Q & A: Liverpool ticket prices, Man Utd’s ownership, SCR and more

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0:15Henry:K-pop Demon Hunter's Saja Boys Breakfast Meal and Huntrix Meal have just dropped at McDonald's. They're calling this a battle for the fans. What do you say to that, Rumi? It's not a battle. So glad the Saja Boys could take breakfast and give our meal the rest of the day. It is an honour to share. No, it's our honour. It is our larger honour. No, really. Stop. You can really feel the respect in this battle. Pick a meal to pick a side. Hey, participate in McDonald's while supplies last.

0:50Henry:Welcome to the Football Boardroom. We really appreciate the fact you've been sending in many questions too. Get in touch at thefootballboardroom.co.uk and of course commenting on social media. So finally, today, a Q &A episode. So let's dive straight into the mailbag, probably mailbox nowadays. And appropriately, we've got a question from Hugh, a Tottenham Hotspur fan, lifelong Spurs supporter. And he wants to know, Christian, why have Spurs still failed to agree on naming rights in the stadium? Look at Everton. Well, I think the answer to that question is very simple. Price. The potential to put your name on the top of that magnificent stadium in a so-called naming rights deal has been out there since before the stadium even opened.

1:37Henry:I know under Daniel's leadership, that was a very important ingredient in his plan. And I think the simple answer is they've set that bar very high. Their price expectation is such that nobody has quite yet met that. Which is what, mid-20s? Yeah, it's been rumoured to be into the 20s, which is a huge amount of money for what would be a very long-term deal as well. We thought it was going to be the Uber Dome or something, that Uber were going to get involved. They were linked. They were linked, you're quite right. And that's not the only big name that's been linked. But at the end of the day, they have decided to hang tough and wait for somebody to blow them away with a really big number.

2:17Henry:And of course, you know, as your favourite phrase, Henry, events, dear boy, it's a whole lot easier having that conversation when you're in a Champions League final and competing to win the Premier League. So they should have done it then? Well, let's just say that those conversations have become harder in the last couple of seasons when they've massively underperformed on the field of play. So to our audience's question, watch this space. It's absolutely a live conversation, but it may be that they need to get things back on track on the field before they get top dollar. Thank you, Hugh. That was a good question.

2:49Go on. I've got one for you.

2:51Henry:Liverpool ticket prices. this is anonymous can we find out about their decision to raise ticket prices guys what did you make of that says our audience I mean it was interesting they did it over three years and the fans immediately supporters organisations and individuals on social media and on blogs there was quite a backlash and I think because people not for the first time by the way I mean there was the famous one with, what was it,£70? £77. For seats in the new stadium? Sorry, in the new main stand. And most people think that may have cost one of their senior executives his job. So badly did that go down with fans and they reversed very quickly, I seem to remember.

3:35I think if you look at fans at the moment, what they're having to pay to go into grounds and subscriptions, if you want to follow your team on TV, you think of what's happening to fans with kickoff times being moved. I think that's just a huge issue. Everton recently came out. Their fan advisory board came out and complained about yet another game on a Monday night and what that does, particularly for kids who want to go rather than on a Saturday afternoon. All those issues, I think, has to be seen in the round about why there has been this backlash. Actually, I think there are elements of the price increase or the price change.

4:13Not so much the increase, but actually elements of it, like increasing the age. I think it's gone from 21 to 24. So it's actually...

4:22Henry:Yeah, they're promoting youth. Look, I'm really clear on this. Two things to say. Firstly, do the maths, OK? If you've got 30 ,000 season ticket holders who pay 900 quid for their season ticket and you put it up by 5%, that makes the club£1.3 million of incremental revenue. In the new Champions League format, and Liverpool would expect to be in that year in, year out, you win one game in the first phase, the prize money's£1.8 million. quid. So my way of looking at it is for 1.3 million alienating, you know, your most traditional, most hardcore fans. I'm not sure that's good business. This is the Uli Hurness argument, isn't it?

4:58I don't know if it's the Christian Perslow argument.

5:00Henry:I think it's bad business. And the second thing I would say, I don't like the multi-year. You know, I look at this as an affordability issue. You know, you don't see public sector pay deals being done on a multi-year basis. You don't even see the private sector. It's perfectly normal that annual pay awards are looked at on an annual basis, closely linked to inflation. 5 % for three years is above inflation, which means the real cost of going is rising for fans who are least able to cope with that. So in my opinion, one, I'm not sure why a team that's making£700 million of revenue in the Champions League needs that extra£1.3 million.

