Completion of the proposed takeover of Everton by 777 Partners has been pushed back once again after the Miami-based investment firm was granted a last-minute extension to repay a £160 million loan.

A source close to negotiations told The Guardian that a deal had been agreed over the money owed by the club to a consortium made up of another American investment firm, MSP Capital, as well as the businessmen Andy Bell and George Downing.

The length of extension granted was said to be “weeks not months”, and repayment of the debt is a condition of 777 taking over the club.

According to corporate documents filed in the Isle of Man, MSP, Bell and Downing hold security over the new stadium development at Bramley-Moore Dock, as well as a charge over just over half of Farhad Moshiri’s 94 per cent stake in the club.

They could have chosen to have taken control of Everton themselves on Monday, but instead have granted 777 more time to repay the debt.

Seven-month mark

The latest missed deadline drags the Everton takeover saga past the seven-month mark since Moshiri agreed to sell his shareholding in the Merseysideclub to 777.

The firm has faced months of scrutiny about its ability to raise the funds to complete the deal. However, last month Moshiri assured supporters that the deal was in the “home straight”.

 

Chelsea face PSR doubt due to £76.5 million hotels deal under scrutiny from Premier League

Chelsea are facing fresh uncertainty over their compliance with the Premier League’s profitability and sustainability rules (PSR) after it emerged that the league has yet to approve the value of the £76.5 million sale by the club of two hotels to a sister company.

As reported by The Times, the hotels deal was a loophole that appeared to have helped Chelsea avoid breaching PSR, as it enabled the club to claim the full sum as profit in the 2022/23 financial year.

However, the accounts for that year stated the deal had not yet been assessed to be of “fair market value” under the Premier League’s associated party transaction (APT) rules and that the conclusion “may result in a material change to the gain recognised in these financial statements”.

Both Chelsea and the Premier League declined to confirm whether the fair market value assessment had been concluded.

“Other operating income”

Chelsea’s loss for 2022/23 was reported as £89.9 million, but it would have been £166.4 million without the hotels deal.

The club also reported a further £30.6 million as “other operating income”, including recharging £17.1 million “litigation costs” to their holding company and a £12.5 million settlement fee, though it is unclear what that was for.

 

FC Barcelona given option to cancel Barça Visión IPO by end of April without €40 million Libero payment

FC Barcelona could cancel the planned IPO of their digital unit Barça Visión by the end of this month following the failure of the German investment fund Libero to pay the club €40 million for the purchase of a stake in the business, a statement to the SEC in the US has revealed.

The deadline for the merger of Barça Visión with Mountain & Co, the special purpose acquisition company (SPAC) set up to channel the move on to the Nasdaq stock exchange, was extended last month by a further six months until 9th November.

However, according to the statement to the SEC, Barcelona have renegotiated the pre-agreement reached with Mountain & Co, and now have the option of aborting the operation "at its sole and absolute discretion at any time after April 30, 2024," if the club does not find a new investor to cover Libero’s lack of payment before the end of the month.

The merger agreement previously signed between Mountain & Co and Barça Fusión gave the SPAC the new digital content business at a valuation of €900 million. The conglomerate includes Barça Vision, Barça Studios and Barça eSports. The other investors are Socios, blockchain company Vestigia and Mediapro CEO Jaume Roures.

Previous delays

Barcelona had originally planned for Barça Visión to go public last autumn, and the plans were then pushed back to March this year. It emerged at the start of the year that the club had still not been paid by Libero after extending the deadline for payment to 31st December, leading Mountain & Co to request a further postponement.

LaLiga has already reduced Barcelona’s spending limit for 2022/23 due to Libero's non-payments, and the club could now face further financial difficulties if the planned IPO of Barça Visión is abandoned altogether.

Chelsea's financial challenges have been highlighted in their latest accounts, which show a wage bill that has soared to £404 million, surpassing the salary costs of both Liverpool and Manchester United – only eclipsed by Manchester City's £422.9 million, which included significant bonuses for their Treble-winning season.

Despite these high costs and an overall loss of £89.9 million, Chelsea chairman Todd Boehly expressed confidence that the club would comply with the Premier League's financial regulations in the future.

The accounts of Chelsea FC Holdings Ltd for the year ending June 30, 2023, reveal that the club faces a task of aligning with Profitability and Sustainability Rules (PSR). To meet these requirements, the club may need to generate considerable revenue through player sales by the end of June.

The accounts also reveal a property transaction that was not previously disclosed when parent company Blueco 22 Ltd published its figures. Chelsea reported an income of £76.5 million from selling two hotels on the Stamford Bridge site to Blueco 22 Properties Ltd, another subsidiary of Blueco 22 Ltd.

Boehly stated in the accounts: "The club continues to balance success on the field together with the financial imperatives of complying with UEFA and Premier League financial regulations."

£745 million on transfers

Despite making a net profit of £62.9 million from player trading and reaching the Champions League quarter-finals last season, Chelsea still posted a significant loss. With no European income this season and a record £75.1 million spent on agents' fees alone, financial pressures remain.

The accounts also reveal that in 2022/23 – or the first year under the Todd Boehly-Behdad Eghbali ownership – the club have spent a remarkable £745.2 million on player acquisitions, including the likes of Mudryk, Cucurella, Fernandez and Fofana.

 

Leicester City avoids points deduction amid financial dispute

Leicester City have received a significant boost in their promotion bid as they will not face a points deduction this season amid financial breaches, escalating their dispute with the EFL.

Leicester have been charged by the Premier League for allegedly violating profitability and sustainability rules (PSR). However, an EFL arbitration panel has ruled that the club cannot be penalised this season, although sanctions are likely next season, regardless of which division they are in.

The EFL's chief executive, Trevor Birch, had written to Richard Masters, the Premier League’s CEO, advocating for a sanction to be applied immediately. Leicester contested this move and successfully delayed any punishment through an application that the arbitration panel upheld.

The EFL expressed frustration, claiming Leicester took legal action without prior notice. Despite this setback, the EFL acknowledged that their regulations did not permit them to enforce a points deduction in the current season.

Fair competition

In a statement, the EFL emphasized the importance of compliance with P&S rules and their commitment to applying PSR to ensure all clubs meet financial obligations for fair competition.

