UEFA president Aleksander Ceferin has claimed its disciplinary chiefs were “right” about Manchester City breaching its Financial Fair Play regulations when they handed out a two-year European ban back in February 2020 that was subsequently overturned.

In an interview with The Daily Telegraph, Ceferin was speaking for the first time since the Premier League revealed a date had been set for a hearing into its 115 charges against the Treble winners under its own rules.

Ceferin refused to be drawn on whether City – who deny any wrongdoing – should be stripped of titles if found guilty by an independent commission.

But asked if such a verdict would vindicate that of UEFA’s equivalent arm, the Club Financial Control Body, four years ago and the defence of its case at the Court of Arbitration for Sport (CAS), he replied: “We know we were right. We wouldn’t decide if we didn’t think we were right.”

Time barred

Ceferin stressed he respected the CAS decision, which overturned City’s suspension after ruling some of the evidence against them was time barred and that other accusations were unproven, while fining them €10 million for failing to cooperate with investigators.

“As a trial lawyer for 25 years, I know that, sometimes, you win a case that you are sure you will lose,” he said. “And, sometimes, you lose a case when you’re sure … You just simply have to respect in a serious democracy the decision of the court.”

He added: “I don’t want to speak about the case in England. But I trust that the decision of our independent body was correct.”

 

INEOS and Ratcliffe’s remit at Manchester United to extend beyond football operations

The remit for INEOS and Sir Jim Ratcliffe at Manchester United will reportedly include more than solely football operations, as initially outlined when the petrochemicals firm agreed to purchase a 25 per cent stake at the club last month.

According to The Athletic, United informed employees at an all-staff meeting held yesterday that INEOS and the Glazer family have reflected on previously agreed arrangements and recognised that the scope of the new investor’s influence will need to be more broadly defined.

It is understood Ratcliffe’s team will also liaise with the Glazers on business decisions as they, by definition, will impact the potential of football operations.

This will mean that the two ownership groups will need to align with one another on key decisions relating to the business, as dividing up affairs entirely is now felt to be unrealistic.

“Football first culture”

Those on the call, which was led by interim CEO Patrick Stewart, were also once again promised cultural change across United. Stewart emphasised the club is now committed to instilling a “football first culture”, in which all decisions made by the club hierarchy should be focused on “what’s best for football”.

However, the tone of the call was also said to convey that change is both necessary and coming, and this triggered some anxiety following previous reports that Ratcliffe wanted a review of the club’s staffing – an area that has long been considered by many in the industry as bloated.

Staff on the call, who spoke to The Athletic on the condition of anonymity in order to protect their jobs, interpreted the tone as one of change, with some fears that this may lead to a staffing review and potential job cuts.

 

Hellas Verona president Maurizio Setti’s appeal over police seizure of club’s shares rejected by court

The appeal of Hellas Verona president Maurizio Setti against the seizure of 100 per cent of the club’s shares by Italian police last month has been rejected by the Court of Review of Bologna, Italian media have reported.

The shares in the Serie A club controlled by their sole shareholder, Star Ball Srl, were seized by police as part of a bankruptcy investigation by the Italian law enforcement agency Guardia di Finanza, which was coordinated by the Bologna Public Prosecutor's Office.

The investigation found that Setti’s joint-stock company had gone bankrupt, but was previously a shareholder at the club, and that there were signs of misappropriation from the club’s current shareholders to the now bankrupt previous shareholding company.

Fake intra-group sale

In the proceedings that gave rise to the measure, Setti himself has also been investigated for fraudulent bankruptcy. The Hellas Verona owner has been accused of the fake intra-group sale of the club, which reportedly moved from H23 to Star Ball without consideration of money.

The reasons for the Bologna court’s rejection of Setti’s appeal have not yet been filed.

 

Laporta claims LaLiga has been “corrupted” over Real Madrid VAR controversy

FC Barcelona president Joan Laporta has claimed LaLiga has been “corrupted” amid the VAR controversy sparked by Real Madrid’s dramatic victory over Almería on Sunday.

