Daniel Haddad discusses the implications of the Everton, Manchester City, and Chelsea cases on the global Premier League brand.
The outcome on the field may not have been what Everton fans had hoped for on Sunday, but they made their views heard by criticizing the Premier League for the fines imposed on the club.
Fans marched to Goodison Park in large numbers ahead of Everton’s first game after an independent panel confirmed a case against the Toffees of violating profit and sustainability laws, resulting in an automatic 10-point deduction.
The attitude among Evertonians and many in the wider football community is that the punishment does not fit the crime, and that the club has been given an unreasonably heavy deduction for a £20 million overspend when the commission did not specify any competitive advantage gained.
That is an argument that Leeds United, Burnley, and Leicester City, clubs demoted in seasons when Everton just escaped relegation, will try to make in order to seek financial compensation following the independent commission’s judgment earlier this month.
Many Everton fans held placards with the word ‘corrupt’ emblazoned on them, while a plane flew over the Etihad Stadium with a trailing banner that read ‘Premier League = corrupt’ during the Manchester City and Liverpool game on Saturday, a game screened live on Sky Sports and beamed around the world. The 1878 Everton Supporters Group paid for the plane and banner.
For the first time in a long time, a league that has been on a high development trajectory for many years now, supported by big media deals that have seen them draw away from its major European counterparts in Spain, Italy, Germany, and France, finds itself facing considerable criticism from fans.
The Premier League has set a harsh precedent in dealing with Everton, with the decisions on Manchester City’s 115 charges for breaching PSR and Chelsea facing scrutiny over allegations of historic payments made by former owner Roman Abramovich to aid the club while skirting financial fair play rules. This gives the Premier League little room for manoeuvre should Manchester City or Chelsea also be found to have been in breach.
Daniel Haddad, head of commercial at global sports advisory firm Octagon, believes that the Premier League is in the strongest position compared to other football competitions. He believes that the Premier League is in the strongest position in terms of talent, money, and eyeballs, as there are now six or seven clubs with a position at the “top table.” This mass of clubs that the other leagues can’t rely on is a challenge for La Liga as a whole, as they don’t have a monopoly or duopoly.
The power dynamic in the Premier League is interesting, as there are only four teams that can qualify for the Champions League. There is an interesting power dynamic in terms of Super League models, which are kind of why those clubs were keen on the model because of the maths of how many can qualify for the Champions League.
Everton fans Stage protest, want their 10 points back
If an independent commission finds these clubs have broken the rules, the question is whether they can get a transparent and logical way of determining what these sanctions are. The European Court of Justice will rule on whether or not the attempts to launch a European Super League were unlawful or whether the attempts to block its creation were monopolistic on behalf of UEFA, European football’s governing body. Haddad believes that the ECJ decision could be impactful in years to come if it goes against UEFA.
On December 21, the European Court of Justice will decide on the Super League case on December 21, and that will open up a can of worms in other leagues, not particularly the Premier League. What that will show is that if a club feels harshly treated or doesn’t want to accept sanctions, will that open up the possibility of them pulling a power lever somewhere else? They could say “you’ve done this, we don’t like it and we’re going to join up with the likes of Real Madrid and Barcelona.”
Football is tribal, and every decision that goes against a team there is always going to be a huge group of fans who don’t accept the decision. If this happened in Formula One and Red Bull were deducted 100 points, people wouldn’t care in the same way as there isn’t the tribalism that exists in football.
The US model of sports is designed to avoid issues like doping or cheating, as it is very controlled and centralized. The Premier League, on the other hand, is more flexible and allows clubs to operate within their home market, keeping in mind rules and regulations. The Premier League does not enforce strict salary caps or budgets based on predicted costs, unlike La Liga.
Adopting the US model could potentially impact the Premier League by allowing clubs to operate without financial controls. However, if a new, amalgamated team from other leagues comes to market in the next two or three years, it could potentially compete with the Premier League long term. This is why Barcelona and Real Madrid are pushing for such a structure.
If the structure of European football remains the same in terms of a ‘open’ Champions League, there is no significant damage or reputational risk to the product. If the structure of European football remains the same in terms of a ‘open’ Champions League, there is no risk of damage to the product, leading to increased interest in La Liga or the Bundesliga.
