Leicester City have initiated legal action against both the Premier League and the English Football League (EFL), expressing their dismay at the measures taken by these governing bodies.

The club is challenging potential sanctions that could include points deductions from both leagues due to alleged financial irregularities.

According to a statement from Leicester City, who were relegated from the Premier League last season, the club are currently under a transfer embargo imposed by the EFL. The embargo is a result of accusations that the club exceeded the permissible loss threshold in their profitability and sustainability calculations for the 2023724 season.

Leicester City disputes "the EFL’s entitlement to impose this­ ­constraint" and deems it both "restrictive and premature" given that the accounting period in question does not end until June 30. The club faces the risk of a points deduction from the EFL unless they can generate significant income through player sales before this deadline.

Adding to their challenges, Leicester was charged on Thursday by the Premier League with breaching profitability and sustainability regulations (PSR), covering their last three years in the top division. Premier League rules allow clubs to lose no more than £105 million over a three-year cycle.

Any penalties related to this charge are expected to be applied next season and could be enforced by the EFL if Leicester fails to secure promotion back to the Premier League.

Desire for transparency

Leicester announced: "LCFC has been compelled today to issue two urgent legal proceedings against the Premier League and the EFL."

The club seeks resolution through an independent legal panel and emphasizes its commitment to ensuring any charges are "properly and proportionately determined" in line with applicable rules.

Leicester's statement also expressed a desire for transparency: "While LCFC would prefer the ­proceedings to be in public...the relevant rules require that these proceedings are conducted confidentially."

 

Ipswich Town secures major investment from Native American private equity firm

Ipswich Town have announced a substantial investment from Bright Path Sports Partners, a private equity firm that utilizes Native American capital. The deal, worth up to £105 million, grants Bright Path Sports a 40 per cent minority stake in the Championship club.

The club's majority shareholder, ORG led by Ed Schwartz, will maintain a 50 per cent controlling interest, while the remaining 10 per cent is held by smaller investors, including the Three Lions fund.

According to Ipswich Town's CEO Mark Ashton, the new partnership with Bright Path Sports will provide both capital and strategic insight, significantly benefiting the club. The investment aims to support Ipswich Town in the long term.

Ipswich Town are currently performing extremely well under manager Kieran McKenna at third spot at the Championship just one point short of a Premier League promotion spot.

Ed Schwartz commented on the partnership: "The club’s progress means we feel that time is now and we are excited to welcome Bright Path Sports.” Ashton highlighted immediate plans for the investment, including significant redevelopment of the club's Playford Road training ground.

Loss for 2022/23

Ipswich Town's accounts for the financial year 2022/23 show the club's losses increased on the previous year. Deficit went up more than £5 million from 2021/22, increasing from £12.8 million to £18.2 million.

That was largely down to increased costs, including a wage bill jump of more than £3 million - up to £19.8 million from £16.4 million in a season where the won promotion to the Championship.

 

Premier League "minded to approve" 777 Partners' bid for Everton

According to a letter viewed by Bloomberg, the Premier League board is inclined to approve the bid from 777 Partners LLC for Everton FC, provided the Miami-based investment group satisfies certain conditions.

The league has been evaluating the firm's takeover plans for over six months and is seeking assurances on funding for the club and the construction of a new stadium. The specific conditions that the league may require have not been disclosed.

The Premier League board, including CEO Richard Masters and other members, has yet to make a final decision. Both 777 and Everton have refrained from commenting on the matter.

The conditional approval doesn’t mean the multiclub-owner 777 is guaranteed approval, one of the people said.

Portfolio of clubs

In September, 777 announced an agreement to purchase a 94.1% stake in Everton from current owner Farhad Moshiri. Since then, the league has been assessing 777's suitability as owners of the historic Liverpool-based team.

The acquisition would add Everton to 777's portfolio of football clubs, which already includes Hertha Berlin and Standard Liege. However, 777 has faced scrutiny over its financial practices.

 

UEFA relaxes rules on multi-club ownership

UEFA has made a significant change to its rules regarding multi-club ownership, allowing teams owned by the same entity to compete in different UEFA competitions starting from the 2024/25 season.

This update could see clubs like Manchester United or Nice, both under Sir Jim Ratcliffe's INEOS, participate in separate European tournaments such as the Champions League, Europa League, or Conference League.

According to The Athletic, the changes are detailed in articles 5.04 and 5.05 of UEFA's competition regulations, effective May 1. Previously, clubs with common ownership were simply replaced by the next eligible team from their domestic league if they were blocked from competing in Europe.

Aston Villa and Brighton

This rule adjustment reflects a softening of UEFA's stance on multi-club ownership at a time when such arrangements are becoming more common. The integrity risks are heightened as UEFA's three men's competitions transition to single-table formats with 36 teams each.

Last summer, clubs like Aston Villa and Brighton had to ensure their owners reduced stakes in other clubs to below 30 per cent to participate in European competitions. UEFA has been dealing with multi-club ownership since the late '90s and previously established Article 5 in 2001 to address "control or influence" over multiple teams.

 

FC Barcelona considers significant investment proposal amid financial shortfall

FC Barcelona president Joan Laporta has revealed that the club is considering a significant investment proposal, as they seek to address the financial shortfall caused by the non-payment from investment fund Libero AG Football Finance.

In an exclusive interview with Mundo Deportivo, Laporta expressed confidence in meeting the club's budget for the current fiscal year, despite Libero's failure to pay €40 million for a stake in Barça Vision.

According to Laporta, there is a company "very interested" in acquiring up to 49% of Barça Vision, which is part of a broader plan to manage the club's digital assets, including NFTs, Web3, and the Metaverse. This comes as part of Barcelona's strategy to enhance its technological and digital assets through Barça Studios, with authorisation from the club's assembly to sell up to 49%.

The president of FC Barcelona explains that, currently, the Barça Vision pie is widely distributed between Libero, Socios.com and a group of companies. Likewise, the club's audiovisual subsidiary had planned to go public on the American stock market before 9 March, but, due to Libero's non-payment, the club postponed its move to the stock market.

On 12 September, the team chaired by Joan Laporta already informed the Securities Exchange Commission (SEC) of the New York Stock Exchange of the incorporation of several modifications to the framework contract signed a month earlier.

Trademark of Barca Vision

FC Barcelona brought in Libero Football Finance AG and private investment advisers Nipa Capital BV as new partners of Bridgeburg Invest, a trademark of Barça Vision. Part of the sale of the platform, which brings together the club's initiatives associated with Espai Barça Digital, was to involve a new injection of €120 million into the entity's finances.

Before 21 August, the club was supposed to receive the first €60 million, but only €20 million entered its coffers. Following the operation, FC Barcelona confirmed to the SEC that it has not received the remaining amount committed by Libero Football AG.

FC Schalke 04 have reported a profit of €6.9 million for the 2023 financial year, running from 1st January to 31st December, after posting a loss of €19.4 million for 2022.

The results marks the Bundesliga 2 club’s first surplus since 2018. Revenues in 2023 reached €168.3 million, up from €157 million the previous year.

