The German Football League (DFL) joint CEOs, Steffen Merkel and Marc Lenz, have defended the way voting was carried out among clubs over the proposed private equity investment in the Bundesliga’s media rights business after the controversial plans were dropped last month.

Asked in an interview with Kicker “would you like to know how [Hannover 96 managing director] Martin Kind really voted in December?”, Lenz replied: “No – and not by any of the 36 clubs, because there was consensus in the league association for a secret ballot. … The problem at Hannover is a long-standing unresolved conflict within the club.”

Bundesliga and Bundesliga 2 clubs narrowly approved the plans to sell a stake in the league’s media rights unit at the DFL general assembly on 11th December in a private vote, with exactly the minimum two-thirds majority reached.

Kind’s vote – suspected to be in favour of the plans – was seen as decisive, and anger was sparked when he refused to reveal how he voted after being asked by Hannover’s members to reject the investment proposal.

Over the ensuing weeks, amid widespread and increasingly disruptive fan protests across German football, calls grew for a new, transparent vote on the issue before the DFL’s decision to drop the plans.

Also dismissing suggestions that the general assembly vote should have been held in a different way, Merkel said: “A few days before the vote, it was still expected that far more than 24 clubs would vote in favour of such a process. However, the situation has arisen and led to such a controversy in particular because we had a vote with exactly 24 votes in favour, ten against and two abstentions.

“If it had been 29 to seven or 28 to eight, as one might have assumed based on the preliminary talks, no one would have discussed the supposedly decisive vote of a single club.”

“We are certainly not stopping our work”

Commenting on how the dropping of the investment proposal affects the DFL’s plans to boost the global appeal and media rights value of the Bundesliga, Merkel added: “We have been thinking for a long time about how we can develop the league in the interests of the 36 clubs, independently of the search for a strategic partner.

“We are certainly not stopping our work – the partner process was by no means the only topic on our agenda. We will discuss everything else in the coming weeks in the committees and regional conferences. Before deciding on the search for a strategic partner, possible alternatives were already discussed.”

 

Wolves report £67.2 million loss for 2022/23

Wolverhampton Wanderers are expected to avoid being charged with breaches of the Premier League’s profitability and sustainability rules (PSR) despite reporting another heavy loss.

The club recorded a deficit of £67.2 million for the year ending 31st May, 2023 after suffering a loss of £46.1 million the previous year.

The latest financial result takes the club’s combined losses from the last two years to £113.3 million. PSR permits losses of up to £105 million over three years, but certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football. Thus, the club are expected to avoid the same faith as Everton and Nottingham Forest..

Change of manager increases staff costs

For the 2022/23 financial year, Wolves’ turnover was £168.6 million, up from £165.5 million in 2021/22. However, operating expenses rose to £269.2 million, after totalling £223.9 million during the previous 12 months.

Player amortisation costs amounted to £79.2 million, compared with £60.9 million in 2021/22, while the total wage bill climbed to £141.6 million, up from £120.6 million.

Of the increase in personnel costs, £14.5 million related to non-playing staff, due largely to the change of manager from Bruno Lage to Julen Lopetegui. Lopetegui’s salary was considerably higher than Lage’s, and the club also had to agree to a settlement deal with Lage and his staff, meaning they were effectively paying two management teams for part of the year.

 

Newcastle United aiming to stay at St James’ Park and grow capacity to 60-70,000 despite challenges

Newcastle United want to remain at St James’ Park and expand the stadium into a multipurpose venue that will drive significant revenue growth – despite facing a series of complex challenges, The Daily Telegraph reports.

Sources have told the newspaper that it is the overwhelming preference of the club to remain where they are, even though plans to increase capacity to between 60-70,000 would mean having to overcome several obstacles, both architecturally and in terms of planning issues.

With Grade One listed buildings behind the East Stand, and a road with a Metro tunnel and station underneath behind the Gallowgate End, some difficult choices would have to be made.

A feasibility study into the proposed redevelopment is continuing to consider viable options, and while possible sites for a new stadium have been talked about, it now appears that rebuilding their old home is the most likely route the club is going to take.

“Number one approach”

Newcastle CEO Darren Eales said: “St James’ Park is a great location at the heart of the community. If we can expand St James’ Park, then clearly that would make sense. But we have to know what’s possible. That is our number one approach, and that’s what our experts are doing now.

“We’ve got world leaders looking at it in terms of what is architecturally possible and what that would mean from a capacity and revenue perspective.”

 

FC Barcelona consider ending Nike kit deal and setting up own brand

FC Barcelona are considering ending their partnership with Nike and instead creating their own brand to manufacture their kit, Spanish media have reported.

The American sportswear giant has supplied kits to the Catalan giants since 1998, and the deal – understood to be worth £73 million a year – is currently set to run until June 2028.

However, according to Spanish newspaper Sport, Barça are prepared to move on from Nike, with several alternatives being considered.

Puma are reportedly prepared to pay more than £85 million a year to replace the deal, but Barcelona are instead debating the groundbreaking step of establishing their own brand.

Club president Joan Laporta is believed to be in favour of the approach, which would likely see them partner with a “large multinational” that would manufacture and distribute the shirts.

End partnership early

It is understood that Barça are determined to end the partnership with Nike early. The club’s lawyers are said to be confident that a dispute with the apparel corporation could be won if the split couldn't be resolved amicably.

Speaking on the situation earlier this month, Laporta told Marca: “The operation has been deteriorating, we think [Nike] have breached the contract. … They have not presented themselves. In words, yes. When we have shown our teeth, they have made the effort but it is not enough. It is at this point that we want to find the best solution.”

 

Saudi Arabia launches bid campaign for 2034 World Cup

Saudi Arabia has officially launched its bid campaign to host the 2034 FIFA World Cup, with the unveiling of its bid logo and official website.

The Gulf state was confirmed as the sole candidate to host the tournament in October, after Australia decided not to bid. The Saudi Arabian Football Federation (SAFF) has now begun its campaign under the slogan ‘Growing. Together’.

SAFF said its bid seeks to highlight the parallel between Saudi Arabia’s rapid development and the transformative potential of hosting the World Cup. The logo is made up of intertwined rows of multi-coloured ribbons, displaying football and cultural symbols.

The bid launch comes amid continued intense scrutiny over Saudi Arabia’s human rights record, its treatment of women and views on same-sex relationships.

Mass executions, for a variety of crimes, are still common and critics of the government face house arrest, imprisonment and even torture. The conditions the vast migrant worker population live and work in have also been heavily criticised.

“Rapid transformation”

SAFF president Yasser Al Misehal said: “Telling our football story to the world is of massive importance. And we believe ‘Growing. Together.’ is the perfect, yet simple description of our approach to hopefully hosting the tournament in 10 years’ time.

“Bidding to host a FIFA World Cup is only made possible by the rapid transformation the country is enjoying. We’ve made unprecedented progress in both the men’s and women’s game and our bid is an open invitation to the world to join us on this exciting journey.”

The Premier League is to hold face-to-face talks with Everton’s prospective new owner 777 Partners as part of the final decision-making process on the proposed takeover, according to The Times.

It is understood an agreement to meet has been struck between the league and the Miami-based investment firm, which has been waiting for approval since last September to purchase Farhad Moshiri’s 94 per cent stake in the Merseyside club.

The discussions come two weeks after the Premier League, as part of its owners’ and directors’ test, asked 777 to submit further information about the group’s source of funding and its ability to fund Everton over a three-year period.

777 has so far loaned the club around £190 million to cover day-to-day running costs and those incurred through the building of the new stadium at Bramley-Moore Dock.

