brokered an eight-year, $1.4 billion rights agreement with ESPN for La Liga games, then got $600 million more from broadcasters in Mexico and Central America.Now, its relationships with European soccer may only deepen. Relevent has been courting UEFA to add its name to its off-season tournament business, which has lost about $100 million since it was established in 2012.With the Champions League deals in place, UEFA and the club association are likely to enter into a protracted period of wrangling over how the income from the rights sales will be distributed, with the largest teams likely to demand a greater share than they are currently receiving. More

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      UEFA Plans $7 Billion Pandemic Relief Fund for Soccer Clubs

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      European soccer’s governing body will give cash-strapped teams access to their future earnings from club competitions like the Champions League.As European soccer clubs continue to count the costs of a global pandemic that has led teams large and small into financial distress, European soccer’s governing body is preparing to establish a relief fund of as much as $7 billion to help struggling teams manage their growing debts.The plan, according to several officials briefed on the negotiations, would be for the governing body, UEFA, to secure financial relief for cash-strapped teams who play in major European club competitions. The repayments would be tied to the teams’ future payouts from their participation in those tournaments run by UEFA; for the teams involved in the latter stages of the Champions League, Europe’s premier club competition, those paydays can be worth up to 100 million euros a year (almost $120 million).UEFA has for months been in talks with banks and private equity firms about creating the fund. According to the officials, the first relief payments would be made available to clubs that qualify for Europe’s three annual club competitions: the Champions League, the Europa League and the new Europa Conference League.For many European teams, the financial relief is desperately needed. Billions of dollars in revenue has been wiped off team balance sheets since the coronavirus first started to impact the soccer industry in early 2020. Clubs in dozens of countries were forced to play games without spectators for months, and some had to pay rebates to broadcast partners and sponsors. All but a handful of teams have endured significant pain.A.C. Milan players during a Europa League match in an empty arena in December.Vincenzo Pinto/Agence France-Presse — Getty ImagesBarcelona, for instance, was unable to retain the services of its most famous player, Lionel Messi, amid ballooning debts of more than $1.5 billion, and its president said last week that the club was expecting this year’s losses to approach $570 million, a record figure for a soccer club. While many of Barcelona’s financial problems are self-inflicted, the result of years of poor management, red ink has spilled across balance sheets across Europe. The Premier League, soccer’s richest domestic competition, suffered its first drop in revenue since it was first established in 1992.UEFA had been in talks with Centricus, a London-based investment firm that had also been involved in talks with FIFA about financing its enlarged Club World Cup, but it has more recently focused on striking a deal with a group of lenders that includes Citigroup and UniCredit, according to the people with knowledge of the talks. They declined to be identified because discussions with the clubs are continuing, and because no deal has been reached.UEFA declined to comment on the talks or the relief fund. But it has discussed the proposal with the European Club Association, the umbrella body representing about 200 top division European teams.UEFA has asked the E.C.A. to survey its members to understand their financial needs. The most pressing concern is related to tens of millions of dollars in player trading debt. Those obligations, accumulated over several years as teams bought and sold players to one another, are a vital source of revenue to small- and medium-sized clubs. Any default on them risks creating a contagion effect, though, given how interlinked club debts have become.The player trading market — worth $7 billion before the pandemic — has now slowed considerably, with more sellers than buyers and clubs struggling to offload players they can no longer afford. The chief executive of one of Italy’s biggest clubs said the market for middle-tier players — those worth between $5 and $30 million, trades that lubricate the market in the good times — are now few and far between. Instead, teams have become increasingly reliant on loans and free transfers to unload contracts and salaries they can no longer afford.UEFA’s president, Aleksander Ceferin. His organization is planning to roll out new cost-control rules that could include spending caps and a luxury tax for clubs that breach them.Antonio Bronic/ReutersAccording to one of the people familiar with the talks, UEFA’s participation in the relief fund is critical, since it will allow the banks to secure their investment against the future income of its competitions, rather than the balance sheets of individual teams. That arrangement would reduce the risk for the lenders while also ensuring lower than usual rates of interest for clubs. To determine the amounts clubs are eligible to receive, UEFA will create a rating profile for teams based on their likely income from the Champions League, the Europa League and the Conference League, a new third-tier competition that is being launched this season.UEFA’s initiative comes months after a failed effort by a group of 12 leading teams — citing the need for greater financial stability as well as a greater share of soccer’s wealth — to form a breakaway superleague.UEFA is only the latest soccer body to seek outside investment in an effort to mitigate the ongoing effects of the pandemic. Spain’s professional league announced earlier this month that it had struck a deal to sell almost 11 percent of broadcast and commercial income for 50 years to a private equity fund in return for a $3 billion investment. Italy’s league has been negotiating a similar arrangement.UEFA hopes the financing will allow teams to restructure their debts at lower interest rates. At the same time, it is planning to revamp the financial regulations governing the teams in its competitions.The current decade-old arrangement known as financial fair play has run its course, according to UEFA’s president, Aleksander Ceferin, and clubs are now bracing for a new set of cost-control rules. One likely option is a combination of a cap on spending linked to revenues and a luxury tax, similar to one imposed by Major League Baseball on teams that elect to spend far more than their rivals.The move is an effort to inject greater clarity into a process that has often left UEFA unable to enforce its rules on the continent’s biggest-spending teams. Under the new system, UEFA leaders argue, teams will know exactly how much they will have to pay if they overspend. The system, though, is unlikely to have any meaningful impact on growing competitive imbalance between clubs that can spend freely on talent and those that cannot keep up. More