Oliver & Ohlbaum (O&O) is one of Europe’s leading independent policy and strategy advisors to the sports, media and entertainment industry.
Based on new detailed consumer research and an in-depth understanding of broadcaster and platform economics, O&Os analysis suggests:
• The UEFA Champions League should be slimmed down to a 24 club competition – with 20 out of the 24 clubs coming from Europe’s 5 largest national leagues – the EPL, La Liga, Serie A, the Bundesliga and Ligue 1. (Fans, from across the globe, think there are too many clubs in which they have no interest, in the current set-up).
• The overall uplift in media value on the current competition could be 40 per cent higher after two more 3-year rights cycles - allowing the top European clubs to keep the best players in the world, rather than risk losing them to developing leagues in Asia and the Americas.
• The Europa League would remain the main competition for top sides from the smaller European markets, and would benefit from a higher distribution of the total media value generated by the reformed Champions League. A more competitive competition with more of the top sides would enhance its appeal to fans.
• Matches should continue to be played midweek, with no need for weekend fixtures to avoid conflict with domestic leagues.
• There is a current window of opportunity to reform which UEFA must act upon or risk pushing the top European clubs further towards the proposals of third party agents.
The future of the Champions League is under scrutiny, with a new round of media rights to start in the next 6 months and the election of a new UEFA president in the coming weeks. The top European clubs are being approached by sports agencies who claim there would be more value for them in a separate ‘breakaway’ competition.
A new report by published by O&O today, entitled The UEFA Champions League: Time for a new formation, explores what really matters to fans, what the options are for UEFA and how great the opportunity is to extract more value. This is an update to the O&O report published in 1999 – Superleagues and Superclubs - compiled in response to the last serious attempt to lure top clubs into a superleague which influenced reforms by UEFA to Europe’s top competitions.
The report focusses on detailed consumer research carried out by O&O in 6 European markets and 2 global markets (USA and Singapore) on the fan appeal of the current Champions League format and the impact of changes to the number and quality of teams involved.
The biggest long term value uplift will come from outside of Europe where the big clubs and the competition will grow further in popularity. The only potential value drop is in smaller European markets, but these only represent about 15 per cent of current media value.
Champions League competition reform could benefit all levels of European football. A more compelling tournament for fans, higher revenues for clubs and the continuation of the European club hierarchy with UEFA at the top of the global game.
--------------------------------------------------------------------------------------------------------------------------------------------------- ABOUT OLIVER & OHLBAUM
• Established in 1995 and based in London, O&O has been an advisor to over 200 different clients on many of the major developments in the UK, European and global television, sport, publishing, and online markets.
• From supporting BT in their move into sport, to helping Discovery with their purchase of Olympic rights, we have been at the heart of the deals that have transformed sport over the last two decades.