Leicester City responded last month by announcing plans to initiate legal proceedings against both the Premier League and Football League due to the actions taken by these organizations. "LCFC continues to try and co-operate constructively with both the Premier League and the EFL to reach a lawful resolution of any issues relating to PSR," read a statement from Leicester.

 

Chelsea smash agent fees record: Spending £75m in two windows

Chelsea have set a new record by paying £75.1 million to agents and intermediaries over the 12 months leading up to February 1, 2024, contributing to Premier League clubs surpassing £400 million in such fees for the first time.

Chelsea’s summer signings included the £115 million move to buy Moises Caicedo from Brighton, the £58 million deal with Southampton for Romeo Lavia and the £40 million transfer of Cole Palmer from Manchester City.

The reigning champions of agent fees, Manchester City, previously held the highest figure at £51.6 million but have now increased their spending to just over £60 million. Chelsea's leap from £43.2 million has placed them at the top of the list for agent fees.

Liverpool and Manchester United are the only other clubs that have spent above £30 million, with Luton Town spending the least in the Premier League at £2 million. The collective total for all 20 Premier League teams reached £409.6 million.

Consistent increase

The scale of the agent fees paid out by Chelsea are another indication of the club’s enormous investment in the playing squad, totalling more than £1 billion, under the Clearlake-Boehly ownership.

The FA's report on intermediary fees has shown a consistent increase year on year since it began publishing details for a 12-month period starting from October 1, 2015, to February 1, 2016, when fees were at £46.6 million. The progression has been notable: from £174.2 million in 2016-17 to the current figure exceeding £400 million.

 

777 Partners in talks with investor to provide loan to secure takeover

777 Partners has held last-minute talks to help fund its takeover of Everton, according to Bloomberg.

The media outlets reports that 777 held talks with private markets investor Blue Owl Capital Inc. about arranging a £360 loan tied to the club’s new stadium.

The takeover of Everton hinges on repaying a £158 million loan to a group of investors led by MSP Sports Capital. MSP’s loan is due to be paid on April 15. If the loan isn’t repaid, MSP could take ownership of Everton, multiple sources have reported.

At the same time, the Guardian reports that Everton have paid approximately £30 million in interest to Rights & Media Funding (RMF), a Cheshire-based company.

This substantial outflow of cash, which equates to around £438,000 per week, is detailed in the club's latest accounts. However, Everton have recently altered its accounting policy, a move that has allowed it to report reduced losses by excluding most of these interest charges from its profit and loss account for 2022/23.

The club's recent accounts reveal that Everton have chosen to exclude £19 million of the interest charges from its 2022/23 profit and loss statement. Additionally, it has restated its accounts for 2020/21 and 2021/22 to remove another £6 million in interest charges, thereby decreasing its reported losses.

Everton justifies this accounting shift by claiming that the interest is related to the construction of their new stadium at Bramley-Moore Dock and should be considered an investment rather than an expense affecting profit and loss.

However, this rationale contradicts previous statements made by the club. In discussions with The Guardian during autumn 2022, a spokesperson for Everton's owner Farhad Moshiri stated that he and the club were financing the new stadium project, with over £300 million in equity funding provided for various related costs including land acquisition and preparation.

Further penalties?

The spokesperson emphasized that Everton Stadium Development Ltd (EDSL), the entity responsible for the stadium project, had no debt and had received significant equity injections.

Moreover, an Everton spokesperson had explicitly told The Guardian that "There is no stadium funding from RMF". These assertions were made within the financial year when Everton have now retrospectively removed £19 million of interest payments from its reported losses.

This change could potentially lead to further penalties from the Premier League, which has already deducted points from Everton this season for breaches of profitability and sustainability rules.

 

Crystal Palace reports bigger loss despite significant turnover growth

Crystal Palace have reported a turnover exceeding £180 million, marking a 12.5 per cent increase from the previous year. This historic result is attributed to a combination of factors, including an improved finish in the Premier League standings and growth in commercial revenue across various streams.

According to the club's financial review, the majority of the revenue increase stems from the Premier League's enhanced distribution payments, which are part of a new television broadcast cycle that began in the 2022/23 season.

Crystal Palace also managed to maintain a flat squad wage bill at £101 million while securing a higher league position.

This fiscal discipline contributed to a 40 per cent surge in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), with squad wages accounting for 56 per cent of revenue, down from 63 per cent in the previous year.

The club also highlighted an increase in intangible assets (from £89.6 million to £104.4 million), indicating significant investment in the squad.

Potential new shareholders

Despite these positive trends, Crystal Palace highlight they have faced economic challenges such as inflationary pressures affecting all business areas, including their newly operational Academy facilities. Expenses also included costs associated with managerial changes during the season and integrating the CPFC Women’s team into the club's group of companies.

The loss before tax stood at £27.5 million compared to a £24.2 million loss the year before.

Looking ahead, Crystal Palace have secured loans from directors amounting to £12 million and approved a £45 million equity fundraise through a capital call from existing shareholders. This move may also open opportunities for additional equity investment from new shareholders.

Premier League clubs have unanimously agreed in principle to introduce new financial fair play regulations from next season at their latest shareholders’ meeting, held in London this week.

As reported by The Athletic, the profitability and sustainability rules (PSR) that have capped how much money clubs can spend over the last decade are set to be scrapped from the start of the 2025/26 season.

They will be replaced with a similar “squad cost control” rule to the one adopted by UEFA in 2022. However, if approved, the new system would work as a shadow to the existing PSR regime next season.

It is understood there were two votes at this week’s meeting. The first, which received unanimous backing, was to progress discussions on the finer details of the Premier League squad cost rules, with a view to adding the new regime to the rulebook this summer.

The second, which was said to have been supported by a strong majority, was on how the new regulations would be phased in.

Under the proposed new regime, clubs will only be allowed to spend a set percentage of their annual turnover on the wage bill for the first team and its coaching staff, plus the amortised costs of their transfer fees and all agents’ fees.

However, the key difference between the Premier League and UEFA regulations will be that it will operate a two-tier system, with clubs playing in European competition only able to spend 70 per cent of their turnover, while teams not competing in Europe able to spend 85 per cent.

