The Football Business Column: A Latest Update on Globalization in Football

Germany continues its rise 

At this point, we’re all well-versed in the global financial and marketing power boasted by the English Premier League, otherwise known as the Barclays Premier League: the long-term partnership with Barclays Bank has given England’s top flight plenty of commercial exposure and opportunities. Manchester United have led the way with the corporatization of English football, and are one of the only professional sports clubs (never mind in football) to have an international office.

But German powerhouses Bayern Munich are about to join them. It’s recently been confirmed that they’re about to start a New York office, with Pep Guardiola taking his squad to the US for friendlies and training camps next summer, with plans for an office in China to come. This comes on the heels of Bayern’s rapid ascension towards the “super-club” class in European football, as they vie to win the Champions League in two consecutive seasons.

Does this herald the arrival of the Bundesliga (or at least of the German football club) in the global footballing elite? Bayern are storming into that select category of storied, successful and rich football clubs, and with their recent announcements seem to be aiming for world domination. With the Bundesliga receiving plenty of positive coverage in the past few years on their financial sustainability, profitability, and most importantly the coexistence of commercial successes with the strong development of the German national team, Bayern are riding the waves.

And it’s not going to stop anytime soon. For all the plaudits that NBC have taken for their coverage of the Premier League this season, the higher-ups at the US broadcaster need to beware: Fox have agreed a multi-year deal with the Bundesliga to deliver coverage across North and South America, Europe and Asia. If this is the start of an exciting rivalry between the Premier League and the Bundesliga, then football fans only stand to benefit.

 

Liverpool break into the emerging markets

For all of the contrasting criticism and praise that John Henry and his Fenway Sports Group have had to endure in their stewardship of Liverpool, one unanimous agreement among all observers has to be that they’ve expanded aggressively on the commercial side of things. And the latest developments at Anfield show that not only do they have ambition to return to the top playing field in football, but they also have the financial and reputational clout that only the biggest clubs enjoy.

We’re talking of course about Liverpool’s recent academy ventures in both India and China, two of the world’s highest-profile emerging markets with fierce interest in football and populations to sustain growth and development. The phrase of choice is “market-leading development center for young players,” but the story for both the Indian and the Chinese academies is the same: It’s a chance to reach out to the young generation, improve football education and potentially unearth Liverpool’s first ever Asian superstar.

As ever in their coaching ventures, Liverpool will be working with local coaches and also adding a considerable portion of social education in the programs to develop youngsters as both human beings and footballers, but the underlying commercial opportunities scream out loud: a chance to secure a generation of kids as Liverpool fans, and the drooling prospect of shirt sales and marketing expansion with an Asian first-team player at Anfield.

With the success of Manchester City’s football school in Abu Dhabi, it seems that elite English clubs will continue their global expansion efforts, and Liverpool’s recent activities capture both the imagination of any football business fan and a fast-growing consumer base.

 

What happens when you put football with football?

By now, you’ve probably heard about the annual NFL games at Wembley, and Manchester City’s plan for MLS dominance with New York City FC. Put the US and two of the most popular and financially successful leagues in the world together, and you have a marketing bonanza, and that’s exactly what the Americans and the English have collaborated on and produced.

Except that it’s about to be taken to another level. Not only has new Fulham owner Shahid Khan considered playing an NFL game at Craven Cottage featuring the Jacksonville Jaguars (also under his ownership) in the future, but the NFL could even be exploring the possibility of opening a franchise in London. Which means that a London-based team could be competing in a league across the pond.

Even more interesting are the stadium plans associated with this global expansion of the NFL. Tottenham Hotspur, who have already been featured in a brilliant skit mocking football fans in America and American football this summer as part of NBC’s promotions for their Premier League coverage in the US, are reported to be interested in cohabiting a new stadium with said London NFL franchise.

This would mean that White Hart Lane Mark II (let’s call it that for now) would not only host two high-profile teams in two of the highest-profile sports in the world, but that it would immediately challenge Wembley’s status as the preeminent (only) American football stadium in London. Following the New York Yankees’ involvement with New York City FC and Manchester City, this latest reversal plan seems just to be the beginning of an intriguing soap opera.

 

This piece was part of my new biweekly column for SWOL.co, in which I discuss some of the latest news, trends and developments on the business side of football—everything including marketing, strategy, technology and finance.

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