In an interview with Catalan newspaper Mundo Deportivo, the Barça chief said he has made a formal complaint to the Spanish Football Federation (RFEF) after as many as three controversial calls went Real’s way during their 3-2 win.

Real Madrid TV, the club’s official media channel, has been posting videos criticising match officials and pointing out alleged mistakes made by them. Laporta said he had called on the RFEF to take action against the club for allegedly pressuring referees.

“Absolutely. That’s what I’ve told the president of the Spanish Federation,” he said. “He told me that what’s done is done and that they intend to take action.

“He also told me that the referees do not feel under pressure, he wanted to reassure me in this respect. I have absolute respect for the referees. I have said it and I say it unequivocally.”

He added: “But we are also seeing some situations that are worrying us a lot and if we continue like this, it will be very difficult for us to achieve our objectives. … You can’t adulterate the competition anymore with decisions like last Sunday’s at the Bernabéu.”

RFEF files police complaint over VAR leak

Meanwhile, the RFEF has filed a police complaint after audio of VAR deliberations in the match between Real Madrid and Almeria was leaked in the media.

Audio relating to a clash between Madrid winger Vinicius Junior and Almeria defender Alejandro Pozo was broadcast by online outlet Jijantes FC.

The audio seems to depict VAR official Alejandro Jose Hernandez Hernandez coming to the conclusion action should be considered against Vinicius Jr, without fully recommending to on-pitch referee Francisco Jose Hernandez Maeso that he do so.

In a statement, the RFEF said it was “extremely serious” that “audio-visual material” had been “extracted” and said it hoped “a response will be found as soon as possible to clarify responsibilities”.

 

Nottingham Forest face potential difficulties over lack of relegation clauses in player contracts

Nottingham Forest will face further financial challenges if they are relegated from the Premier League this season as many players in the squad do not have relegation clauses in their contracts, according to a report from The Daily Mail.

The newspaper has learned that a significant number of the 27 players who remain at Forest after signing since their promotion to the top-flight in May 2022 will not face mandatory pay-cuts if the club are relegated.

It is believed that Forest were able to insert relegation clauses into some of the contracts, but a number of players refused to accept them. As a result, the club will face significant liabilities if they go down at the end of the season, which is likely to result in a fire-sale of their highest earning players in the summer.

Fifty per cent pay cut

Relegation clauses are a common tool used by newly-promoted clubs to mitigate against the cost of returning to the EFL Championship. Although the level of pay cut varies it can be as much as 50 per cent.

Forest are currently four points clear of the relegation zone, but are facing the threat of a points deduction after being charged with breaching the Premier League’s profitability and sustainability rules last week.

Peter Lim, the owner of Valencia, has received a letter of interest from the club’s former vice-president Miguel Zorio offering to take over ownership of the LaLiga side.

In a statement, Zorio said he has organised the funding to buy out Lim’s €250 million shares via Madrid-based lender Toro Finance, and that the bid would share 51 per cent of the club’s shares among Valencia season ticket holders and fanbase within a three-year timeframe.

Zorio also claimed he would seek further investors to help financially boost the club, including from the city’s business community.

The former vice-president has previously submitted bids to Lim which have been swiftly rejected but this latest offer, which was sent to Lim late last month, has yet to receive an official response, although sources close to the club told The Athletic they remain sceptical as to how serious the offer is.

Supporter protests

Lim has been the subject of protests from Valencia’s fanbase in recent years. After taking over in 2014, supporters had hoped the Singapore-based businessman would restore the club, which thrived domestically and in Europe during the 2000s, to prominence.

However, Valencia’s ownership have continued to cut costs in recent seasons with diminishing returns on the pitch and their planned Nou Mestalla stadium has yet to be finished. Zorio’s bid has pledged to complete the project, which has estimated costs of €250 million, within three years if his bid is successful.

 

EFL chair Rick Parry: Premier League ‘yet to offer’ financial deal to EFL but have spent extra £500 million on wages

EFL chair Rick Parry has claimed the Premier League has prioritised wages over supporting the wider pyramid as frustration builds over the lack of progress towards a financial settlement between the two parties.

