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Champions League revamp
- Thread starter mrb85
- Start date
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Alan Whittle
Player Valuation: £60m
Good.
Wouldnt that be a breach of the agreement that they signed with the PL then? Points deduction and 20m fine.
ForeverBlue92
Player Valuation: £80m
If the other 14 clubs had sense they would be speaking to the PL and telling them to waive FFP - let the likes of Everton, Leicester, Villa, Newcastle, West Ham, Wolves etc big traditional clubs spend what they want and prepare for the slime 6s inevitable departure and when that happens we still have a strong product.
If they dont grow balls fast they'll be finished as will UEFA.
Yarrgh
Player Valuation: £70m
Or it might be news to the rats who got cold feet.
The new agreement they have just signed? You would think so.
catcherintherye
Player Valuation: £80m
That's if the PL had any sense. They dont. Theyve got no idea how to deal with traitors who are acting as a 5th column.
catcherintherye
Player Valuation: £80m
This seems like legal pressure being applied to the teams who pulled out. I wonder if there is a huge debt that's due to be paid if it doesnt go ahead?
hallamblue
Player Valuation: £40m
£25m fine in exchange for a guaranteed payment of £350 million, and a 30 point deduction preventing them from qualifying for a competition that they've just withdrawn from. They must be quaking in their boots.
Yarrgh
Player Valuation: £70m
I suspect it's brinkmanship from the almost bankrupt three. All the power is with the other scab clubs; they could drag the legal proceedings far beyond what is needed to get this break away league going. And besides, a league built on acrimony doesn't sound like it will make it better.
Champions League and rules will re-format to guild the Scab team's paydays even more. All this will fester and repeat until the football bubble bursts (if ever),
NathDogg
Player Valuation: £50m
The authorities missed their shot at killing this dead in the water and holding these traitors to account ,by doing absolutely nothing to the scabs at the height of the fan protests and general outcry.
They have merely emboldened and empowered the scabs to believe their own bs, and heightened the false sense of superiority they have over the game.
It was never off the table and the whole thing will come again, sooner than we think, with the legacy fans of the scabs lapping it up.
Both uefa and the premier League should hang their heads in shame and be dissolved - Footballs been dying for a while, during their watch, all's they have done is turned the life support off.
They have merely emboldened and empowered the scabs to believe their own bs, and heightened the false sense of superiority they have over the game.
It was never off the table and the whole thing will come again, sooner than we think, with the legacy fans of the scabs lapping it up.
Both uefa and the premier League should hang their heads in shame and be dissolved - Footballs been dying for a while, during their watch, all's they have done is turned the life support off.
catcherintherye
Player Valuation: £80m
Yes this feels like a legal fight between the different "participants". While occasionally this can be due to principle, I dont think those clubs have a bones principle between them. This sounds like a money issue to me.
So you work backwards from there. My suspicion has always been that collateral will have needed to be put down to justify the up front payments, and once you sign a deal, there will be consequences for pulling out. As I have stated before, I would say the hedge funds etc who may have put the original funds up will now be looking for that collateral back.
So what are Madrid et al playing at? I would imagine they are currently liable for that repayment, and are trying to say, if they can technically have it ready to start then it's not them who are financially and legally liable. I'm not sure how that squares with them playing in the CL but it's interesting. If it holds, it would be the teams who signed and dint turn up who would be accountable for the outstanding revenues.
I've seen figures of 300m per club mentioned. I think there might be some quite serious issues to be resolved here.
Yarrgh
Player Valuation: £70m
Always follow the money to get to the source of the issue...
Contracts were signed, reneged on and the party who didn't break the contract will want recompense if it's worth chasing and a reasonable chance to get it.
That's were I think the remaining 3 may come a foul. I would be certain that the quitting teams have been mending relationships with those hedge funds and organisers of the ESL. These organisations are just about money, I can't see them chasing a pay day in the courts if it hits them long term once they work out a way to get what they want.
It'll drag on though, that's the only thing I'd be certain on though.
catcherintherye
Player Valuation: £80m
Yes good analysis. What I will say, is that there will be quite a large toxic hole of money that is due to be paid from this. People will have fronted a LOT of cash on the proviso of even bigger returns. They will have spent enormous amounts of manpower and time, and as a hedge fund will look weak as F if they just let people walk away scott free (operating in what is a very competitive and cut throat area). They can't really be seen to be that weak.
There will be a value too in this. Just like when you buy a house you put upwards of 10% down as a deposit and the house as collateral a hedge fund will want it's collateral. A hedge fund will demand a fair bit more collateral than a high street bank too (for a number of reasons but mainly as it's a riskier proposal, and they aim to make bigger gains than high streets bank). Let's put it this way, an entire department will probably be being laid off if it doesn't go ahead and they don't get paid back. Their investors, who they will have convinced to put money in are likely to be v wealthy and probably powerful people will be getting angry their funding has gone.
The question then becomes who will repay this value. You have 3 groups currently. The hedge fund, the teams that have stayed and the teams that have left. There are a myriad of possibilities that could play out. It could be that the Hedge fund guys don't see the court case as sufficient to take liability off the remaining members. It may be that that they accept it and drop claim, or put the claim into those who left. There's all sorts of possibilities beyond this.
What will be critical is what's in the small print, in either direction about leaving having signed up. Most contracts will have some sort of break clause, but they will also have a whole manner of small print that make it very difficult. I have just had a contract returned this morning as it happens where the person I have sent it to feels they have an opt out option, but in reality it would not be worthwhile for them to pursue it due to the small print that exists. The likelihood is, that the nature of this small print is going to underpin exactly who or what is liable.
But yes, this will rumble on. For those PL clubs they are stuck in a very tough spot. The whole football world has made it clear they hate the product, including most of their core fans (who still provide most of the money). A handful of glory hunters from elsewhere who watch on streams are not going to fill grounds or frankly spend the same to make up for the core business fans who will probably boycott. The PL seems to have talked itself into a position whereby if they go and pursue playing in it, they will probably have to leave the PL or at worst face enormous initial points penalties (and probably worse from broadcasters etc). Yet on the flip side they have this toxic debt situation whereby very wealthy hedge funds and investors want to claw a lot of lost revenue back.
It's not uncommon in this scenario for a hedge fund to also pursue not just lost money, but also proposed lost profits, if the contracts have been ended with a breach. It is a far more unregulated world compared to mortgages. But imagine your bank can pursue you not just for the value of the loan, but also the value of any proposed interest payments that are due.
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