Frustration over length of process

There is said to be frustration at 777, whose co-founder Josh Wander is in the UK this week, over the length of time the decision-making process around the takeover has taken amid suggestions 777 will not continue loaning money to Everton beyond March.

Even if 777 pass the owners’ and directors’ test, it would still need to be officially ratified by an independent oversight panel, as was the case with Sir Jim Ratcliffe’s acquisition of 27.7 per cent of Manchester United, which was completed earlier this month.

Bolton Wanderers 25 to 35 per cent stake held by group led by Trafigura head of oil

A group of investors led by Ben Luckock, global head of oil at trading house Trafigura Group, is now a significant minority shareholder in EFL League One club Bolton Wanderers, Bloomberg has reported.

Sources have told the newswire that the group, which consists of around 25 families, some of whom are also executives at Trafigura, now owns around 25 to 35 per cent of the shares in the club. They invest in the club through an entity called BMLL Limited.

Bolton, who are currently third in League One, have struggled in recent years, and were rescued from liquidation by Luckock’s brother, Nick, and current Bolton chair Sharon Brittan in 2019, who shared connections via the venture capital industry.

“Drifted up over time”

Ben Luckock, who first invested in Bolton around two years ago, told Bloomberg that the size of the group’s shareholding had “drifted up over time” and that he’d got involved after having been convinced by his brother’s sensible approach to investing in a football team.

“Some of the hard yards had already been done by then,” he said, adding: “We’re willing to be very much in the background. I’ve got a huge amount of trust in my brother and zero interest in delving into any control aspects.”

Barnsley post £4 million loss for 2022/23

Barnsley have reported a loss of £4 million for the year ending 31st May, 2023, after suffering a deficit of £7 million the previous year.

The accounts covering the 2022/23 season, which ended with the Reds reaching the League One play-off final, showed the South Yorkshire club made an operating loss of £5.9 million and a player trading profit of £1.9 million.

During the period covered, the club sold several players following relegation from the Championship in 2021/22, including Cauley Woodrow, Carlton Morris, Callum Brittain and Michal Helik.

Turnover for 2022/23 fell to £9.5 million, down from £15 million, primarily due to a significant reduction in EFL distributions and Premier League solidarity income derived from broadcasting rights. Income from EFL distributions fell to £2.9 million, compared with £8.6 million in 2021/22.

Broadcast revenue declined to £0.3 million, down from £0.6 million, while commercial income dropped to £0.6 million, compared with £0.7 million.

However, matchday income rose from £2.9 million to £3.4 million, due to improved attendances and additional revenue generated from reaching the play-off final, and merchandise income increased from £0.7 million to £0.8 million.

Shareholders inject equity of £6 million

Barnsley also confirmed that the club's shareholders injected equity of £6 million to ensure it was able to meet its ongoing financial commitments during the year. The report added that in the post year end period, the club had received further equity injections of £3.6 million.

The figures also revealed that the club is still owed over £2 million on instalments from player sales by other teams.

Revenue streams being affected by Barnsley remaining in League One was cited among the principal risks and uncertainties facing the club going forward, alongside cash management within the constraints of available capital and a lack of influence over principal revenue streams relating to central broadcasting contracts.

German Football League (DFL) Chairman Hans-Joachim Watzke has said that the disruption of a key private equity investment deal in German football is the work of a vocal minority, not the wider fan base.

“A mere five percent of organised fans opposed the investment, yet their influence was enough to unsettle the clubs and ultimately freeze the deal,” Watzke said in a call to international journalists, including Off The Pitch, from New York on Tuesday.

His comments follow last week’s collapse of a deal between the DFL and CVC Capital Partners to bring in private investment to the Bundesliga’s media rights business.

Last December, 24 of the 36 clubs in the Bundesliga and second-tier Bundesliga 2 voted to permit the DFL to commence negotiations to sell an eight per cent stake, valued at €1 billion, in its media rights subsidiary. Following Blackstone’s withdrawal from negotiations earlier this month, CVC were the only remaining bidder.

Watzke highlighted the unique challenge in German football, where traditionalist views often clash with the modernisation efforts of its leaders.

He spoke of the general scepticism towards the term “investor” and the ingrained traditions across German society that render such financial engagements sensitive.

“Germans are traditional, perhaps even a bit old-fashioned,” he said. “In Germany, investor is perhaps not the best word.”

Despite the investors’ assurances and clear boundaries safeguarding the fans’ interests, a deep-seated mistrust persisted, he added. “The dilemma lies within the societal fabric itself; any new proposal is met with scepticism,” he added.

Organised fan groups ultimately wielded significant power, enough to shift the sentiment among Bundesliga clubs. Watzke claimed that “average fans” had no problem with the deal and only “five percent of the fans – which is not so much, but they're the organised fans – were against it.”

He said that there was an initial consensus supporting the investment, but the tide turned as fan protests intensified.

“When I recognised that the majority was not there, then I stopped it,” he added.

Highlighting the ramifications, Watzke said that the financial stability of giants like Bayern Munich and Borussia Dortmund, the club of which he is CEO, remains unaffected, but he voiced concern for the rest of the league.

“The setback will predominantly impact the smaller clubs, those who would have benefited immensely from the financial boost to level the playing field,” he added.

North American launch day

The row over the collapsed CVC deal, somewhat overshadowed Mr Watzke’s day in New York, where he was opening Borussia Dortmund’s first office in North America, building on their international presence and mirrored in their successful establishments in Shanghai and Singapore.

The two Asian offices generated €10 million per year each in commercial revenue, he said, and he expected the US operation to lift revenues from €4 million annually in the Americas to a similar sum.

Watzke emphasised the strategic importance of aligning with the surging interest in soccer among American youth ahead of next year’s FIFA Club World Cup and the World Cup in 2026.

“We played in San Diego, in Las Vegas, and in Chicago, and you can smell it. The younger people, they are very close now to soccer.” He said this connection steered Dortmund's decision towards anchoring a permanent base in New York, aiming to forge stronger ties with the American audience and stakeholders.

Watzke firmly believes that “now is the right time” for this venture, particularly highlighting the potential market readiness following the tenure of Christian Pulisic at Dortmund and the current involvement of Giovanni Reyna, who is anticipated to return from his stint at Nottingham Forest at the end of the season.

“We want to make a lot of things. Now we open our office, but it’s a commitment to American soccer, and we want to bring the club to the different regions in the US.” He underscored the intent to expand Dortmund’s academy, host tournaments, enhance their social media footprint, and increase sponsorship revenues. He also spoke of the importance of fan clubs in the US: Dortmund currently have thirty three; he has ambitions for 100.

“The local people must get a feeling that Borussia Dortmund are there and they are not only there to get money but they are there to explain football and their own competence in creating world-class players.” He emphasized a long-term commitment, promising, “If we now go to New York, we will be there in 10 years, you can be sure.”

Club World Cup details

Watzke also revealed that he had held talks with the FIFA President, Gianni Infantino, about the expanded FIFA Club World Cup, which will be staged in the United States in June and July 2025 and for the first time played by 32 teams.

Little has been shared by FIFA so far about the financial impact of the tournament. Watzke played down the financial relevance, saying that it served mostly as a window to promote Dortmund to the rest of the planet.

Expressing high hopes for the tournament’s impact he said: “The whole world will watch this Club World Cup, and for us to be there as only one of two German clubs, it's a very, very big thing.”

Would the financial impact not merely reinforce financial disparities within the German game, with Bayern and Dortmund pulling ever further away from the chasing pack?

