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Showing posts with label club. Show all posts
Showing posts with label club. Show all posts

Thursday, 25 January 2018

Men Only: Inside the charity fundraiser where hostesses are put on show

Madison Marriage in The Financial Times

At 10pm last Thursday night, Jonny Gould took to the stage in the ballroom at London’s Dorchester Hotel. “Welcome to the most un-PC event of the year,” he roared. 

Mr Gould — who presented Channel 5’s Major League Baseball show — was there to host a charity auction, the centrepiece of a secretive annual event, the Presidents Club Charity Dinner. 

The gathering’s official purpose is to raise money for worthy causes such as Great Ormond Street Hospital, the world-renowned children’s hospital in London’s Bloomsbury district. 

Auction items included lunch with Boris Johnson, the British foreign secretary, and afternoon tea with Bank of England governor Mark Carney. 

But this is a charity fundraiser like no other. 

Auction lots included a lunch with foreign secretary Boris Johnson and former England cricketer Ian Botham. 

It is for men only. A black tie evening, Thursday’s event was attended by 360 figures from British business, politics and finance and the entertainment included 130 specially hired hostesses. 

All of the women were told to wear skimpy black outfits with matching underwear and high heels. At an after-party many hostesses — some of them students earning extra cash — were groped, sexually harassed and propositioned. 

The event has been a mainstay of London’s social calendar for 33 years, yet the activities have remained largely unreported — unusual, perhaps, for a fundraiser of its scale. 

The questions raised about the event have been thrown into sharp relief by the current business climate, when bastions of sexual harassment and the institutionalised objectification of women are being torn down. 

The Financial Times last week sent two people undercover to work as hostesses on the night. Reporters also gained access to the dining hall and surrounding bars. 

Over the course of six hours, many of the hostesses were subjected to groping, lewd comments and repeated requests to join diners in bedrooms elsewhere in the Dorchester. 

Hostesses reported men repeatedly putting hands up their skirts; one said an attendee had exposed his penis to her during the evening. 

WPP, the FTSE 100 advertising conglomerate, sponsored a table at the event as it has in previous years. Martin Sorrell, chief executive, was not present this year — though he has attended in the past. 

Andrew Scott, its chief operating officer for Europe, hosted the table in his absence. Other table sponsors included CMC Markets, the UK-listed spread betting company, and Frogmore, the London-based real estate investment business. 

A seating plan for last week’s event seen by the FT listed those due to attend as including well-known British business figures such as Philip Green of Arcadia Group, Dragons’ Den star Peter Jones, and Ocado boss Tim Steiner. 

Financiers on the seating plan included Henry Gabay, founder of hedge fund Duet Group, and Makram Azar, the head of Barclays’ investment bank’s Middle East business. From the world of politics were Nadhim Zahawi, newly appointed undersecretary of state for children and families, and Jonathan Mendelsohn, a Labour peer and party fundraiser. It is not clear whether those listed all turned up on the night. 

The comedian David Walliams was the host for the evening. Previous attendees have included Michael Sherwood, a former vice-chairman of Goldman Sachs, and Poju Zabludowicz, a Finnish real estate billionaire and Conservative party donor. 

Current and past supporters provide a roll call of British wealth and business influence: patrons include high-end developer Nick Candy; former Formula 1 magnate Bernie Ecclestone; and TV presenter Vernon Kay. CMC Markets founder Peter Cruddas is also a regular attendee. 

The event has a laudable fundraising aim with prestigious prizes offered for auction. During the three decades The Presidents Club has been running, it has raised more than £20m for charity. Thursday’s event alone raised more than £2m. 

The organisation’s charitable trust has two joint chairmen: Bruce Ritchie, a Mayfair property developer who founded Residential Land, and David Meller, from the luxury good specialist Meller Group, who also sits on the board of the Department for Education and the Mayor’s Fund for London. 

But the auction offers a hint of the evening’s seedier side. Lots included a night at Soho’s Windmill strip club and a course of plastic surgery with the invitation to: “Add spice to your wife.” 