Financial penalties

Contrary to recent reports, clubs that breach the Premier League’s rules will still be subject to points deductions. However, some teams are still said to be keen to explore the possibility of introducing financial penalties, instead of points deductions, for minor breaches of the squad cost rule.

Some clubs have suggested this could work like a US-style luxury tax, while others have preferred to talk about a “buffer zone” for less serious cases that do not merit points deductions.

This, among several other discussions about the finer details of the new rules, will all be resolved at the league’s two-day AGM in Harrogate, with a final vote on the matter set for 5th June.

 

Premier League clubs to be handed £106 million bill to fund independent regulator

Premier League clubs are facing a bill of at least £106 million to fund the first ten years of the new independent regulator for English football through a compulsory UK government levy, according to a report from The Daily Mail.

It is understood the government has recommended that top-flight clubs pay at least 80 per cent of the regulator's operational costs, which officials have forecast to be £132.8 million over its first decade.

In addition, it is believed the Premier League will be forced to pay back the vast majority of the regulator's start-up expenses, to initially be funded by the government, which will cost it millions more.

Guidance prepared by the Department for Culture, Media and Sport (DCMS) seen by The Daily Mail states that “these clawback costs, once determined, would therefore be added to the levy.”

The DCMS also makes clear that “it is our expectation that at least 80 per cent of the levy will be covered by Premier League clubs”.

Remaining costs to be split between EFL and National League

It is thought that the remaining 20 per cent of costs, totalling around £2.6 million-a-year, will be split between the 72 EFL and 24 National League clubs on a proportional basis, with smaller clubs paying the least.

The Premier League has yet to discuss how its £10.6 million-a-year bill will be divided, which could lead to more internal wrangling between the top-flight clubs.

 

Sheffield United to start their next season in EFL with two-point deduction

The English Football League (EFL) has announced that Sheffield United will be deducted two points at the start of the next season in which they play in the EFL.

In a statement, the league said: “The sanction relates to the 2022/23 season, when the club defaulted on a number of payments to other clubs. These defaults cumulatively were in excess of 550 days.”

A further two-point deduction has been suspended until the end of the season in which the initial deduction is enforced, and will only be imposed if the club defaults on further payments.

The Blades returned to the Premier League this season after finishing second in the EFL Championship in 2022/23. However, they are currently bottom of the top-flight and nearing relegation back to the second tier, standing nine points from safety with seven games left to play.

“Negotiated settlement”

A statement from Sheffield United read: “The club has co-operated with the EFL to reach a negotiated settlement on the issues in question.

“While disappointed to have the deduction imposed upon the return to the EFL and highlighting that awaiting overdue monies from several other clubs affected Sheffield United's financial situation, the club took the view that it was better to reach an agreement which minimised the risks of a higher deduction or further transfer embargoes being imposed, and being distracted by lengthy and costly legal proceedings.

“The club is now in a position to close this matter and concentrate on the future.”

 

Chelsea cannot start Stamford Bridge rebuild until 2027 under new deal to buy land next to stadium

Chelsea cannot start any rebuild of Stamford Bridge until 2027 at the earliest, as part of their £80 million deal to buy a plot of land next to the stadium, The Evening Standard has reported.

Earlier this week, the West London club finalised the purchase of a 2.47-acre site belonging to Stoll, a housing charity for veterans.

The deal clears the path for Chelsea to redevelop Stamford Bridge, although the club is still considering its options: a complete stadium rebuild, a stand-by-stand redevelopment or a move to a new site.

However, Chelsea will not take possession of the site until 2027, giving an opportunity for residents to be re-housed during a leaseback period.

Parts of the Sir Oswald Stoll Mansions will need to be included in any plans to develop Stamford Bridge, because they are Grade II-listed.

“Helpful and supportive”

Stoll CEO Will Campbell-Wroe told The Evening Standard: “We chose Chelsea partly because they have been helpful and supportive. We have been next to Chelsea for 100 years and hope to be for the next 100 years.

“Both Stoll and Chelsea understood the moral obligation, and we are keen to build out that relationship. It is a long-term community relationship as well as the commercial transaction.”

Relevent Sports is to drop FIFA as a defendant in its antitrust lawsuit against FIFA and the U.S. Soccer Federation, according to a resolution between the parties filed in U.S. District Court in Manhattan on Monday.

As reported by The Athletic, the resolution between the New York City-based event promoter and FIFA does not include U.S. Soccer, which remains a defendant in the case that is still pending and could potentially be heard by the U.S. Supreme Court.

It marks the latest development in a case which could result in a ruling allowing club teams worldwide to play official league games outside of their home territory – an arrangement that is currently barred by FIFA statute.

FIFA considers “changes to existing rules”

In a statement to The Athletic, Relevent indicated that the agreement was made “while FIFA considers changes to its existing rules about whether games can be played outside of a league’s home territory.”

It added: “Relevent Sports looks forward to supporting FIFA as both sides work to grow the game.”

FIFA issued a similarly-worded statement, saying it “has not admitted any liability and continues to deny the legal claims alleged in Relevent’s complaint.”

 

Manchester United football director John Murtough steps down

John Murtough has stepped down from his post as football director at Manchester United and will leave the club this week after more than 10 years’ service, Manchester United have said in a statement.

The investment into United by Sir Jim Ratcliffe and the appointments he is making to key roles produced an expectation that Murtough would depart or be offered a different position.

However, Murtough has decided to stand aside altogether and let the new set-up take shape, as the INEOS-led restructure of sporting operations at Old Trafford continues.

Jason Wilcox to be named technical director

As reported by The Athletic, Murtough will effectively be replaced by Dan Ashworth, once the Newcastle United sporting director’s spell of gardening leave finishes, while Southampton director of football Jason Wilcox is on course to be named technical director.

According to The Daily Telegraph, United are accelerating the moves to appoint Wilcox and Ashworth following Murtough’s departure.

It is understood that United are hoping to reach an agreement with Southampton over compensation for Wilcox that would enable the Championship club’s director of football to take over as technical director at Old Trafford within weeks.

 

Masters issues fresh warning over “unintended consequences” of independent regulator

The Premier League CEO Richard Masters has again reiterated the league’s concerns over the potential “unintended consequences” of an independent regulator for English football ahead of a crucial vote by MPson the issue.

