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เข้าร่วมเมื่อ 15 พ.ค. 2023
Business of Sport with Harry and Charlie Stebbings
Rick Parry, EFL Chair: From an £11M to £3.3BN gap; Has the EFL been left behind? | Ep.52
This week we’re delighted to welcome EFL Chair Rick Parry to the show. Rick has seen it all in football: The first CEO of the Premier League, CEO of Liverpool (1998-2009), and now Chair of English Football League. It can easily be argued that overseeing the interests of 72 clubs ranging from Leeds to Morecambe, is the hardest job in football.
But Rick would never look at it like that. When we asked why take this job now having been offered it in the past, he simply responded ‘because I believe I can make a difference’. Football in the UK is at an interesting junction; the Premier League has never been more successful, financially and engagement wise, but there are question marks over its long term stability. The EFL has recently agreed a mega £1bn broadcast deal with Sky with the quality of football on the rise, yet the financial chasm to the Premier only increases.
How do you make clubs sustainable businesses? How do you bridge the financial gap between the leagues? How do you protect a community’s most socially valuable asset? The challenge was laid out perfectly: ‘We want sporting jeopardy without financial catastrophe’.
Rick’s assessment of the health of the infamous football pyramid alongside the power of enterprise Premier League asks the key question: should the Premier League do more to support the football structure that enables its success?
---------------------------------------------------------------------------------
Timestamps:
(00:00) Intro
(02:54) The Relationship Between PL & EFL
(09:12) Is the Economic Chasm Unfair or Inevitable?
(13:00) How Does Football's Financial System Really Work?
(17:43) Solving Football's Financial Crisis: Beyond Inflated Costs
(22:05) Premier League's Obligation to the EFL
(29:07) The Premier League's Early Days: Signs of Future Challenges?
(34:02) Liverpool CEO: Balancing Club Interests with the Football League
(42:49) Media's Role in Football League Club Growth
(45:22) The Challenge of Governing 72 Clubs with Diverse Interests
(56:01) About Soaring Asset Prices of Football Clubs
(58:49) Open vs. Closed Leagues: Balancing Football's Value and Community
(01:00:11) Quick-Fire Round
---------------------------------------------------------------------------------
On today’s show we discuss:
1. Forming the Premier League:
- How was the world’s most successful league created in a few hours with a new set of groundbreaking regulations to govern it?
- The importance of the relationship with Sky in building a business model that supported the global growth of English football and its assets.
- How much money did the Premier League make compared to the EFL in the first season and what has that gap grown to now?
- What makes English football so unique and special compared to other leagues?
- The essence of the game is hope; anyone can reach the Premier League and anyone can win it. Rising through the pyramid (and falling down it) is the jeopardy we all want!
2. Financial Successes and Challenges:
- The Premier League was productised to create a marketable and best in class football product, but did Rick ever expect the gap to the EFL to be so big?
- How much does the EFL generate today and what does it need to do to ensure the sustainability of its 72 member clubs?
- “We must create sporting jeopardy without financial catastrophe”; why owner financing cannot be the model to build a club on.
- The Premier League makes £2.2bn more than any other League. Why does it need to be spending more money that it’s earning?
3. Distribution & Regulation:
- Should the Premier League be paying more money to the EFL to share in the spoil of the success it achieves as part of the English pyramid?
- Does football need an independent regulator? What would a regulator be able to do that the current governance structure is incapable of implementing?
- “You don’t need a parachute to fall off a step. You need a parachute to fall off a cliff”; Why parachute payments are a problem.
- The Premier League has chosen to spend £850m more on wages when the EFL asked for £300m to support their business. What does that mean?
---------------------------------------------------------------------------------
Subscribe on Spotify:
[open.spotify.com/show/1lD0eIjmkyr92VggxZmDuF?si=c0a7e9846a83476](open.spotify.com/show/1lD0eIjmkyr92VggxZmDuF?si=c0a7e9846a834767)7
Subscribe on Apple Podcasts:
podcasts.apple.com/gb/podcast/business-of-sport/id1690597762
Follow Harry Stebbings on Twitter:
HarryStebbings
Follow Charlie Stebbings on Twitter:
CharlieStebbs
Follow EFL on Twitter:
EFL
Follow Business of Sport on Instagram:
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Follow Business of Sport on TikTok:
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----------------------------------------------------
#businessofsport #charliestebbings #harrystebbings #rickparry #chair #efl #football #premierleague #budget
But Rick would never look at it like that. When we asked why take this job now having been offered it in the past, he simply responded ‘because I believe I can make a difference’. Football in the UK is at an interesting junction; the Premier League has never been more successful, financially and engagement wise, but there are question marks over its long term stability. The EFL has recently agreed a mega £1bn broadcast deal with Sky with the quality of football on the rise, yet the financial chasm to the Premier only increases.
