Harvard Case - The European Super League
"The European Super League" Harvard business case study is written by Chris Voss, Fabio Puntillo. It deals with the challenges in the field of Strategy. The case study is 13 page(s) long and it was first published on : Sep 30, 2021
At Fern Fort University, we recommend that the European Super League (ESL) reconsider its current strategy and restructure its proposed business model to address the concerns of stakeholders, including fans, players, and governing bodies. This restructuring should prioritize collaboration and integration with existing football structures, focusing on sustainable growth and value creation for all involved.
2. Background
The European Super League (ESL) was a proposed breakaway football competition involving 12 of Europe's most prominent clubs. It aimed to create a closed league, separate from existing UEFA competitions, with guaranteed participation for founding members. The ESL faced immediate and widespread backlash from fans, players, governments, and football governing bodies, ultimately leading to its collapse.
The main protagonists of the case study are:
- The 12 founding clubs: Real Madrid, Barcelona, Atl'tico Madrid, Juventus, Inter Milan, AC Milan, Manchester United, Manchester City, Liverpool, Arsenal, Chelsea, and Tottenham Hotspur.
- UEFA: The Union of European Football Associations, the governing body for European football.
- FIFA: The International Federation of Association Football, the global governing body for football.
- Fans: The core audience and stakeholders of the sport.
- Players: The athletes who compete in the sport.
3. Analysis of the Case Study
The ESL's failure can be analyzed through various strategic frameworks:
a) Porter's Five Forces:
- Threat of new entrants: High, as other clubs could potentially join the ESL, creating competition.
- Bargaining power of buyers (fans): High, as fans hold significant influence through their support and consumption.
- Bargaining power of suppliers (players): Moderate, as players can negotiate contracts and seek alternative opportunities.
- Threat of substitute products: Moderate, as other sports and entertainment options exist.
- Rivalry among existing competitors: High, as the ESL directly threatened the established UEFA Champions League.
b) SWOT Analysis:
Strengths:
- Brand recognition and global reach: The founding clubs have established brands and huge fan bases.
- Financial resources: The clubs possess significant financial resources to support the league.
- Potential for increased revenue: The ESL aimed to generate higher revenue through exclusive media rights and sponsorship deals.
Weaknesses:
- Lack of fan support: The ESL faced widespread opposition from fans who felt excluded and betrayed.
- Potential legal challenges: The ESL faced legal challenges from UEFA and FIFA, which could have hindered its operations.
- Limited competitive balance: The closed format could have led to a lack of competitive balance and reduced excitement.
Opportunities:
- Global expansion: The ESL could have expanded its reach to new markets, attracting new fans and sponsors.
- Technological innovation: The ESL could have leveraged technology to enhance the fan experience and generate new revenue streams.
- Strategic partnerships: The ESL could have formed partnerships with other organizations to create a more comprehensive ecosystem.
Threats:
- Competition from existing leagues: The ESL faced competition from established leagues like the Premier League and La Liga.
- Regulatory challenges: The ESL faced significant regulatory challenges from governing bodies and governments.
- Negative public perception: The ESL's perceived elitism and disregard for existing structures created negative public perception.
c) Value Chain Analysis:
The ESL's value chain was focused on generating revenue through media rights, sponsorship, and merchandise. However, it lacked a strong focus on fan engagement and community building, which are essential for long-term success in football.
d) Business Model Innovation:
The ESL's business model was based on a closed, elitist structure that disregarded the principles of meritocracy and competition that underpin football. This model failed to consider the broader ecosystem of the sport and its stakeholders.
4. Recommendations
To achieve long-term success, the ESL should:
- Re-evaluate its structure and governance: The ESL should consider a more open and inclusive model that allows for participation based on sporting merit.
- Prioritize fan engagement and community building: The ESL should invest in initiatives that connect with fans and build a sense of belonging.
- Collaborate with existing football structures: The ESL should work with UEFA and FIFA to find a mutually beneficial solution that benefits all stakeholders.
- Focus on sustainable growth and value creation: The ESL should prioritize long-term sustainability and value creation for all involved, including players, fans, and clubs.
- Embrace technological innovation: The ESL should leverage technology to enhance the fan experience, generate new revenue streams, and improve the overall quality of the sport.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The ESL should focus on its core competencies, such as delivering high-quality football and creating a compelling fan experience.
- External customers and internal clients: The ESL must prioritize the needs of fans, players, and clubs, recognizing their importance in the sport's ecosystem.
- Competitors: The ESL should acknowledge the competitive landscape and seek to differentiate itself through innovation, collaboration, and fan engagement.
- Attractiveness ' quantitative measures: The ESL should consider the financial viability of its proposed model, ensuring that it generates sufficient revenue to support its operations and create value for stakeholders.
6. Conclusion
The ESL's initial proposal was flawed and unsustainable, failing to consider the broader ecosystem of football and its stakeholders. By embracing a more collaborative and inclusive approach, the ESL can potentially achieve long-term success while contributing to the growth and development of the sport.
7. Discussion
Other alternatives not selected include:
- Continuing with the original ESL model: This would have likely led to further backlash and legal challenges, ultimately hindering the project's success.
- Merging with UEFA: This option could have provided a more integrated approach but would have required significant concessions from both parties.
Risks and key assumptions:
- Fan acceptance: The ESL's success depends on gaining fan acceptance and support.
- Regulatory approval: The ESL needs to navigate the complex regulatory landscape and secure approval from governing bodies.
- Financial sustainability: The ESL needs to generate sufficient revenue to support its operations and create value for stakeholders.
8. Next Steps
The ESL should:
- Form a working group with stakeholders: This group should include representatives from clubs, fans, players, and governing bodies.
- Develop a revised proposal: This proposal should address the concerns of stakeholders and outline a more sustainable and collaborative approach.
- Engage in dialogue with UEFA and FIFA: The ESL should seek to build a constructive relationship with governing bodies.
- Implement a phased rollout: The ESL should introduce its revised model gradually, allowing for feedback and adjustments.
By taking these steps, the ESL can potentially create a more sustainable and successful future for itself and for the sport of football.
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Case Description
This case study describes the situation three days after the ill-fated launch of the European Super League (ESL). It can be used in a number of ways. This includes exploring the differences between US sports business models and those of European football; the strategy of the ESL and the possible misjudgements that it made, the dynamics of competition at the top level of European football, the governance of football, and the growing role of media in sport
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