The accompanying brochure included a full-page warning that no attendees or staff should be sexually harassed. The glossy auction catalogue distributed to attendees during the evening included multiple images of Marilyn Monroe dressed in revealing, tight dresses. 

The nature of the occasion was hinted at when the hostesses were hired. The task of finding women for the dinner is entrusted to Caroline Dandridge, founder of Artista, an agency specialising in hosts and hostesses for what it claims to be some of the “UK’s most prestigious occasions”. 

At their initial interviews, women were warned by Ms Dandridge that the men in attendance might be “annoying” or try to get the hostesses “pissed”. One hostess was advised to lie to her boyfriend about the fact it was a male-only event. “Tell him it’s a charity dinner,” she was told. 

“It’s a Marmite job. Some girls love it, and for other girls it’s the worst job of their life and they will never do it again . . . You just have to put up with the annoying men and if you can do that it’s fine,” Ms Dandridge told the hostess. 

Two days before the event, Ms Dandridge told prospective hostesses by email that their phones would be “safely locked away” for the evening and that boyfriends and girlfriends were not welcome at the venue. 

The uniform requirements also became more detailed: all hostesses should bring “BLACK sexy shoes”, black underwear, and do their hair and make-up as they would to go to a “smart sexy place”. Dresses and belts would be supplied on the day. 

For those who met the three specific selection criteria (“tall, thin and pretty”) a job paying £150, plus £25 for a taxi home, began at 4pm. 

The backgrounds of the dozen or more hostesses met by reporters were varied: many were students, hoping to launch careers as lawyers or marketing executives; others juggled part-time jobs as actresses, dancers or models and did occasional hostessing work to make ends meet. 

Upon arrival at the Dorchester, the first task given to the hostesses was to sign a five-page non-disclosure agreement about the event. Hostesses were not given a chance to read its contents, or take a copy with them after signing. 

At first, hostesses were assembled in the Dorchester’s Orchard Room, where a team of hair and make-up artists prepped women for the evening ahead. During the pre-event preparations, some of the women new to hostess work sought advice from those with more experience. The feedback was mixed. 

A number of the hostesses seemed excited about the evening ahead. It was a fun night, they said, especially as — unlike most hostessing assignments — you could drink on the job. 

One experienced hostess acknowledged that a portion of the men were likely to be “arseholes”, but said others were “hilarious”. “It really depends on the luck of the draw,” she added. 

Others were more apprehensive. One woman who had last worked at the event five years ago sighed to herself: “I can’t believe I’m here again.” 

Towards 7pm, during a staff buffet dinner, Ms Dandridge entered wearing a smart black suit and gave a briefing; she said if any of the men became “too annoying”, the hostesses should contact her. 

Hostess uniforms were distributed — short tight black dresses, black high heels and a thick black belt resembling a corset. Once dressed, the hostesses were offered a glass of white wine during the final countdown to their entrance into the ballroom. 

As the 8pm start time approached, all of the hostesses were told to form two lines in height order, tallest women first, ready to parade across the stage as music began to boom across the venue: “Power”, by British girl band Little Mix. 

Entering in twos from opposite sides on to a stage positioned at the front of the ballroom, hostesses presented themselves to the men before walking towards their allocated tables alongside dinner guests. This continued until all 130 women were spread across the room. 

With the dinner properly under way, the hostess brief was simple: keep this mix of British and foreign businessmen, the odd lord, politicians, oligarchs, property tycoons, film producers, financiers, and chief executives happy — and fetch drinks when required. 

A number of men stood with the hostesses while waiting for smoked salmon starters to arrive. Others remained seated and yet insisted on holding the hands of their hostesses. 

It was unclear why men, seated at their tables with hostesses standing close by, felt the need to hold the hands of the women, but numerous hostesses discussed instances of it through the night. For some, this was a prelude to pulling the women into their laps. Meanwhile champagne, whisky and vodka were served. 