Negative equity improved to €103.3 million, compared with €109.8 million in 2022, while net financial liabilities were reduced from €139.9 million to €128.5 million.

In a statement, the club said a key factor behind their return to profitability was an increase in matchday revenue after playing in the Bundesliga in the 2022/23 season. The club were relegated at the end of the campaign and are currently 14th in Bundesliga 2.

Schalke said the hosting of several large-scale events at the VELTINS-Arena without any Covid-19-related restrictions also boosted their income. However, it noted that “cost increases were particularly felt due to the effects of high inflation.”

“Clear sign of stability”

Schalke board member for finance Christina Rühl-Hamers said: “We are extremely pleased that – despite operating under challenging conditions – we were able to achieve the financial aims we had set for ourselves as planned.

“The club have managed to improve in several key financial areas. It sends a clear sign of stability for our fans, members and financial partners.”

Schalke have faced a series of difficulties over recent years, and last month fears over their future intensified after German media reports claimed they would almost certainly be denied a license to play in the third tier if they were relegated from Bundesliga 2 – effectively expelling them from Germany’s professional football leagues.

Everton hearing for second Premier League PSR breach to take place next week

Everton’s disciplinary hearing for their second breach of the Premier League’s profitability and sustainability rules (PSR) will take place next week, according to a report from The Daily Mail.

It is understood the independent commission judging the case, which relates to the three-year period ending 2022/23, is set to work over the Easter weekend in a desperate attempt to meet the Premier League’s strict timetable.

The league has committed to announcing a verdict on Everton’s second PSR charge by 8th April to reduce the chances of disputes over the case leaving them with a provisional table at the end of the season.

Everton have already been deducted six points this season for their PSR breach covering the period ending 2021/22, and will use the fact of that sanction as mitigation in their second hearing on the grounds that they have already been punished once.

Two-point reduction

Nottingham Forest were docked four points earlier this week for a £34.5 million spending breach over the period up to 2022/23.

Everton have pleaded guilty to their spending charge having initially denied the first charge last year, which it is hoped will earn them a two-point reduction from whatever penalty is imposed by the commission, as was the case with Forest.

Due to the significant overlap between the cases and the limited precedents elsewhere any appeal by Forest cannot be heard until the verdict of Everton’s second charge is published next month, which could leave the Premier League with less than six weeks to conclude two appeals before the end of the season.

The Premier League has set a backstop date of 24th May to resolve matters, but will be desperate for final verdicts in both the Everton and Forest cases to have been published a week earlier ahead of the final day of the season on 19th May.

 

German football clubs hit record revenue

According to the 2024 DFL Economic Report, German professional football has achieved record revenue figures, with the Bundesliga and Bundesliga 2 collectively generating over €5 billion for the first time. The total revenue of €5.24 billion for the 2022/23 season marks a 9 per cent increase from the previous high in the 2018/19 season, which stood at €4.8 billion.
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The report indicates a significant recovery from the economic impact of the COVID-19 pandemic, with approximately two-thirds of clubs reporting profitability—a notable improvement from 18 to 23 clubs year-on-year. 
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Employment within the Bundesliga has also rebounded to pre-pandemic levels, with 55,001 individuals employed in the 2022/23 season, compared to about 26,000 during the height of COVID-19 restrictions. 
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In terms of attendance, German professional football continues to thrive, setting a new spectator record in the reporting period and selling an all-time high of 10.28 million tickets in the first half of the current 2023/24 season.
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​Successful industry
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Hans-Joachim Watzke, Speaker of the DFL Executive Committee and Chairman of the DFL Supervisory Board, commented on the figures: “Not only do the Bundesliga and Bundesliga 2 offer outstanding sport... they also are and will remain a successful industry.”
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DFL Co-CEO Marc Lenz highlighted the sustainability and financial health of German clubs compared to other top European leagues, emphasizing that "Sporting success and attractive leagues must remain achievable with economic efficiency."

Fenerbahce to vote on Turkish Super Lig withdrawal after fan violence at Trabzonspor

Fenerbahce are considering whether to withdraw from the Turkish Super Lig following the unprecedented scenes after their away match with Trabzonspor on Sunday, when Trabzonspor fans attacked Fenerbahce players on the pitch.

Fenerbahce met immediately after the game and decided to call an extraordinary general assembly which will be held on 2nd April to vote on whether they should withdraw from the Turkish top-flight.

Fenerbahce were celebrating their 3-2 victory in Trabzon when supporters invaded the pitch, forcing the players to defend themselves. Fans could be seen throwing objects and attempting to kick and punch players following the final whistle.

Live coverage of the match showed at least one spectator brandishing a knife before attacking Fenerbahce’s Bright Osayi-Samuel, a Nigerian-British right winger, as the side gathered to celebrate their win. Osayi-Samuel and a security guard brought down the fan but tens of others jumped over stadium barriers to attack the players.

Turkey’s justice minister Yilmaz Tunc said in a post on X that 12 fans have been detained and 38 others who were identified to have been involved in the incidents will also be detained. He added that no players have been charged.

Fenerbahçe president resigns from Clubs Union Foundation of Turkey

Fenerbahçe president Ali Y. Koç announced in a statement that he has resigned from the Clubs Union Foundation of Turkey and is prepared to move his club into the country’s amateur divisions to help solve Turkish football’s numerous problems.

“As Fenerbahce, we have to draw our own fate, our own future. … We need to cut our own ties because this will continue like this,” he said.

“We will not accept this treatment in our own country. … Again and again, we shout out what is happening in Turkish football. We shout loudly about betting, match-fixing, unfair competition and referees.”

Infantino calls for immediate action

FIFA president Gianni Infantino has also called for immediate action following the scenes after Sunday’s match, and described the violence as “absolutely unacceptable – on or off the field, it has no place in our society.”

He added: “All players have to be safe and secure to play the game which brings such joy to so many people all over the world. I call on the relevant authorities to ensure that this is respected at all levels and for the perpetrators of the shocking events in Trabzon to be held accountable for their actions.”

Monza look set to have new majority shareholders, with the Italy-based holding company Orienta Capital Partners close to an agreement to buy shares “greater than 60 per cent” in the Serie A club, according to La Gazzetta dello Sport.

The deal is being described as the “end of the Berlusconi era” across media outlets in Italy, as it marks a takeover from the current ownership group Finnivest – a holding company that was set up and formerly headed by the ex-AC Milan owner and former Italian prime minister Silvio Berlusconi.

Finnivest, which is set to retain a minority stake in Monza following the takeover, completed its purchase of Monza in September 2018, and Berlusconi held the presidency until his death in June 2023.

Galliani to remain at club

Berlusconi was joined at Monza by AC Milan’s former CEO and vice-chairman Adriano Galliani, who is still Monza’s CEO and is set to remain with the club after the takeover.

Orienta Capital Partners’ acquisition of Monza has not yet been completed, but the report from La Gazzetta dello Sport indicated that negotiations were progressing well and smoothly.

 

VfB Stuttgart's executive board proposes working group amid power struggle

In the midst of an open power struggle at VfB Stuttgart, the club's executive board is taking action by proposing the creation of a working group. The board emphasizes the need for unity and constructive dialogue, especially as the club is on the verge of qualifying for the Champions League for the first time in 15 years.

