By Eurohoops Team/ info@eurohoops.net
Jordi Bertomeu through a lengthy interview with Sports.ru discussed recent developments regarding the 2019-20 season, suspended in response to the coronavirus pandemic.
The Euroleague Basketball CEO touched on potentially resuming action, the settlement between clubs and the ELPA, and the overall financial impact.
– Euroleague Basketball has already announced the possible timeline to resume the competition. So far how do you assess the financial losses of clubs and the league – ranging from the worst to the best scenarios? And what repercussions do you envision for European basketball overall?
This is uncertain as it is inevitably related to how long Europe will be negatively impacted by COVID-19.
Since March 12 when we suspended our competitions, we have been working to evaluate all possible scenarios to resume the season. Our clubs have raised potential logistic, transportation or borders challenges that were of course discussed in our last ECA Shareholders Executive Board Meeting held on April 23, but all clubs unanimously agreed with no exception to approve the adjusted competition format and calendar proposal to resume the season. There is already a negative economic impact for clubs, the league, and all our partners, as is the case with almost all business sectors around the globe. The size of the damage will depend on when the situation returns to normal, and in which conditions activity can be restarted. Whether we are able to resume the season or not, when fans return to the stands in the 2020-21 season… there are many factors that will influence the size of the damage, but as of today, there has already been a significant impact mainly on the clubs, who have lost many home games and the benefit that comes attached to that in terms of game-day revenues.
We are in constant communication with our clubs to forecast every possible scenario building short, mid, and long-term business strategies/recovery plans that allow us to recover our strength as soon as possible.
– How urgent is the need (from the financial standing) to salvage the current season? Many basketball experts in Russia in Europe speak against it…
Euroleague Basketball is after the NBA, the basketball league generating more economy on a global basis with the highest budget clubs that have made a big effort to reach this point. It is obvious therefore that financial implications are important when deciding if the season will be resumed or not but reducing such an important decision to only a financial concept is unfair and inaccurate.
I personally stated two weeks ago that the main factor to take this decision will be not jeopardizing the health of our players, coaches, or referees. We will not jeopardize the health of our fans, we will not jeopardize the health of the club, arena, league staff nor the general population.
If governments and public health authorities allow for the games to be played, and if we can put the correct health and safety measures to protect the participants, I believe we will have the obligation to resume the season. An obligation not only towards our partners but more importantly towards the fans. We exist thanks to our fans, and if we can, we must one of their biggest passions: basketball of the highest quality. Since last October until the suspension in March, we have witnessed the unanimously acclaimed best EuroLeague season ever, with incredible games and performances. Our fans have packed our arenas more than ever, our audiences both on TV and digital platforms were breaking all previous records. Fans are our main pillar and their support will also be key when making a decision.
– Some players (for instance Mike James) publicly voiced their disagreement regarding the settlement between EuroLeague clubs and the ELPA. Can you explain by figures the necessity to cut 15% of players’ salaries even if the season is completed?
Whilst a reduced number of players have publicly stated their concerns with the settlement agreement reached between the EuroLeague clubs and the EuroLeague Players Association, this is their opinion and we respect it. We have close to 300 players participating in the Turkish Airlines EuroLeague during the current season and it is a majority of these who have accepted and understood the agreement.
With that said let me, first of all, thank all our players as they understood the difficult situation we are all going through, not only Euroleague Basketball, but the whole society and they understood the integral role they play to find a solution to the current crisis. Our players are referential to thousands of fans all around the globe, fans that in many cases are going through a very hard situation and I am certain they will value their decision.
The salary reduction, while it will not solve all the problems, will have a positive impact on the club’s situation. Everyone is making an enormous effort, and the players have shown their commitment to helping the league and its clubs to come back as strong as possible when the time comes.
The agreement sets a minimum standard with obligations for clubs and players, not only regarding salary payment, but also other elements, and also provides all parties with guarantees that the agreement will be respected for all players who adhere to it, as the league has also set mechanisms that will monitor and take action in case it is not respected. This is a very important agreement and the first of its kind in the EuroLeague. The fact that it has been reached during such difficult times makes it more valuable as it shows the unity of all stakeholders.
– Could you talk about the most conflicting points of negotiations?
