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calacuspr · 1 year

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Calacus Monthly Hit & Miss – Wrexham AFC & The FIA

Every month we look at the best and worst communicators in the sports world.

HIT – WREXHAM AFC

There’s been a trend in recent years for Americans to invest in football clubs in the UK.

Liverpool, Manchester United, Arsenal, Chelsea, Aston Villa and Leeds are just some of the clubs under some form of U.S. ownership.

You can see the attraction – big, fanatical crowds, huge global audiences and the adaptation of some familiar US sports marketing and fan engagement principles which can provide significant returns in various forms.

Nevertheless, it came as a surprise to many when Wrexham, once of the Football League but stagnating in the National League since 2008, were approached by Hollywood superstar Ryan Reynolds and actor Rob McElhenney to buy the club.

The big question at the time was “Why?”

Why would two successful entertainers from North America be interested in a struggling non-league football club, the third oldest professional club in the world, that was in a period of decay and without a history of sporting success?

Wrexham had also been docked points in 2004 for going into administration while a succession of owners have mismanaged the club before the Wrexham Supporters’ Trust took ownership and put together a plan to make the club viable.

When Reynolds and McElhenney made their approach, the club was debt free and that meant any investment could go straight into the team and the club’s infrastructure.

Humphrey Ker, a writer and actor with McElhenney, discussed buying a club in the English pyramid and, according to FourFourTwo magazine, was sent to the UK, tasked with finding a club for McElhenney and Reynolds to buy. He established a set of criteria, among them facilities, fanbase, history and finance, where Wrexham scored highest, with 38 marks out of 50. The scoring mechanism also included a column for ‘narrative.’

“This sounds a bit naff, but we also wanted to buy somewhere that deserves it,” said Ker. “Wrexham needs a break, the fans need a break, and the same goes for the town.

“The objective was to use it as a philanthropic engine; a way to generate more positivity and investment in the town.”After the trials and tribulations that the club’s fans have faced, you wouldn’t blame them for having a healthy dose of scepticism about new owners, coming from a country without a deep-rooted football tradition and with CVs centred around entertainment rather than sport.

But while their connections and finances have helped, Reynolds and McElhenney have shown a fine balance between using their business skills in conjunction with an understanding of the community, which should reassure even the most cynical of supporters since the club was acquired in early 2021.

What the new owners have grasped is the fundamental connection between the football club and the community and in Wrexham, they have found a club based in a region that has suffered as local industry declined but whose spirit has endured despite its struggles.

"It was about how much I recognised and identified with the people in the stands," said McElhenney at a press conference after buying the club.

"What they see and feel in Wrexham is the same as what we do. We love telling the story of a working class club and a working class town, because it's a story people can identify with.”

Public relations is often thought to be about saying nice things, the right thing, that satisfies concerns or generates goodwill.

In reality, public relations is many more things, but it includes the process of telling good stories that are backed up by authentic actions – and understanding the importance of sincerity over soundbites.

After finalising the purchase of the Racecourse Ground freehold, they confirmed that it includes a covenant to ensure it will remain Wrexham’s home until at least 2115 unless the club outgrow it, which is of significance given the tendency of some rogue owners to use the ground as collateral when they need funds.

Since Reynolds and McElhenney bought the club, their investment has not only been in new players which put the club on a competitive footing for promotion back to the Football League.

‘Welcome to Wrexham,’ the FX/Disney documentary that has attracted rave reviews for telling the story of the club since its takeover, has provided a platform for exposure which has ultimately benefited the club.

While the documentary combines sporting narrative with comedy and the reality of struggles in non-League football, they incorporate Welsh language elements to ensure that the show’s global audience is aware that the club is not actually based in England.

That has led to the Welsh Government and the Football Association of Wales planning to present the Dragon Award to Reynolds and McElhenney in recognition of their support for the Welsh language in November.

Sian Doyle, chief executive of the national broadcaster of Wales, S4C, said: “Their passion for Wrexham, including learning Welsh, one of the oldest living languages in Europe, has shone a light on Welsh football as we head into the World Cup.

“Wales may be small, but we are passionate and fiercely proud of our language and culture. As the leading broadcaster for Wales, we are honoured to recognise their contribution by saying ‘diolch’ (thank you).”

Sponsors including Tik Tok, Expedia, Vistaprint and Reynolds’ own Aviation Gin have also helped club revenues rise and they even secured inclusion in FIFA 22 as part of the "Rest of World" section, becoming the first non-league team to be featured in the series.

McElhenney, who comes from a blue collar background in Philadelphia, explained how much thought has gone into the running of the club.