Following the dismissal of Claus Vogt as Chairman of the Supervisory Board, and subsequent distancing from him by other members of the presidency, the executive board has now spoken out, calling for calm.

"Given that we are just nine Bundesliga games away from achieving something very big after many years, it is essential that we have a close alliance among all parties," said the executive board, which includes CEO Alexander Wehrle, Dr. Thomas Ignatzi (Finance, Administration and Operations), and Rouven Kasper (Marketing and Sales).

The proposed working group aims to address "existing issues related to future-oriented structural questions" across all roles, functions, and instances within the club. This includes discussions about the chairmanship of the Supervisory Board.

Future-proof regulations for VfB Stuttgart

The executive board has presented this proposal to various stakeholders within the club, including the Supervisory Board, Presidency, and Club Advisory Board. They also plan to incorporate perspectives from the Fan Committee, VfB Friends' Circle, and Statutes Commission.

The goal is to enable VfB members to discuss not only the issue of the Supervisory Board chairmanship but also to establish and adopt binding, future-proof regulations for VfB Stuttgart at the next general meeting.

"These regulations could then be incorporated into the basic agreement between e.V. and AG (registered association and corporation), or into the rules of procedure for the club's organs, depending on their nature and legal feasibility."

 

NWSL club San Diego Wave to be sold to Levine Leichtman family in $113 million deal

National Women's Soccer League (NWSL) club San Diego Wave is being sold by billionaire Ron Burkle to the Levine Leichtman family in a two-part deal that values the club at $113 million, according to a report from Sportico.

The deal, which is said to have already been approved by the league owners, marks the highest price ever paid for a controlling stake in an NWSL team, eclipsing the $63 million paid earlier this year for the Portland Thorns.

Sources told Sportico that Lauren Leichtman and her husband Arthur Levine, founding partners of Levine Leichtman Capital Partners, are paying $35 million now for 35 per cent of the team, and have agreed to buy the other 65 per cent for $78 million after the 2024 season.

The deal is understood to carry a weighted average of $113 million, although the valuation in the later transaction is $120 million.

$2 million expansion fee

It is believed that Burkle, who paid a $2 million expansion fee when the Wave joined the NWSL less than three years ago, will maintain control of the franchise until the second transaction occurs following the end of this NWSL season.

The second part of the deal is said to be a contractual obligation, meaning the buyers cannot choose to stop at 35 per cent.

Burkle said: “We are proud of the unprecedented success we have had as an expansion team and I am confident that [the Levine Leichtman] family’s investment will contribute to the growth of our team and the San Diego community.”

 

Newcastle United aim to speed up Dan Ashworth exit to Old Trafford amid compensation talks

Newcastle United want to speed up sporting director Dan Ashworth’s move to Manchester United amid ongoing negotiations over compensation, The Daily Telegraph reports.

Newcastle remain adamant they want a large compensation fee after losing one of their key appointments since the Saudi Arabian-led takeover, and the talks on the issue are said to remain a priority.

However, it is believed the club is willing to negotiate after it was revealed they were initially asking for as much as £20 million to reduce the length of Ashworth’s gardening leave.

Although the Newcastle hierarchy are extremely reluctant to let Ashworth – whose gardening leave is due to run until the end of 2025 – start work before the summer, it is believed they would consider a deal that will see him begin his new role at Old Trafford before the end of the year if Manchester United pay suitable compensation.

Paul Mitchell heads shortlist

The Telegraph also reported that Paul Mitchell is heading a shortlist of candidates to take on the sporting director role at Newcastle left vacant by Ashworth.

Mitchell, the former Southampton and Tottenham Hotspur head of recruitment, whose last job was sporting director at AS Monaco, is understood to feature prominently in discussions over Ashworth’s replacement.

The shortlist is also thought to include Brentford’s director of football Phil Giles, a boyhood Newcastle fan, West Ham United’s Tim Steidten, and former AS Roma sporting director Tiago Pinto, who has publicly expressed his interest in the job.

FC Barcelona have announced that the club’s economic vice-president Eduard Romeu has resigned from his position.

In a statement released yesterday morning, Barça said Romeu “has presented his resignation to president Joan Laporta due to the position's incompatibility with full-time dedication to his professional work.”

The statement added: “President Laporta has accepted the resignation and expresses his gratitude for Mr Romeu's work at the head of the Economic Area, which has focused on developing a feasibility plan that was implemented during this mandate and which has turned around the institution's financial situation.”

At a press conference held later in the day, Romeu said: “When I joined the management area of FC Barcelona, I had some professional occupations that were made to be able to combine them with the activity at the club. Now, things have changed, not of their own volition.

"The board has committed a great patrimony to ensure the viability of the club and the fact of having to pay bills has made me undertake new professional projects."

Romeu has served as Barcelona's economic vice-president since March 2021. Laporta said his duties will be taken over by the economic department, without giving details of who will be in charge.

The president added that Romeu “leaves this area of the club under control, which is something to be thankful for. He has been key in the economic work of the club and we will continue to follow his advice.”

String of exits

Romeu’s departure marks the latest in a string of exits by senior executives from Barcelona. Late last month, Maribel Meléndez stepped down from her role as the club’s corporate director, citing personal reasons.

Ferran Reverter left his position as Barça’s CEO in February 2022, also pointing to personal reasons. And last June, the director of the Espai Barça project, Jordi Llauradó, also left, followed in August by Ramon Ramírez, who was director of heritage and Espai Barça.

Manchester United clear £120 million of debt after Sir Jim Ratcliffe investment

Manchester United cleared £120 million from their revolving credit facility following Sir Jim Ratcliffe’s $300 million (£234.2 million) cash injection into the club, their latest filing to the U.S. Securities and Exchange Commission (SEC) has revealed.

United’s financial results for the second quarter of 2023/24, released on Tuesday, showed their debt totalling £773.3 million, but the SEC filing on Wednesday night revealed that on 28th February, United paid off £120 million worth of debt, reducing their overall debt down to £653.3 million.

The club’s revolving credit facility has a limit of £300 million and the balance now stands at £140 million, down from £260 million, following the payment.

The SEC filing also showed a £5.5 million payment to Richard Arnold after he stepped down as the club’s CEO in December. Arnold will be replaced by Omar Berrada, who has left his role as chief football operations officer at the City Football Group.

Major cost-cutting exercise

Meanwhile, Ratcliffe has appointed corporate restructuring firm Interpath Advisory to undertake a major cost-cutting exercise at United, according to a report from The Daily Mail.

The review by Interpath, which is an offshoot of accountancy firm KPMG, began earlier this month. The consultants are said to be working with the club to analyse all areas of United's business in an attempt to maximise the resources made available for football.

It is understood the review will firstly assess United's business costs such as travel bills and contracts with external companies, and then later this year analyse United's employee costs, which is expected to lead to a reduction of the club's staffing levels of between 20 and 25 per cent, which would mean the loss of hundreds of jobs.

United have by far the biggest staff of any club in the Premier League, with over 1,112 employees on the payroll compared to around 900 at Liverpool, 750 at Tottenham Hotspur, 720 at Manchester City and 700 at Arsenal.