How do you make clubs sustainable businesses? How do you bridge the financial gap between the leagues? How do you protect a community’s most socially valuable asset? The challenge was laid out perfectly: ‘We want sporting jeopardy without financial catastrophe’.
Rick’s assessment of the health of the infamous football pyramid alongside the power of enterprise Premier League asks the key question: should the Premier League do more to support the football structure that enables its success?
---------------------------------------------------------------------------------
Timestamps:
(00:00) Intro
(02:54) The Relationship Between PL & EFL
(09:12) Is the Economic Chasm Unfair or Inevitable?
(13:00) How Does Football's Financial System Really Work?
(17:43) Solving Football's Financial Crisis: Beyond Inflated Costs
(22:05) Premier League's Obligation to the EFL
(29:07) The Premier League's Early Days: Signs of Future Challenges?
(34:02) Liverpool CEO: Balancing Club Interests with the Football League
(42:49) Media's Role in Football League Club Growth
(45:22) The Challenge of Governing 72 Clubs with Diverse Interests
(56:01) About Soaring Asset Prices of Football Clubs
(58:49) Open vs. Closed Leagues: Balancing Football's Value and Community
(01:00:11) Quick-Fire Round
---------------------------------------------------------------------------------
On today’s show we discuss:
1. Forming the Premier League:
- How was the world’s most successful league created in a few hours with a new set of groundbreaking regulations to govern it?
- The importance of the relationship with Sky in building a business model that supported the global growth of English football and its assets.
- How much money did the Premier League make compared to the EFL in the first season and what has that gap grown to now?
- What makes English football so unique and special compared to other leagues?
- The essence of the game is hope; anyone can reach the Premier League and anyone can win it. Rising through the pyramid (and falling down it) is the jeopardy we all want!
2. Financial Successes and Challenges:
- The Premier League was productised to create a marketable and best in class football product, but did Rick ever expect the gap to the EFL to be so big?
- How much does the EFL generate today and what does it need to do to ensure the sustainability of its 72 member clubs?
- “We must create sporting jeopardy without financial catastrophe”; why owner financing cannot be the model to build a club on.
- The Premier League makes £2.2bn more than any other League. Why does it need to be spending more money that it’s earning?
3. Distribution & Regulation:
- Should the Premier League be paying more money to the EFL to share in the spoil of the success it achieves as part of the English pyramid?
- Does football need an independent regulator? What would a regulator be able to do that the current governance structure is incapable of implementing?
- “You don’t need a parachute to fall off a step. You need a parachute to fall off a cliff”; Why parachute payments are a problem.
- The Premier League has chosen to spend £850m more on wages when the EFL asked for £300m to support their business. What does that mean?
---------------------------------------------------------------------------------
Subscribe on Spotify:
[open.spotify.com/show/1lD0eIjmkyr92VggxZmDuF?si=c0a7e9846a83476](open.spotify.com/show/1lD0eIjmkyr92VggxZmDuF?si=c0a7e9846a834767)7
Subscribe on Apple Podcasts:
podcasts.apple.com/gb/podcast/business-of-sport/id1690597762
Follow Harry Stebbings on Twitter:
HarryStebbings
Follow Charlie Stebbings on Twitter:
CharlieStebbs
Follow EFL on Twitter:
EFL
Follow Business of Sport on Instagram:
bizofsport
Follow Business of Sport on TikTok:
www.tiktok.com/@bizofsport
----------------------------------------------------
#businessofsport #charliestebbings #harrystebbings #rickparry #chair #efl #football #premierleague #budget
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Cov fan here, wolves have had an unbelievable side in recent years, Rui Patricio Moutinho Neves Raul Dendonker Jota Neto Daniel Podence Trincao Gibbs White Vitinha Guedes I mean that front 3 right now Guedes Jota neto Would absolutely destroy teams.
Never understand why people would rather watch soccer than rugby. I think it’s just hype and traditional loyalties. No sense to me but I am not a Brit.