I would prefer to keep the specifics on the negotiation private out of respect to all parties, but it is obvious that the main difficulties came from the wide variety of clubs from different countries that we have. Many different realities, with different legal frameworks, different taxation, and different individual situations. Approaching every situation from a collective perspective rather than an individual one is always the biggest challenge. That is the role that Euroleague Basketball takes, and we are lucky we have the full support of our clubs in doing so.
Let me clarify that the negotiation had not been a fight between Euroleague Basketball and its clubs with the players, this is far from reality, the negotiation has been done under clear principles that were shared by all parties from the very beginning, with each one of them understand the role that it can play in building a better future after this global pandemic.
– What other options for the settlement did you consider?
The only other option on the table since day one was for each club to individually reach an agreement with their players but we considered that reaching a league-wide settlement agreement was in the best interest of all. It was clear for all clubs that the only good option was to reach an agreement with the ELPA as it provides guarantees and protection to the members of both collectives.
– A lot of players and coaches believe the conditions are not good enough to finish the current season. How was this point discussed with the ELPA? What is the opinion of the majority?
If you look at the situation then that is a fair analysis. Right now, the conditions are not sufficient to resume the current season and this is the main reason why we have clarified that games will be played only when the right health and safety conditions are in place and when the governments and public health authorities allow.
This was clearly specified when negotiating with the ELPA and they agreed with this priority, including to extend the 2019-20 contracts until July 31, 2020, allowing us to extend the calendar to finish the season in July, a point that shows the commitment by the majority of the players to end the season if all health indicators allow us.
What is 100% clear is that all our clubs supported the scenario of finishing the season in the discussions we held at the last ECA Shareholders Executive Board Meeting. It is important that we all stick to that decision that was taken only a few days ago. We have the obligation to get everything ready to play the end of the season while there is still hope.
– Two clubs (Olympiacos and Panathinaikos) voted against the settlement. You always talked about the discrepancies between different countries (discrepancies that prevent stricter financial regulation etc.), why do you think right now it was important to reach the all-binding settlement and not let clubs decide on their own?
We never disclose the details of internal discussions, only the decisions that are taken. We are a group, take decisions as a group, and respect the decisions taken as a group. From day one we wanted to reach a league-wide settlement agreement, an agreement that sets grounds on the terms of the negotiations between clubs and players, otherwise, the possibility to resume might have been in danger, as you resize one agreement between two interlocutors, Euroleague Basketball and the ELPA, to close to 300 agreements between each club and all its players.
Our clubs are our shareholders and we all need to move in one direction to grow and, in this specific situation, to solve a difficulty. Before the COVID-19 situation impacted us, we were negotiating a framework agreement with the ELPA, similar conceptually to the Collective Bargaining Agreement in place between the NBA and the NBPA. For our players, this is the next natural step we want to take after we have a valid pan-European interlocutor in the ELPA. The current agreement is born from an unfortunate situation, but it marks a direction we all want to follow as it will give solid ground to both our clubs and players.
– The pandemic left many EuroLeague clubs in a confusing situation. During your recent press conference, you said that this may trigger global changes within the league. Do you see some kind of cap hold, contract limitation, and other regulatory measures as part of this reform? What reaction from the ELPA should we expect in this case? Is this a possibility for some kind of lockout?
It is very early to comment on the changes that will come but it is certain that they will happen. All properties around the globe on a bigger or smaller scale will need to re-evaluate many aspects of their business after COVID-19 and rest assured that we will do it, being better off afterward.
In that situation we can proudly state that we have a competitive advantage. The Euroleague Basketball philosophy has always proposed and embraced change understood as an evolution.
As you mention some of these changes will be evaluated with the ELPA, but there is one concept that must remain clear, a bright future for our clubs will be a bright future for our players as their interests are both aligned.
There are many things we want to keep improving, and this situation probably evidenced that we need to speed up the tempo of these changes to be in a better and more stable position to face any kind of adversity.
– Can you share your vision – how European basketball could grow stronger in these unfortunate circumstances?
European basketball has a bright future. The EuroLeague was in its best moment in its history. Record in-arena attendances, record audience and engagement levels, record fan interest levels… This shows that we were on the right path, but also that we need to continue improving and correcting some historical challenges we have had at a higher speed.
This situation has also taught us how important it is for our communities that our clubs, players, and coaches stay close to them. These communities have always been there supporting us, and now it is our time to continue to prove that we really care about them and help in any way possible to recover. We have seen incredibly generous moves by many of our club owners, our clubs, players, coaches, legends, and our corporate partners which makes us proud to belong in this family.