As reported by The Independent, Parry said this week that the top-flight is still yet to make an offer, saying it’s “clear that’s a matter of choice.” The EFL wants a 75-25 split of broadcast revenues, which it first offered to the Premier League back in 2021.

Speaking at an EFL dinner event, Parry said the Premier League has committed almost £500 millionextra to player wages rather than the £285 million to the wider pyramid from the deal presented in 2021.
“It’s quite telling to look at the four years since we’ve been at this – 2020 we really started saying we needed a fundamental financial reset,” he said.

“What’s happened since then? The White Paper published [in February 2023] established there was a £4 billion gap between the turnover of Premier League clubs and Championship clubs. By the time 2023 accounts are published, that will have grown to £5 billion.

“Secondly, if we look at where the Premier League sits with other European leagues in terms of competitive balance, we did some analysis in 2019 and we discovered that the Premier League was paying £1.6 billion more than the other four major leagues in Europe. That’s an enormous chasm. Since then, that gap has widened to £2 billion. They’re outstripping the opposition.”

“Regulator must have powers”

Parry also argued that the incoming independent regulator for English football must intervene over the issue if a deal is not reached with the Premier League.

“Football can’t do this. It needs an independent view,” he said. “The regulator must have powers not only to set the financial regulations but to also set redistribution levels. In terms of regulation, better distribution goes hand in hand. They are inseparable. You can’t have one without the other.”

The football governance bill is entering its “absolute final stages”, according to the UK government, with the expectation of being passed into law before Easter. It is said that will bring the establishment of a regulator with backstop powers to force the Premier League into a deal.

 

Bayern Munich technical director Marco Neppe to leave club by mutual consent

Marco Neppe is to leave his post as technical director at Bayern Munich by mutual agreement, Sky Germany has reported.

The 37-year-old was instrumental in the signings of Harry Kane and Min-jae Kim last summer, but it is understood he is now facing the termination of his long-term contract with the German champions, and “amicable talks” are said to be underway.

Neppe remained in office last year despite his long-time confidant Hasan Salihamidzic being dismissed as sporting director after Bayern clinched their 11th successive Bundesliga title. Since then, Neppe has been part of the transfer committee led by CEO Jan-Christian Dreesen.

Less decision-making power

It is believed that Neppe, who first joined Bayern as a scout in 2014, already had less and less decision-making power during the current transfer window, and the transfer of Eric Dier was handled by sporting director Christoph Freund.

Due to the departure of Neppe, it is believed Freund will now have even greater responsibility over transfers. Dreesen is also involved in negotiations with players from the current squad and possible new signings.

As reported last week, Max Eberl will join the team as the new sporting director from March at the latest and will then become Freund's superior. Meanwhile, it is understood Neppe has already received several inquiries from Germany and abroad.

 

DFL approves VfB Stuttgart 10.8 per cent stake sale to Porsche

The German Football League (DFL) has given the green light to the long-awaited deal for car manufacturer Porsche to acquire a 10.8 per cent stake in VfB Stuttgart. According to Kicker, the decision was taken yesterday after rigorous discussion among the DFL board.

The agreement was first unveiled last June, when the Bundesliga club announced a sponsorship package worth up to €100 million with Mercedes-Benz, Porsche and MHP.

However, a key part of the agreement – Porsche’s acquisition of a stake in the club for €41.1 million – was yet to be finalised. The sports car giant was due to complete the investment in two tranches, with the first in the autumn, and the second in early summer 2024. But the deal has been held up by a series of delays.

The key stumbling block centred around paragraph 8 of the DFL’s statutes, where point 6 states: "No one may be involved, directly or indirectly, with a shareholding of 10% or more of the voting rights or capital in more than one corporation of the licensed leagues."

The issue for Porsche’s investment in VfB Stuttgart related to Volkswagen’s 100 per cent ownership of the licensed GmbH (limited company) of VfL Wolfsburg, as Porsche and the Volkswagen Group are connected via Porsche Holding SE.