“We were looking for people with whom we could identify. People that we grew up with. And I look around at the faces of the people of Wrexham; they’re my uncles and my aunts, and my cousins, brothers, sisters and the people I grew up with.

“A working class community, Philadelphia is certainly like that. They work hard and they expect the teams they support to give everything they can.”

He added: “We’re putting the community first at every turn. So every time we make a decision or try to make an adjustment or pick a direction, we’re always seeking the counsel of people who are there on the ground.

“‘Is this the right thing for the community? Do we believe that this is what’s going to create a winning formula in the short term, and in the long term?’

“We definitely approached this with a tremendous amount of respect and reverence.”

The co-chairmen continue to back their words with actions.

In late October, a new planning application was submitted to rebuild the abandoned Kop stand which will complete the Racehorse Ground.

McElhenney spent the weekend meeting fans at The Turf pub and then watched the women’s team before visiting the Wrexham foodbank, which the club supports to help the most in need.

“Thank you for having me and for the incredible work you do. Looking fwd to many years of partnership!” he tweeted, having previously created a comedic cookbook to raise money for them.

That was followed by the appointment of John Widdowson as the club’s newly created Head of Community, to focus on the opportunities to make a positive impact, as Ker explained: “This appointment is important in ensuring that we are in the best position possible to continue and to grow the work of the Wrexham AFC Community Trust, to ensure the Football Club is an asset to the whole community”

In a highly competitive National League, promotion is far from guaranteed.

But at every step, the Wrexham co-Chairmen and wider Board have made good on their promises to invest in the community as well as the team.

From supporting local initiatives, to helping individuals in need, theirs is a story of compassion as much as it is of ambition.

MISS – THE FIA

Formula One has a reputation problem.

There has been so much progress since Liberty Media acquired the rights to the Formula One Group in 2016.

Social media marketing has been embraced and the sport has done a solid job of breaking through in the United States, where other forms of motor racing traditionally take precedence.

For all their good work, though, the past 12 months have seen one crisis after another.

The conclusion of the 2021 F1 season in Abu Dhabi last November still rankles with many after race director Michael Masi appeared to apply the rules in a manner never seen before , handing Red Bull’s Max Verstappen his first world title.

By turning the race into a one-lap shootout which Hamilton had no chance of winning, F1’s sporting integrity was seriously undermined with appeals thrown out and radio messages released which suggested that Red Bull sporting director, Jonathan Wheatley, had told Masi how to deal with the race climax.

Masi lost his role as Race Director, which gave the impression that he was indeed to blame for mistakes that occurred during last season’s final race and led to a review of the rules to ensure no repeat in subsequent seasons.

But the FIA continue to make a mess of things, undermining the great work that Liberty has done to grow the sport.

Hamilton had to defend his activism against criticism from FIA president Mohammed Ben Sulayem, who argued the sport had become ‘too political’ because of drivers taking the knee or wearing rainbow helmets to support marginalised elements of society.

FIA president Mohammed Ben Sulayem criticised Hamilton and Vettel for using their influence to raise awareness of important issues in an interview with GrandPrix247, saying: "Everybody has the right to think. To me, it is about deciding whether we should impose our beliefs in something over the sport all the time. I am from an Arabian culture, I am international and Muslim. I do not impose my beliefs on other people, no way, never.”

Ben Sulayem had to make an embarrassing retreat, tweeting: “As a driver, I have always believed in sport as a catalyst of progress in society. That is why promoting sustainability, diversity and inclusion is a key priority of my mandate. In the same way, I value the commitment of all drivers and champions for a better future.”

The mess F1 have found themselves grew when Formula One Group CEO Stefano Domenicali ruled out women competing in F1 in the next few years, creating more avoidable controversy.

But that has not been the worst of it.

The FIA’s financial regulations review found that Aston Martin were guilty of a procedural breach whilst Red Bull breached the procedural and minor overspend limits related to the $145m budget cap.

The ‘Minor Overspend Breach’ revelations have caused further friction between Red Bull and Mercedes, whose chief Toto Wolff was clear that the breach could give a team an unfair advantage.

He said: "It is a so-called minor violation, but I believe that the definition is not completely correct.

"If you spend five million more than the limit, it is still a minor violation, but the impact on the championship is significant.”

No wonder McLaren F1 chief Zak Brown wrote to the FIA suggesting that Red Bull’s budget cap breach "constitutes cheating."

He commented: “"The overspend breach, and possibly the procedural breaches, constitute cheating by offering a significant advantage across technical, sporting and financial regulations.

"The FIA has run an extremely thorough, collaborative and open process. We have even been given a one-year dress rehearsal (in 2020), with ample opportunity to seek any clarification if details were unclear. So, there is no reason for any team to now say they are surprised.