“I hope that we will get richer, and I hope Bayern Munich not,” he joked.

“But it does not work like that.  This tournament is only every four years, not like Champions League every year. With the income [from the] tournament, and it will be a very big tournament, but only every four years, you cannot change the relations in Germany. Never ever.”

Arsenal have reported a loss of £52.1 million for the year ending 31st May, 2023.

The deficit compares with the £45.5 million loss recorded the previous year. However, the club said the result was impacted by “impairment write-downs on certain player registrations amounting to £18.1m”.

The loss excluding the impact of exceptional items for 2022/23 was £34 million, down from £45.5 million in 2021/22.

The underlying figures were boosted by Arsenal’s return to European competition, with the club reaching the last 16 of the Europa League, and a second place finish in the Premier League.

Football revenue for the year was £464.6 million, up from £369.1 million. Broadcast income climbed to £191.2 million, compared with £146 million in 2021/22, while commercial revenues reached £169.3 million, up from £141.7 million.

The return of European football meant there were 24 home fixtures, with matchday income amounting to £102.6 million, compared with £79.4 million the previous year. The club noted that this was the first time matchday revenue had returned to more than £100 million since 2014/15.

Player trading profit drops to £10.7 million

The profit on player sales was £10.7 million, down from £22.2 million, while player loans amounted to £1.5 million, compared with £2 million the previous year. Meanwhile, Arsenal’s total wage bill rose to £234.8 million, up from £212.3 million.

The club said in a statement: “During 2022/23 and subsequently during the summer 2023 transfer window, the club has again invested strongly in the development of its men’s first-team playing resources. This investment recognises that qualification for UEFA competition represents a pre-requisite to re-establishing a self-sufficient financial base.”

Spanish court dismisses Real Madrid and Athletic Bilbao lawsuit over LaLiga's deal with CVC

A Spanish court has dismissed the legal action taken by Real Madrid and Athletic Bilbao against LaLiga over its investment deal with CVC Capital Partners.

As reported by Spanish media, the Madrid court's ruling found nothing unlawful in the LaLiga Boost deal, which was struck back in 2021 and approved by 38 Spanish clubs.

The private equity firm agreed to invest a total of €2 billion into league-led growth projects in return for an 8.2 per cent share of LaLiga broadcast and sponsorship revenues for 50 years.

Real Madrid and Athletic filed a complaint in January 2022 claiming the deal would cause irreparable damage to Spanish football, and that it violated Spanish sports law and LaLiga's statutes.

LaLiga welcomes decision

In a statement, LaLiga welcomed the judge's decision, pointing out that the deal has allowed the majority of its clubs to make investments without state aid. The court ruling can be appealed.

Under LaLiga’s conditions for the CVC project, clubs are permitted to spend up to 70 per cent of funding from the total investment on infrastructure and other growth initiatives, with 15 per cent for servicing debt, and the other 15 per cent for signing players.

Last month, LaLiga said it was delaying the release of the last remaining payment of €350 million to its clubs as it wanted them to present details of how they will spend it.

Reading handed two-point deduction by EFL for failing to meet HMRC payment obligations

Reading have been hit with a fresh two-point deduction by the English Football League (EFL) for failing to meet HMRC payment obligations, with a further two points suspended.

The punishment brings the League One club’s total number of deducted points to six for the current season, after they were deducted four points earlier in the campaign for the late payment of wages.

In a statement yesterday, the EFL said Reading’s owner, Dai Yongge, has also been fined £100,000 for “his repeated failures to deposit an amount equal to 125 per cent of the club’s forecast monthly wage bill in a designated account”.

The EFL added: “Mr Dai has demonstrated an unwillingness to support the club’s current financial commitments, in contrast to his approach following the change of control in 2017. That is creating significant uncertainty, and the current impasse has to be broken.

“Therefore, the league urges Mr Dai to provide his club with the appropriate resources needed while at the same time accelerating his efforts to sell his majority shareholding to new owners, so that everyone associated with Reading, including staff, supporters and the local community, can move on and prepare for a positive future.”

Nineteenth in table

Reading, who dropped down to 19th in the League One table following the two-point deduction, said in a statement that “Mr Dai is proactively trying to secure the sale of the club with negotiations continuing with various parties”.

Reading’s total points deduction under Dai’s ownership is now 18. Last month, the club were also handed a suspended three-point penalty after a pitch invasion by fans protesting against Dai caused their League One fixture against Port Vale to be abandoned.

Borussia Dortmund have recorded large increases in both profit and total revenues for the first six months of the 2023/24 financial year compared with the same period the previous year.

The Bundesliga club reported a profit of €70.6 million, a rise of 71.4 per cent on the €41.2 million achieved in the first half of 2022/23, while total revenues, including player sales, reached €367.7 million, up from €308.2 million, an increase of 19.3 per cent.

Income from player trading amounted to €111.2 million, compared with €86.6 million in the first six months of the previous year, leading to a profit on player sales of €82.4 million, up from €62.2 million.

Turnover, excluding player sales, totalled €256.5 million, an increase from the €221.6 million earned in H1 2022/23. Broadcast revenues reached €109.3 million, up from €96.8 million, while matchday income rose to €27.6 million, compared with €21.1 million.

Commercial revenues remained stable, amounting to €70.5 million, up slightly from the €70 million generated in the corresponding period last year. Merchandise income reached €26.4 million, compared with €16.8 million, while conference, catering and miscellaneous income rose to €22.7 million, up from €16.9 million.

Wage bill rises to €126.7 million

In terms of costs, Dortmund’s wage bill rose by €14.4 million from €112.3 million to €126.7 million, while depreciation, amortisation and write-downs declined by €3.2 million from €49.8 million to €46.6 million. The club’s other operating expenses were up €18.6 million from €60.3 million to €78.9 million.

Commenting on the results, Trion Reid, an analyst at Berenberg, said: "We continue to believe that this well-run club’s revenue should be correlated with the growing popularity of football, yet the market cap is less than the current transfer value of the squad, with nothing attributed to the value of the brand or the fully-owned stadium."

 

Lyon record €60.6 million loss for first six months of 2023/24

Lyon have posted further heavy losses, with the Ligue 1 club recording a €60.6 million deficit for the six-month period ending 31st December, 2023, after suffering a €60.2 million loss in the corresponding period last year.

The result came despite total revenues, including player sales, reaching €172 million, up from €134.8 million in the first half of 2022/23.

The increase was driven largely by the club’s summer transfer activity, with income from player sales reaching a record €94.9 million for the period, more than double the €43.8 million earned in the corresponding period last year. The profit on player trading was €78.3 million, up from €31.2 million.

The transfer activity included the sales of right winger Bradley Barcola to Paris Saint-Germain for €40.5 million, centre-back Castello Lukeba to RB Leipzig for €30 million and midfielder Romain Faivre to Bournemouth for €14 million.

However, turnover excluding player sales fell from €91 million to €77.1 million. The H1 2022/23 figure included the first payment of €16.5 million linked to CVC’s investment deal with the LFP. As a result, broadcast revenue for that period was €37.7 million, and fell to €17.7 million for H1 2023/24.

Among the other regular income streams, matchday revenue remained the same on €15.8 million, sponsorship and advertising income declined from €19 million to €16.7 million, and brand-related revenue was stable on €11.1 million.

However, there was a big increase in events income, which more than doubled from €7.4 million to €16.2 million due to the Red Hot Chili Peppers concert in July and five Rugby World Cup matches in the autumn, as well as the first events at the multipurpose LDLC Arena, which opened in November.