Fourth shareholder

Porsche is now set to become the fourth shareholder in VfB Stuttgart alongside the e.V., the Mercedes-Benz Group and Jako AG. However, once the deal with Porsche is complete the club can then sell a further 3 per cent stake, as the shares are diluted by each sale.

It is understood that Porsche's shareholding would then fall back to below 10 per cent, so the formal violation of the first part of paragraph 8.6 in the DFL’s regulations would only be on an interim basis, as VfB Stuttgart wants a buyer for the remaining shares in the medium term.

Dmitry Rybolovlev, the Russian billionaire owner of AS Monaco, has confirmed he is considering selling the club and has appointed the Raine Group to serve as a financial advisor during the process amid interest from potential buyers.

A statement from a representative of Rybolovlev’s family office issued yesterday read: “The majority shareholder of AS Monaco has decided to commence a process to explore strategic alternatives for its stake in the club after receiving unsolicited inbound interest.

“The majority shareholder has retained the Raine Group to serve as its exclusive financial advisor on this matter. … There can be no assurances that the strategic review will result in any transaction involving the club and we do not intend to make any further announcements regarding the strategic review at this time.”

Two offers from US investors

According to a report from French newspaper Les Echos, Rybolovlev – one of a few Russian tycoons not under sanctions, as he left the country over a decade ago – received at least two proposals to sell his stake from American investors last year.

Rybolovlev, who lives in Monaco and made his fortune in the Russian potash industry, acquired a 66 per cent stake in AS Monaco in 2011 for a token $1 when the club was in the French second-tier. The remaining shares are held by Monaco's ruling family, the Grimaldis.

Under the Russian’s ownership, the club have risen back from Ligue 2, and in 2016/17 won the Ligue 1 title and reached the Champions League semi-finals. Last year the team finished sixth in Ligue 1 and are currently in fourth place.

 

Sampdoria former trustee Gianluca Vidal submits court appeal to return club ownership to SSH

Gianluca Vidal, Sampdoria's former trustee, has submitted an appeal to the Court of Milan asking for the ownership of the club to be returned to Sport e Spettacolo Holding (SSH), the trust connected to former president Massimo Ferrero, Italian media have reported.

The Italian club were taken over by Aser Ventures, founded by the former Leeds United owner Andrea Radrizzani, and the London-based wealth management advisory firm Gestio Capital, led by Matteo Manfredi, last June.

Vidal’s request is the latest development in an ongoing dispute between Sampdoria’s old and new owners. In the appeal, the former trustee has requested the nullifying of the private deeds stipulated last June by SSH, together with the club itself, its parent company Blucerchiati Spa and the new owners.

The buyout by Radrizzani and Manfredi was completed more than 18 months after Ferrero resigned as president following his arrest by the Italian law enforcement agency Guardia di Finanza as part of an investigation into corporate crimes and bankruptcy.

During that intervening period, the legal ownership of the club was held in the Rosan Trust, led by Vidal, which is the sole shareholder of SSH. However, a dispute has emerged over recent months over the circumstances surrounding the sale of the club to Radrizzani and Manfredi.

The holding of Sampdoria in the Rosan Trust was part of a plan to use the funds from the sale of the club for the Ferreros' Roman concordats. However, questions have emerged over whether Vidal acted independently, and without involving the Ferreros' lawyers.

In his appeal to the Court of Milan, Vidal has requested the cancellation of the sale of the club and the return of control to SSH. He argues that SSH did not give its consent to the transfer of the shares, accusing Massimo Iena, sole director of SSH at the time, of having acted in "collusive competition" with Manfredi and Radrizzani, as well as Sampdoria.

The designated judge, Daniela Marconi, has set the hearing of the parties for 28th May.

Talks continue over financial settlement

In the meantime, lawyers acting for Manfredi and Radrizzani, and for Ferrero are continuing discussions in the hope of reaching a financial settlement between the parties.

It is expected the agreement would include the resolution of outstanding financial matters, including payments that Ferrero should have already received and which are still pending, as well as mortgages on Sampdoria’s old headquarters in Corte Lambruschini, and on the ownership of the ‘Baciccia’, the club crest.