"The bottom line is any team who has overspent has gained an unfair advantage both in the current and following year's car development.

"We don't feel a financial penalty alone would be a suitable penalty for an overspend breach or a serious procedural breach. There clearly needs to be a sporting penalty in these instances, as determined by the FIA.”

Red Bull team principal Christian Horner has fought back against suggestions of cheating, arguing that other teams are collaborating to put pressure on the FIA to hand out a heavy punishment.

He commented: “For a fellow competitor to be accusing you of cheating, to accuse you of fraudulent activity, is absolutely shocking.

“What has been tremendously disappointing is the leakage that happened. Suddenly we are tried and subjected to three weeks of effective abuse. And then to be seeing a letter accusing us of cheating and being fraudulent, it is just not right, and this has to stop.

“We have been on trial because of public accusations since Singapore. The rhetoric of cheats, that we've had this enormous benefit, numbers have been put out in then media that are miles out of reality. The damage that does to the brand, to pour partners, to our drivers to our workforce."

That is down in no small part to the FIA and the length of time it has needed to take action, which has put it in an impossible position.

Under its own rules, the FIA is beholden to “publish a summary of the terms of the ABA, detailing the breach, any sanctions, and any enhanced monitoring procedures, omitting any Confidential Information.”

They should have announced immediately how much the overspend actually was and ideally what it was spent on, particularly after such a close-run title last season.

Red Bull’s punishment was delayed following the death of the team’s co-owner Dietrich Mateschitz, who died aged 78 following a long-term illness but had been dragging on before his death.

The silence gave rise to speculation and uncertainty that the sport could do without with Hamilton aware of the reputational damage that is being done.

He said: "I think we need to continue to have transparency for the fans, for the integrity of the sport.

"There's different numbers and different things being said here and there, so I was expecting those results – like you – to come out yesterday.

"I would like to think that if it's been delayed it's because it's been taken very seriously and I trust that Mohammed (Ben Sulayem), is taking it seriously and will do what is right for the sport, I hope. I think it would be bad for the sport if action wasn't taken if there was a breach.”

The delay since the initial breaches announcement prompted suggestions that a deal was being negotiated rather than imposed and when the FIA announced a fine of $7m and a 10% reduction in aerodynamic research, it did not feel particularly punitive.

The rules have been created for a reason – to act as a framework for fair play and act as a deterrent to prevent further rule-breaking in future.

“There is no accusation or evidence that Red Bull has sought at any time to act in bad faith, dishonestly or in a fraudulent manner, nor has it willfully concealed any information from the Cost Cap Administration,” read an FIA statement.

Horner called the punishment “draconian” and added:”It’s a hit, it’s a handicap. There were other sporting penalties available but this was lobbied for hard by our competitors because it hit us the hardest.

“Following the speculation and sniping that has gone on in the paddock it is in everybody’s interest to close the book today. We accept the penalties, begrudgingly. We take it on the chin. Did we see any on-track performance? No we did not.”

Wolff had a different view and said that the reputational damage would be too much to tempt breaking the rules: “Nine teams complied with the regulations and stayed below the cap. This is a sport of marginal gains, and everything else is just chatter. There’s no mitigating factor.

“"I think what you see is that beyond the sporting penalty and the financial fine there's also a reputational damage and in a world of transparency and good governance that's just not on anymore. And compliance-wise, in whatever team you are, you're responsible for representing a brand, your employees, your partners, and that's why for us it wouldn't be a business case."

Clearly, Ben Sulayem has plenty of work to do to reassure fans that the integrity of the sport really is secure.

Whether that is possible, remains to be seen.

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mostlysignssomeportents · 18 days

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The unexpected upside of global monopoly capitalism

I'm touring my new, nationally bestselling novel The Bezzle! Catch me TODAY (Apr 10) at UCLA, then Chicago (Apr 17), Torino (Apr 21) Marin County (Apr 27), Winnipeg (May 2), Calgary (May 3), Vancouver (May 4), and beyond!

Here's a silver lining to global monopoly capitalism: it means we're all fighting the same enemy, who is using the same tactics everywhere. The same coordination tools that allow corporations to extend their tendrils to every corner of the Earth allows regulators and labor organizers to coordinate their resistance.