On stage, entertainers came and went. It was soon after a troupe of burlesque dancers — dressed like furry-hatted Coldstream Guards, but with star-shaped stickers hiding nipples — that one 19-year-old hostess, recounted a conversation with a guest nearing his seventies: who had asked her, directly, whether she was a prostitute. She was not. “I’ve never done this before, and I’m never doing it again,” she said later. “It’s f***ing scary.” 

According to the accounts of multiple women working that night, groping and similar abuse was seen across many of the tables in the room. 

Another woman, 28, with experience of hostess work, observing the braying men around her said this was significantly different to previous black tie jobs. At other events, men occasionally would try to flirt with her, she said, but she had never felt uncomfortable or, indeed, frightened. 

She reported being repeatedly fondled on her bottom, hips, stomach and legs. One guest lunged at her to kiss her. Another invited her upstairs to his room. 

Meanwhile, Artista had an enforcement team, made up of suited women and men, who would tour the ballroom, prodding less active hostesses to interact with dinner guests.

Outside the women’s toilets a monitoring system was in place: women who spent too long were called out and led back to the ballroom. A security guard at the door was on hand, keeping time. 

At 10pm, the main money-raising portion of the evening got under way: the charity auction, where the lots on offer ranged from a supercharged Land Rover to the right to name a character in Mr Walliams’ next children's book. 

Richard Caring, who made his fortune in the retail sourcing business before scooping up a long list of London’s most fashionable restaurants, including The Ivy and Scott’s, rounded off the money-raising portion of the evening with a successful £400,000 bid to place his name on a new High Dependency Unit at the Evelina London children’s hospital for sick children. 

It was a moment of respite for the women, most of whom had been allowed to return to the Orchard Room. Some were excited to have been offered jobs by men in the room. Others had been offered large tips, which they had been obliged to decline. One woman struggled to re-apply her eyeliner. “I’m so drunk,” she said apologetically, blaming tequila shots at her table. 

The women filed back into the ballroom at 11pm for the final hour of the main event, which would be followed by an “after-party” elsewhere in the hotel. 

Most hostesses had been told they would be required to stay until 2am. One was told that this final leg of the evening offered a chance to drink what she wanted and seek out those men she found “most attractive”. 

The after-party was held in a smaller room off the main lobby at the Dorchester, packed tight with guests and women. 

According to the 28-year-old hostess, while men danced and drank with a set of women on one side of the room, a line of younger women were left seated on a banquette at the back of the room, seemingly dazed. “They looked shocked and frightened, exhausted by what had happened,” she said. 

Meanwhile, in the centre of the room, Jimmy Lahoud, 67, a Lebanese businessman and restaurateur, danced enthusiastically with three young women wearing bright red dresses. 

“You look far too sober,” he told her. Filling her glass with champagne, he grabbed her by the waist, pulled her in against his stomach and declared: “I want you to down that glass, rip off your knickers and dance on that table.”

In a statement the Dorchester said it had a zero-tolerance policy regarding harassment of guests or employees. “We are unaware of any allegations and should we be contacted we will work with the relevant authorities as necessary,” it said. 

The Presidents Club said: “The Presidents Club recently hosted its annual dinner, raising several million pounds for disadvantaged children. The organisers are appalled by the allegations of bad behaviour at the event asserted by the Financial Times reporters. Such behaviour is totally unacceptable. The allegations will be investigated fully and promptly and appropriate action taken.” 

Ms Dandridge of Artista stated: “This is a really important charity fundraising event that has been running for 33 years and raises huge amounts of money for disadvantaged and underprivileged children’s charities. There is a code of conduct that we follow, I am not aware of any reports of sexual harassment and with the calibre of guest, I would be astonished.” 

None of the trustees of the charity provided a comment for publication. 

Harvey Goldsmith, a former trustee, said he was “gobsmacked” by the accounts of sexual harassment taking place at the event. “I’m totally shocked to be quite frank,” he said. 

The BoE said: “The Bank of England did not approve any prize for auction on the occasion described nor would it have for that organisation under its guidelines for charitable giving.” 

Mr Walliams declined to comment. 

Mr Caring said he “was not aware of any of the alleged incidents”. 

