Champions League changes explained; why Relevent replaced Team; and how Zuffa is giving boxing its latest shake-up

12:43Turki Alalshikh:The folks at Relevant would rather think about this as a decrease in partners from 14 to 12, because they consider licensees as global partners.

12:55James Emmett:It's all semantics, really. Essentially, 12 partners is the name it's the number of the game here but there will be an elevated level of four premium partners that will cover all of the european men's club competitions anyway it's worth saying that relevant commercialize the men's competitions two circles do something similar for the women's competition so an elevated tier of four premium partners across all of the competitions, which probably eliminates the challenge, or at least is an attempt to eliminate the challenge that team and UEFA have had over the last few cycles, which is, yeah, the idea that the Champions League is the top product, the Europa League is a secondary product, Conference League

13:40Guy-Laurent Epstein:is even worse.

13:42David Cushnan:It also taps into the increased inventory in terms of the volume of matches that are played as these competitions have been reformatted, and I think in all cases expanded. So now 531 matches per season across those three men's clubs competitions, the UEFA Champions League. The European Cup. The Europa League and the Conference League. 342 games in the Europa League and the Conference League. 189 in the Champions League. And visibility for those four premium partners across every single one of those matches. And obviously the associated broadcasts.

14:16Turki Alalshikh:They're also going to be six-year deals as well, which is another change. So you mentioned the increase in the number of matches. That's the switch to the Swiss model. It's also a really significant increase in the number of clubs involved, something that goes under the radar in the discussion around the shift in the model. Sure, people talk about the increased workload and the increased number of games.

14:39James Emmett:It's a huge increase in the number. If you take women's and men's together, it is a huge increase in the number of clubs

14:45Turki Alalshikh:involved in top tier domestic European club competition. So before the format change to the Swiss model, 96 clubs took part in the last cycle, the last sales cycle. So 80 from the men's side and 16 in the women's champions league.

15:04James Emmett:So that has moved to 169 clubs. That's 108 on the men's side.

15:10Turki Alalshikh:And now that there are two women's tournaments as well, that's gone to 61 women's teams. And that doesn't include all the qualifying rounds that take place in the summer as well. So there's a lot of new product and there's a lot of new participants in this structure.

15:23David Cushnan:And as Charlie was saying, they have managed to increase the volume of teams competing, the number of matches, in such a way with the way these tournaments have been reformatted, that it doesn't necessarily mean a huge increase in the number of match weeks. So that's the that's the positioning to answer. I think it was your question, James, around balancing up the need, the desire, the demand for more inventory, more games, expanded tournaments with the very real challenge of player burnout, fitting and operating in an increasingly congested global football, but certainly European football calendar as well.

16:02David Cushnan:I thought another interesting piece around the commercial program as it develops is the potential to add regional partners in the right circumstances. And I think the plan is to try and do that. And as you hear that, my mind instantly goes to North America, where obviously Relevant has its home, has its origins. And there's clearly, although Charlie, I think, was very keen to point out that North America is one of many important markets and strategically important markets that they think about. There's a clear opportunity, I think, for the UEFA men's and women's European tournaments, but I suppose primarily, first and foremost, the Men's Champions League, which already has a very, if not sizable, then very established footprint in the US through CBS and Paramount's terrific broadcast coverage, much admired and much envied broadcast coverage.

17:00David Cushnan:You do feel that that would be a likely market for potential regional partners to start to come in. And I assume that they would have to do so whilst not clashing with any of the other partners from a category perspective.

17:14Charlie Marshall:It's worth saying that another change implemented by Relevant has been, they say, going through very competitive processes for these partnership slots, a process that has already brought in a renewal for one existing partner in Pepsi, but a new one to Anheuser-Busch InBev signed ostensibly

17:34Turki Alalshikh:to replace or effectively to replace Heineken. And they say flexibility is the watchword, I think, of this new structure because they say, unlike in previous years, sponsors, partners will be given the right to activate different brands in different markets should they want to. So Anheuser-Busch obviously has lots of different beer brands. And I think we're not just going to see one official beer of the Champions League.

18:01James Emmett:There's also flexibility or an intended flexibility in the model. You mentioned the regional partnerships that they might start signing. Intended flexibility with how the clubs can be involved. So Charlie, very keen to point out that in this new sort of long-term approach, there will be an effort to bring the clubs closer to the partners. And in some instances, to use certain clubs and certain territories to activate,

18:32Turki Alalshikh:to dial up activity with particular partners, how that works in practice in terms of what clubs

18:37James Emmett:receive for additional inventory or additional work, additional storytelling opportunities, as they always build these days, remains to be seen. But current model for the Champions League, although it is very lauded, is inflexible.