The Football Governance Bill was published by the UK government last month. Should the bill pass into law, the regulator would operate a licensing system covering all 116 men’s clubs from the Premier League to the National League.

It would also have the power to demand real-time financial information from clubs, scrutinise the finances of owners and force them to sell shares if they fail to co-operate.

In an article published in The Times, Masters wrote: “My overriding concern is that the bill would reduce our competitiveness and weaken the incredible appeal of the English game. Our competition is the most watched and commercially successful football league in the world.”

He added: “We are asking MPs and peers to protect the game, including the Premier League, which not only helps sustain the football pyramid for the benefit of fans but also contributes £4 billion in annual tax revenues and creates 90,000 jobs across the country. The unintended consequences of regulation generate significant risks.”

“English football’s golden egg”

Masters continued: “It is a risk that regulation will undermine the Premier League’s global success, thereby wounding the goose that provides English football’s golden egg.

“It is a risk to regulate an industry that has worked so hard to lead the world, especially when none of its competitors are subject to the same regulation.”

 

Ligue 1 domestic TV rights agreement edges closer with BeIN Sports in talks over €700 million deal

The LFP has moved closer to securing a deal for the next cycle of Ligue 1 domestic broadcast rights, with current international rights partner beIN Sports willing to match the league’s asking price of €700 million per year, French media have reported.

Progress towards an agreement for the five-year cycle running from 2024/25 to 2028/29 stalled last week when negotiations between the LFP and DAZN broke down.

The UK-based streaming platform reportedly offered around €500 million per year for the domestic rights, in line with the league’s current deal, but the offer was immediately rejected for not matching the LFP’s aim for a higher figure.

BeIN Sports, owned by Qatar Sports Investments (QSI) – which also owns Paris Saint-Germain – had previously told the LFP that they did not wish to control 100 per cent of the rights for the French top-flight but it is understood they have now come around to the idea.

Support from French president

According to L’Équipe, the change of heart from BeIN is in no small part due to the alleged support from France’s president, Emmanuel Macron, with the newspaper reporting that the president has made his best efforts with the Emir of Qatar to promote Ligue 1.

A government source told L’Équipe: “For several months, the president has been available if necessary to contact this or that [party] to help French football. He also did so with the Qataris, expressing the importance that we attach to [the league].”

Manchester City’s parent company, City Football Group (CFG), has reported a pre-tax loss of £126.9 million for the 2022/23 financial year, following the £137 million deficit posted the previous year.

The latest loss came despite the group earning record revenues of £877.1 million, up from £705 million in 2021/22, and after Manchester City announced a profit of £80.4 million for the same period, which covered their treble-winning season.

City earned revenue of £713 million in 2022/23, meaning that other clubs and entities within CFG generated £164 million, the highest amount from teams other than City since the group was formed in 2013.

CFG acquired controlling stakes in three clubs in the period: 80 per cent of Palermo, 65 per cent of Mumbai City FC and 90 per cent of Bahia. The second highest turnover after City was generated by Girona, with £49.2 million, followed by New York City FC with £48.2 million.

Wage bill up 26 per cent to £618.1 million

CFG’s accounts showed a sharp rise in overall expenses across the group, which now comprises 13 clubs, with total staff costs rising by more than 26 per cent, from £488.5 million in 2021/22 to £618.1 million in 2022/23. In the same period, Manchester City’s personnel costs climbed by 19 per cent, from £353.8 million to £422.8 million.

While the bulk of transfer spending within the group continues to be made by City, the outlay on players from other CFG teams rose to £45 million in 2022/23, up from £43 million in 2021/22 and £31 million in 2020/21.

 

Premier League set to keep points deductions despite criticism

The Premier League will not scrap points-deduction penalties for breaches of its financial rules, according to a report from The Times, despite speculation last week that it was considering abolishing them.

The league’s Profitability and Sustainability Rules (PSR) have attracted widespread criticism after Everton and Nottingham Forest were deducted points for overspending.

There have also been questions as to why Forest were given only a four-point deduction despite having a larger breach than Everton, who had an initial ten-point penalty reduced to six on appeal.

Fines for lesser offences

The Times also reported that the Premier League is considering having a tariff that would impose only fines on clubs for lesser offences. The new system, which would run alongside a new “squad cost rule” that limits spending, would come into force for the 2025/26 season if approved at the Premier League clubs’ summer meeting in June.

Unlike the EFL, the Premier League clubs had decided not to have a fixed tariff of sanctions but to leave that decision to an independent commission – which is what happened in the cases of Everton and Forest.

The votes on the new rules may result in another split between clubs who want tighter spending regulations and those who favour a free market.

 

Everton manger Sean Dyche: Club would not be in financial trouble if I had been here longer

Sean Dyche, the Everton manger, has claimed that the club’s stark financial problems would not have occurred under him as he would have acted more responsibly than those whose reckless spending was akin to “throwing the club under a bus”.

In comments reported by The Times, Dyche added that the time had come for someone to “jump on the grenade” and display the necessary prudence to correct a catalogue of costly mistakes.

Everton have been docked six points for breaking the Premier League’s Profitability and Sustainability Rules (PSR) this season, and another punishment for a second breach is due this week.

Those offences pre-date Dyche’s appointment last January, but cast a shadow over the progress he has implemented after two fraught relegation battles threatened the club’s Premier League existence.

“It wasn’t on my watch, unfortunately,” Dyche said. “It wouldn’t have happened on my watch. Trust me, because I would have been saying, ‘No, no, no, no.’ The health of the club is important to me.

“Having played my part in building one club [Burnley], I wouldn’t be throwing the club under the bus by saying, ‘I am the manager, I need £250 million.’ I would be going, ‘No, how can that work for this club? We cannot afford it.’”

“We haven’t got that money”

Dyche added: “I am definitely not judging managers or anything like that, because on the pitch is a different thing, but somebody had to, down that timeline, go, ‘Hang on a minute.’ Someone.

“I certainly did. When I first got here, before the first [transfer] deadline. We were linked with a few players and they were going to have a go and I went, ‘You can’t do that, we haven’t got that money, we are going to need that money more in the summer than we do now.’”

Premier League clubs are considering abolishing points deductions and introducing a “luxury tax” amid growing concerns about the impact of the league's Profitability and Sustainability Rules (PSR), The Daily Mail has reported.