Wage bill drops to €84.5 million

As for costs, Lyon’s total wage bill was €84.5 million, down from €86.2 million. Personnel expenses for the playing squad fell by €8 million. However, non-sporting staff costs – which included those for the new general management appointed following the takeover of the club by John Textor’s Eagle Football Holdings in December 2022 – increased by €6.3 million.

Commenting on the results, Trion Reid, an analyst at Berenberg, said: “While EBITDA turned positive at €7.6 million, compared to a €23.7 million loss last year, higher exceptional and financing costs meant that the net loss was similar, at €60.6 million compared to €60.2 million last year.”

RWD Molenbeek purchase

Away from the results, Lyon confirmed that its parent company OL Groupe has acquired from Eagle Football its 99 per cent stake in the Belgian club RWD Molenbeek for €14.5 million. The club also revealed that ahead of its planned listing on the New York Stock Exchange, the corporate name of OL Groupe will change to Eagle Football Group before the end of next month.

Reid said: “We believe that the move to a multi-club structure represents an interesting strategy that could reduce the inherent sporting risk of an investment in a football club. However, the high debt and negative profitability of the group leave us still cautious on the shares, which trade on a calendarised 2024 multiple of 3.0x EV/sales.”

 

Sporting CP's half-year profit reaches €58.3 million due to player sales boost

Sporting Clube de Portugal have posted a profit of €58.3 million for the six-month period ending 31st December, 2023, 23 per cent higher than the corresponding period the previous year.

The result was achieved thanks to record total revenues of €178.1 million, with activity in the transfer market the key driver.

The club’s player trading in the summer generated €122.7 million in transfer fees, resulting in a profit on player sales of €86.3 million.

It meant that player trading generated 69 per cent of the club's total income in the period. Standing at €55.4 million turnover, not including player sales, suffered from the impact of the team playing in the Europa League this season after competing in the Champions League group stages in 2022/23.

Revenue from UEFA payments amounted to €10.4 million, down from €35.4 million in the first half of the previous year, a drop of 70 per cent.

Player expenses up

As for expenses, Sporting’s wage bill was €42.5 million, up 11 per cent year-on-year, while player amortisation also increased, reaching €20 million, a rise of 26 per cent.

 

Premier League auditor Deloitte awarded key contract related to new independent regulator

The Premier League’s auditor Deloitte has been awarded a key contract in helping to set up the new independent regulator for English football, according to a report from PA.

Sources have expressed concern to the news agency over a potential conflict of interest for Deloitte, which signed off the Premier League’s most recent set of annual accounts.

The involvement of the financial services firm has raised some eyebrows, at a time when the regulator’s precise remit is still unclear as the wait goes on for the publication of the Football Governance Bill.

The English Football League (EFL) and campaign groups want the new regulator to be able to review whether any new deal agreed between the Premier League and the EFL on how broadcast revenues are split meets the regulator’s stated aim of ensuring the sport’s financial sustainability.

It is understood that EFL clubs left a meeting with culture secretary Lucy Frazer earlier this month concerned that the regulator would not be given powers to correct any settlement which is agreed, something which football reform group Fair Game has said would be “unacceptable”.

Support on regulator’s operating model

A UK government source told PA that the Deloitte contract will involve the firm providing support around the design and implementation of the regulator’s operating model, and insisted the firm will not be providing advice on, or developing, regulator policy.

The source added that Deloitte will look at how the regulator is structured and staffed, as well as its systems and infrastructure requirements. They said any potential conflicts of interest would be managed in the usual way, and were considered as part of the procurement process.

The German Football League (DFL) has announced that controversial plans to sell a stake in the Bundesliga’s media rights business to a private equity firm have been abandoned, marking the second time in nine months such a proposal has been dropped.

The DFL’s decision, made at an Executive Committee meeting in Frankfurt yesterday, follows widespread fan protests and calls for a new vote over the latest plans, which were narrowly approved by clubs in December.

Earlier this month, Blackstone withdrew from the race to invest in the media rights unit, leaving CVC Capital Partners as the sole remaining bidder. Following Blackstone’s withdrawal, DFL had insisted that the plans remained on track.

However, in its statement issued yesterday, the league said its Executive Committee had “unanimously decided not to continue the process of concluding a marketing partnership.”

DFL supervisory board chairman and Executive Committee spokesman Hans-Joachim Watzke said: "In view of the current developments, a successful continuation of the process no longer seems possible.” He went on to stress that “returning to orderly match operations must be the primary goal of the DFL.”

Watzkeadded: “Even if there is a large majority in favour of the business necessity of the strategic partnership, German professional football is in the midst of a crucial test that is causing major disputes not only within the league association between the clubs, but also within the clubs between professionals, coaches, club managers, supervisory bodies, general meetings and fan communities, which is increasingly vehemently challenging match operations, concrete match processes and jeopardising the integrity of the competition.

“In view of the circumstances in the league association with its 36 member clubs, the viability of a successful conclusion of the contract in terms of financing the 36 clubs can no longer be guaranteed.”

Controversial voting behaviour

Watzke also addressed the calls for a fresh vote on the proposed media rights stake sale, and referred to the controversial voting behaviour of Hannover 96 managing director Martin Kind, who refused to reveal how he voted in December after being asked by the club’s members to vote against the plans.

“The Bureau, also taking into account all the legal aspects, has come to the conclusion that any further votes would not solve the problem,” Watzke said. “The starting point is the vote on 11 December 2023, which resulted in a 2/3 majority for a final mandate for the Presidium.

“This vote is considered legally effective within the Presidium and in the opinion of the lawyers. At the same time, it should not be overlooked that this vote lacks broad acceptance due to the events surrounding Hannover 96.

“However, any new vote with the aim of establishing this acceptance through a resolution would raise further legal questions regarding the assessment of the legally effective decision made in December 2023, which was not questioned or challenged by any club at the time, which would entail the risk of new legal questions or even disputes.”

Manchester United appoint INEOS directors to board as Ratcliffe investment is completed

Manchester United have appointed two new directors to the club’s board following the completion of INEOS owner Sir Jim Ratcliffe's purchase of a 27.7 per cent stake in the club.

United confirmed the minority stake acquisition had been completed in a statement on Tuesday, and in an SEC Filings announcement yesterday revealed that INEOS co-founder John Reece and INEOS Sport chairman Rob Nevin have both been confirmed as board members.

The filing also confirmed that former CEO Richard Arnold resigned from the board last week. He stepped down from his role as CEO in November but remained on the board of directors until he handed in his resignation letter last week.

INEOS will assume control of United's football operations, with the group’s director of sport Sir Dave Brailsford and CEO of sport Jean-Claude Blanc also due to sit on the club’s football board.

Ratcliffe reveals more details of INEOS strategy

As Ratcliffe’s plans at United begin to take shape, the British billionaire has shared further details of the INEOS strategy, telling the Belgian newspaper De Tijd he needs to embark on a culture transformation at the club because it is not geared for success.

“We have to look at the organisation of the club, because it is not good at the moment,” Ratcliffe said. “Take the head coach [Erik ten Hag] for example: he must report directly to the CEO. That is no longer possible in a modern football organisation.

“We then have to ensure that the right people end up in the right positions. Every person in management must be world-class. And then it is important to create a positive, supportive, friendly and high-quality environment.

“That culture was missing before. Only in such an environment can you get the best out of sportsmen. If successful, the results will follow automatically. That’s the plan and I believe in it.”

Gary Neville invited to help regenerate Old Trafford

Meanwhile, according to a report from The Times, former United captain Gary Neville has been invited by the club to join a special committee to oversee the regeneration of Old Trafford and the surrounding area.