Manchester United have pulled off a major coup by appointing Omar Berrada from Manchester City as their new CEO.

United have been looking for a CEO to succeed Richard Arnold, who left Old Trafford late last year ahead of INEOS owner Sir Jim Ratcliffe’s deal to buy a 25 per cent stake in the club.

The United hierarchy have been seeking a candidate with a proven track record in football as a priority, but also highly capable of running the business side. Berrada has excelled in those areas at City. He is currently the chief football operations officer at City Football Group.

A United statement said that Berrada’s appointment “represents the first step” of the club putting “football and performance on the pitch back at the heart of everything we do”.

"As one of the most experienced football executives at the top of European football, Omar brings a wealth of football and commercial expertise, with a proven record of successful leadership and a passion to help lead change across the club," it read.

After joining City from FC Barcelona in 2011, he worked as commercial director for City Football Marketing before being promoted to chief operating officer at City in 2016. At Barça he was a senior media business development manager and head of sponsorship.

Ratcliffe influence

Berrada was identified and pursued by INEOS but with endorsement from the Glazers in what was ultimately a joint decision. The move is said to underline the influence of Ratcliffe’s firm at the club.

 

Napoli president Aurelio De Laurentiis accused of false accounting over Victor Osimhen capital gains case

Aurelio De Laurentiis, the president and owner of Napoli, could face trial after being accused of false accounting by prosecutors following an investigation into the club’s use of capital gains.

According to Italian media reports, the Rome public prosecutor's office has concluded its investigation, which began last September, and informed De Laurentiis of the outcome. The activities of other members of the club’s board are also being scrutinised.

The case relates to Napoli’s €76.4 million signing of Nigerian striker Victor Osimhen from Lille in July 2020. As part of the deal, the Italian club sold four players to the French side for €20.1 million: goalkeeper Orestis Karnezis and academy players Claudio Manzi, Luigi Liguori and Ciro Palmieri.

Notably, none of the three academy players ever played for Lille, while Karnezis played just one game for the club in the fourth round of the Coupe de France. It is suspected that their transfer fees were overvalued in an effort to inflate capital gains.

Potential balance sheet fraud

Last September, Italy’s Financial Police, the Guardia di Finanza, gathered documents indicating that potential balance sheet fraud had taken place in relation to the Osimhen transfer and went on to inform Naples' public prosecutor’s office. The case was then moved to Rome.

Osimhen played a key role in Napoli’s first Serie A title win in 33 years last season, scoring 26 league goals. In December he signed a contract extension with the club up to June 2026.

 

Neymar transfer investigation: Nasser Al-Khelaifi lawyers file complaints for violations of secrecy

The French lawyers of Paris Saint-Germain president Nasser Al-Khelaifi have filed a series of complaints with the Paris prosecutor’s office denouncing alleged violations of the secrecy of ongoing investigations into the club and the Qatari businessman.

The move has come after French media reported last week that police had searched the country’s finance ministry following allegations of favourable tax treatment granted to PSG over their signing of Neymar from FC Barcelona back in 2017 for a world-record fee of €222 million.

On Friday, Renaud Semerdjian and Francis Szpiner, legal advisers for Al-Khelaifi, released a statement sent to L'Équipe, which read: "We deplore the orchestrated, oriented, fragmented and truncated violations of professional secrecy and the secrecy of the investigation which have the sole objective of distorting the reality of the facts and putting pressure on the justice system and on public opinion.

“For several weeks now, we have seen numerous publications in various media outlets containing a biased selection of elements and documents based on current information.”

The lawyers also stressed that their client is a "civil party" in the judicial investigation, and is "the victim of attacks on the dignity of his person and his reputation."

Last week’s police raid is said to be part of a larger investigation carried out since September 2022 centred around the operations of PSG’s former director of communication Jean-Martial Ribes.

Ribes, who was in the role from 2017 to 2022, is facing numerous charges, including that he used his position at the club to gain sensitive information for both PSG and personal advancement. He denies the charges against him.