Barry Townsley, a well-known stockbroker and lifetime president of The Presidents Club who helped to set up the charity, said he had not attended the dinner for a decade. He added that it was previously “very nice and civilised” and a “mild-mannered charity”. “What goes on now is not my business,” he said.

Wednesday, 4 January 2017

Supreme Court brings Indian cricket into the 21st century

Suresh Menon in The Hindu


The world’s most successful secret society has been given a lesson in transparency and that is cause for celebration.

No tears need be wasted on the panjandrums who have been running the Board of Control for Cricket in India and its State associations like personal fiefdoms.

The Supreme Court finally reeled in the long rope it had given the BCCI, and so tripped up its senior officials. If there was contrition among the officials, these remained unexpressed. Yesterday’s powerhouses will be tomorrow’s forgotten men, their frown and wrinkled lip and sneer of cold command erased forever.

Inevitably, some good men will be thrown out with the bad, and there will be much churning as the old order makes way for the new. The saner elements of the board will wonder if it had to come to this, when, with greater maturity and common sense, the BCCI might have emerged with some dignity.

For the BCCI brought about its own downfall, aided by nothing more than its hubris and cavalier disregard for the laws of the land. You cannot ignore a Supreme Court judgement, as the BCCI did, and hope that nothing will change. It wasn’t just arrogance, it was foolishness of the highest order.

Would past presidents like Chinnaswamy and Sriraman, Gaekwad and Bindra, Dungarpur and Dalmiya have allowed things to come to this pass? It is convenient to believe they wouldn’t. But there is false memory at play here, a harking back to a golden era that never existed. Ghulam Ahmed, former off spinner and board vice-president, put it succinctly, “There are no values in the board.”

The Anurag Thakurs and Ajay Shirkes are paying the price for the culture that men like those mentioned had brought into the BCCI. These men ran the best sports body in the country, and somehow believed that they had a divine right to do so. Players kowtowed to them, politicians and businessmen chased them, and they clung on to power with a touching desperation.

The current dispensation extended that culture and refined it. They, like their predecessors, failed to understand the connection between actions and consequences.

At any time in the BCCI’s eight-decade history, the Supreme Court could have stepped in and ruled as it did now. Accountability and transparency were never in the BCCI’s handbook for officials, but public scrutiny was not as intense as it is now, and in some cases the good that an official did outweighed the bad, and all was forgiven.

Brinkmanship — a tactic much favoured by the BCCI to bring other cricket boards and indeed the International Cricket Council to its knees — is not a strategy guaranteed to impress the Supreme Court. That the highest court gave the BCCI more than six months to comply with its order when it could have acted even as deadlines were ignored is a testimony to its benevolence.

But how did a three-time Member of Parliament, which is what Anurag Thakur is, and sundry other luminaries, misjudge the seriousness of the situation? Was this a proxy war fought on behalf of his political masters by Thakur, or was the board, recognising the inevitable, preparing for a scorched earth response? The first will have to remain in the realm of speculation till a lead actor in the drama spills the beans. We shall soon know about the second.

The BCCI’s death wish has been one of the features of the whole saga. Thakur came in as the bright, young face of the board. There was an energy about him which makes his fall a disappointment. At 42 he was the man who replaced the old guard. Yet, within weeks, the cozy club he had tried to break up when N. Sinivasan was in charge, quickly reshaped itself into a new cozy club.

His fall is a cautionary tale for those who set out to change the system but is absorbed by it. The Supreme Court’s ruling will also impact other sports which have been resisting change like the BCCI. And that is good news for Indian sport.
The domestic season has been unaffected by the BCCI’s problems. This has been the case traditionally, and is one of the true blessings of Indian cricket. There are enough dedicated officials to ensure that the show goes on.

A generational change has been forced upon the BCCI, which is otherwise happy to continue with sons and nephews (never daughters and nieces) and other relatives keeping everything in the family.