It is understood that Neville, who co-owns Hotel Football and University Academy 92, which neighbour the stadium, has had a series of meetings with Collette Roche, United’s chief operating officer, about the role.

Brentford owner Matthew Benham hires Rothschild and eyes £400 million valuation as sale kicks off

Matthew Benham, the owner of Brentford, has hired the multinational private and merchant bank Rothschild to advise on a potential sale of the West London club, according to a report from Sky News.

Rothschildis expected to kick off a formal process in the near future amid anticipation that Brentford will become the latest in a string of Premier League clubs to draw interest from US-based investors.

One insider told Sky that Benham, who initially invested in the Bees in 2007, was open-minded about whether to sell a minority or majority shareholding in the club, but that any deal would be expected to value it at more than £400 million.

The source added that if he does decide to offload a controlling stake, the current owner would want to remain as a minority investor for the long term.

"We must not stand still”

A spokesman for Brentford declined to comment on Rothschild's appointment or its potential valuation, but reiterated a statement issued to Bloomberg in December, which said: "Given the recent rise and growth of our club and the changing shareholder landscape within the Premier League, it's no surprise that there has been interest in investment opportunities at Brentford FC.

"While Matthew Benham's commitment to the club remains as strong as it ever was, it is only natural, and perhaps even essential, for us to carefully explore what new investment could potentially mean for the future of Brentford FC.

"We must not stand still and we remain absolutely determined to safeguard the long term future of Brentford FC and to remain competitive in the world's most challenging and successful league."

Mexico's Club America listed on stock market to help fund Azteca Stadium revamp ahead of 2026 World Cup

Club America has become the first football team in Latin America to be listed on the stock exchange, with some of the money raised going towards the renovation of its Azteca Stadium ahead of the 2026 World Cup.

The Mexico City-based club was listed on the Mexican Stock Exchange (BMV) on Tuesday under the name of the Ollamani company, which manages operations of the club, the stadium and other businesses owned by media company Grupo Televisa.

At the close of its debut on the stock market,Club America’s share price almost tripled, from 11.50 pesos (€0.6) to 29.99 pesos (€1.6). As a result, its market capitalisation went from the initial 1.37 billion pesos (€75 million) to 3.98 billion pesos (€216 million) at the end of the day.

$150-160 million renovation

The listing is a strategy by Grupo Televisa to finance the $150-160 million renovation of the Azteca Stadium, which will stage the 2026 World Cup opener and two other group-stage games, as well as one match in the first knockout round and one in the round of 16.

America, Mexico's most successful club and reigning champions, are the 10th most valuable soccer team in Latin America, according to last year's Forbes list, with a value of $256.1 million including the stadium.

The 83,264-capacity venue was the first venue to host two World Cup finals, with Pele's Brazil winning the first in 1970 and Diego Maradona's Argentina the second in 1986.

Rochdale target £2 million injection from 90 per cent stake sale to secure club’s future

Rochdale have launched a desperate plea for investment as the National League club bids to stave off the threat of liquidation by the end of next month, The Daily Telegraph reports.

The Lancashire club, who dropped out of the English Football League for the first time in 102 years last season, have been losing around £1.2 million every season for the past six years and are now fighting to avoid extinction.

Chairman Simon Gauge said the club is “looking for an investor to inject £2m to gain 90% of the club”, adding that it needs a new owner in place by the end of March.

Gauge has called an emergency meeting of shareholders at Rochdale’s Spotland stadium on 7th March in the hope of passing a resolution that can create conditions more favourable to potential investors.

“The existence of Rochdale AFC is at stake”

In a statement, Gauge said: “Let me leave you in no doubt, this resolution needs to be passed at the EGM for us to have any chance of securing the required investment that will ensure the long-term future of our club.

“If it isn’t passed, the threat of liquidation at the end of March is very real. The passing of this resolution does not guarantee saving the club, but it will certainly give it a fighting chance.

“To be clear, the existence of Rochdale AFC is at stake. The opportunity to give a long-term future is now in the shareholders’ hands.”

The Dutch Eredivisie has captured attention this season due to Ajax's initial struggles both on and off the pitch. However, the 36-time league champions have made a remarkable recovery and are once again contending for the coveted European qualification spots.

Traditionally, the league has been dominated by a triumvirate consisting of Ajax, Feyenoord, and PSV. Yet, the current season has seen other clubs emerge to challenge this established hierarchy.

Although it remains unlikely that these sub-top clubs will vie for the top or even second place in the foreseeable future, Ajax’s recent difficulties have injected a sense of optimism that the dominance of the big three is not impregnable.

Thus, it becomes fascinating to delve into the financial landscape of Dutch football, as unveiled in the latest financial reports from a range of clubs for the 2022/23 season. These insights will shed light on how the smaller teams stack up financially against the three powerhouses.

Rising turnover with one club clear at the top

Analysing the financial data from nine Dutch clubs for the 2022/23 season reveals a consistent upward trend, with each club experiencing a rise in turnover compared to the 2021/22 season. On average, a notable 21.1 per cent increase in turnover was observed, with FC Twente and AZ Alkmaar showcasing the most significant improvements.

FC Twente's turnover surged by nearly 50 per cent, reaching €39.6 million, buoyed by their return to European football for the first time since the 2013/14 season. Similarly, AZ Alkmaar leveraged their European success from the previous season by advancing to the Conference League semi-finals in 2022/23, which resulted in a 40 per cent increase in their turnover to €49.5 million.

For the fifth consecutive fiscal year, Ajax retained their status as the highest earner in the league, boasting a turnover of €196.3 million. Their closest rivals, Feyenoord and PSV, reported turnovers nearly €100 million lower. Feyenoord's turnover stood at €99.1 million, attributed to their title-winning campaign, whereas PSV recorded a turnover of €97.6 million.

Despite trailing behind these two clubs in the 2022/23 season, Ajax distinguishes itself as the only Dutch club with the financial clout to compare with Europe's elite teams. 
It is crucial to note that the figures mentioned exclude earnings from player sales.

Including transfer income, Ajax's total revenue for the 2022/23 fiscal year escalated to €354.8 million. In contrast, Sparta Rotterdam's total income of €18.5 million starkly highlights the financial disparities within Dutch football.

Transfer income plays a significant role

Ajax's esteemed academy and astute recruitment strategies have culminated in a remarkable €551.2 million generated from player sales since the 2017/18 season. In contrast, PSV, AZ Alkmaar, and Feyenoord collectively amassed approximately €480 million from player sales over the same period.

In the 2022/23 season, Ajax's player sales soared to €158.5 million, a figure bolstered by the record-breaking sale of Antony, marking the highest transfer fee in the history of Dutch football. PSV and Feyenoord also made significant sales, fetching €77.4 million and €50 million, respectively.

On average, player sales accounted for 29.5 per cent of the total income among the nine clubs, encompassing revenue primarily from matchday, commercial activities, and broadcasting. Ajax, once again, stood out by generating 44.7 per cent of its total income from player sales, with PSV closely behind, where player sales constituted 44.2 per cent of their €175 million total income for the 2022/23 season.

Sparta Rotterdam and FC Twente reported the lowest percentages of total income derived from player sales, at 12 per cent and 14 per cent respectively, translating into approximately €2.2 million for Sparta Rotterdam and €6.4 million for FC Twente in transfer income.

For most clubs, the primary sources of revenue were transfer income and commercial earnings. Moreover, income from broadcasting exhibited significant disparities among the clubs. Ajax, for example, reported €55.6 million from broadcasting, starkly contrasting with the €3.5 million reported by Sparta Rotterdam, who finished 6th in the league.