Ratcliffe's other sporting investments run by INEOS are notoriously lean operations in contrast to United, where even staff concede privately that there is fat to trim following a huge expansion of their commercial and digital teams under the Glazer family's ownership.

EFL underlines disappointment over Premier League funding deal “setback”

The English Football League (EFL) has expressed its disappointment over the “repeated failure” of the Premier League to present a new financial settlement deal for clubs across its three divisions.

The EFL board met yesterday after Premier League clubs again failed to agree on a new offer for sharing revenues with EFL teams at a shareholders’ meeting on Monday.

In a statement, the EFL said: “Despite pressure from Government, fans and united voices across the professional game, the latest development represents a further setback.”

The EFL added that it “is clearly disappointed at [Premier League clubs’] repeated failure to put forward any new funding offer for EFL Clubs that would have significant benefits for the entire football pyramid.”  

The statement continued: “The League eagerly anticipates the introduction of the Football Governance Bill given it is now more important than ever that the Independent Regulator is provided necessary powers to secure the long-term sustainability of the pyramid.”

“Reconfirmed their commitment”

In a statement following its meeting on Monday, the Premier League said its clubs “reconfirmed their commitment to securing a sustainably-funded agreement with the EFL, subject to the new financial system being formally approved by clubs.”

The EFL said that it “now awaits a formal update from the Premier League as to how it proposes to re-engage on its latest commitment to deliver” such an agreement.

German football faces ‘€250 million liquidity gap’ after withdrawal of bank

The withdrawal of a German bank from the country’s football industry has created a €250 million liquidity gap which could lead to far more clubs only receiving their licence from the DFL under financial conditions, according to a report from Kicker.

VR-Bank Bad Salzungen-Schmalkalden, which currently has business relations with around 15 clubs – some from other parts of Europe, but the majority in Germany – has decided to move away from football as it battles with controversies related to allegedly highly speculative real estate transactions.

Sources indicated that the bank's football business amounts to around €250 million, although it declined to confirm this sum.

Bad Salzungen has provided several German clubs with loans in the form of overdraft facilities that could be used repeatedly. The loans were secured against future income such as media revenues or transfer fees and helped teams meet some of the DFL’s licensing requirements by showing they had enough liquidity to get through a full season.

Commitments valid until 30th June, 2024

According to Kicker research, the commitments from VR-Bank Bad Salzungen were valid until 30th June, 2024, meaning that German football is currently due to miss out on a sum of up to €250 million for the 2024/25 season due to the bank’s move away from football.

It means there is now a risk of a significant liquidity gap as replacement banks are often not easy to find. It is understood that compared with Bad Salzung, other institutions want much more proof of the collateral of future income. "They were simply more lax, without me saying that they were acting dubiously," one club executive said of the bank.

Benfica post €18 million profit for H1 2023/24

Benfica have reported a €18 million profit for the six-month period ending 31st December, 2023, thanks largely to further success in the transfer market.

The club made a player trading profit of €57 million for the period, more than compensating for a five per cent decline in regular turnover due to the team’s failure to qualify from the group stage of the Champions League.

The biggest player sale was that of academy product Gonçalo Ramos to Paris Saint-Germain for €65 million. Benfica will keep €58.7 million of the fee for the striker and could add another €15 million in variables.

The Portuguese giants also received a further €3.5 million in variables from the transfer of Uruguayan forward Darwin Nunez to Liverpool in 2022.

Among the regular income streams, broadcast revenue fell by 13 per cent to €68.2 million, with UEFA payments declining from €52.5 million in the first half of the previous year to €43.4 million for H1 2023/24.

Last season Benfica reached the quarter-finals of the Champions League, but after failing to qualify for the knockout stages of UEFA’s elite competition this campaign they entered the last 16 of the Europa League. Income from the club’s domestic TV rights remained stable at almost €25 million.

Sponsorship revenues also stayed the same, at almost €12 million, but total commercial income increased by 25 per cent to €20.6 million, thanks to growth from additional activities such as the club museum and stadium tours. Matchday revenue grew by €1 million to €17.6 million, with a 26 per cent increase in VIP and hospitality revenues.

Wage bill rises to €62 million

As for costs, personnel expenses rose by 4 per cent to more than €62 million, while transfer amortisation costs increased by 24 per cent to €28.4 million. The accounts also showed that, on the back of the profit obtained during the period, the club increased its equity by 16 per cent, to €131.2 million.

Manchester United have reported a profit of £20.4 million for the second quarter of the 2023/24 financial year, up from the £6.3 surplus achieved in the same period the previous year.

The result follows the £25.8 million loss for the first quarter of the current year, and means the club made a loss of £5.3 million in the first half of 2023/24, compared with a deficit of £20.2 million in H1 2022/23.

United achieved record second-quarter revenues of £225.8 million for the three-month period ending 31st December, 2023, up from £167.3 million in Q2 2022/23.

Compared with the same period the previous year, Q2 broadcast income rose from £58.7 million to £106.4 million, while matchday revenue increased from £29.9 million to £47.6 million, with the club’s return to the Champions League, after playing in the Europa League last season, a key factor.

However, commercial income fell from £78.7 million to £71.8 million, which United said was primarily due to a one-off sponsorship credit in the prior year quarter.

United’s wage bill for Q2 2023/24 totalled £95.1 million, up from £77.3 million over the same period the previous year, also due to the club’s participation in the Champions League.

Exceptional costs of £9.6 million for Ratcliffe deal

The second-quarter profit was achieved despite United paying exceptional costs of £9.6 million in professional fees related to Sir Jim Ratcliffe’s deal to buy a minority stake in the club and the strategic review process that led to it.

That figure does not include the $31.5 million due to be paid to investment bank Raine Group, which advised the club throughout the strategic review.

United’s total debt stood at £773.3 million, up from £741.9 million at the same time last year, in part due to a £60 million drawdown on the club’s revolving credit facility in October.

FSG confirms return of Liverpool’s ex-sporting director Michael Edwards

Liverpool’s owner, Fenway Sports Group (FSG), has announced that Michael Edwards, the club’s former sporting director, has agreed to return to Anfield to help shape the post-Jürgen Klopp era.

Edwards’ new job title at FSG will be CEO of football. In a statement, FSG said that as well as heading football operations at Liverpool, the 44-year-old executive will be “supporting the growth of FSG in global football through additional investment and acquisition.”

He will be charged with helping to identify a second club, from which Liverpool can attract global talent, and will also lead a restructure of Liverpool’s footballing hierarchy.

Edwards will succeed the FSG president Mike Gordon as the day-to-day decision-maker on all footballing matters at the group. Gordon intends to reduce his involvement in the sport but will remain on the FSG board into which Edwards will now report.

Huge transition

Liverpool are in the midst of a huge transition following manager Klopp’s decision to step aside this summer, with his closest staff also scheduled to leave and sporting director Jorg Schmadtke already having departed.

Now that Edwards has accepted FSG’s offer, Richard Hughes, whose exit as Bournemouth technical director was confirmed last Wednesday, is now set to be confirmed as Liverpool’s new sporting director, with his arrival considered a formality.