The points deductions for Everton and Nottingham Forest, along with a quiet January transfer window as clubs avoided overspending, are said to have left many officials to deem PSR not fit for purpose.

There are also concerns that, under its current guise, PSR will cause the Premier League to fall from its lucrative position as the world's best league as it will no longer be able to afford the best players on the highest salaries.

It is understood that radical reform has been discussed among the clubs and an entirely new system could be voted in at the end of the season meeting in June, with as many as 17 of the 20 clubs thought to be leaning towards significant change.

Financial punishment

A “luxury tax” is believed to be among the options being considered, where those clubs who overspend will have a financial punishment which would increase the more they spend – but clubs could choose to press on regardless if they wished.

The monies collected, which could run into the tens of millions, would then be redistributed to those Premier League clubs who complied with the rules. It has been discussed that some of the fines could even go into an “emergency fund” to assist EFL clubs in financial danger.

Currently, such a tax features in the US in the MLB and NBA, and relates to the amount spent on the salaries of the playing squad. America's other two main sporting leagues, the NFL and NHL, have 'hard' salary caps which clubs are not allowed to exceed.

 

Qatari Manchester United bid issues complaint over ‘false’ statements by Ratcliffe and club

Sheikh Jassim bin Hamad al-Thani has complained about “demonstrably false statements” made by Manchester United co-owner Sir Jim Ratcliffe in relation to the former rival Qatari bid to buy the club, according to a report from The Athletic.

A key part of the complaint relates to comments reportedly made by Ratcliffe to a journalist back in February, apparently questioning the existence of his rival.

“Still nobody's ever seen him, actually,” he said. “The Glazers never met him... he never... I'm not sure he exists!” Ratcliffe had also appeared to suggest the bid led by Sheikh Jassim had failed to provide proof of funds.

The Athletic reported that legal representatives of Sheikh Jassim and his investment vehicle, the Nine Two Foundation, have now complained about Ratcliffe's comments.

It is understood the Qatari bid has suggested the INEOS owner had breached a confidentiality agreement reached in the takeover process, and are calling for an end to “a pattern of demonstrably false and defamatory statements”.

SEC filings

The complaint also included a request for “immediate corrective action” to United's filings to the US Securities and Exchange Commission (SEC). Filings made in January implied that the Qatari bid had failed to produce proof of funds.

A legal letter was sent to United’s lawyers on 24th January, in which representatives of the Qataris insisted the filings had created a “misleading” impression and made a request for “immediate corrective action”. This demand has not been fulfilled.

The Qatari bid argue in their correspondence that the Nine Two Foundation provided “definitive” proof of funds via a demand guarantee from Qatar National Bank (QNB).

The Qataris also said they are still exploring all legal remedies and have instructed United and Ratcliffe to preserve all documents regarding their client in relation to the transaction and the matters raised in their complaint.
 

 

FIFA meets with Spanish government and RFEF after federation scandals

FIFA representatives have travelled to Madrid to meet with the Spanish government and Spanish Football Federation (RFEF) following a number of recent scandals at the country’s football governing body.

FIFA general secretary Mattias Grafstrom and FIFA legal director Emilio Silvero were in the Spanish capital yesterday for a meeting with Spain’s Superior Sports Council (CSD) with the aim of stabilising the situation at the RFEF.

Spain’s role at the 2030 World Cup, which the country is co-hosting alongside Morocco and Portugal, was expected to be discussed, with the pair then set to meet with the RFEF today.

Last Friday, The Athletic reported that the RFEF acting head, Pedro Rocha, would be travelling to FIFA headquarters in Zurich this week to reassure the world governing body of changes his organisation is making following the recent scandals.

Last month, RFEF headquarters and the home of its former president Luis Rubiales were searched as part of an investigation into alleged corruption during his five years in charge.

Rubiales released after being detained

On Wednesday morning, Rubiales was detained and questioned immediately after landing in Madrid as part of the anti-corruption investigation.

According to Guardia Civil sources, Rubiales, who was travelling back from the Dominican Republic, was informed he was being indicted and his lawyer was called so they could be present during questioning.

The former RFEF president invoked his right not to testify and was released. However, he is expected to be called to testify when a warrant for his arrest is issued by an investigating judge.

Brighton & Hove Albion have announced a record profit after tax in English football of £122.8 million.

The figure for the year ending 30th June, 2023 follows the £24.1 million profit after tax achieved by Brighton the previous year. The club beat the previous mark of £113 million set by Tottenham Hotspur in 2017/18.

Turnover for the 2022/23 financial year was Brighton’s highest ever £204.5 million, up from £174.5 million in 2021/22. The increase was driven by a best ever sixth-place finish in the Premier League – qualifying the club for Europe for the first time – and the club’s run to the FA Cup semi-finals.

However, the biggest factor behind the surge in profits was Brighton’s player sales during the period, with the profit on player trading almost doubling from £62.4 million the previous year to £121.4 million. Outgoing transfers included those of Alexis Mac Allister, Yves Bissouma and Marc Cucurella.

Among the ordinary revenue streams, broadcast income rose from £126.2 million to £155.2 million, while matchday revenue climbed from £20.6 million to £24.6 million, and commercial income increased from £15.4 million to £17.9 million.

The income for the year also included £22 million paid by Chelsea in compensation for manager Graham Potter and his coaching team moving to Stamford Bridge. As for costs, Brighton’s wage bill rose from £115.3 million to £127.6 million.

CEO Paul Barber signs new contract up to 2030

Brighton also announced that deputy chairman and CEO Paul Barber has agreed a new long-term contract with the club until 2030.

Commenting on the latest financial results, Barber said: "These accounts will of course catch the eye, because of the headline number. In a season when we made history on the pitch we took a huge step forward in terms of the club’s long-held aim of becoming more sustainable and less reliant on [Brighton owner] Tony Bloom’s incredibly generous levels of investment.

“For the first time since Tony made his first interest free loan to the club back in 2007 we have been able to make a substantial repayment to him reducing the loan balance from £406.5m to £373.3m.

“Our profitability also means we can further improve our infrastructure with a significant multi-million pound investment in a new external fan zone which, subject to planning, will be completed in summer 2024.”