Now State associations will have to change their registrations where necessary, holding general body meetings in order to advance this. Legal procedures need to be followed. There is a temptation to believe that cricketers make the best administrators. This is a common fallacy. There are cricketers who have made excellent administrators, but being able to play the square cut is no guarantee of managerial skills. The names of corrupt cricketer-officials are well known.

There is a long road ahead, mostly uncharted. But a start has been made. The new system may not be perfect, but it is better than the old one. Accountability ensures that.

Monday, 23 June 2014

Cricket to become a private club

Daniel Brettig in Cricinfo

Melbourne is something of a Mecca for private members clubs. From the Melbourne Club and the Australian Club to the Kelvin Club and the Melbourne Cricket Club itself, the private meetings of well-heeled businessmen in wood-panelled dining rooms by open fires, all members by invitation only, are part of the fabric of the city. On Albert Street in East Melbourne the United Grand Lodge of Victoria stares forbiddingly down towards the MCG - who can forget that Sir Donald Bradman was himself a Freemason?
So it is entirely fitting that international cricket's redefinition as a private club, with the BCCI's banned board president N Srinivasan crowned as its omnipotent chairman, will take place in the MCC Members Dining Room this week. Since 1877 the MCG has hosted all manner of cricketing feats, but not since that first Test match between Australia and England has it been the scene of a more significant moment than this.
A re-shaping of the international game that began more or less in secret, during meetings between Srinivasan, the ECB chairman Giles Clarke and the Cricket Australia chairman Wally Edwards over the past two years, will reach fruition at the ICC's annual conference. While the broad resolutions for the new landscape have been known since January, their inking into law will be the point of completion, and some contemplation. There can be no going back from here.
After Thursday's centrepiece conference meeting the ICC's constitution will be changed drastically, setting up the boards of the "big three" nations as commercially-motivated navigators for cricket, and abandoning much of the expansionist vision favoured by ICC management in recent years. Instead the game's current balance of power will be definitively entrenched, as India, England and Australia take a larger slice of revenue from ICC events in addition to their existing windfalls from bilateral tours.
The game's most influential decision-making will no longer take place at the executive board table but at the more exclusive meetings of ExCo, the five-member working group that will have UN security council-styled permanent membership for the BCCI, ECB and CA. Edwards will chair ExCo for one year and his CA successor David Peever, the next. Clarke is already head of the ICC's finance committee, and Srinivasan's coronation will complete the triumvirate.
Srinivasan's ascension will take place despite the reservations of many. The Supreme Court of India has barred Srinivasan from his duties as BCCI president while the investigation into corrupt activities around the IPL and Chennai Super Kings is ongoing: members of the ICC's executive board have personally expressed to him their preference for Srinivasan to refrain from taking the international post until it has concluded. The conflict of interest inherent in Srinivasan's ownership of Super Kings alongside his cricket administration has also been mentioned, but always excused by the fact the BCCI allowed it.
Chief among those expressing caution has been Edwards, an architect of vast governance change at CA but compelled to work more pragmatically at the ICC. Earlier this month he reportedly called Srinivasan to discuss the implications of his appointment as chairman while still under investigation, and to seek reassurance that there would be no surprises later on if he did take up the post this week. The image of President Nixon's second inauguration playing on a newsroom television at the Washington Post while Woodward and Bernstein tap out the stories that will lead to his resignation spring to mind.
"We respect the right of each nation to nominate their representative on the ICC," Edwards said ahead of the conference. "With that comes great responsibility to ensure representatives comply with the standards required to govern the game. I have been assured by Mr Srinivasan, legally and by ICC management that there is nothing preventing the BCCI putting him forward as a candidate for chairman. I accept that and am confident that Mr Srinivasan can play an important role in strengthening world cricket."
Edwards is well aware of said standards as the primary author of a new ethics code for the ICC board and administration, a document broader in some senses but more restrictive in others. Accusations against members can now only be made by fellow signatories of the code, a change that underlines the shift to private membership values as much as anything else. The responsibilities of members to act in the best interests of the ICC itself have been stripped away, instead they will be freed up to do whatever their own countries would best prefer, formalising a mindset of self-interest that has long existed. Should Srinivasan be removed in the future, it will be under the terms of this code.
But Srinivasan is nothing if not determined, and in repeatedly asserting his innocence of any wrongdoing has persuaded the executive board, the BCCI and the Supreme Court that allegations of major impropriety should not stop him from taking the role. India's administrators seem largely content to allow Srinivasan to represent them overseas, while there appears to be little will to prevent his coronation in Melbourne - a repeat of the John Howard coup de'tat at the 2010 conference in Singapore looks unlikely.
As significant as the unveiling of the new chairman will be the long-delayed and much debated signing of the Members Participation Agreement for ICC events. This document, and the BCCI's refusal to sign it until the shape of the game was changed to reflect its view of the world and financial contribution to it, was the catalyst for cricket's current direction. There will be little fanfare around the boards putting pen to paper, but the gravity of the moment will not be lost on those in the room.
Elsewhere the game's Associate and Affiliate members will be forced to swallow numerous changes, including a raising of the bar in terms of membership criteria, and the loss of the revenue they will gain from ICC events relative to the old structure. The carrot of Test match participation will be dangled, but only over the course of an eight-year cycle. World Cup participation is also set to be restricted, as the tournament reverts to a 10-team model after next year's edition in Australia and New Zealand.
Other vestiges of earlier attempts by ICC management to broaden the game will be removed. A report into the possibility of cricket at the Olympics will be tabled, confirming why it will never happen so long as India and England have anything to do with the decision. The ACSU, cricket's independent watchdog for corruption, will soon be asked to report not to the ICC chief executive but to ExCo and the executive board. Whatever the current chairman Sir Ronnie Flanagan has said about preserving the unit's independence, the new model cannot be said to have done so.
Finally, after the conference concludes, members will sit down to the serious business of their first committee and board meetings under the new structure. Friday and Saturday will be taken up by the first acts of the new order, as Srinivasan, Edwards and Clarke chair the meetings of the private members club they have created. There will be no funny hats or ancient robes, but the tone, form and function of cricket's governance will reflect nothing so much as the clubs of Melbourne and beyond. The words of the Stonecutters' anthem immortalised by The Simpsons will seem a fitting accompaniment:
Who controls the British crown? Who keeps the metric system down? We do, we do!
Who keeps Atlantis off the maps? Who keeps the Martians under wraps? We do, we do!