18:53Turki Alalshikh:New model sounds like it's going to be much more flexible, probably challenging to pull off and there'll be teething problems. But yeah, definitely scope for negotiation all over the place it feels like that commercial relationship

19:08David Cushnan:and dynamic with individual clubs is going to have to be very bespoke and very piecemeal and very case by case in terms of how that works if you consider the you know the very different models the different markets the peculiarities of particular clubs particularly those very top end clubs who might be competing in the knockout stages of the Men's Champions League, for example. It actually gets me thinking about something that we've talked about over the last couple of weeks, which has obviously been in the, well, before, during and after the Winter Olympics, the continuing discussion about how the International Olympic Committee's top partnership model might evolve.

19:49David Cushnan:A very sort of, again, you might say, you know, somewhat inflexible, certainly very established program for global partners to get involved. And I would suggest that a lot of this work is sort of happening unseen within the IOC's commercial department, but they might be looking at what UEFA is doing here and how they have managed to fold in the clubs and thinking about the relationship, for example, between the IOC and National Olympic Federations or even International Sports Federations as well, and how some of what's happening here, some of the flexibility that seems to be being dialed up in this through EC3 might be applied in such a way that it impacts any future Olympic commercial programme.

20:33James Emmett:Totally. And another thing to consider here is what this change in this new entity means in the context, the background context, of the wider sports industry and where we see this happening. Technology and governance structures

20:49Turki Alalshikh:are evolving in sport to the extent that rights holders can have, if they are well resourced enough, full control over their own product and therefore the ability to commercialise on a different level. And what I mean by full control is obviously control over the nuts and bolts of the production, what they're producing and how they're selling that, but also control over the participants and how they tell their own stories within that production as well. There's something that links the Premier League, obviously bringing its global feed production in-house. It's arguably no surprise that at the same time as they're doing that, they are also A, starting, well, doing a D2C experiment in Singapore.

21:38Turki Alalshikh:And did I say A or what?

21:40James Emmett:A, doing the D2C experiment in Singapore, but B, making noise about how they could generate a lot more revenue centrally for the clubs through a more unified central sponsorship model. More control, more revenue, bigger packages, more storytelling opportunities for rights buyers, basically.

22:06Turki Alalshikh:So we're seeing that with the Premier League, seeing that now with UEFA, EFC and the Champions League model.

22:12David Cushnan:It's a good conversation. There's lots of other stuff in it as well. So I would urge you to just scroll down the feed slightly and find that conversation with...

22:21Guy-Laurent Epstein:Includes a reference to a 2011 Instagram photo.

22:24David Cushnan:Yes. Which, are you going to repost it as part of the promotional efforts? I don't know how to do that. Okay. Shall we tackle a few of this week's big sports industry signings, James?

22:34Guy-Laurent Epstein:Yes.

22:35James Emmett:Would you like to begin or should I? I think you can start this week. Okay. Well, Formula One, starting this weekend, of course, has renewed and expanded its partnership with Salesforce. New season starts, as ever, in Melbourne. Blackstone executive Prakash Melwani and Sir Lucian Grange, who is the chair and CEO of Universal Music Group, have made investments into the holding company of Brentford FC, that holding company, Best Intentions Analytics, which was set up by Matthew Benham last year. And Sam Piccione III has left Oakview Group to become managing director sports and entertainment at private equity advisory firm Concello.

23:21David Cushnan:Which is the company that lists Tom Brady, Serena Williams, and I think Gary Neville as partners or certainly involved players. Manny Neville, I'm going to say it, friend of leaders, has left the Football Association and has joined Chelsea in a director of people role. Big move for another friend of leaders, Gerry Newman, who is the new CMO at Brighton & Hove Albion, having left his role at PSG.

23:48Charlie Marshall:That's, of course, my local Premier League team.

23:49David Cushnan:Indeed. And a move at the Aviva Stadium in Dublin, where Alan Gallagher has taken on the role of CEO.

23:58James Emmett:Jamie Weston has been named as the first commissioner of Major League Volleyball. And Claire Giacometto is the new chief financial officer at Crux Football and moves over from the European Tour.

24:13Guy-Laurent Epstein:Those are this week's signings and congratulations to one and all. James, can we have a little talk about what's going on in boxing? Yeah, tell me about this, David.

24:21James Emmett:There's never not something going on in boxing, caveat. But again, it seems like seismic change is afoot.

24:28Turki Alalshikh:Now, I want you to tell me what's up in the relationship between Turkey, El-Sheik and the various boxing entities that control world boxing.

24:39James Emmett:But before I allow you to say anything, some background context. I spoke to Nick Khan from TKO, the president of TKO, when was that? September. And he was talking

24:50Turki Alalshikh:about his hopes for Zuffer Boxing, this new boxing entity that TKO was going in, unfronted by Dana White. And he was talking a big game, very ambitious, very bold, very, we're going to take over the world of boxing, just you wait and see. And I just thought that's Bravado, that's classic boxing talk. You wouldn't set up an entity in boxing and not talk like that. But dot, dot, dot.