This substantial financial disparity is largely due to Ajax's participation in the Champions League and subsequently the Europa League during the season, which significantly bolstered their financial position. Excluding the additional UEFA broadcasting revenue, domestic broadcasting income stood at €10.5 million for Ajax.

The other European participants in the 2022/23 season, Feyenoord and PSV, reported total broadcasting revenues of €29.2 million and €28.5 million, respectively, with €7.8 million and €10.1 million stemming from domestic broadcasting. This highlights the financial disparities and the impact of European competition on Dutch clubs' revenues.

Dutch football has a sustainable issues

The reliance on income from player sales by Dutch clubs has not only been remarkable in recent years but has also become essential for reducing losses or achieving profitability. This dependency underscores a longstanding issue where, in the absence of profits from player transfers, most clubs record an operating loss—a trend predating the COVID-19 pandemic.

Ajax disclosed an operating loss of €51.2 million, while PSV and Feyenoord reported losses of €42.1 million and €37.6 million, respectively. Among the nine clubs reviewed, the average operating loss was €20 million. This figure illustrates that, on average, the clubs would need to match this amount in profits from player sales to transition towards a sustainable business model.

FC Twente distinguishes itself as the solitary team to report an operating profit, underscoring their resilience and strategic management. Notably, FC Twente are also the last club outside the traditional big three—Ajax, PSV, and Feyenoord—to win the Eredivisie, achieving their inaugural title in the 2009/10 season. 

Following a period of struggle that culminated in relegation during the 2017/18 season, FC Twente's subsequent promotion has seen them consistently perform as one of the top contenders, securing 5th place in the 2022/23 season, merely three points adrift of AZ Alkmaar. This achievement highlights FC Twente's commendable recovery and their competitive stature within Dutch football.

Widening financial gap

When examining EBIT (Earnings Before Interest and Taxes), which includes profits from player sales, six out of the nine clubs presented positive outcomes. Nevertheless, Utrecht and Heerenveen found themselves at the less favourable spectrum, each reporting EBIT losses exceeding €5 million. Sparta Rotterdam also faced a slight setback, with a reported loss of €0.5 million.

The sale of key players Antony and Lisandro Martinez to Manchester United significantly boosted Ajax's financial performance, catapulting them to an impressive EBIT result of €62 million, a stark turnaround from losses in the two preceding seasons.

Trailing Ajax, PSV recorded an EBIT of €19 million, with Feyenoord not far behind, posting €9.5 million. Along with FC Twente, these clubs were the sole entities to document an enhancement in their EBIT relative to the previous year.

AZ Alkmaar experienced the most pronounced decline, with their EBIT plummeting from €23.7 million in the 2021/22 season to just €1.2 million in the latest fiscal period.

This significant downturn is largely attributable to a decrease in profits from player sales, dropping from €41.4 million in 2021/22 to €13.9 million in 2022/23. FC Groningen, which faced relegation, witnessed a considerable fall in their EBIT, reporting a reduction of €9.1 million to settle at €2.1 million.

This illustrates the volatile nature of football finance, where changes in player sales can markedly impact a club's financial health and operational success.

Could the financial dynasty of Ajax be over?

The recent financial disclosures from Dutch clubs underscore the growing economic chasm between Ajax and its domestic rivals. In the ongoing 2023/24 season, Ajax have persisted in its strategy of selling key players, such as Mohammed Kudus and Jurrien Timber, for cumulative fees reportedly exceeding €150 million. This strategy is set to further amplify the financial disparity between Ajax and other Dutch clubs in the current fiscal year.

Ajax have also continued its approach of scouting and investing in promising talents across Europe to replenish its squad. Yet, for the first time in recent years, the drawbacks of this strategy have become evident with their challenging start to the 2023/24 season. 

This development has thrust Ajax into the spotlight of Dutch football discourse, prompting speculation about the sustainability of their model, especially if they were to deplete their reservoir of marketable players. Given their recent history of operational losses, Ajax's reliance on player sale profits to achieve a positive financial outcome is starkly evident.

Moreover, Ajax's financial stability is heavily contingent on qualifying for European competitions, with a significant portion of their broadcasting revenue stemming from their participation in these tournaments. 

Failure to secure European qualification could jeopardize this crucial income stream. Conversely, this scenario could present a golden opportunity for other clubs to access the substantial financial rewards of European football.

However, with PSV and Feyenoord currently securing the Champions League spots for the season, the competition for the remaining European qualifications is fierce. While these funds could provide a substantial financial uplift for clubs outside the traditional top five, the limited availability of European spots may perpetuate the existing disparities within Dutch football. 

This dynamic threatens to solidify the entrenched hierarchy, making it increasingly difficult for lower-ranked clubs to challenge the dominance of the established elite.

The Premier League has called an emergency meeting of its 20 clubs to finalise a financial settlement with the English Football League (EFL), according to Sky News.

The meeting, which has been planned for 29th February, is said to be part of a last-gasp bid to reach agreement on the so-called ‘New Deal’ before the UK government publishes legislation that will establish an independent football regulator.

It is understood the Premier League has notified clubs that it intends to convene the meeting to thrash out a New Deal proposal that can be presented to their 72 EFL counterparts.

The meeting will come at around the same time that culture secretary Lucy Frazer publishes the Football Governance Bill, which intends to hand a new watchdog powers to impose a financial settlement on the sport.

Sources told Sky there would be an option to vote on the New Deal at the 29th February meeting, but that an additional gathering had also been scheduled for 11th March if it is needed to get a sufficient number of top-flight clubs voting in favour.

Final figure

The New Deal is projected to cost Premier League clubs anywhere between £837 million and £925 million over six years, with the final figure dependent upon the payment of an £88 million sum for the current season.

Last week, it was reported that Frazer had urged English football's 92 professional clubs to resolve their differences over the prospective settlement. The culture secretary held separate talks with Premier League and EFL club executives last Thursday during which she told them not to wait until the new watchdog is established to put the finishing touches to the New Deal.

DFL Executive Committee set to take fresh look at Bundesliga investment plans

The German Football League (DFL) is to hold fresh internal discussions this week over the controversial plans to sell a stake in the Bundesliga’s media rights business to a private equity firm, German media have reported.

According to the German Press Agency (dpa), the DFL Executive Committee wants to take another close look at the ongoing investor process, while Sport Bild has reported that a meeting of the management committee has been planned for today.

In addition, ‘information events’ with Germany’s 36 first and second division teams have been scheduled for 28th and 29th February, to provide the clubs with updates on the plans, as well as another general meeting in March.

The developments come amid fan protests and calls for a new vote over the proposals – although it is understood the DFL is yet to receive an official request for a fresh vote.

Earlier this month, Blackstone withdrew from the race to invest in the media rights unit, leaving CVC Capital Partners as the sole remaining bidder.

Martin Kind: “They will all jump ship”

Meanwhile, Hannover 96 managing director Martin Kind – whose voting behaviour attracted controversy when the plans were narrowly approved by clubs in December – has heightened tensions after predicting that the investor deal will no longer be concluded.

"They will all jump ship," he told German news agency NDR, claiming that failure for a deal to go through would mean stagnation. "And that means always going backwards,” he said. “I fear that it will also have an impact on the negotiations of the TV contracts of the future. And sponsors."

Hannover 96’s members have said they requested Kind to vote against the plans to bring in outside investment, but the executive is still refusing to reveal whether he voted yes or no. "How I voted, only I know,” he told NDR. “Nobody knows, everything else is speculation, and that's why I reject a discussion on this topic.”