Barça Visión IPO pushed back to November

The IPO of FC Barcelona’s digital unit Barça Visión has been postponed until November following the failure of the German investment fund Libero to pay the club €40 million for the purchase of a stake in the business.

As reported by Spanish media, the deadline for the merger of Mountain & Co, the special purpose acquisition company (SPAC) set up to channel the move on to the American stock market, with Barça Visión has been extended by a further six months until 9th November.

The latest delay to the merger, which will trigger the IPO, was approved with 99 per cent of votes in favour at a Mountain & Co shareholders' meeting. However, a number of shareholders abstained after deciding to abandon the process and requesting the redemption of all their shares.
The shareholding package of those investors who opted out amounted to 3.1 million shares, at a price of $11.42 per share, equating to up to €35.8 million of share capital.

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.

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 Barcelona had still not been paid by Libero after extending the deadline for payment to 31st December, leading Mountain & Co to request a further postponement.

Manchester United have announced that they will look into the feasibility of building a new stadium “of national significance” to replace Old Trafford.

In a statement, United said: “A joint task force has been created to explore options for regenerating the Old Trafford area of Greater Manchester, with the development of a world-class football stadium at the heart of the project.”

The ‘Old Trafford Regeneration Task Force’ will be chaired by Lord Sebastian Coe, former chair of the organising committee for the 2012 London Olympics. Other members will include Greater Manchester mayor Andy Burnham, Trafford Council CEO Sara Todd, and former Manchester United captain Gary Neville.

United said the task force “will assess the feasibility of a new stadium of national significance equipped to host international games and finals, as well as providing a modernised home for Manchester United.”

It added that the group “will bring together local leaders and national experts to examine how stadium development can support renewal of an area of the city with rich industrial history and huge potential for the future, and deliver social and economic benefits for the entire region.”

Ratcliffe preference for new stadium

While United are also considering options for redeveloping the current Old Trafford, the preference of the club’s new co-owner Sir Jim Ratcliffe is to build a new stadium and the club’s board is understood to be supportive of such a move.

In the United statement, Ratcliffe said: “This can be a major regeneration project for an area of Greater Manchester which has played such a key role in British industrial history, but which today requires new investment to thrive again.

“The north-west of England has a greater concentration of major football clubs than anywhere else in the world, yet we don’t have a stadium on the scale of Wembley, the Nou Camp or the Bernabéu. We will not be able to change that on our own, which is why this task force is so important to help us seize this once-in-a-century opportunity.”

 

Chelsea mysteriously drop Oman Air sponsorship deal

Chelsea have mysteriously terminated its sponsorship deal with Oman Air, which is thought to be worth £2 million-a-year and was announced last July.

Under what was described as ‘a multi-year deal’, Oman Air became Chelsea’s ‘airline partner’. However, it no longer features on the ‘club partners’ section of the official website, where Chelsea’s other sponsors are listed and sources have told The Daily Telegraph the deal has been terminated.

That means Chelsea currently do not have first-team front-of-shirt, sleeve or airline sponsors confirmed for next season.

Sources have suggested the problem over the deal arose on the Oman Air side, which forced Chelsea to agree to a termination, but neither party has commented or disclosed any details.

Deal to change chairman every five years

Meanwhile, the newspaper also reported that Chelsea’s owners can pass the chairmanship of the club between them every five years as part of an extraordinary written agreement.

Todd Boehly has been chairman since the current owners bought the club in 2022, which means Clearlake Capital, owned by Behdad Eghbali and Jose Feliciano, will have the opportunity to nominate their own representative in 2027.

The agreement is an option, rather than an obligation, and Boehly could remain as chairman for another five years in 2027 should Clearlake decline the opportunity to take over. Were Clearlake to take the chairmanship, then Boehly would be able to reclaim it in 2032.

Breakdown of shares

Chelsea have never officially confirmed the breakdown of shares in the club since the takeover, but The Telegraph said it has obtained the details of how the money and power is split. Its report revealed that Clearlake Capital, the private equity fund managed by Eghbali and Feliciano, owns 61.5 per cent of the shares and voting rights in the UK-based company behind Chelsea, 22 Holdco.

The remaining 38.5 per cent is split equally between Boehly, Hansjorg Wyss and Mark Walter, meaning each man owns a stake of just under 13 per cent. Boehly, along with Eghbali and Feliciano, is listed as a person of significant control.

While Boehly’s stake is entirely privately funded with his own money, Eghbali and Feliciano have smaller personal stakes within Clearlake’s 61.5 per cent fund that they manage.

 

Saudi sports vice minister: SPL preparing for new ‘wave’ of private investment

A senior figure at Saudi Arabia’s Ministry of Sport has said the country is anticipating a fresh injection of private capital into Saudi Pro League (SPL) clubs as it works to open up to investors.

Speaking at the Bloomberg Power Players Jeddah event last week, the Saudi vice minister of sport Bader Alkadi said: “We expect to have another wave of privatisation coming up soon. That gives us opportunity to make the investment in sport a sustainable investment, an investment that gives us a return to reinvest.”

He added that the flurry of player transfers last year, which brought stars including Neymar and Karim Benzema to the SPL, is also likely to continue. However, it is unclear whether they will be on the same scale.

Spending spree

Saudi Arabia and its sovereign wealth fund, the Public Investment Fund (PIF), have been on a sports spending spree in recent years and Bloomberg previously reported that it was considering a push to attract more outside investors to bolster the SPL.

The kingdom has bankrolled most of its own investments and initiatives thus far, but is seeking more private capital, not only in sports but in its push for more tourists and its aim to build dozens of mega projects that will support Crown Prince Mohammed bin Salman’s Vision 2030 transformation agenda.

Amanda Staveley, CEO of PCP Capital Partners and co-owner with the PIF of Newcastle United, said she sees a “fantastic opportunity” to take a stake in a Saudi club.

 

Everton takeover: More doubts emerge as 777 Partners faces lawsuit over asset transfers

The proposed takeover of Everton by 777 Partners is facing further uncertainty after it emerged that the Miami-based firm is being sued by a creditor who wants to stop it from transferring two subsidiaries, claiming that the transaction was designed to “shield” the assets.

As reported by Bloomberg, Obra Capital said in a New York lawsuit last week that 777 Partners attempted to transfer the two “cash rich” units in order to avoid repaying its debts. Obra said 777 transferred Sutton Specialty Insurance Co. and Sutton National Insurance Co. to co-founder Steve Pasko “for no consideration.”

The creditor said it loaned 777 $40 million in June 2020 and another $15 million the following year. While Obra said that 777 in June 2022 owed it more than $63 million, the debt currently stands at $22.4 million.

777 faces multiple lawsuits over unpaid debts and Obra said the transfer should be blocked to protect all of the investment firm’s creditors. Obra has also filed previous lawsuits against 777 and the insurer over the debts, both of which are still pending.

Questions over 777’s financial health

Obra also claimed that the planned purchase of Everton and its ownership of other clubs has raised questions about 777’s financial health.