That's a lesson Mercedes is learning. In 2023, Germany's Supply Chain Act went into effect, which bans large corporations with a German presence from using child labor, violating health and safety standards, and (critically) interfering with union organizers:

https://www.bafa.de/EN/Supply_Chain_Act/Overview/overview_node.html

Across the ocean, in the USA, Mercedes has a preference for building its cars in the American South, the so-called "right to work" states where US labor law is routinely flouted and unions are thin on the ground. As The American Prospect's Harold Meyerson writes, the only non-union Mercedes factories in the world are in the US:

https://prospect.org/labor/2024-04-08-american-workers-german-law-uaw-unions/

But American workers – especially southern workers – are on an organizing tear, unionizing their workplaces at a rate not seen in generations. Their unprecedented success is down to their commitment, solidarity and shrewd tactics – all buoyed by a refreshingly pro-worker NLRB, who have workers' backs in ways also not seen since the Carter administration:

https://pluralistic.net/2023/09/14/prop-22-never-again/#norms-code-laws-markets

Workers at Mercedes' factory in Vance, Alabama are trying to join the UAW, and Mercedes is playing dirty, using the tried-and-true union-busting tactics that have held workplace democracy at bay for decades. The UAW has lodged a complaint with the NLRB, naturally:

https://www.commondreams.org/news/alabama-mercedes-benz

But the UAW has also filed a complaint with BAFA, the German regulator in charge of the Supply Chain Act, seeking penalties against Mercedes-Benz Group AG:

https://uaw.org/uaw-files-charges-in-germany-against-mercedes-benz-companys-anti-union-campaign-against-u-s-autoworkers-violates-new-german-law-on-global-supply-chain-practices/

That's a huge deal, because the German Supply Chain Act goes hard. If Mercedes is convicted of union-busting in Alabama, its German parent-company faces a fine of 2% of its global total revenue, and will no longer be eligible to sell products to the German government. Chomp.

Now, the German Supply Chain Act is new, and this is the first petition filed by a non-German union with BAFA, so it's not a slam dunk. But supermajorities of Mercedes workers at the Alabama factory have signed UAW cards, and the election is going to happen in May or June. And the UAW – under new leadership, thanks to a revolution that overthrew the corrupt old guard – has its sights set on all the auto-makers in the American south.

As Meyerson writes, the south is America's onshore offshore, a regulatory haven where corporations pay minimal or no tax and are free to abuse their workers, pollute, and corrupt local governments with a free hand (no wonder American industry is flocking to these states). Meyerson: "The economic impact of unionizing the South, in other words, could almost be placed in the same category as reshoring work that had gone to China."

The German Supply Chain Act was passed with the help of Germany's powerful labor unions, in an act of solidarity with workers employed by German companies all over the world. This is that unexpected benefit to globalism: the fact that Mercedes has extrusions into both the American and German political spheres means that both American and German workers can collaborate to bring it to heel.

The same is true for antitrust regulators. The multinational corporations that are in regulators' crosshairs in the US, the EU, the UK, Australia, Japan, South Korea and beyond use the same playbook in every country. That's doubly true of Big Tech companies, who literally run the same code – embodying the same illegal practices – on servers in every country.

The UK's Competition and Markets Authority has led the pack on convening summits where antitrust enforcers from all over the world gather to compare notes and collaborate on enforcement strategies:

https://www.eventbrite.co.uk/e/cma-data-technology-and-analytics-conference-2022-registration-308678625077

And the CMA's Digital Markets Unit – which boasts the the largest tech staff of any competition regulator in the world – produces detailed market studies that turn out to be roadmaps for other territories' enforces to follow – like this mobile market study:

https://assets.publishing.service.gov.uk/media/63f61bc0d3bf7f62e8c34a02/Mobile_Ecosystems_Final_Report_amended_2.pdf

Which was extensively referenced in the EU during the planning of the Digital Markets Act, and in the US Congress for similar legislation:

https://www.congress.gov/bill/117th-congress/senate-bill/2710

It also helped enforcers in Japan:

https://asia.nikkei.com/Business/Technology/Japan-to-crack-down-on-Apple-and-Google-app-store-monopolies

And South Korea:

https://www.reuters.com/technology/skorea-considers-505-mln-fine-against-google-apple-over-app-market-practices-2023-10-06/

Just as Mercedes workers in Germany and the USA share a common enemy, allowing for coordinated action that takes advantage of vulnerable flanks wherever they are found, anti-monopoly enforcers are sharing notes, evidence, and tactics to strike at multinationals that are bigger than most countries – but not when those countries combine.

This is an unexpected upside to global monopolies: when we all share a common enemy, we've got endless opportunities for coordinated offenses and devastating pincer maneuvers.

If you'd like an essay-formatted version of this post to read or share, here's a link to it on pluralistic.net, my surveillance-free, ad-free, tracker-free blog:

https://pluralistic.net/2024/04/10/an-injury-to-one/#is-an-injury-to-all

#pluralistic #monopoly #labor #nlrb #germany #harold meyerson #supply chain act #right to work #onshore offshore #uaw #vance alabama #vance #alabama #bafa #mercedes #antitrust #trustbusting

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