Six
English clubs which sparked uproar by secretly agreeing to play in a
European Super League are braced for showdown talks with the Premier League
next week over a punishment that could include forfeiting part of next
season's broadcast income.
Sky News has learnt that the clubs and English football's top flight will
hold talks in the coming days about fines totalling tens of millions of
pounds.
A source at one of the clubs said they understood that the Premier League
was debating penalties ranging from a single one-off fine to a smaller
immediate fine combined with a share of next season's broadcast income.
An initial proposal from the Premier League made earlier this month is said
to have comprised a £15m fine per club and a substantial - albeit suspended
- points deduction, the club insider said.
It was unclear this weekend whether any such points penalty could be part of
an eventual settlement, although the clubs are expected to vigorously oppose
any such attempt.
The club source added that negotiations were ongoing and were subject to
"meaningful change" before an agreement was reached.
Further talks are expected next week ahead of the Champions League final in
Portugal between Chelsea and Manchester City - two of the rebel clubs which
rapidly abandoned the ESL amid a huge backlash from rivals, fans and
politicians.
Arsenal, Liverpool, Manchester United and Tottenham Hotspur made up the
English contingent, with three clubs from Italy and Spain.
One idea that is expected to be discussed next week would involve an
immediate £1m fine and five per cent share of next season's Premier League
income - the same model agreed by European football's governing body with
the rebel clubs.
If the fines are agreed according to that blueprint, they could equate to
between £6m and £7.5m per club based on this season's expected broadcast
income at Manchester City, the Premier League champions.
In total, the pool of Premier League fines could exceed £40m, although the
final tally will depend on the structure and scale of the eventual
settlement, which could still be some weeks away.
That figure would increase if it also included a share of the additional
broadcast fees awarded to clubs this season because all games have been
shown live, and still further if the financial penalty included a share of
the league's central sponsorship income.
The Premier League announced earlier this month that it had reached
agreement with broadcast partners including Sky, the immediate parent of Sky
News, to renew its existing £4.7bn television rights deal for a further
three years.
Ministers have approved the move in principle because of the pandemic's
impact on clubs' finances.
The Premier League-imposed fines are likely to be larger in aggregate for
the English clubs than those levied by UEFA earlier this month.
European football's governing body announced a package of "reintegration
measures" for the nine clubs which agreed to pull out of the ESL during a
torrid 48-hour period at the end of April.
Including AC Milan, Inter Milan and Atletico Madrid, they agreed to pay a
collective €15m (£12.9m) to be invested in children's, youth and grassroots
football, with five per cent of their revenues from UEFA club competitions
being withheld for one season.
They also agreed to far larger future fines - totalling €150m - if they
breached commitments in UEFA's Club Commitments Declaration or signed up to
any similar breakaway format.
Barcelona, Juventus and Real Madrid have refused to abandon the ESL, raising
the prospect of their exclusion from next season's Champions' League.
Arsenal and Manchester United will have received relatively modest European
income this season as the Gunners failed to qualify for the Champions'
League, while United qualified but did not make it to the knockout stage and
had to join Arsenal in the Europa League.
UEFA has yet to say which season the five per cent revenue penalty will
apply to.
In an attempt to prevent future breakaway bids, the Premier League has
announced the creation of an 'Owners' Charter', which it said had the
Football Association's backing.
It added recently that the six clubs' participation in the ESL "had
challenged the foundations and resolve of English football".
The government is likely to welcome the move to punish the six, although it
is unclear whether the financial penalties imposed on them will simply be
redistributed among the other 14 top-flight clubs.
Confirmation of the ESL's existence, which came six months after Sky News
revealed key details of the project, sparked unprecedented protests against
the owners of many of the participating English clubs.
Arsenal have since received an unsolicited takeover bid from the Spotify
billionaire Daniel Ek, while Manchester United's largest shareholders, the
Glazer family, are facing increasingly vocal demands to relinquish control.
Executives from the six clubs have been removed from several Premier League
sub-committees - a move that could be reversed if they agree a financial
settlement.
A fan-led review of football governance has been commissioned by the
government under the leadership of Tracey Crouch, the former sports
minister.
Its panellists will include the chief executives of Everton and the Football
Supporters' Association.
The Premier League refused to comment on Saturday.
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