“Until recently, 777 maintained a relatively low profile that kept its questionable business practices and penchant for stiffing creditors out of the public eye,” Obra said in the lawsuit. “Then in late 2021, 777 began buying multiple sports teams in Europe and Latin America.”

It added: “777’s flashy shopping spree raised questions about the source of its funding and the health of its business operations.” Obra said the additional attention from the Everton deal led 777’s “house of cards” to begin “crumbling down.”

777 has declined to comment on Obra’s legal action and claims about the firm.

BlueCo 22, the company that owns Chelsea, made a net loss of £653 million following its takeover of the club from Roman Abramovich, the firm’s accounts have revealed.

The entity, controlled by private equity firm Clearlake Capital and investors including Todd Boehly, acquired ownership of Chelsea in May 2022 following Russia’s invasion of Ukraine.

BlueCo 22’s accounts, covering the 16-month period from 2nd March, 2022 to 30th June, 2023 showed that the company’s revenue was £534 million, largely from Chelsea’s commercial, broadcast and matchday income. However, operating expenses, including staff costs, were more than £1.1 billion.

Since the end of the period covered by the accounts, BlueCo has spent £454 million on 22 players and sold 10 for £48 million.

The company’s accounts also revealed that Chelsea made a loss of £90.1 million for the year ending 30th June, 2023, after suffering a deficit of £121.4 million the previous year.

Turnover climbed above £500 million for the first time, increasing from £481.3 million in 2021/22 to £512.5 million for 2022/23. Commercial revenue rose to £210.1 million and matchday income to £76.5 million following the easing of government restrictions on the club after sanctions were placed on Abramovich the previous year.

However, broadcast revenue fell to £225.9 million, down from £235 million, despite Chelsea reaching the Champions League quarter-finals last season, due primarily to the club’s 12th-placed finish in the Premier League. The net loss was incurred despite a profit on the disposal of player registrations and fixed assets of £142.2 million.

Fresh doubts over PSR

Chelsea’s latest losses have raised fresh doubts about the club’s ability to comply with the Premier League’s Profitability and Sustainability Rules (PSR).

The rules permit losses of up to £105 million over three years, although certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.

In a statement, the club said: “Despite the loss in the year and the continued fallout from the sanctions placed on the club in the prior year, the Club continues to comply with UEFA and Premier League financial regulations.”

Meanwhile, BlueCo 22’s accounts showed that the company paid an initial €76 million for Ligue 1 club RC Strasbourg last June, as part of the Chelsea owners’ plans to expand their portfolio of clubs.

Leicester City face potential points deduction for alleged breach of Premier League's financial rules

Leicester City are facing a charge for allegedly breaching the Premier League's Profit and Sustainability Rules (PSR) which could lead to a points deduction next season, according to Sky Sports News.

It is understood Leicester's accounts for the 2022/23 financial year, which will be made public later this month and cover the season they were relegated from the top-flight, are expected to show they exceeded the £105 million losses permitted under PSR over a three-year period.

Sky understands that it could mean the club is formally charged by the Premier League as soon as next week.

It is within the rules for a Premier League PSR breach to lead to a club being punished in the Championship. However, Leicester will not face a points deduction this season.

The Premier League voted at its AGM last summer to introduce new rules to fast-track financial breaches as has happened with Everton and Nottingham Forest – but those new rules were introduced after Leicester had been relegated, and so don't apply to them.

Avoided sanction from EFL

The development comes after Leicester avoided sanction from the EFL earlier this week, despite their latest accounts indicating they were on course to break the Championship’s financial rules by the end of the season.

The EFL is reportedly planning to change its rules to close a loophole that it feels Leicester have exploited in order to avoid being subjected to a strictly-controlled business plan.

Fears grow over long delay to independent regulator as Premier League pushes for diluted powers

The independent regulator for English football is in danger of being delayed until the end of the year, as the process enters a “critical” three weeks, according to a report from The Independent.

Government legislation was expected at the start of last month following months of planning, but there have been no further developments since beyond talks.

It is understood that if the necessary bill is not published by 27th March there is unlikely to be any chance of it getting through until after the next general election, which will take place by January, 2025.

That would also inevitably bring rewriting of the bill, which would likely push the implementation of the regulator until the end of the year.

The strength of the regulator has been one of the main sources of contention, with the Premier League lobbying the government to water it down after sounding a warning last year over risks to future investment in the game.

Talks over new Premier League-EFL deal

Concerns over a delay to the regulator have emerged as secretary of state for culture, media and sport Lucy Frazer has been involved in connected talks over a new financial deal between the Premier League and EFL. An agreement is virtually a prerequisite of the bill.

The Premier League has another meeting on Monday to try and finalise its stance, and insists that the ambition is to get a deal over the line. There is said to be an optimism that it has taken a turn through the last round of negotiations.

RSC Anderlecht sale under investigation over suspected fraud

The Brussels Council Chamber has begun an investigation of alleged fraud into the sale of RSC Anderlecht to current owner Belgian businessman Marc Coucke back in 2017.

As reported by The Brussels Times, Belgium’s federal prosecutor is pursuing 16 suspects, five of which are companies and 11 individuals.

Anderlecht’s former owners and their associates are suspected of selling the club above its true value. The prosecutor seeks to bring them before a correctional court for deception, forgery, money laundering, corruption, breach of trust, and violation of professional secrecy.

Among the accused is former sports director Herman Van Holsbeeck, who reportedly admitted to fraud during his interrogation by the Central Office for the Suppression of Corruption (OCRC).

Ex-president

Other implicated parties include Anderlecht’s ex-president Roger Vanden Stock, former CEO Jo Van Biesbroeck, former CFO Rene Trullemans, and the then club’s lawyer.

Player agent Christophe Henrotay, already in legal sights for other football-related cases, and two of his associates, along with the British company Foot Innovation owned by Henrotay, are also suspected.

The English Football League (EFL) is planning to change its financial rules to close a loophole that it feels Leicester City have exploited in order to avoid being subjected to a strictly-controlled business plan.

Under the financial rules, Leicester were allowed to lose up to £83 million over the last three years - two of which were in the Premier League, with rules in the top flight allowing £35 million losses per year on average, while the EFL says a maximum of £13 million can be lost per season in the Championship.

However, the EFL's independent club financial reporting unit discovered that Leicester were on course to have losses in excess of £83 million for the three-year period.

Leicester did not breach the EFL rules, but their accounts showed they were on course to do so by the end of the season. As a result of the predicted rule breach, the EFL followed its own procedures and told Leicester they wanted the club to submit to a business plan, enforced by the EFL, to ensure the club returned to compliance by the summer.

However, Leicester objected to that suggestion, arguing that because they were in the Premier League for most of the period, the EFL rules did not apply to them. They asked for the matter to be reviewed by the independent Club Financial Reporting Panel, who found in Leicester's favour.

In discussions with the football authorities

A Leicester statement read:

"Although the Club is pleased that the CFRP's decision found in its favour, it is concerned that it was necessary for the CFRP to intervene in this way to prevent the CFRU from acting outside of established EFL rules.

"Leicester City confirms it is in discussions with the football authorities regarding its profitability and sustainability calculations. Notwithstanding the CFRP's decision, the club remains committed to seeking an appropriate overall outcome in this matter."