Kidnapping and torture accusations

In a separate case, three investigating judges in Paris were appointed last year to examine accusations of kidnapping and torture against Al-Khelaïfi made by Franco-Algerian lobbyist Tayeb Benabderrahmane.

Benabderrahmane filed a complaint stating he had been tortured in Qatar in 2020 for being in possession of documents containing compromising information on Al-Khelaifi. In April 2023, Semerdjian and Szpiner announced a defamation lawsuit after the lobbyist made statements to the media.

The PSG president – who is also chairman of the European Club Association (ECA) and holds a place on the UEFA Executive Committee – is the target of two other investigations for concealed work following complaints from his former butler Hicham Karmoussi and another of his former advisers.

 

Telefonica secures LaLiga domestic TV rights up to 2026/27 in €1.29 billion deal

LaLiga has re-awarded domestic broadcast rights to Telefonica in a deal worth €1.29 billion that will run from the second half of the 2024/25 season to the end of the 2026/27 campaign.

The telecoms giant will show the games via its Movistar Plus platform. The contract covers five of the 10 LaLiga games per week during the latter half of the 2024/25 campaign and the following two seasons, as well as three full game weeks in both 2025/26 and 2026/27.

The agreement means Telefonica will continue to share the rights with DAZN. The original deal struck by the two partners with LaLiga in December 2021 ran up until the end of 2026/27. However, the rights were then re-tendered following an intervention from the Spanish competition regulator (CNMC).

The watchdog successfully argued that at the time of the initial five-year deal, Telefonica should not have been allowed to buy rights for more than three years due to its ownership of the satellite TV business Digital Plus.

New tender process

After those restrictive term limits were dropped when the regulations changed last year, Telefonica was able to take part in a new tender process and has now brought the deal up to the same length as LaLiga’s agreement with DAZN.

In August, Telefonica retained exclusive rights to show Champions League matches in Spain for three years running from 2024/25 to 2026/27 in a €960 million deal.

The Glazer family will have the power to sell Manchester United to another buyer – and oblige Sir Jim Ratcliffe to sell his 25 per cent stake in the club – after an 18-month window has passed, the club’s latest filings to the U.S. Securities and Exchange Commission (SEC) have revealed.

Ratcliffe has formally submitted his tender to buy 25 per cent of the shares in United for $1.64 billion (£1.3 billion), but the tender document also includes clauses laying down the rules on a future sale of the club.

The document outlines a “drag-along right” for the Glazers, which states that under the deal with the Ineos owner, the American family are not allowed to solicit or encourage new offers for the 12 months after his tender offer is completed on 13th February. However, once 18 months has passed, they can sell the club outright and require Ratcliffe’s Trawlers Ltd company to sell all its shares to a new buyer.

Ratcliffe threat to walk away by Christmas Day

United announced on Christmas Eve that Ratcliffe had agreed to buy the 25 per cent stake and would invest $300 million into the club’s infrastructure. That extra investment means he will take more equity in the club that will bring his overall shareholding to 28 per cent.

However, the filings also revealed that Ratcliffe warned he would call off talks over the deal by Christmas Day should his proposal not be accepted.

The SEC filing details an “informal” board meeting between United’s directors on 22nd December, where they had a “robust” discussion following a threat from Ratcliffe to walk away from the table if they were not prepared to accept his proposal by 25th December.

A line in the documents states: “Offeror was not prepared to accept any other changes proposed by the non-affiliated directors, and gave Manchester United a deadline of December 25, 2023 to accept its best and final proposal.”

Seemingly alarmed by Ratcliffe’s stance, the club called a board meeting on 24th December and voted through the British billionaire’s proposal.

Questions over Sheikh Jassim offers

The SEC filing also highlights the concern over Sheikh Jassim’s proposal to buy all of the shares in United, with the document revealing that he did not once provide copies of financing commitment letters despite being asked to do so several times.

The Qatari’s first offer, lodged in February, included the acquisition of all the shares at a “price of $25 per share”. He increased his offer to $28.54 per share in April before revising that with an improved bid of $30 per share in May.

