What I find interesting though, is the deep splits it's causing and also the damage to the brand value they've created.
If I were to hazard a guess, I think FSG are potentially exposed in America. America is in a bad way, and it will only get worse over coming weeks. I mean at in Europe we have an end date, we have shut down, controlled the virus and normality will return over the coming weeks. In America, it's chaos, which markets hate.
I think a lot of hedge funds, particularly those around sports are little more than ponzi schemes. If your wealth is based upon implied values, and you borrow against it, you start to get negative equity.
There are 2 broad possibilities with this decision. 1) They are stupid and don't understand that the decision taken will hit them with sponsors and branding, over along period far beyond the short term gain of the cash in. 2) They are facing quite severe cash flow difficulties,after a relatively short period (with a far bigger set of challenges to become).
I don't believe they are stupid, so the former is out. I think the business is struggling. I had said previously the wage bill would be over £300m with the bonuses and contractual uplifts from winning the CL. That would have proven a pinch point, obviously no European final this season for the first time in 3 years, and greatly reduced revenues etc.
It's worth noting that the H & G era really only started to unravel after the the 2008 crash. This recession will be far more serious. American owners will potentially get badly exposed. They have given an indication of how they will deal with it, and it won't be by investing.
H & G got screwed over from the decision. I can assure youFSG will have seen and learnt from that, they won't be able to pull a fast one and wipe off their debt where FSG is concerned as easily.