Burnley could sue Premier League for compensation over Everton's PSR punishment

Burnley are reported to be taking legal advice over suing the Premier League for compensation following Everton’s six-point penalty – reduced from ten points following an appeal – for breaching the league’s Profitability and Sustainability Rules (PSR).

It emerged last year that several Premier League clubs were considering legal action against Everton after they were charged with spending breaches, but that prospect has dissipated due to the club’s financial problems.

However, according to The Daily Mail, Burnley are exploring the possibility of bringing a financial claim against the Premier League on the grounds that they were relegated to the EFL Championship due to what they regard as the top-flight’s failure to enforce its financial rules in real time.

Burnley finished four points behind Everton in 18th place in the 2021/22 season, the final campaign of the three-year period for which the Merseyside club have been punished for overspending, but would have stayed up had the six-point penalty been imposed during that season.

Burnley and Leeds United wrote to the Premier League in May 2022 with a warning that they reserved the right to sue due to concerns over Everton’s spending after they posted losses of £371.8 million over three years without being charged.

Weighing up the costs

Everton were charged with breaching PSR the following March, and now that the case has finally concluded Burnley are understood to be considering their options. Their decision will be based on weighing up the costs of taking legal action against the potential reward should they be successful.

In an interim judgement last summer the chair of independent commission that heard Everton’s case, David Phillips KC, ruled that their Premier League rivals would be entitled to pursue compensation if the club were found guilty.

Brazilian club Coritiba’s owner seeking partner to share 90 per cent stake

The private equity firm Treecorp is seeking a partner for part of its 90 per cent shareholding in the Brazilian club Coritiba, according to a report from Bloomberg.

Treecorp, a Brazilian financial group, agreed to buy control of Coritiba last May following a change in the law allowing clubs to seek outside investment. The firm is now understood to be working with London-based Oakwell Sports Advisory to help it seek a partner.

Sources told Bloomberg that Treecorp, which has committed to invest $100 million in Coritiba over 10 years, would ideally like to team up with a multi-club owner that could fit the team into its structure.

They added that it could also pair up with a strategic partner that could help the club be more competitive, and that the firm is also keen to bring in the latest technology.

Pipeline of players

Like many Brazilian teams, Coritiba, who are based in the country’s southern state of Parana, have enjoyed a healthy pipeline of players who have gone on to play in Europe after earning fees for their home club.

Winger Igor Paixão signed a five-year deal with Feyenoord in Holland in 2022 after playing for Coritiba. In 2020, Manchester City brought in the then 17-year-old defender Yan Couto from Coritiba. He is now playing on loan at Girona in LaLiga.

FC Barcelona looking for new sponsor to help balance 2023/24 accounts

FC Barcelona are looking to agree a deal with a new sponsor which could play a pivotal role in the club’s efforts to balance their accounts for the 2023/24 financial year, Mundo Deportivo has reported.

The sector or location of the new potential commercial partner has not been disclosed, although Barça president Joan Laporta has recently made several trips to Dubai with the aim of closing a new deal. It is understood that if agreed the contract with the new sponsor would be highly valuable to the club.

The Catalan giants are currently forecasting a loss of around €30 million for 2023/24, far worse than the calculations made at the beginning of the season, when they anticipated closing the year in the black.

That figure does not include the €40 million owed by the German investment fund Libero for the purchase of a stake in Barça Visión, which has prompted the club to postpone its planned IPO of the digital unit.

Barcelona are said to believe the money will be collected before the end of the 2023/24 financial year, even if it is through another company.

Stadium move

Barça’s temporary move to the Lluís Companys Olympic Stadium in Montjuïc, while the Camp Nou is being revamped, is said to be a key factor behind the club’s projected losses for the current year.

Barcelona had originally expected to generate around €80 million from matchday income at the venue. However, attendances have been lower than expected, averaging 40,000 in a stadium with a capacity of 56,000.

Fleetwood Town under pressure over ownership of club by convicted fraudster

Fleetwood Town are coming under growing pressure over the continued ownership of the EFL League One club by the convicted fraudsterAndy Pilley, The Athletic reports.

Last July, Pilley was sentenced to 13 years in prison for ripping off small businesses and charities across the UK via his utilities companies, stealing money from vulnerable people and becoming rich in the process.

Despite resigning as a director of Fleetwood’s parent company immediately after his conviction, Pilley still owns the club.

EFL rules required him to divest his shares after the “disqualifying event” of his lengthy prison sentence, but nine months after his conviction, this has not happened.

The group of energy companies Pilley founded in 2002, BES Utilities, is still deeply intertwined with the club on which he has spent £30 million. Its logo is on the team’s shirts and the company headquarters is based in the stadium.

The BES Utilities group includes BES Commercial Electricity Ltd and Business Energy Solutions, both of which are based in the Parkside Stand at Fleetwood Town.

“Continued dialogue”

Fleetwood said they are in a “continued dialogue” with the EFL about a change of ownership. “Andy Pilley (is) in the process of divesting of his shares,” a spokesperson said. “Mr Pilley resigned as a director of the club shortly after the verdict.”

Aston Villa have announced a £119.6 million loss after tax for the year ending 31st May, 2023, after achieving a small profit of £0.3 million the previous year.

A key factor in the huge deficit was a 42 per cent increase in the club’s wage bill, which reached £194.2 million, compared with £137 million in 2021/22.

Turnover rose to £217.7 million, up from £178.4 million, largely due to the extra revenue from the team’s seventh place finish in the Premier League, after ending the previous season in 14th.

Those seven places were worth an extra £19 million and also saw the club return to Europe for the first time in over a decade. They will be competing in the last 16 of the Europa Conference League this month. The club are currently fourth in the Premier League, which would lead to a place in the Champions League next season. Matchday and commercial income also increased in 2022/23 but Villa spent a further £63.7 million on new players while generating a profit of over £22 million from player sales.

In a statement, the club said: “This investment is part of the reason why employee wage costs rose to £194.2m (up from £137m) although there were also increases in central support functions to support the growth of the Club which resulted in a 9% increase in overall employee numbers.

“The amortisation of player contracts also increased by £10m to £92.5m reflecting the increased investment in playing staff.”

PSR breach set to be avoided

Despite the massive overall loss, Villa are not expected to be in breach of the Premier League’s profitability and sustainability rules (PSR), which allow for losses of up to £105 million over three years. Some costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.

The club said: “It is important to note that these figures are in line with the strategic business plan, and we continue to operate within the Premier League’s Profit and Sustainability rules.”

Villa also revealed that it almost doubled the amount it spent on Villa Park – one of the Euro 2028 venues – to £13.4 million, up from £7.1 million, and said they will “continue to seek opportunities to increase the capacity of the stadium [but] we recognise that this must be done in tandem with improvements to the local transport network".

FIFA withdraws Wanda sponsorship rights amid dispute over missed payments

FIFA is locked in a dispute with Dalian Wanda, one of its highest-paying sponsors, and has ceased activating the company’s sponsorship rights after it missed scheduled payments, according to a report from SportBusiness.

