Leicester City’s remarkable rise from the bottom of the Premier League last season to title winner has captured attention from around the world. With EPL fans and nonfans alike eager to root for the underdog in a league dominated by powerhouses Arsenal, Chelsea, Man City and ManU, the sporting world is basking in the glow of the club’s fairytale ending. But what is the business impact for Leicester City? How will this affect the global Premier League brand and what is the takeaway for EPL clubs on opposite ends of the spending spectrum? SBD Global asked Wasserman Media Group Exec VP Richard Motzkin, MP & Silva Founding Partner Carlo Pozzali and LFC Int’l Founder Jeff L’Hote about the kind of legacy they expect the club’s historic win will leave behind.
How unbelievable is Leicester City’s run?
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| Richard Motzkin |
RICHARD MOTZKIN, WASSERMAN: Leicester City’s storybook run to the EPL title truly is one for the ages. As a 5,000-1 longshot at the start of the season, and a club who almost was relegated at the end of last season, their likely championship ranks as one of the greatest sporting accomplishments ever. In context, it would be as if next season the Philadelphia 76ers ends up with the best record in the NBA and wins the championship after just having one of the worst seasons in NBA history.
CARLO POZZALI, MP & SILVA: It is certainly unbelievable but this is another example of how important two factors in life are: great motivation from a leader -- manager in this case -- and team work.
JEFF L’HOTE, LFC INT’L: Shocking.
What’s the long-term business impact for Leicester City?
MOTZKIN: Short-term there will be a lot of interest in Leicester City and certainly, a Hollywood movie made about their epic season. Long-term, Leicester City will need to continue to perform at a high level (i.e., play in European tournaments) and win championships in order to greatly increase their worldwide fan base and generate significant and sustainable economic benefits.
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| Carlo Pozzali |
POZZALI: We know that from a marketing point of view, a winning team is easier to market and to develop successful commercial strategy. But it takes years to build a strong international brand.
L’HOTE: The season has put Leicester on the global football map, few potential sponsors will not have heard their story, season ticket sales will increase, and players will see an opportunity to mimic the impact of [Riyad] Mahrez, [Jamie] Vardy, et. al.
How is this going to change the Premier League? What’s the legacy?
MOTZKIN: I believe Leicester City’s success this year has been awesome for the Premier League. Interest in the League has never been higher and to have a Cinderella team like Leicester break-through creates drama and provides hope for all clubs and their fans. And one of the legacies is that the structure of the current television deals is working in that by having revenue-sharing amongst all the EPL teams, it allows everyone to compete and not just believe that the title is ceded to one of a few teams at the start of the season.
POZZALI: Same as other European leagues, it already happened in the past that a “small” club won a domestic league. As said, it depends on how long Leicester City will last at top level; if they are going to keep a stable position among the top EPL teams that will be huge and it will inspire many other clubs. Also, it will be interesting to see how they’ll perform in next year's UEFA Champions League.
L’HOTE: Players and fans of every EPL team will believe that they can win the league when the season kicks off in August -- even if that will continue to be unlikely.
What does this say about the competitive level of the Premier League?
MOTZKIN: It is a highly competitive league with world-class players, and every game matters. And ultimately, whoever holds the trophy at the end of the year truly deserves it since they have sustained excellence over many months.
POZZALI: EPL is one of the most competitive leagues in the world. Leicester’s achievement is obviously quite a surprise; Premier League has been dominated in the last 20 years by three or four clubs. With motivation and hard work any team can have a chance to win.
L’HOTE: That their broadcast rights revenue distribution and financial fair play restrictions make EPL a more unpredictable and exciting league than any other in Europe.
Does this make smaller, lesser known clubs, even second division clubs, more interesting to investors and sponsors?
MOTZKIN: The revenues in the Premier League will continue to rise, as it is the most lucrative and most-watched football league in the world. As such, potential investors will continue to have a high interest (via purchasing existing EPL clubs or trying to have their lower division clubs promoted) and similarly, the cost of being relegated will be massive. Ultimately, it will be both an attractive but difficult proposition for those clubs who are at the bottom of the EPL or top of the Championship since the discrepancy and rewards beyond the two leagues are vast.
POZZALI: Hard to say; in terms of owning a team, in Europe we have had cases where investing in smaller clubs it’s been certainly positive; but also there was other examples where buying small entities has been a total failure. Sponsorship wise I would suggest to big brands a safe way to become a partner of a smaller team: paying fees with bonuses based on performances.
L’HOTE: Possibly, although the revenue increase for recent broadcast rights deals had already peaked global investor interest. Planning for promotion to EPL -- or banking on staying up -- is still an incredibly risky proposition and increasingly difficult task. For sponsors, longshots will still be judged more on global broadcast exposure than Cinderella story possibilities.
What is the message, if any, that this sends to the smaller clubs in the Premier League, and in other leagues around the world?
MOTZKIN: Just because you spend the most money, doesn’t mean you will have the best team. There are many factors that help a club succeed/maintain a high-level of success and building the right culture and investing in the right people -- both on- and off-the-pitch -- are sound, smart and ultimately, successful strategies.
POZZALI: Leicester is the proper example to follow: serious and reliable ownership; a motivated as well as humble manager; players keen to work in team, avoiding hard-to-manage superstars.
L’HOTE: Teamwork still counts for a lot.
Does this change the strategic thinking for the big clubs that spend millions in the transfer market each year?
MOTZKIN: You need the right balance of high-level investment in quality players and developing your own players/finding players that others may not access. The little things like scouting, team chemistry, off-field support, etc., go a long way toward making the big things happen. By example, one needs to look no further than Wasserman client and EPL Player of the Year Riyad Mahrez who was bought by Leicester City two years ago for $500k. Undoubtedly, this was one of the biggest bargains ever and demonstrates, among other things, that there are talented soccer players everywhere and there are many ways to build a winning organization.
POZZALI: Well, for sure Leicester has created some confusion on top team’s strategies. Interesting to see if this is going to push big clubs to make some relevant changes.
L’HOTE: Probably not. They’ll continue to have lots of money to spend.