 

Leicester City post £89.7 million loss for 2022/23

Leicester City have reported a loss of £89.7 million for the year ending 30th June, 2023, taking the club’s combined losses over the last three years to £215.3 million.

The release of Leicester's accounts comes 12 days after they were charged by the Premier League for an alleged breach of its profitability and sustainability rules (PSR) in relation to the three-year period ending 2022/23, and for failing to submit their audited financial accounts to the league.

Under the rules, clubs are permitted to make losses totalling no more than £105 million over three years, although certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.

Leicester’s accounts for the 2022/23 financial year, covering a season which ended with relegation from the Premier League, showed that turnover fell to £177.3 million, down from £214.6 million.

The decline in revenues was primarily due to a reduction in Premier League merit payments and broadcast revenues, and the club’s absence from European competition for the first time in three seasons.

Leicester realised a profit on player trading of £74.8 million, up from £9.2 million the previous year, but the club noted that “this increase was offset by a significantly lower-than-budgeted league position and a costly change in First Team management structure.”

The 2022/23 financial year included club chairman Khun Aiyawatt’s conversion of £194 million of loans and related interest owed by the club to its owner King Power International into equity.

“Significant setback”

Commenting on the 2022/23 accounts, Leicester City CEO Susan Whelan said: “After a sustained period of growth and success for the Club during the last decade, the 2022/23 season was a significant setback, the consequences of which will be felt for some time. We must now focus on rebuilding and seeking to return to and re-establishing ourselves in the Premier League.

"Having achieved finishing positions in the Premier League of fifth, fifth and eighth in the three preceding seasons, our targets and associated budgets for 2022/23 were entirely reasonable.”

As well as the alleged Premier League PSR breach, Leicester are also the subject of a separate financial investigation by the English Football League (EFL), which followed up the Premier League charge last month by imposing a transfer embargo on the club. Leicester responded by starting legal proceedings against both the EFL and Premier League.

 

Ajax CEO Alex Kroes to be sacked for insider trading after two weeks in job

Ajax have suspended their CEO Alex Kroes on suspicion of insider trading just two weeks after he started in the post and have said they intend to dismiss him.

According to a statement from the Dutch giants, Kroes purchased 17,000 shares in the club a week before his appointment was formally announced last August.

Kroes, who was appointed to succeed Edwin van der Sar, only started at Ajax on 15th March due to a non-competition clause with his previous club, AZ Alkmaar.

Ajax stated that after legal advice it has “decided to suspend Alex Kroes with immediate effect and intends to terminate the collaboration permanently”.

Michael van Praag, the chairman of Ajax’s supervisory board, said: "We are deeply dismayed that this has occurred at Ajax, as it is highly detrimental to the club and everyone who holds it dear to them.

“Alex Kroes's actions are not in line with what Ajax stands for. The timing of his share purchase indicates insider trading. Such a violation of the law cannot be tolerated by a publicly listed company, especially when it involves the CEO.”

Ajax will hold an extraordinary general meeting to tell shareholders about the intended dismissal, before the supervisory board makes the final decision.

Kroes denies wrongdoing

In a statement on LinkedIn, Kroes confirmed he bought shares shortly before his appointment, in addition to shares he already held in the club.

However, he denied wrongdoing and said he "cannot simply accept this decision of the supervisory board." He added: "I thought it would be a positive sign to express confidence in the club and to shareholders. … 'Skin in the game,' as it's called."

Kroes also told Dutch media he would seek a judgment from financial watchdog AFM, which oversees share trading in the country.

 

777 ‘confident’ in ability to fund Everton takeover amid fresh doubts

Everton’s prospective owner 777 Partners has moved to fend off fresh doubts about its financial viability after new concerns were revealed in the media about the Miami-based investment firm.

According to an official memo seen by The Financial Times, regulators in the US states of Utah and South Carolina are “moving to force five insurers to cut their exposure” in 777.

The five insurers and reinsurers belong to the A-Cap group, and together held $11.5 billion of assets at year end. Of this, $2.9 billion was invested in entities related to 777, according to a notice to all state insurance regulators released last Thursday.

Regulators in those states were working together to issue “supervision orders”, the memo said, under which they can direct an insurer to remedy rule violations. A-Cap can appeal against any such orders and challenge the calculations underpinning them.

Necessary resources

The report in The Financial Times prompted a response from 777, which reiterated that it has the necessary resources to meet the obligation set out in its proposed purchase of Everton.

The 777 statement read: “As it relates to the proposed acquisition of Everton FC, 777 Partners is confident in its ability to fund both the transaction and the club’s three-year business plan, the details of which it has provided to the Premier League as part of its ongoing process of regulatory approval.”

A person close to A-Cap said partners had already been found to take on its 777 exposure, which it said the memo “grossly overstated”, and it expected a rapid resolution of the process.

 

FC Porto trading suspended by Portuguese markets regulator

The Portuguese Securities Market Commission (CMVM) has suspended trading in FC Porto SAD shares on Euronext, pending "the release of relevant information to the market".

The decision by CMVM comes after Porto’s president, Jorge Nuno Pinto da Costa, told SIC TV about some of the plans in relation to the club’s 15-year strategic agreement with Legends announced last November.

Porto have since sent a note to the CMVM in which it confirms that "in June it expects to definitively close the contract” with the US company. The agreement is designed to enhance the stadium experience for fans and hospitality guests at the Estádio do Dragão and increase matchday revenues.

In their accounts for the first half of the 2023/24 financial year released in February, Porto said Legends will take "a minority stake in one of the companies with commercial rights of the FC Porto Group", and that the club will receive an injection of between €60 million and €70 million in the fourth quarter of the year.

Porto added that the club is negotiating a restructuring of its medium- and long-term debt for an estimated amount of €250 million "at a competitive interest rate".

€55 million bond loan

Last May, Porto launched a new bond loan of up to €40 million, which was extended the following month to €55 million following market interest.

The club posted a profit of €35 million for the six-month period ending 31st December, 2023, after suffering a loss of €10 million in the same period last year. Key to the result was a significant increase in transfer revenues, with the profit from player trading reaching €39 million, up from €4 million in the first half of 2022/23.