5:37Henry:And two, a multi-year deal at 5 % looks to me to be a bit of a try-on. Wouldn't have done it. Don't like it. Right, another one. This is Anonymous. and a question on the new changes. This is to you, CP. A question on the new changes affecting the championship that will come in from next season with the playoff positions being expanded to include seventh and eighth position. Question, what are the reasons behind those changes? Yes, I saw that story. Well, let me tell you what it isn't. As you probably know, playoffs in American sport are absolutely essential to the broadcast contracts that underpin sport in that country.

6:16Henry:In this case, the EFL already have a long-standing agreement with Sky, so there won't be any extra money by introducing these playoffs from the broadcaster. But what it does do, in plain terms, is give two extra teams a shot at winning the lottery ticket, which is promotion. And all teams agreed to this. and my interesting take on it Henry was that you know at a time when so much messaging has come out of the EFL in the last couple of years saying you know we don't think there should be parachutes we think that the league should be leveled up and more balanced this tells me that when when push comes to shove EFL clubs are saying you know what I'd rather have you know a couple of extra chips to go to that casino than rely on any change to the parachute dynamic.

7:07You love a chips in a casino image, which actually sums up a lot of football because there's so much gambling going to try and get into the Premier League.

7:15Henry:Yeah, the rewards are so huge and this shifts the probability somewhat and who wouldn't like that in that league? And it's quite good for the supporters of those two clubs. They can dream that little bit longer. Yeah, but there is one issue and that issue is that, you know, there's been so much focus in the last couple of years, particularly the two seasons in a row when three came up and went straight back down, the idea that the gap between the EFL and the Premier League is widening. We could have a scenario where a team comes eighth in the championship with a tiny wage bill, somehow pulls off, you know, three big wins in knockout football at the end of the season, find themselves in the Premier League and, you know, are miles off the levels of the Premier League.

7:58Henry:And I think it's interesting that the Premier League have no say in that. Just fascinating to me that these two leagues are joined in sporting terms by promotion and relegation and yet kind of crucial decisions affecting what happens in those leagues. Neither side have any agency in those decisions. I think that's interesting. Yeah, just quickly on that. I mean, at least the EFL this season can point to the probability that two of the promoted clubs may stay up. Leeds and obviously Sunderland. Obviously, that's different from finishing eighth. I do take your point. Right, let's move on. This is a question from one of our YouTube subscribers.

8:32Can you see any way the Qataris would buy out the Glazers at Manchester United?

8:37Henry:Well, it's very possible, technically, for anybody to buy Manchester United, still 75 % owned by the Glazers. What is fascinating is that when Jim Radcliffe and Ineos bought into the club, their 25 % stake and this very, very unusual, almost unique deal where they bought 25 % but gained control over football matters. There were some important elements to that deal that are going to become more relevant next year. And that is that for a period of time after Ineos bought that stake, then Ineos were protected from Glazers subsequently selling their stake with a series of so-called put and call arrangements basically meaning for a period of time if the Glazers did want to sell all of the club then they would have to sell Radcliffe's 25 % for the same price as they might receive in other words they could drag him into that sale but only at the same price and similarly, if the Glazers knocked on Radcliffe's door and said we're selling our 75%, would you like to sell yours at the same price?

9:58Henry:He could say, yes please, I'll have a bit of that. And that would happen, by the way, at least at the price at which Ineos bought into the club. Why would the Glazers sell now when they've got Ineos and Radcliffe taking all the heat on the football side? Well, that's a different question. The question was can they, not will they? And the answer is they can. And what's interesting about the arrangements is that as of February 27, if the Glazers want to sell the whole club for any price, they can. And so what would intrigue me would be just what a risky position that would put Jim Ratcliffe in. because in principle, if things don't improve under Ratcliffe and if the Glazers just lose faith in the Ratcliffe project, that it's not really working in terms of improving football, but most importantly, it's not working in terms of making the club more valuable.

10:53Henry:And they just decide they want to cash in their chips. They could cash in their chips for a price less than Jim Ratcliffe paid for his 25%, thereby forcing him to take a loss on his investment. So the stakes for Ratcliffe in improving things are quite high. As to Qatar, which is, I think, the specific question, I have to say, given events in the Middle East right now and Qatar are right in the middle of a very febrile situation around war, I have to say, I think the prospects of big transactions by any Gulf states into European football must surely be on hold at a time when they've got much bigger issues on their minds.