Ruined football you absolute idiots
Bring about change? It was all about money from the start. And you goons did it. So own it.
Good of them to include a bit about Quins in this podcast about Wolves.
Worth remembering, every one of the big 6 voted in favour of this but it was the greed 14 who refused to help the pyramid
Whole point of setting up the Premier Legate was not to have to pay the EFL!!
But this exactly what everyone said would happen at the time.
Because the prem is ran by greedy money grabbing bellends who don’t even like the sport
This is hilarious!!
I have never understood this. The premier league are a commercial entity as are the EFL why are would the Premier League give them £300 million. Coca Cola arent writing cheques to Pepsi.
Did you even listen to it? There’s a PYRAMID 😂! the top tricklesdown to keep the whole of English football healthy and sustain a future 👍
Your comparison makes no sense at all. Pepsi products don’t get sent to Coca Cola if they start selling well. They are completely different entities and competitors in the beverage industry. The championship and premier league, although different business with completely different structures, are part of the same football pyramid, and are forever entwined by the football clubs that serve within the pyramid. The top of the pyramid needs the rest of the pyramid to thrive in order to get the best product at the top. But the Premier League are too short sighted to see that the gap between the top and the rest is getting way too big
@devineboro98 look how many players get bought from small clubs for reasonable fee compared to foreign players. The efl ask to much
Introduce a salary cap , take all the players remove them from their current team and have a fantasy draft. Oh and best of all, remove all other leagues around the world and make everybody play in England. Now you have league 2 teams with great players and everything will be equal.
Very mature perspective - both Edou and the club - and frankly it was the right call he is better off in Saudi, building up longevity after injuries. No point getting battered for the premier league to not play; he already delivered so much in a short time
Pure greed, plain and simple.
Surely it’s on the lower leagues to market and sell their product more. ? If you make more money than me can you just send me a few quid because you are doing it better than me and it’s not fair.
@ I just mean with top level football in general Player Wages & the costs for fans are ridiculous
Agreed
He was the man behind the premier League beam him and he was the man behind big project
The english league forgets they could of been part of the financial stucture from day one, but the english leage snd FA though they could do better going on their own with the then new ITV digital, screened and BSB snd NTL cable, instead of gong with the premier League and the band new sky tv. Well itv digital didnt take off in the direction the English leagues hopped ,and sky ended up buying BSB a few years later, and itv digital sport died soon after. so sky ended up with the rights to both ventures. But the two leagues (prem and english) was never brought back together, as the FA didnt want to iirc.,so they lost on what they are crying about today. If they would of taken the deal in the early 90s, the lower devisions would of been floting iff premier league money, and we would probably have two whole devisions worth of clubs that could compete in Spain, Germany and france top divisions. As the drop down to the championship wouldn't be the financial hit it is today. Eitherway, they screwed themselves 32 years ago, when they thought they coudl make more money alone.
Please sir can we have some more
Yes.. absolutely agree. Cut down on the wages, buying prices and the ticket cost will drop too.. that will give more fans the ability to buy tickets again. So it will generate more revenue on the long run
Don’t whine if you can’t afford the modern price of modern soccer.
so less revenue will lead to more revenue? you have no clue mate😂😂😂
"Fans" no longer matter in the PL. Day tripping "customers" are better for revenue
@harry-r6r You have to spend money to earn money. Grow up young one
@@mortenfrosthansen84 you are saying to charge less to spend less. that’s not how it works in the modern football world. other clubs will want the maximum fee possible for their players. clubs will not just agree to all spend less on players to lower ticket prices
There are external pressure to contend with. The premier league needs to pay top players more money to stop them moving abroad. Any player who starts for a prem league team could get a move to a euppean Top flight side so it’s no wonder wages r going up
Shut up ya melt half the prem are dross
Warning: Following comment is a controversial comment. Do not start a war in replies. Dont read if you are very sensitive. READ AT YOUR OWN RISK Women, of recent times just are not good enough. They might still be great but they will never be as good as the f1 drivers today. You know why? Because women will never be stronger than men. Its a biological fact that women cannot be stronger than top level men.
The super league fixes it.
Williams has been on a decline since the early 2000s I think. Because of some poor management choices like letting go of Adrian Newey, there were some consequences. They then became midfielders challenging for podiums in the 2010s and are now back markers trying to exist.