LaLiga cuts FC Barcelona spending cap to €204 million

LaLiga have reduced FC Barcelona’s spending cap for the current season to €204 million following the conclusion of the January transfer window.

The figure compares with the previous limit of €270 million set in September 2023, and €648 million last February.

The cap indicates the amount Spanish clubs are permitted to spend during a season on players, coaches, youth teams and other outgoings. Real Madrid continue to have the highest cap in LaLiga at €727 million, with Atletico Madrid second at €303 million.

Barcelona’s real squad cost for 2023/24, including the total wage bill and transfer amortisations, is officially budgeted at €492 million. As they have exceeded their level, under LaLiga rules they must make cuts before signing any more players.

Vitor Roque deal

In January, Barcelona’s only transfer activity was the acquisition of Brazilian forward Vitor Roque from Athletico Paranaense. The deal, worth €30 million plus potential add-ons, was agreed last summer.

Barcelona were able to register Roque to play due to the long-term absence of 19-year-old Gavi. The Spanish midfielder’s recent anterior cruciate ligament injury has ruled him out for the rest of the season.

LaLiga’s financial rules give clubs flexibility in case a registered player suffers an injury that will keep them out for longer than four months. The affected club can register a replacement so long as their wages do not exceed 80 per cent of the injured player’s.

Everton takeover: 777 Partners arm suffers rating downgrade as wait for Premier League approval goes on

Freshconcerns have emerged over Everton’s prospective takeover by 777 Partners after 777 Re, the Bermuda-based reinsurance arm of the American investment firm, had its credit rating downgraded for the second time in three months.

The development comes after it was reported that the Premier League has asked 777 to provide further information on how it intends to fund Everton for the next three years should its takeover proceed.

The Merseyside club had been expecting a directors and owners’ test decision by the end of February but, according to The Times, the league contacted 777 Partners last Thursday to request new information.

The American credit ratings agency AM Best said it has downgraded 777 Re’s financial strength rating from B (fair) to C-minus (weak), and assessed its balance sheet strength as “very weak”.

The ratings agency said that was due to 777 Re’s “significant exposure to less liquid affiliated investments” in other parts of the 777 group that are not performing well, and some weakness in its risk management.

In a statement, AM Best said: “The company is working with the Bermuda Monetary Authority to reduce its exposure to affiliated assets.”

Sources close to 777 insisted to The Times that the action by the credit ratings agency has no effect on the company’s footballing operations, nor the takeover of Everton.

CFO departure

Meanwhile, in recent days, 777 has moved to reassure its own staff over its finances after the recent departure of Damien Alfalla as chief financial officer.

Co-founders Josh Wander and Steve Pasko wrote in an internal memo: “We are pleased to announce that Brett Kaufman will be stepping into the role of CFO for 777 Partners. We are confident that this change will fortify our future growth and are excited to welcome Brett into the 777 family . . . We appreciate your continued support and enthusiasm during this transition.”

FC Porto post €35 million profit for H1 2023/24

FC Porto have reported 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.

The biggest transfer fee was generated by the sale of Portuguese midfielder Otavio, who moved to Saudi Pro League club Al Nassr for €60 million.

Turnover, not including player sales, grew by 5 per cent to €108 million. UEFA payments rose by 6 per cent to €54 million, while broadcast income remained on €18 million. Matchday income climbed by €1 million to €11 million, while commercial revenues reached double digits, rising to €10 million, up 11 per cent year-on-year.

"These results do not include the €9.6 million related to access to the knockout stages of the Champions League, because this amount will not be counted until the third quarter of this year," the club said.

As for expenses, Porto’s wage bill was €43 million, 16 per cent lower than the first half of 2022/23, following the payment of bonuses last year for direct qualification to the Champions League as Primeira Liga champions in 2021/22.

Legends to invest €60-€70 million for stadium improvements

Porto also provided further details of its strategic agreement with Legends announced last November designed to enhance the stadium experience for fans and hospitality guests at the Estádio do Dragão, and increase matchday revenues.

The club said the US company will take "a minority stake in one of the companies with commercial rights of the FC Porto Group", and will receive an injection of between €60 million and €70 million in the fourth quarter of the year.

Queens Park Rangers post £21.1 million loss for 2022/23

Queens Park Rangers have reported an EBIT loss of £21.1 million for the year ending 31st May, 2023, down from £24 million the previous year.

The result came despite the EFL Championship club both lowered their wage bill to £25.4 million and not signing any new players for fees in 2022/23, which meant player amortisation also decreased. The club made a profit on player sales of just over £1 million, up from £0.2 million in 2021/22.

However, turnover amounted to £23.3 million, up from £22.1 million the previous year, but still not enough to cover the wage bill. Matchday income was £5.7 million, up slightly from £5.6 million in 2022/23, while broadcast revenues totalled £8.8 million, compared with £9.2 million the previous year.

Shareholders lend club £30.5 million

The accounts also showed that shareholders lent QPR a further £30.5 million in 2022/23 to fund the losses incurred by the club, after lending £16.9 million the previous year.

DFL supervisory board chairman Hans-Joachim Watzke has called for calm amid fan protests and demands for a new vote over the plans to sell a stake in the Bundesliga’s media rights business to a private equity firm.

Blackstone withdrew from the race to invest in the media rights unit last week, leaving CVC Capital Partners as the sole remaining bidder. Jost Peter, chairman of the fan group ‘Our Curve’, claimed Blackstone’s withdrawal was the “first success of the protests”.

However, Watzke – who announced last month that he is to step down from his role as Borussia Dortmund CEO next autumn – has sought to reassure fans and the game as a whole over the prospect of welcoming investment from CVC.

In an interview with German newspaper Bild, he claimed that CVC knows "there will be zero influence with us. Zero. There will be no new kick-off times and nothing like that with us.

“We need them for international marketing, their job is to help us reach fans all over the world better. They have accepted all our red lines and don't want to reform our football in the slightest – we are responsible for that”.

He added: "We are not selling shares, but are looking for a partner who will help us move forward overall. Above all, we must not and will not sell ourselves to any partner. We need to ease the tension in our relationship with investors. An investor is not inherently a bad thing."

Appeal to supporters

Watzke also appealed to supporters not to further escalate their actions after a ramping up of protests against private equity involvement in the Bundesliga over recent weeks, with many matches disrupted. An invitation from the DFL for further talks on its plans has been rejected by fan representatives.

"If someone is negative about this process, you have to accept that,” Watzke said.

“It just has to remain respectful and not escalate further. At this point, I ask the fan groups not to push the escalation point any further. Our offer of talks stands, and of course we are all ready to have these talks – not publicly, but trust-building. We need to enter into intensive dialogues as soon as possible."

 

Nottingham Forest working on plans to increase City Ground capacity to 40,000

Nottingham Forest are aiming to increase the City Ground’s capacity from 29,550 to 40,000 amid hopes that long-held plans to redevelop the stadium will finally come to fruition.

Club chairman Tom Cartledge told The Athletic that Forest want to extend the Bridgford Stand by another 5,000 seats, as well as replace the Peter Taylor Stand with a two-tier 10,000-seat structure.

However, he acknowledged there are still obstacles to negotiate and said the club hopes to extend its current lease with Nottingham City Council, which owns the land the stadium sits on, or potentially buy the freehold.

“If the city council gives us the nod, he [club owner Evangelos Marinakis] wants me to get on with everything straight away,” he said.