25:17David Cushnan:Well, they're making moves. So here's what we believe to be the state of play. So Zuffer boxing, as you say, a product of TKO, but also crucially Saudi Arabia's seller group, have really ruffled some feathers when it comes to the global fight scene. It's fronted by Dana White of the UFC, of course, but Nick Khan, Mark Shapiro, key players involved in what is proving to be a pretty disruptive new entity, new promotional entity in boxing. Now, Turkey Al-Asheikh is the guy who, for the last few years, has become the dominant figure in the global business of boxing. Funding fights, pulling strings, bringing together previously rival promoters, and generally riding roughshod through any sort of historic disagreement, disharmony, by really trying to make the big fights happen.

26:18David Cushnan:and I think to a large extent has won the support of boxing fans along the way, because so often in boxing, the big fights don't happen. He has, in particular, managed to, over the past few years, unite the two big British boxing promotional vehicles, Matchroom Boxing, Eddie Hearn and Barry Hearn's boxing division, but Eddie Hearn very much the front man these days, and Frank Warren's Queensbury. Zuffer Boxing has arrived, and it appears as though Turkey Al-Asheikh through the seller and Saudi backing for Zuffer Boxing, has new attention, has a new focus for his attention and seems to be hitching his wagon to Zuffer Boxing.

26:59David Cushnan:So the big moves that you referenced, headlined by Connor Benn, one of Eddie Hearn's star fighters and a boxer for whom Eddie Hearn really went into bat for when Connor Benn failed drugs test, has switched, somewhat surprisingly, to Zuffer Boxing. In fact, very surprisingly to Zuffer Boxing. You also have Turkey Allah Sheikh now promoting Tyson Fury's latest comeback fight, which is taking place in London next month. Frank Warren has traditionally been Tyson Fury's promoter or certainly part of the promotional machine around Tyson Fury. So suddenly you have a situation where it is reported that Frank Warren and Queensbury are taking legal action, citing breach of contract against Seller and TKO.

27:49Guy-Laurent Epstein:Well, Frank Warren famously doesn't Zuffer fools gladly, does he? Very nice. Very nice indeed.

27:53David Cushnan:But you have Turkey Al-Asheikh at the heart of this, who seems to be moving in a different direction. And the suggestion is that in suddenly pulling the rug from underneath, seemingly both Matchroom and Queensbury, and really going in with Zuffer boxing. There is an element of him maybe looking to cut out the middleman here. The other thing to say about Zuffer boxing is they're coming into a boxing space with a vision, with a mission of doing things very differently. So they have this idea of creating their own belt and largely ignoring or moving away from the multitude of other belts, very historic belts in some cases that have traditionally sustained boxing and interest in boxing through the years.

28:39David Cushnan:And there seems to be a suggestion that actually what they are keen to do is bring in a sort of UFC style centralized league offering, as opposed to the sort of matchmaking exercise that has traditionally gone on in boxing. So there's a lot of things happening here, all of which is sustained by this sort of hourly, daily diet of never-ending content that every promoter is serving up. You're seeing Dana White increasingly being interviewed about boxing. You're seeing Frank Warren and Eddie Hearn and Frank Smith, who's the CEO of Matchroom Boxing, hit back on various YouTube channels across DAZN, who have a big contract, multi-year contract that they've just extended with Matchroom through various media channels, as well as all their own in-house media channels, this sort of absolute noise around the sport.

29:29David Cushnan:And I think it's a fascinating time in that world, because if Dana White can come in and revolutionize boxing in the same way as he revolutionized mixed martial arts, that is a significant and sizable change. And doing it, he seems to, at the moment, have the corporate might of both TKO, very significant organization, the sports industry, of course, but also the backing of Saudi Arabia. He's got a very compelling mix of ambition and funding with which to move this forward. And I suspect we're only at the start of what could be a number of very big moves and potentially some very big fights that are being promoted under the Zuffer banner.

30:14Charlie Marshall:Fascinating stuff. And one thing you can absolutely guarantee is that Frank Warren and Eddie Hearn won't go down without a fight here. But yeah, watch this space.

30:25David Cushnan:Indeed. One thing we should also touch on, which came out last week, was Richard Masters, the Premier League CEO, announcing the, I think much anticipated, but formally announcing the launch of a Premier League direct-to-consumer service, which we rolled out in Singapore as the sort of testbed market for this. He announced this on stage at the FT Business of Football Summit. I think it's fair to say he gave a top line on this and gave some top line rationale for why the Premier League is doing this and why now. Obviously, it is a big, you know, it's prompted a lot of analysis and a lot of discussion already across the industry, because this has been a long time coming.