Monday, 3 December 2012

Borussia Dortmund boss attacks Premier League's oligarch owners

 

• Chief executive says English game is losing its soul
• Germany's cheap tickets and standing areas show the way
Dortmund supporter
Borussia Dortmund's chief executive, Hans-Joachim Watzke, says that links between fans and clubs in Germany are now stronger than they are in England. Photograph: Gary Calton for the Guardian
 
The chief executive of Borussia Dortmund, who play Manchester City in the Champions League on Tuesday, has launched a passionate defence of German football principles and attacked English clubs' ownership by rich men from overseas.

Hans-Joachim Watzke described German football as "romantic" for retaining its "50% plus one" rule, which requires Bundesliga clubs to be owned by their members. He questioned the ethos and sustainability of Premier League clubs' ownership, including City being owned and funded by Sheikh Mansour of Abu Dhabi.

Of City, a club he visited for last month's 1-1 draw in the first match between the two, Watzke said: "I am a little bit romantic, and that is not romantic. In England people seem not to be interested in this – at Liverpool they are fine for the club to belong to an American. But the German is romantic: when there is a club, he wants to have the feeling it is my club, not the club of Qatar or Abu Dhabi."

Watzke was a prominent supporter of the 50% plus one rule when it was challenged last year by Martin Kind, the president of Hannover. Dortmund are floated on the stock market, but the members elect the president and four members of the club's supervisory board – and also vote to decide major issues of club policy.

"I was the biggest opponent of changing the rule," Watzke said in an interview with the Guardian at Dortmund's Signal Iduna stadium in the build-up to the City match. "Germans want to have that sense of belonging. When you give [the supporters] the feeling that they are your customers, you have lost. In Germany, we want everybody to feel it is their club, and that is really important."

