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The scoreboard turned 5 this week. We’ve been quick spot to see the difference from the first edition. At the time, the conversation was about when sports would return. The lockdown meant that most live-action films had been suspended worldwide.
Now is when sports may take their breath away. Less than a week after Paris Saint-Germain defeated Curtains in European football season with his Champions League victory in Munich. However, it’s only a week before the FIFA Club World Cup (now brought to you in a partnership with the Saudi Arabian Sovereign Wealth Fund) begins in Miami. How many will be adjusted or will they appear?
Many other things haven’t changed much. Superstar Athletes – We identified Roger Federer and Serena Williams in their first edition – increasingly embraced the role of investors. Meanwhile, Manchester City still defends allegations of financial misconduct (at the time it was against the European governing body UEFA).
What will the sports business look like in the future in five years? Will the city’s battle with the Premier League be resolved by then? And have we stopped stopping bolding all the appropriate nouns? Please let us know by emailing scoreboard@ft.com
This week we’ll share more about the money behind the NBA Finals and the Q&A with football that supports US US billionaires. Read it – Sports Business Correspondent Samuel Agini
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The NBA’s parity era: When Minnows Conquer
Big Fish, Small Pond: MVP Shai Gilgeous-Alexander©Imagn Images via Reuters Connect
Former NBA commissioner David Stern once said the league’s dream final was “(Los Angeles) Lakers vs. Lakers.” This is a (half) joke that reinforces the perception that the league prefers when the most recognised franchise is at its biggest stage.
But this year’s matchup between the two small market teams, the Oklahoma City Thunder and the Indiana Pacers, is not a disaster for the NBA. Instead, it points to the success of the league building an equal arena among the 30 franchises.
The 2025 final will win different champions for seven consecutive seasons. The German football league, which won 12 times in 13 years with the same club, may be seeing VY hope well. France, England and Spain aren’t that good.
The NBA’s current collective bargaining agreement (CBA), which began in 2023, includes measures to curb large spending teams that have blown past the league’s “soft” salary cap. “Softness” allows franchises to exceed limits through various exceptions, while paying so-called high-end taxes.
The GameChanger is a controversial “second apron” and a higher financial threshold with stricter rules designed to make creating super teams and dynasties difficult. Those who spend this season on a second apron set at around $189 million will face restrictions that severely limit their ability to add talent through deals with other teams, free agents or drafts.
The CBA has also introduced a pay cap “Smoothing” to prevent a significant annual increase in caps that could destabilise the free agency market. This happened infamously in 2016, when the cap surged 34% after the league agreed to a $24 billion media rights deal. This allowed the loaded Golden State Warriors team to sign superstar Kevin Durant to win another championship.
Neither the lightning nor the pacer is on top of the second apron. In fact, both teams’ salaries are below the current luxury tax standard of $171 million. This is rare among recent NBA champions.
Thunder in particular is packed with young and inexpensive talent, including 26-year-old Canadian Shy Gilgauss Alexander, who was crowned the league MVP. However, the bill starts with Gilgeous-Alexander, who qualifies for a “Super Max” contract extension, worth $293 million over four years.
The Boston Celtics, the reigning NBA champion, are warning stories. They built a roster around homemade stars Jason Tatum and Jalen Brown. He ultimately paid off with record multi-year contracts worth $314 million and $344 million respectively.
However, according to data website Spotrac, the team is about $20 million above the second apron. Celtics Governor WYC Grouseb recently sold team sales for a record $6.1 billion — says the roster is unsustainable. This raised expectations that Boston will trade key players from the championship team this summer.
The harsh reality of the CBA raises the question of whether parity will cause new problems for the NBA. TV viewers will likely decline in this year’s final. But this is probably less concern for the league that won an 11-year, $77 billion media rights deal last year.
Q&A: Atlanta’s big name hosting the World Cup
Atlanta United: Imaginary Images via Football Central ©Reuters Connect
Arthur Blank made his fortune at Home Depot. Success led him from his own retail to sports. The billionaire owns the Atlanta Falcons NFL franchise, which Sportico valued at $5.9 billion last year, and the $1 billion Atlanta United in Major League Soccer. Amb Sports and Entertainment, part of the Blank Family Family, also owns the 75,000-talented Mercedes-Benz Stadium, one of the host venues for FIFA’s Club World Cup and next year’s World Cup.