Shipping containers

Some work is already underway at the stadium, with a new corner box of executive suites on each end to be built from shipping containers – inspired by Stadium 974 in Qatar at the 2022 World Cup.

Forest also intend to build a new state-of-the-art training ground, with an announcement expected soon about location, as well as open a museum in the bowels of the Trent End.

 

SPFL to meet Premiership clubs amid criticism of governance review

Scottish Professional Football League (SPFL) chairman Murdoch MacLennan and CEO Neil Doncaster are to meet Premiership clubs this week amid criticism of the league’s governance and leadership.

The SPFL has announced that the independent governance review, commissioned after the league body lost a long-running legal dispute with Rangers over its title sponsorship deal with Cinch, has now been delivered to all member clubs.

As reported by Scottish TV news programme STV News, six Premiership teams – Aberdeen, Motherwell, Livingston, Rangers, St Johnstone and St Mirren – have already pointed to “serious concerns” over the report’s independence and transparency, as well as the overall governance of the SPFL.

The league later said it had addressed “factual inaccuracies” regarding the club’s claims, which were outlined in an open letter.

Already-scheduled meeting

The six top-flight clubs had called the chairman and CEO to a meeting on 27th February to discuss their issues, with all other member clubs invited to attend.

However, MacLennan, Doncaster and SPFL non-executive Karyn McCluskey will now meet representatives of all Premiership clubs at an already-scheduled meeting this week, with the governance review on the agenda.

 

Chelsea confident of appointing Brighton head of recruitment Sam Jewell

Chelsea are reported to be confident of securing the appointment of Brighton & Hove Albion head of recruitment Sam Jewell, 16 months after appointing his predecessor Paul Winstanley.

According to The Athletic, Brighton are aware of Chelsea’s offer and will allow Jewell to decide whether he wants to move to the Stamford Bridge club.

Brighton would like to keep Jewell but are aware of the attraction of a potentially lucrative proposal and while no agreement has been reached, it is understood the head of recruitment is leaning towards accepting the Chelsea offer.

Sporting directors

Winstanley became one of the sporting directors at Chelsea in November 2022, which led to Jewell taking up the Brighton role on an interim basis.

Jewell, son of former Wigan Athletic manager Paul, was appointed head of recruitment permanently in February 2023 but, a year later, could be following his predecessor to west London.

The combined total revenues of top-flight clubs in Europe are projected to reach €26 billion for the 2022/23 financial year after reaching a record level of just under €24 billion in 2021/22, according to a new report from UEFA.

The Club Finance and Investment Landscape report – previously called the European Club Footballing Landscape report – also concluded that commercial income for 2022/23 was set to exceed domestic broadcast revenues for “the first time in decades”.

Early-reporting clubs’ commercial revenue rose by more than €700 million on the previous year to stand at €5.4 billion – an increase of 14 per cent on the previous year and up 30 per cent on the pre-pandemic level from 2019. UEFA found that 80 per cent of early-reporting clubs achieved increases in commercial revenue in 2022/23.

The data for 2021/22, based on analysis of more than 700 top-flight teams, showed that the commercial income earned by the clubs reached a record €7.8 billion, a rise of 14 per cent on 2020/21.

Sponsorship income increased by eight per cent, while other commercial revenues were up by 27 per cent, boosted by the removal of restrictions on the use of stadiums and increases in merchandising revenue.

Player wages rise by less than 1 per cent

The report also noted that in 2022/23, player wages grew by less than 1 per cent, the lowest growth level on record, “contributing to the re-balancing of the wages/revenue ratio for many clubs.” The increase compared to a rise of 4.7 per cent to €12.8 billion in 2021/22, up 13 per cent on the pre-pandemic level of 2019.

However, UEFA also pointed to rising debt levels across European clubs, with bank debts expected to pass the €12 billion mark in 2022/23, a 50 per cent increase on the level seen before Covid.

Everton takeover decision expected by end of February

Everton and their prospective new owner 777 Partners are expecting contact from the Premier League this week over the potential takeover of the club as the league’s directors and owners’ test finally reaches its conclusion, The Daily Telegraph has reported.

It is understood that all outstanding questions have been answered by the Miami-based group, with the club still confident it will learn its fate within the next two weeks.

Approval from the English FA, Women’s Super League and Championship Board is also said to be pending, with sources confirming to the newspaper that due diligence is ongoing.

Premier League contact with 777 over the coming days is expected to include an exact date for a decision, although others with understanding of the clearance process expressed some caution around the likelihood of 777 being given a specific date this week.

The Premier League never details a public timeline for its process. Newcastle United were kept waiting 18 months for approval of their takeover by the Saudi Arabian Public Investment Fund (PIF).

777 optimism

It is believed that for 777, there remains optimism the deal will finally be signed off, despite having aimed to be completed by Christmas. Clearance from the Financial Conduct Authority was provided in December but Premier League CEO Richard Masters suggested last month that questions still needed to be answered while speaking at a Culture, Media and Sport Committee hearing.

The Premier League’s directors and owners’ test has been tightened in recent years, but resolving the Everton situation is now said to be top priority after Sir Jim Ratcliffe’s acquisition of a 25 per cent stake in Manchester United was cleared earlier this week.

Belgian clubs’ total losses rise to €193 million for 2022/23

Clubs in the top two tiers of Belgian football posted a cumulative loss of €193 million for the 2022/23 financial year, according to figures released by the licensing commission of the Belgian FA (RBFA).

The combined deficit exceeds the €156 million loss for 2021/22 by €37 million. Belgian champions Antwerp registered a record deficit of €46 million, while Standard Liège (€19 million), AA Gent (€19 million), OH Leuven (€18 million), Lommel (€14 million) and Zulte Waregem (€12 million) were the other main loss-makers.

The only clubs out of 25 not to suffer a deficit were Club Brugge, Union, STVV, Racing Genk, Kortrijk and Cercle Brugge.

Belgian Pro League CEO Lorin Parys listed three factors for the huge losses – high wage bills, increased taxes and fines for breaking the broadcast contract early during the Covid-19 pandemic.
He told local media: “It is a fact that clubs pay players too much. The inflationary wage spiral must stop.”

Wages to revenue ratio

At present, Belgian clubs spend 88 per cent of their revenue on wages. However, by 2025 Pro League teams will be punished if they have not brought the ratio down to 70 per cent.

Parys said: “That is a soft form of a salary ceiling, intended to contain losses in the long term. The good news is that 13 clubs already meet the 70 per cent criterion. Nineteen clubs achieved the target benchmark of 90 per cent in 2023.”

West Brom takeover agreed with Shilen Patel set to become chairman

English Championship club West Bromwich Albion have agreed a takeover deal with Florida-based businessman Shilen Patel.

Patel emerged as the preferred candidate to takeover the club by outgoing owner Guochuan Lai, who had been in control of West Brom since September 2016.

Patel will acquire an 87.8 per cent shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club.

The takeover is set to be ratified next week.  Patel, who owns a minority shareholding in Serie A club Bologna, will be named as West Brom’s chairman.

“I am thrilled and grateful to have reached an agreement to become the custodian of West Bromwich Albion Football Club,” Patel said.

“The club’s exceptional history, support, and potential set it apart even here in the cradle of football.

“My goal is to help the club achieve a future worthy of its history as a pioneering top-flight club that marshals the pride and passion that have defined the Albion for generations.

Repay loan

Earlier this week, Lai agreed a deal to repay a loan he secured on shares in West Brom’s parent company to speed up the takeover process.

Lai acquired the West Midlands club from Jeremy Peace for over £200 million in July 2016.