All 36 Bundesliga clubs are owned or controlled by their members, except the historic exceptions of Wolfsburg, owned by Volkswagen, Bayer Leverkeusen, owned by the pharmacy giant Bayer, and Hoffenheim, which is now funded by a single very wealthy entrepreneur, Dietmar Hopp.

Apart from those three and Kind's Hannover, the remaining 32 voted to keep the 50% plus one rule, which was introduced in 2001 when the Bundesliga clubs broke away to run the league competition independently from the German Football Association, the DFB.

"In former times in England I think the relationship between the club and supporters was very strong," Watzke argued. "Our people come to the stadium like they are going to their family. Here, the supporters say: it's ours, it's my club."

Watzke, himself a lifelong supporter of Dortmund, who drew 1-1 with runaway Bundesliga leaders Bayern Munich on Saturday, linked the system of member-ownership and control to the maintenance of affordable tickets and standing areas at top flight German football.

At Dortmund, the 25,000 fans who form the famous "Yellow Wall" standing area in the Signal Iduna stadium's south stand pay just €190 (£154) for a season ticket for the 17 home Bundesliga matches. Season tickets that also include entry to the first three Champions League group games cost slightly more at €220, working out at exactly €11 for each match.

"Here, it is our way to have cheap tickets, so young people can come," Watzke said. "We would make €5m more a season if we had seats, but there was no question to do it, because it is our culture. In England it is a lot more expensive. Football is more than a business."

Watzke argued that Dortmund, who top the group of City, Real Madrid and Ajax while the English champions cannot qualify for the knockout stages, have been able to compete with such clubs thanks to sensible management, coaching and player recruitment, despite not having the resources of a rich individual such as Sheikh Mansour backing the club.

"Everybody told me you cannot play in the Champions League against clubs like Manchester, they have more money. But we are trying to do it ourselves, in our way.

"There are a lot of ways to Rome," he said. "Chelsea have won the Champions League. But Chelsea's question is: what happens after [Roman] Abramovich?"