Everton have announced a loss of £89.1 million for the year ending 30th June, 2023 as they await the outcome of a hearing into a second charge of breaching the Premier League’s profitability and sustainability (PSR) rules.

The Merseyside club have already suffered a six-point deduction this season, reduced from ten points following an appeal, which was for a PSR breach in relation to the three-year period ending 2021/22, and could face a second points penalty for a further alleged PSR breach over the period up to 2022/23.

Everton attended a three-day hearing in relation to the second PSR charge before an independent commission last week.

The loss for 2022/23 followed a deficit of £44.7 million the previous year. Turnover was £172.2 million, down from £181 million in 2021/22. The latest heavy loss was incurred despite a £47.5 million profit on player trading.

Everton said the key factor behind the decline in revenues was the loss of £20 million of contracted income after sponsorship deals with Alisher Usmanov’s USM and affiliates were indefinitely suspended. The Uzbek-Russian tycoon was sanctioned by the UK government following Russia’s invasion of Ukraine in 2022.

The accounts also showed that Everton’s wage bill fell from £162 million to £159 million, with operating costs totalling £213.1 million. Capital costs amounted to £210.9 million, highlighting the ongoing significant investment in Everton’s new stadium, which also increased the club's net debt to £330.6 million.

Moshiri seeks to reassure fans over 777 takeover

Meanwhile, Everton owner Farhad Moshiri has urged fans of the club to “bear with us” as the protracted sale of the club to prospective new owner 777 Partners enters “the home straight”.

Writing in response to questions from the Everton Fan Advisory Board (FAB), Moshiri and 777 replied to assure them the takeover will go ahead and that the delay was down to the Premier League’s “approval process”.

 

Nottingham Forest post £69.2 million loss for 2022/23

Nottingham Forest have revealed a £69.2 million loss for the year ending 30th June, 2023 despite earning record revenues of £154.9 million.

The accounts for the 2022/23 financial year, covering Forest’s first season back in the Premier League in 24 years, showed the club’s wage bill spiralled to £145 million, compared with £58.6 million the previous year.

Last month, Forest were handed a four-point deduction for a breach of the Premier League’s profitability and sustainability rules (PSR) in relation to the three-year period ending 2022/23, which they are to appeal against.

The loss for 2022/23 followed a deficit of £47.1 million the previous year, while the record turnover figure compared with £29.8 million in 2021/22, when the club won promotion from the EFL Championship.

Amortisation costs rise to £40.8 million

Revenues for 2022/23 were boosted by an increase in broadcast income following the club’s return to the top-flight, rising to £124.9 million, up from £12.3 million in 2021/22. Forest also doubled their commercial revenue from £5.7 million to £11.8 million, a figure which could have been even higher had the club found a front-of-shirt sponsor for the entirety of the season. Matchday income rose from £8.2 million to £11 million, while merchandise sales increased from £3.6 million to £7.1 million.

However, the sharp rise in the club’s wage bill was compounded by a rise in player amortisation costs to £40.8 million, up from £7.3 million the previous year, as the club spent heavily on new players.


 

Chelsea to replace Todd Boehly with new Clearlake chairman from 2027

Chelsea will appoint a new Clearlake Capital chairman in 2027 to replace Todd Boehly, The Daily Telegraph has reported.

The switch is not said to represent a vote of no-confidence in the work Boehly is doing, but it is understood that Clearlake, owned by Behdad Eghbali and Jose Feliciano, have already decided to take up the post at the earliest possible opportunity.

Under an extraordinary written agreement, Chelsea’s owners can pass the chairmanship of the club between them every five years. Boehly has been chairman since the current owners bought the club in 2022, meaning that Clearlake will have the opportunity to nominate their own representative in 2027.

Severe criticism

Boehly has faced severe criticism and scrutiny in his position as chairman, but it is believed he has no intention of standing down early from the role, in which he still has three years left to run.

Similarly, Clearlake have not been put off the chairmanship by the criticism Boehly has faced and will install their own man into the position in 2027.

It is not yet decided whether or not that will be Eghbali or Feliciano, who are co-controlling owners of Chelsea with Boehly, or whether they will appoint somebody else as their Clearlake chairman.

 

Birmingham City buy site from council to create new ‘multi-sports super stadium’

Birmingham City have acquired a 48-acre site for the creation of a “multi-sports super stadium”, triggering fresh speculation about the future of the club’s historic home at St Andrew's.

According to a report from Birmingham Live, the EFL Championship club have purchased the former Wheels Park at Bordesley Green from Birmingham City Council.

The council has not revealed details about the value of the sale and who is behind it, pending official confirmation, but in a public paper about the sale it describes the purchase as being motivated by a plan to create a “sporting centre of excellence” with “international significance”.

It is understood the plan involves creating a super stadium offering multi sports and other activities on the site. The venue, formerly known as Wheels Adventure Park, was home to motor racing and kart circuits before it closed down in 2021.

Different direction

Birmingham City have been linked to the site ever since it was brought back into council ownership in 2019. The club’s American owner Knighthead and its figurehead Tom Wagner have spoken of the emotional wrench that would come with leaving St Andrew's, Blues' home since 1906.

However, both Wagner and the company have outlined their wish to take the club in a different direction, exploring alternative sites and opportunities for an infrastructure which matches the ambitions of those at the top of the club.

Inter Milan has reported a significant financial turnaround with a 35 per cent increase in revenue and a net profit for the first half of 2023/24.

According to Inter's official statement, the club achieved a consolidated net profit of €22.3 million, a substantial improvement compared to the net loss of €63.5 million in the previous year, marking an increase of €85.8 million.

This positive outcome is attributed to a rise in revenues to €265.4 million, up by 34.6 per cent or €91.8 million compared to the same period last year. The growth was driven by player trading during the summer transfer window of 2023, which contributed €41.7 million.

Additionally, there was an increase in both broadcast and matchday income totaling €29.4 million. The club also saw enhanced sponsorship revenue, primarily from renewals with technical sponsor Nike and shirt sponsor Paramount+.

Loan to equity

Inter also announced further conversion of shareholder loans into equity amounting to €22 million effective March 31, 2024. This season, the majority shareholder has provided a total support of €98 million.