After United informed Sheikh Jassim that they would “consider a price of $35.25 per ordinary share” as he did not have “sufficient support to proceed”, he returned in June with a new offer for the acquisition of all of the shares, which priced Class B shares at $34 per share and Class A shares at $24.81.

The filing notes that this was “$5.20 less than the per Class A Share consideration in May”. Despite subsequent talks, Sheikh Jassim withdrew from the process in October without ever showing proof of funds.

 

Neymar-PSG transfer investigation: French finance ministry searched over allegations of favourable tax treatment

French police have searched the tax administration offices of the country’s finance ministry over allegations of favourable treatment granted to Paris Saint-Germain over their signing of Neymar back in 2017, French media have reported.

The Brazilian star joined PSG from FC Barcelona for a world-record fee of €222 million. Officers with anti-corruption units reportedly carried out the searches on Monday, amid suspicions that PSG may have received favourable tax treatment as part of the transfer.

The raid is said to be part of a larger investigation carried out since September 2022 centred around the operations of PSG’s former director of communication Jean-Martial Ribes.

Ribes, who was in the role from 2017 to 2022, is facing numerous charges, including that he used his position at the club to gain sensitive information for both PSG and personal advancement.

Potential “tax advantages”

Among the allegations are that Ribes sought the advice of then-vice president of the National Assembly Hugues Renson on potential “tax advantages” that could be found for the Neymar transfer.

Renson claims to have consulted former minister of public accounts Gerald Darmanin over the possible taxation the deal would undergo. Ribes, who resigned from his position in May 2022, denies the charges against him.

 

Blackstone and CVC to compete for Bundesliga media rights business stake

The race to acquire a share of the Bundesliga’s media rights business has come down to a two-way battle between the private equity firms Blackstone and CVC, the German Football League (DFL) has announced.

The number of companies in the process has been reduced from three to two following a unanimous vote of its executive committee, the DFL said. It means that Swedish firm EQT has been eliminated from the bidding.

The league added that a due diligence process and further examination of the potential value to the Bundesliga presented by Blackstone and CVC will now be carried out in the coming weeks.

It is understood the DFL has been seeking offers of between €900 million and €1 billion for a maximum stake of 8 per cent in its media rights unit. The successful bidder will hold the TV, advertising and digital rights to the Bundesliga for 20 years.

The number of interested parties was reduced from five to three in December, with the remaining firms then revising their initial offers submitted in November and tabling new bids earlier this month.

Narrow vote

The 36 clubs in the Bundesliga and Bundesliga 2 narrowly voted to allow the DFL to negotiate with private equity investors over the sale of a stake in its media rights business at its general assembly on 11th December.

Twenty-four clubs voted in favour – just one more than the required two-thirds majority. Ten clubs opposed the move, while two abstained during the secret ballot.

 

777-owned Standard Liege face legal action from Newcastle midfielder for alleged unpaid wages

Standard Liege, the Belgian club owned by the prospective Everton buyer 777 Partners, have come under fresh scrutiny after the English midfielder Isaac Hayden said he will initiate legal proceedings against the club, alleging it failed to pay his wages on time.

The Newcastle United player moved on loan to Standard Liege in September, after agreeing to join until the end of the season.

However, the Jupiler Pro League club released a statement on 11th January stating that Newcastle had “activated the recall clause” to bring Hayden back to St James’ Park and wished him “all the best for the rest of his professional career”.

Hayden claims there is a different reason for his early return, though. In an interview with Belgian journalist Sacha Tavolieri, he said: “The main reason why I left Standard Liege is that the club does not pay salaries on time and does not pay them.

“I will now initiate legal proceedings against the club to obtain the wages that Standard Liege owes me. For example, I received my November salary on December 28.

“They also didn’t pay the players’ bonuses and now the December salaries haven’t been paid and we’re almost at the end of January… it’s a real disaster!”

A spokesperson for Standard Liege said: “It would be misleading to claim that the reasons for Isaac’s departure were purely financial, but we wish him well with his future career.”

Brief transfer ban

The Belgian FA briefly imposed a transfer ban on Standard Liege in December, reported to be for delays in paying transfer fees as well as missed social security payments. A Belgian FA statement said the ban was lifted when 777 sent “the necessary funds to regularise the situation”.