The Chinese commercial property conglomerate announced its FIFA Partner deal with the governing body back in 2016 at the height of China’s sports investment boom. The deal was set to run for 15 years, from 2016 to 2030.

The Wanda Group company logo did not appear on pitchside advertising boards during the recent FIFA Beach Soccer World Cup in Dubai and had been removed from the governing body’s FIFA+ streaming platform last week. However, the logo continues to appear on the federation’s main website.

FIFA and Wanda are expecting to hold more discussions soon over the issue, which has been triggered by a shift in Chinese government policy and the heavy impact of the Covid-19 pandemic on Wanda’s property empire.

Both parties told SportBusiness they would not comment on the matter due to its confidentiality.

Focus on domestic market

The Wanda-owned Infront agency has helped oversee the implementation of the sponsorship deal with FIFA, as well as agreements with other rights-holders. The activation of the sponsorship has largely focused on Wanda’s domestic market.

The deal was the first of Gianni Infantino’s reign as FIFA president and the first top-tier sponsorship deal to be signed by the governing body since an agreement with Russian oil and gas company Gazprom in 2013.

EFL secures record deals of ‘at least £148 million’ for international TV rights

The English Football League (EFL) has announced that it has secured record deals, reported to be worth at least £148 million, for its international TV rights over the next four years.

In a statement, the EFL said two agencies, Pitch International and Relevent Sports, will represent the organisation across global TV markets until the conclusion of the 2027/28 season.

According to The Athletic, the deals could see the EFL earn more than the minimum guaranteed £148 million, which in itself is a 40 per cent increase from the previous deals.

It is understood the EFL will receive at least £104 million from Pitch, which covers Europe, the Middle East and North Africa, sub-Saharan Africa, Asia, Australia and New Zealand, and £44 million from Relevant, covering the Americas.

Under the deals, Pitch will distribute 155 Championship games, 38 League One and League Two matches, all promotion play-off fixtures, Carabao Cup rounds, and three EFL Trophy matches.

Relevent Sports will sell all EFL matches, promotion play-off games, Carabao Cup rounds, and three EFL Trophy fixtures and will also manage all betting rights throughout the US.

Streaming services

The EFL said that as part of the new agreement, “clubs will be able to continue international streaming services direct to fans overseas, where matches are not being broadcast exclusively, enabling those based abroad the chance to watch their team’s matches throughout the whole season”.

Premier League clubs to face sanctions for inflating sponsorship deals under new rules

Premier League clubs will face sanctions if they try to secure inflated sponsorship agreements or cheaper transfer deals with companies, organisations or other teams connected to their owners, The Times reports.

New rules published in the top flight’s handbook are much tougher and aim to block clubs bypassing financial controls by earning unfair amounts via means such as sponsorship from a company linked to an owner, or by signing a player cheaply from another club in the same ownership group.

Under the revised rules, teams can now be charged with a breach of the rules if they do not “use all reasonable care” to ensure deals are of fair market value.

There will be no fixed tariff of sanctions should rule breaches occur –all penalties would be available to an independent commission, depending on the severity of the offence.

The updated Premier League handbook states that the rules “seek to ensure the long-term financial sustainability of clubs by extinguishing reliance on enhanced commercial revenues received from entities linked to the club’s ownership”.

Bitter split

It is understood the new rules caused a bitter split in the league when a vote on them went through last month. It was thought to be the closest in the Premier League’s history, with 12 clubs voting for the changes and six against, with two abstaining, just passing the threshold of a two-thirds majority.

The details outlined in the handbook are said to help explain why some clubs were pushing strongly for the revised rules – and why state-connected clubs such as Manchester City and Newcastle United, or those in multi-club ownership groups, were fiercely opposed.

Southampton have reported a £87 million loss for the year ending 30th June, 2023, far higher than the £6 million deficit suffered the previous year.

The club, who were relegated from the Premier League in the 2022/23 season for the first time in a decade, generated turnover of £145.5 million, down from £151 million.

The Saints’ total wage bill increased from around £99 million to £106 million, with the men’s first team accounting for £89.4 million.

Approximately £14.6 million in costs were also incurred from changing managers twice during the 2022/23 campaign. Ralph Hasenhuttl was replaced by Nathan Jones, who joined with coaches Alan Sheehan and Chris Cohen, before he was sacked and Ruben Selles was hired.

The figures resulted in an operating loss of £42.7 million, and this was compounded by a loss on player trading of £44 million.

Big player sales after relegation

The biggest player salesfollowing Southampton’s relegation from the Premier League were completed after the end of the period covered in the 2022/23 accounts.

They included the sales of Belgian midfielder Romeo Lavia to Chelsea for £58 million, English midfielderJames Ward-Prowse to West Ham United for £30 million, and English full-back Tino Livramento to Newcastle United, also for £30 million.

Everton takeover: Premier League decision to take at least another week as concerns grow over club’s future

A decision by the Premier League on the proposed takeover of Everton by 777 Partners can be ruled out for at least another week, according to a report from The Daily Telegraph.

The development comes as pressure mounts on the top-flight to make a decision on the proposed deal as working capital and new stadium financing is assured only to 31st March.

It means that Everton’s financial future will be plunged into major doubt if the takeover saga remains unresolved by the end of the month.

More meetings are anticipated between the Premier League and the Miami-based investment firm in the coming days to clarify outstanding questions face to face.

Independent oversight panel

However, even if the Premier League board is then satisfied it has received all information, under the league’s toughened owners’ and directors’ test an independent oversight panel of KCs will be called in to review conclusions.

The precedent set by Sir Jim Ratcliffe’s acquisition of a 27.7 per cent stake in Manchester United has led insiders to conclude that further process alone will take another seven days.

Mercury/13 completes first club ownership deal with controlling stake in Como Women

The women’s football investment group Mercury/13 has announced the acquisition of a controlling stake in the Italian Serie A club Como Women, marking the first deal with a team struck by the group.

Como Women, who were founded in 2020 but have roots going back to 1997, have risen through the divisions of Italian women’s football over recent years and were promoted to Serie A in 2021/22.

Stefano Verga, who has led Como Women since the team’s inception, will remain as club president and shareholder, alongside pre-existing owners Simone Verga, Manuela Colombo and Cristian Larghi.

Mercury/13’s co-founders and co-CEOs, the Greek-Argentine businesswoman Victoire Cogevina Reynal and Venezuela-born, US-based tech entrepreneur Mario Malavé, will join the club’s board of directors, alongside Verga.

“Strategic commercial partnerships”

Mercury/13 plans to build a multi-club ownership group in the women’s game and is aiming to invest $100 million into clubs worldwide.

In a statement, the group said it “aims to help transform Como Women into one of Europe's foremost clubs, providing a nurturing environment for players to flourish in their careers on and off the pitch.”

Mercury/13 added that central to its vision for the club is “the pursuit of strategic commercial partnerships that recognise the pivotal role of women's football in advancing gender equality on a global scale.”

Cogevina Reynal said: “Through innovative partnerships with forward looking sponsors, we are determined to transform Como Women into a symbol of empowerment and celebration of women in Italy and beyond.”