11:39Henry:So I don't think it's very likely, but we'll keep an eye on how that thing develops. Well, moving to another club owned by Middle Eastern Powers is a question on Newcastle for you, Henry. We've been asked, what do you make of the comments this week from Newcastle's new chief executive when asked about Howe's future. David Hopkinson is his name. I thought they were really poor. I thought for someone who has on LinkedIn the fact that he is a proven leader, I didn't think it showed any proven leadership skills in effectively dangling the possibility of speculation or encouraging speculation about Eddie Howe's future by using the words at the moment.

12:24He was asked about, will there be any talks with Eddie Howe? and he said, well, we're not going to talk about Eddie Howe's future at the moment. Those three words were very damaging, very naive. I'm amazed that he said them. I know he doesn't have a huge background, certainly in English executive world, but Eddie Howe doesn't deserve that. I mean, we've discussed and you absolutely analysed it with your use of forensic detail on a previous episode. Eddie Howe has done remarkable things, given the fact that Amanda Stavely left, chief executives have gone, sporting directors have gone. He has been the constant.

13:03And there's enough speculation around Newcastle United, Sandro Tonali, where players going. The chief executive didn't need to stir a pot that was already boiling.

13:13Henry:Yeah, I must say I have to agree with you, Henry. I think that the choice of words was unwise, naive. Do you know him? I don't know him. I don't know him. Doesn't that say something? Because you know everyone in the executive world in English football. Well, his work in football has been outside the UK, worked at Real Madrid. Canada. He's Canadian, I think, national, and I think by background has worked in North American sport as well. Yes, listen, I think generously, he should have been looked after by his head of comms on that. That was unwise. He's got a very good head of comms at Newcastle.

13:49Okay.

13:50Henry:Look, let's put it this way, okay? Our favourite three words, money, power, politics. You know, I don't think Eddie will have appreciated a guy who's brand new in post, making it sound as though he's going to be marking Eddie's homework at the end of the season, depending on how well the next seven games go. Just unwise. And by the way, almost certainly not true. The only person who is going to mark Eddie Howe's homework is the chairman of that company, who also happens to be the chairman of PIF, the owner, one of the most powerful men in the world, by the way. he's had you know four and a half five years to have a look at eddie howe's body of work he is the owner he's going to make that call and i don't think this guy should have been making it sound as though it was his decision and he should have been more positive and he could have actually looked at the england squad and actually said oh lewis hall's in there tino livermento's in there dan byrne is in there harvey barnes is in there all players improved by eddie howe and jason tindall right moving on to a club that you know that this is from a villa fan david not david via but a villa fan david um and we're going to be deep diving further into your time at aston villa in a future episode in the meantime one of david's questions that we want to hone in on is can we get some insight into how much of a challenge increasing commercial revenue is away from match day we see announcements regularly about new sponsors and new business partners Can we get some idea of how easy or difficult these deals are to do?

15:19Henry:Yeah, this is a really interesting question, which relates to the fact that, and interestingly it links back to Newcastle as well, Newcastle and Villa have really made huge strides in the last two or three years on the field and most specifically getting into the Champions League and yet at the same time have found navigating profitability and sustainability rules extremely challenging. We saw only this week, by the way, just Newcastle's results. You know, really significant growth in their turnover. Now the biggest turnover outside the big six, but only half those top clubs. And as we've repeatedly explained to our audience, that means, in essence, they can spend about half on wages, all other things being equal.

16:05Henry:So a huge challenge. How do you fix that challenge? You grow your revenues. Apart from being in the Champions League and getting those hugely lucrative prize money checks from UEFA and being in the top five of the Premier League where your Premier League money goes up, the way to grow revenue is to grow commercial revenue. And what David is alluding to here, it has become obvious to the fans at Villa and at Newcastle that that is easier said than done. And basically, why is that? Well, it's simple. Arriving in the Champions League, of course, increases your visibility and you might imagine would overnight make you a Champions League club that can suddenly say, instead of wanting 10, 15 million pounds to be front of shirt sponsor Aston Villa, we want the 55, 60 million pounds that a Manchester United gets.

16:59Henry:It doesn't work like that. Visibility is not the same as established global brand recognition. and that's what these brands are paying for. In other words, a long-standing, demonstrable track record of year-in, year-out success in football globally, top levels of European football, top levels of Premier League football before brands are willing to say, you know what, I'll pay you the same as a Liverpool or Man United. And it's very frustrating, but it's very practical. Just go look at Villa, penetrated the Champions League, following year they're not in. Newcastle were in the Champions League and then they were out again.