Lesson for all those clowns from the sub continent. This is how interviews should be conducted. Ask the questions and take a back seat. Not suck off the interviewee or the interviewer jerk off in front of the interviewee like they do in India.
What they should do is bring in a rule prem clubs need to have a quota of football league players in their squad
Why? The football league decided it didn't want the premierleage SKY TVs money in 1992, when they signed deals with itv digital and BSB. Bsb got bought up by sky tv, and itv digital sport died not long after. (sky was different to bsb back then, I think BSB was larger for a short time, BSB had diamond shape dishes) Bsb was a solely subscription TV service where sky TV, had the fee to air. Channels plus it's 4 or 5 sky TV subscription channels. Them days sky had a total of about 8 or 9 channels. It soon jumped to about 500 channels of crap.
“Welcoming and fun” tell us truly about how great a captain Pat has become. A great jnspiration for me and all cricket fans
Im a racist & Xenophobe but can i see some more english players playing in PL?
so lucky to have this man at my club.
Almost word for word the same interview he did with Simon Jordan last year. It’s becoming a bit of an issue in the podcast world, guests just being recycled. I agree with a lot of what he says, however the regulator will be the death of the success the PL has brought to English football. The pyramid is key but the regulator isn’t the way. The FA should have been the regulator all along. They are the real bad guys here.
It’s not sustainable. It never has been. It’s not just a gulf issue between two separate leagues, the premier league bubble itself will one day burst. All the clubs will suffer it, but none more so than the smaller ones when the collapse eventually happens.
What a knowledgeable and articulate man. Amazing episode
Really, memory would suggest otherwise, re: LFC!
Very impressed by his command of the English language!
A lot of people spoke about this at the time and predicted it. A few books were written about it too so this is silly. Who would have thought exclusive tv rights and pumping insane amounts of money into the league would have done this..
Not an accountant but the maths ain’t adding up here
You're right you're not an accountant
By rigging it so certain teams like Leicester win to keep interest
How did they rig that?
Don't be stupid.
His comments on broadcasting was on the money. Rugby needs one broadcaster covering all leagues. Premier sports, TNT , I T V , Sky and BBC is horrible.
I wish the family was still involved. They always seemed to be willing to struggle and fight for every second, and do it honestly. That never seemed to change whether they were successful in staying in the top half at the time or not. I wish Claire was able to put a team together and go on racing. Just think if she was the VW or Cadillac principal. That would be amazing. She clearly has more to contribute on a high level.
Thank you an excellent discussion. from which I learnt a lot with a very interesting guest and some strong questions - well done
Not to mention the PL is 1 league.the EFL is 3 leagues
No it's not
Money ruined the game tbh
This man should not be allowed to touch anything ever again. You should be on the dole
What he didn’t expect was to give it to the hands of Rupert Murdoch now he regrets it He sees all the damage is done
Corrupt as fuck
What a tosspot
How?
Yeah you are mate
Are you dumb? He's just explained it so well.
Great episode lads, well done for getting Parry on and giving us football fans some great insight.
Claire is so kind here. Thanks for the interview.
Worst chairman ever
Why?
I’m literally a harlequins fan and a wolves fan!!!!!
Just trying to understand the concept of directors loans vs capital calls (which are not loans), in the US owner based loans are few. There is also a debt limit that leagues have, which is generally measured as a percentage against yearly turnover. So when you consider what Wasps turned over, they would not have been able to have 50M in loans, maybe 4M.
I’ve never heard such rubbish about regulation/a regulator!! IMO, GOVERNMENT INVOLVEMENT IN ANYTHING leads to failure!! I give you the NHS. Organisationally, and value for money, it’s the biggest 💩show on earth!! All governments do is find ways to extract more funds for themselves to WASTE!! Given the “great minds” that operate within football, allegedly, sort this crap out, outside of government intervention, FFS!! 🤬🤬
So underrated! Miss this guy 💙
Mr President what a pleasure and honour, for us in Saint-Étienne, to know the Man that leads us. May the Phenix be reborn of its ashes, and with our common community values, create a different and new brand of Football Club, with past, present and future values, and bright for all football fans and Les Verts amazing fan base and DNA. Mr Horenland style is brilliant and exciting, please support your great leadership team with the means to build the dream team, though transfer windows 🙏🏻❤️☺️🏆🙏🏻 A Stéphanois in Australia 🇦🇺