Why Super League plan makes financial sense for top clubs

As one former chief executive of a Premier League club told me - I won't know till the last day of the season if my budget for next year is going to be £170m or £70m.

That is not only almost impossible to manage, it has another very important consequence. Businesses with steady revenues are worth a lot more than ones with erratic earnings.

In business terms it's known as getting a higher "multiple" - volatile businesses are worth as little as five times average annual earnings, whereas steady ones are worth up to 20 times or more.

This is what the European Super League is all about - making the clubs involved worth more by eliminating the jeopardy of being relegated or missing out on Champions League qualification.

This is the moment many football team owners have been waiting for - particularly the American owners of Liverpool, Manchester United and Arsenal - who know for themselves how much more stable and therefore valuable are the earnings of American sports teams.

The backers of the Super League say that the existing Champions League was a poor product - too many meaningless one sided games between minnows and giants of European football before it got interesting.

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