31:12David Cushnan:What do you make of it? What are you hearing? What's, What is going on here?

31:17Charlie Marshall:He filled in, he put some meat on the bones of what had been anticipated at the FT event last week. But he actually trailed it, David, it's worth saying, at Leaders in October. Remember the Leaders event? He talked about the work being done out of the Premier League office in Singapore and how it was hugely important and more to come there. but the big focus is on broadcast innovation and piracy.

31:45Turki Alalshikh:It's no surprise that Singapore is sort of chosen as a testbed for this type, and it very much is a testbed for this type of service. It is the Premier League's sort of anti-piracy outpost. It's their most sort of controlled environment in an exotic international part of the world. They've got a fantastic relationship with StarHub in the market. It's a small but significant market, technologically advanced, et cetera, et cetera, good middle-class, big-ish English-speaking market for English-speaking media rights. It's a test and learn scenario, and it comes at the same time. Well, it's two. Well, when did Alex Willis join?

32:23Turki Alalshikh:So September 2022, the Premier League appointed Alex Willis, who joined from Wimbledon, and she had D2C specifically in her brief.

32:32James Emmett:And from that point, we have been on a one-way journey to this destination they're always going to go d2c what this move allows them to do is to build and roll out a product that is technologically adept secure sound that reaches people in the right way has the right front facing interfaces that deals with back and forth with consumers that is marketed in an appropriate way. All the things that a rights seller like the Premier League

33:09Turki Alalshikh:just doesn't have to deal with when they're selling their rights to a front-facing broadcast organisation. So they can iron out any kinks, learn some lessons here in a really nicely

33:21James Emmett:controlled environment that doesn't matter too much if things don't go according to plan.

33:27David Cushnan:Yeah, I will point people in the Worth Knowing newsletter this week towards Carlo DeMarcus his piece on this. And as so often on Media Matters, Carlo has a really good way of thinking things through and then committing it to, I was going to say print, but he usually does it online, but committing it into sentences.

33:46Charlie Marshall:I think he writes it out by hand and then gives it to one of his team. I'd love to think that's the case.

33:51David Cushnan:So Carlo. But he talks about, and I think one of several really interesting points he makes in his piece is that directing a human needs to be thought of as a capability and not as a product launch. And he lists out what he calls set of organisational muscles that will take the Premier League time to develop. And as you say, doing it in such a comparatively low risk environment and a small market is a very sensible way of going about this, because here are some of the things you have to get right as a D2C operator. Pricing discipline, packaging design, customer acquisition economics, churn management, cancellation flow optimization, payment failure recovery, editorial cadence beyond match day and between seasons, device quality assurance at scale, customer support staffing.

34:43David Cushnan:And every one of those elements will require, as Carlo makes the point, a very, presumably very steep learning curve for the Premier League and you can't bypass them. There's no quick solutions to these in many cases. And so, yeah, there will be an element of learning on the job, but it's going to be absolutely fascinating. We're all watching in London, of course, the construction of the new Premier League Studios building office, which will be online later this year and be right at the heart of everything that's happening over in Singapore and the result we'll see in Singapore.

35:17Charlie Marshall:It's worth maybe mentioning at this stage, a global rights holder that has also done really impressive work in this field.

35:25James Emmett:And people talk about the very visible success in sponsorship. I'm talking here about Formula One, which has been lauded in recent years for A, drive to survive and B, adding big global brands to their sponsorship portfolio and maxing out on revenues. All of that is driven by a really tight control over their broadcast product. They do have a D2C. They did experiment in D2C a few years ago, but mainly the value in the Formula One broadcast model is in packaging everything together, tightly controlling production, selling that production as is to global broadcasters. What that allows Formula One to do is to sell sponsorship inventory by the second rather than by the space.

36:14James Emmett:So they're not selling signage according to how big a bit of track branding sort of logo positioning is, but specifically how many seconds it's going to spend on exactly how many screens exactly around the world. And they can do that ahead of time. They don't have to measure it in retrospect.

36:31Turki Alalshikh:they tell this very clear ROI that they're selling to clients because they can control the broadcast and then they can control, we're a bit low, we're a bit down on how long Salesforce has spent on screen. No worries. Easy to manipulate an engineer back into the screen. So it's where all the big global rights holders are going.

36:51David Cushnan:Exactly. Shall we leave it there?

36:52Turki Alalshikh:Let's leave it there. And do you know what, David? It's a slightly different week next week,

36:56Guy-Laurent Epstein:isn't it? We've got our event. We've got our Leaders Meet Innovation event in central London. we do some podcasting from there let's get out and about okay all right see you next week see you then