The scoreboard caught up in the blanks to talk about soccer, the World Cup and sports. The transcript has been edited for clarity and brevity.
Will the World Cup have a greater impact on American football than when the US held a competition in 1994?
Arthur Blank: Yes, I think so. Interest in sports continues to grow. Apple (broadcast partner) certainly has domestic exposure, but also a huge amount of exposure worldwide. I think we are moving in the right direction. We (MLS) have a very strong group of great commissioners, committed owners and we feel like we are in a good place.
What does soccer mean to you and how will a $50 million donation to US football help the game and MLS?
AB: It’s one of the reasons I love soccer, and that might be the most important reason why I love soccer. What I saw is that community gatherings that take place in the game are truly incredible. You see it at our stadium. My middle son has been playing soccer since he was five years old. Perhaps what makes it a beautiful game is that if you do, it brings a real sense of uniting such diverse groups and enjoying what is on the pitch and being together.
This national training center is available. . . With an emphasis on coaching and player quality, I think all of this keeps our young players here. It doesn’t happen overnight, but the direction moves like that. That’s another factor in why we continue to improve the quality of play we see across major league soccer.
Can MLS be comparable to the Premier League?
AB: The Premier League is clearly the number one league in the world. I think MLS will continue to invest in each league and by ownership.
The NFL is expanding internationally. Soccer is booming at home. Where do you think you’re going?
AB: Thomas Friedman writes that the world is flat. Maybe you can now politically argue that we are not acting that way, but beyond that, I say the world is flat.
From an NFL perspective, we see opportunities to continue to grow American football around the world. The acceptance we saw. . . It’s incredible.
I think American soccer will continue to grow. This year, they will be holding 25 or perhaps 30 soccer matches at the stadium, most of which are Atlanta United, but many of them are international. The Club World Cup will be held soon, and there will be the World Cup that will come here in 2026. You’re watching soccer at the highest level. That exposure continues to put pressure on major league soccer to improve the quality of play we see.
Please see here.
Highlights
PIF: Soccer Power ©Reuters
The Saudi Arabian Public Investment Fund signed up to sponsor FIFA’s Club World Cup a week before the new tournament begins in Miami. Aramco, the country’s oil producer, is already FIFA’s biggest commercial partner.
The British Football League billed Sheffield and Thailand owner Desiphong Changsiri on Wednesday.
The UK government is about to announce the proceeds from the sale of Chelsea FC to fund Ukrainian charity as it threatened legal action against Russian billionaire Roman Abramovich.
Hall of Fame NFL quarterback Payton Manning has invested in the Denver National Women’s Football League franchise. The two-time Super Bowl champion will join the ownership group, including the project level of IMA’s finance chief Rob Cohen and Ariel Investments, among other things.
Joe Mansueto is the founder of Financial Data Company MorningStar. He also owns the Chicago Fire Football Team. He is spending a lot of money on new stadiums for the soccer side of the major leagues.
Transfer Market
Tottenham Hotspur board member Donna Maria Cullen resigned 30 years later at the North London Club. Karen was an intimate ally of Daniel Levy of the Spurs chair and believed that he helped the club move to a £1 billion 62,850-man ability stadium. This is the latest major leadership change at Spurs after former Arsenal boss Vinai Venkatesham was appointed chief executive.
Aston Villa, a Premier League team owned by Nassef Sawiris and Wes Eden, has hired Juventus’ Francesco Calvo as the new president of business operations. He replaces Chris Heck, who heads to Saudi-backed Liv golf.
Final ticket gate
The English cricketer was meant to be oval for a match against the West Indies, but traffic was pretty bad. The only option was to jump off the bus and take an alternative mode of transport.
Check it out!
The scoreboard is written by Josh Noble and Samuel Agini of London, and features contributions from the due diligence newsletter, a global network of FT correspondents, and the team that generates the data visualization team. Edited by Gordon Smith, Benjamin Wilhelm and Lee Campbell Guthrie of London.
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