Wednesday, 19 October 2011

In the Premier League the endgame of rampant capitalism is being played out


An unsustainable system where the rich win and the poor go to the wall. We see it in English football – and beyond
  • belle mellor
    Illustration by Belle Mellor
    It's a newspaper convention that the front and back pages are a world apart, as if news and sport inhabit two different spheres with little to say to each other. Indeed, it used to be an article of faith that "sport and politics don't mix", with the former no more than a form of escapism from the latter. And yet the Occupy Wall Street and London Stock Exchange protests that led the weekend news bulletins might not be entirely unrelated to the Premier League results that closed them. For the current state of our football sheds a rather revealing light on the current state of both our politics and our economy. Or, as one sage of the sport puts it: "As ever, the national game reflects the nation's times."
    What that reflection says is that Britain, or England, has become the home of a turbo-capitalism that leaves even the land of the let-it-rip free market – the United States – for dust. If capitalism is often described metaphorically as a race in which the richest always win, football has turned that metaphor into an all too literal reality.
    Let's take as our text a series of reports written by the sage just quoted, namely the Guardian's David Conn, who has carved a unique niche investigating the politics and commercialisation of football. Conn elicited a candid admission from the new American owners of Liverpool Football Club, who confessed that part of the lure of buying a stake in what they called the "EPL" – the English Premier League – was that they get to keep all the money they make, rather than having to share it as they would have to under the – their phrase – "very socialistic" rules that operate in US sport. In other words, England has become a magnet for those drawn to behave in a way they couldn't get away with at home.
    Start with first principles. Of course, inequality is built into sport: some people are simply stronger or faster than others. What makes sport compelling is watching closely matched individuals or teams compete to come out on top.
    But a different kind of inequality matters too: money. A rich club can buy up all the best players and win every time. That's the story of today's Premier League, as super-flush Manchester United sweep all before them, challenged only by local rivals Manchester City – now endowed by an oil billionaire – and Chelsea, funded to the hilt by a Russian oligarch. This, then, becomes a different kind of competition, a battle not of skill, pace and temperament but of pounds, shillings and pence. The clearest manifestation of that came at the close of the transfer window, when the biggest teams splashed out millions to buy the top talent. It means the half-dozen top sides, already at a different level from the rest, soared even higher towards the stratosphere and out of reach – in just the same way that the super-rich float ever further away from everyone else, the 1% in a different league from the 99%, as the Occupy protesters would put it.
    Nothing you can do about that, says dogmatic capitalism. You can no more stop the richest teams dominating football than you can prevent the fastest sprinter winning gold. That's the force of the market, all but a law of nature.
    Except along comes American sport to show us another way. First, there are those rules on revenue-sharing that so frustrated Liverpool's new owners. All the money that, say, a baseball team makes – from tickets, TV rights and merchandise – is taxed by the major league that runs the sport and spread around the other clubs, so that the richest cannot dwarf the rest. That isn't because the titans of Major League Baseball have read too much Marx. It's because they understand that their sport is worth nothing if it stops being a real competition, if only a handful of the wealthiest teams ever have a chance of winning. Redistributing the wealth around the league ensures their sport doesn't become boring. It does not level the playing field, but it comes very close.
    The proof is in the stats so beloved of sporting obsessives. Over the past 19 seasons, 12 different teams have won baseball's biggest prize. In the 19 seasons since the Premier League was created, only four teams have won; Manchester United alone have won the title 12 of those 19 times.
    It's not just revenue-sharing that ensures true competition. In American football and basketball a salary cap applies, limiting how much each club can pay in wages and thereby preventing the richest teams making their domination permanent by snapping up all the best players. (A "luxury tax" performs a similar function in baseball.) In the same spirit, teams in all major US sports submit to a "draft", in which they take turns picking from a pool of newly eligible players, so that the equivalent of Chelsea or Manchester City can't gobble up all the fresh talent, but instead have to let the Blackburns or Wigans have a go.
    Put like that, it seems fantastical. Who can imagine Old Trafford voluntarily snaffling less of the pie, so that clubs in smaller cities with smaller grounds, and therefore weaker gate receipts, get a look in? And yet English football used to work just like that. When the founders of the Football League gathered in a Manchester hotel in 1888, they fretted over how they might ensure that a fixture between, say, Derby County and Everton remained a real contest. They agreed the home side should give a proportion of its takings to the visitors, a system that held firm till 1983.
    Clubs shared the TV money when it came too, spreading it around all 92 league clubs. But the big teams always resented subsidising the minnows; indeed, the Premier League was formed out of the biggest 20 clubs' express desire to keep Rupert Murdoch's millions for themselves. That TV money is at least partly spread throughout the Premier League, but now there are noises about ending even that small nod towards wealth-sharing, so that the biggest half-dozen teams can keep every penny for themselves.
    Not for the first time, it's fallen to Europe to act. Upcoming Uefa "financial fair play" rules will require teams to live within their earnings, which should put an end to the sugar daddy handouts of Man City and Chelsea. But that 2014 change will push clubs to maximise their revenue, which is bound, in turn, to mean even less sharing. Football will still be a game determined by who has most money.
    There are three consequences of this strange gulf between our rules and those across the Atlantic. First, football's most storied clubs have become attractive to foreign tycoons who sniff a licence to print money, unrestricted. Second, we've established a model that is inherently unsustainable, involving colossal debts that cripple all those without a billionaire to bail them out. Since 1992, league clubs and one Premier League team – Portsmouth – have fallen insolvent 55 times. Third, we risk killing the golden goose, turning an activity that should be thrilling into a non-contest whose outcome is all but preordained.
    Hmm, a system that sees our biggest names falling to leveraged takeovers – think Kraft's buy-up of Cadbury – thereby selling off the crown jewels of our collective culture in the name of a rampant capitalism that is both unsustainable and ultimately joyless. That doesn't just sound like the state of the national game, that sounds like the state of the nation.