17:41Henry:Brands are signing up for three, four, five-year, multi-year agreements. They can't take the risk that they sign up at top dollar and then next year you've dropped straight out. So there's a flight to quality in the commercial sponsorship marketplace. And in plain English, that means there's a huge lag, Henry, of commercial revenue to on-field improvement. and just imagine how frustrating that is for Villa and Newcastle fans. It's nobody's fault. It's a fact. I mean, you've been in the boardroom there. How much cachet is there, the fact that Aston Villa are previous winners of the European Cup?

18:18Henry:It's helpful, but utterly irrelevant to the cold, hard business decision of how much will I pay in 2026 to be on the front of Aston Villa's shirt. That is a live, competitive, market-based decision where you are keying off of the comparable shirts in marketplace. You look at the Pinnacle, you look at Manchester United, and by the way, to prove my point, Manchester United haven't exactly been ripping it up on the field of play in recent times, but their global recognition, the huge global fan base, the huge viewing stats they attract still today when they're on the television in every household from Tokyo in the east to Seattle in the west.

19:05Henry:That's what drives the value of those sponsorship deals. Even 18 months ago, when Villa moved over to Adidas and Manchester United renewed with Adidas, I think Manchester United's Adidas deal is 10 times larger than Villa's for the same broad deal because they're paying for years and years and years of Manchester United's visibility. So very frustrating if you're a Villa fan or a Newcastle fan. It's going to take time to break through in meaningful, massive uplifts in revenue required to be properly competitive, which means you've got to do it the hard way. You've got to beat those teams employing footballers on half the wages.

19:48Henry:And that isn't easy year in, year out. OK, I've got one for you. Dropping out of the Premier League into the EFL. Alan, a Bristol City fan, says he's desperate to see his beloved city in the Premier League before he goes to that great stadium in the sky. So his question is, why do Bristol City seem unable to attract significant new investor or investors? Well, it's a club I've got a lot of time for. We've got a house not that far from the ground. And it's just a great ground to go to. Ashton Gate with the investment that's, you know, you talk about significant investors, Steve Lansdown, and you've mentioned him on, you know, previously, that he is, you know, he owns the club.

20:30He has a multi-sport approach and he's invested in the club. He's invested in the training ground. He's obviously brought Roy Hodgson in this week. Great to see Roy Hodgson at 78 back on the grass doing what he loves doing. They've got Richard Scudamore, as you know Scudamore very well from his time as executive chairman of the Premier League. He's on the board there now, guiding them. He's a Bristol City fan by birth. So, so much is in place. And whether that is Lansdowne himself investing at certain points, which you could argue Gerard Struber could possibly have done with that, the previous head coach who was eased out last week.

21:15I mean, they do have a very significant, wealthy individual in Steve Lansdowne. Not just, yeah, let's be clear.

21:22Henry:As Brits go, I'm struggling to think of somebody who would be a more significant investor. This is one of Britain's most successful entrepreneurs and businessmen of the last 20 or 30 years. The co-founder of Hargreaves Lansdowne, a huge success story, done it the hard way, you know, from Bristol, in Bristol, built a hugely valuable, you know, multi-billion pound empire and a dream owner, you know, a guy who's made his money in a city, the old style, the old butcher, baker, candlestick maker, you know, 20th century version, local man made his money in financial services in Bristol, in some respects could probably be called Mr.

22:07Henry:Bristol. So Alan, you know, significant investor, They don't get more significant than the co-founder of one of the biggest employers in Bristol, one of Britain's most successful financial services. But he's very committed to sustainability, isn't he? Yeah, I was going to say, there's a but. And the but is, if you'd said unable to find significant investment, then that would be a slightly different question. Because I think in my time, I certainly remember when I was in the EFL with Aston Villa in 2018-19. You know, it was obvious to me already by then that their approach, Lansdowne's approach, was to resist, shall we say, the temptation to throw money at the wage bill, throw money at the transfer market and buy his way out of that league.

22:52Henry:He was much more focused on enforcement of financial regulation, levelling up the league by making sure some of the bigger teams dropping into that league, parachute clubs, big clubs like Villa and Leeds, didn't have too much of an advantage. And I think that's a bit of a pity because for that city, for many years in our great history, Britain, you know, England's second city in its history, brilliant place in many, many respects. I think it would be fantastic to see Bristol City as a Premier League club. But he has not, he hasn't chased the dream in the way that some owners in that championship have.

23:30Which is probably why he's still wealthy because he hasn't thrown money at it. But there have been moments. I mean, you look at when Lee Johnson's tenure as manager, there are probably moments when they were just on the cusp of the playoffs. This season they started well. Well, this season, but they also, you know, they had the Semenya windfall as well. You know, you just wonder whether the balance is quite right. So maybe when they look at investment, it's actually a tweak of his principles as much as bringing external investment in.