"FC Internazionale Milano expects to close the 2023/24 financial year with an improved consolidated result compared to the previous season," Inter stated. "The path of improvement of the Club's economic-financial situation, underpinned by a virtuous circle fuelled by positive results on and off the pitch, continues in a clearly defined way."

 

Reading's owner Dai Yongge in negotiations to sell

Reading FC's majority owner, Dai Yongge, has entered into negotiations to sell the League One club after committing to a letter of intent with a potential buyer. Dai, a Chinese businessman who took over in 2017, has faced ongoing protests from supporters throughout his ownership.

The club, which was relegated to the third tier in May, has experienced several points deductions under Dai's leadership. Although there were discussions about selling Reading's Bearwood Park training ground to Wycombe Wanderers, Dai has now shifted focus towards selling the entire club.

According to a statement released by the club, the parties involved will engage in exclusive negotiations to finalise terms, with the transaction expected to take up to two months. The deal would include the transfer of Dai's shareholding in The Reading Football Club Limited and assets such as the Select Car Leasing Stadium and Bearwood Park training ground.

18 points in deductions

Reading FC has also faced sanctions for management issues under Dai's tenure. In January, a suspended three-point penalty was imposed after a pitch invasion by fans led to the abandonment of a League One fixture against Port Vale. This incident was a protest against Dai's ownership.

To date, Reading has accumulated a total of 18 points in deductions and currently sits 18th in League One, narrowly above the relegation zone. Further updates on the sale process will be communicated when appropriate.

 

Sporting Clube de Portugal successfully completes public bond subscription

Sporting Clube de Portugal's corporate entity, Sporting SAD, has successfully completed its public bond subscription "Sporting SAD 2024-2027" with demand exceeding supply.

The operation secured the full bond loan of €50 million, with a total demand reaching €66.4 million, 1.33 times higher than the offer.

According to the club, the debt issuance attracted 4242 investors, a significant increase from the 2018 issue which had a demand of 26 million euros. Francisco Salgado Zenha, Vice President and Administrator of Sporting SAD, expressed gratitude to investors for their trust, highlighting the challenging macroeconomic environment and yet the successful outcome of the operation.

"Even so, I want to reiterate that this trust will oblige us to be ever better and more rigorous. We will not deviate from the line of financial rigor that has guided us from 2018 to 2024," said Zenha.

Flexibility in the transfer market

The bond, which aims to partially reimburse obligations from "Sporting SAD 2021-2024" and strengthen liquidity, will provide Sporting CP with greater flexibility in the transfer market. Zenha assured that this would allow for stronger negotiation power and earlier budget execution to ensure stability for Sporting CP's structure and football activities.

The "Sporting SAD 2024-2027" bond has a three-year term with an interest rate of 5.75%.

Real Madrid have reported a profit of €23.6 million for the first half of the 2023/24 season, despite a nearly 50 per cent cut in net results compared to the previous year.

The club's revenue has increased by 15%, reaching €461 million in December 2023, up from €400.9 million at the midpoint of the 2022-2023 season.

According to the financial statements released by Real Madrid, all revenue streams have seen growth – most notable commercial income which surged from €158.9 million to €180.6 million.

Billion ambition

The club have set an ambitious goal to reach a turnover of €1 billion this season. However, costs have also risen, including the wagebill climbing from €217.1 million to €228.5 million in first half of the year. On the other hand, player amortisation and depreciation decreased from €76.3 million to €63.4 million.

A significant factor in reducing profits was a massive decrease in profit on player sales dropping from €80.5 million to €19.7 million.

Real Madrid has added €370 million of debt to its balance sheet for financing stadium renovations over thirty years, with repayment starting on November 15, 2027.

 

AFC Bournemouth reports significant financial turnaround: Profit of £44.5 million

AFC Bournemouth have announced a profit of £44.5 million in their 2022/23 annual accounts, a reversal from the £55.5 million loss recorded in the previous year. This change is largely attributed to the club's return to the Premier League.

According to the club's statement, Bournemouth's focus during the financial year was on improving Premier League performance while maintaining financial stability. The club also continued its commitment to building a new training facility at Canford Magna, with an investment of £7.2 million made by June 30, 2023.

Turnover increased by £87.8 million to £141 million, primarily due to the club's Premier League status achieved in May 2022. The club’s wage bill also ballooned to £100.1 million from £61.4 million. However, the club still reported an EBITDA profit of £21.4 million.

Bournemouth’s operating profit before players but after amortisation stood £50.2 million, including a gain of £71.4 million recognized from the write-off of shareholder loans.

Small stadium size

Neill Blake, Bournemouth's chief executive, reflected on the importance of this financial year, highlighting owner Bill Foley's investment in the squad which contributed to securing their Premier League status for the 2023/24 season.

Blake emphasized the need for continued investment in both playing and non-playing staff and facilities to gain competitive advantages, especially given the club's relatively small stadium size and lower revenue streams compared to other teams.

Post-year-end, Bournemouth invested an additional £86.5 million on five players and sold two for £1.1 million.

 

Oaktree exits SM Caen ownership, Capton to reacquire full control

Pierre-Antoine Capton, co-owner of French football club SM Caen, has confirmed the exit of the American investment fund Oaktree from the club's ownership structure.

Oaktree had come to Caen's rescue in 2020 with a significant financial injection when the club was facing bankruptcy. They are now set to relinquish their stake, with Capton poised to reacquire full ownership, as reported by Ouest France.

Oaktree is also entwined with Inter Milan, having provided a substantial loan to Inter's parent company Suning Holding Group. This loan is secured against Suning's majority share in Inter, potentially allowing Oaktree to assume control of the Serie A club if Suning defaults.

"Like any investment fund, the challenge for them was to recover the money they had invested," Capton explained regarding Oaktree's departure from Caen. He continued, "We are finalizing the final details of an agreement."

Optimal solution

Capton acknowledged that Oaktree's exit was not part of the original plan for Caen but was necessitated by Oaktree closing their fund in Paris. Despite this setback, he is actively seeking new partners to ensure the club's future and uphold its ambitious goals.

Expressing gratitude towards Oaktree for their crucial support during a difficult period for Caen, Capton remarked, "They were there to save the club... They were not here to give gifts." He emphasized that Oaktree's primary objective was to find a financially optimal solution for their shares.