 

Middlesbrough losses ease to £6.4 million for 2022/23 after player trading boost

Middlesbrough have reported a loss of £6.4 million for the year ending 30th June, 2023, after suffering a deficit of £19.5 million in 2021/22.

A key factor in the improved result was a profit of £22.3 million on player sales, up from £1.4 million the previous year. Turnover, not including player trading, reached £28.6 million, compared with £26.9 million in 2021/22. However, the club’s wage bill again exceeded its income, with salary costs rising to £29.6 million, up from £28.4 million.

After a difficult start to the 2022/23 season Middlesbrough recovered to finish fourth in the EFL Championship and reached the play-offs, where they were beaten by Coventry City in the semi-finals.

For the 2022/23 financial year, matchday income was £8.8 million, up from £6.4 million, while broadcasting revenues remained roughly the same on £9.5 million, compared with £9 million the previous year.

The club also earned £7.8 million in commercial revenue (£6.6 million in 2021/22), £332,000 from cup competitions (£3 million), and £2.2 million in merchandising sales (£1.8 million).

Beyond its main revenue streams, the club received £1.2 million from the Premier League towards running its youth academy, and £2.7 million from a legal settlement.

Chairman Steve Gibson’s support key to club’s survival

The accounts also showed that liabilities climbed to £136.4 million, up from £131.9 million, and highlighted how the club’s continuing survival depends on the support of chairman Steve Gibson’s Gibson O’Neill company. Separate accounts showed a rise in revenues and profits for that firm.

Manchester United have reported a loss of £25.8 million for the three-month period ending 30th September 2023, despite earning record first quarter revenues of £157.1 million.

The loss compares with a deficit of £26.5 million for the corresponding period in 2022/23, while the total revenues compare with the £143.7 million earned in Q1 the year prior.

The increase in revenue was primarily driven by record matchday and commercial earnings for the quarter, as well as broadcasting income from participation in the Champions League group stages.

However, United’s wage bill rose to £90.3 million, up from £82.3 million, following a summer in which the club made seven new signings, including Rasmus Hojlund, Andre Onana and Mason Mount, for a total of £178 million.
​
​EBITDA for the period stood at £23.3 million - only £0.3 million lower than in Q1 2022/23.

The profit from player sales for the quarter was £29.5 million – up from £16.6 million in Q1 2022/23 – due primarily to the departures of Fred, Anthony Elanga and Dean Henderson.

United have revised their projected revenues for the 2023/24 financial year down to between £635 million and £665 million, having previously estimated income of between £650 million and £680 million, due to their early elimination from the Champions League.

The first quarter results also revealed that United made a further £100 million drawdown on their revolving credit facility since the end of last season, increasing the club’s total borrowings to £733.2 million.

United paid Raine Group $31.5m to facilitate Ratcliffe deal

Meanwhile, it has emerged that United paid the Raine Group $31.5 million to help facilitate Sir Jim Ratcliffe’s £1.3 billion bid to buy a 25 per cent stake in the club.

The New York-based merchant bank met with United in June 2022, five months before the Glazers announced a strategic review, and were tasked with acting as the club’s financial advisor during the process.

 

RedBird closing in on sale of Toulouse to Otro Capital

AC Milan owner RedBird Capital Partners is close to finalising the sale of French club Toulouse to another American investment firm, Otro Capital, according to L'Equipe.

Although it is yet to be formally announced, a source told the newspaper the deal is 90 per cent complete, with links between representatives of the two companies helping to facilitate the transaction.

Otro Capital, which specialises in sports and media, was founded by three former RedBird executives – Alec Scheiner, Niraj Shah and Isaac Halyard – who were all on Toulouse's board of directors until last summer.

UEFA MCO rules

The three executives resigned, along with RedBird founder Gerry Cardinale, as part of efforts to ensure the club complied with UEFA’s rules over multi-club ownership and European competition.

Under the regulations, two clubs with the same owner cannot be guaranteed permission to compete unless one is in the Champions League and the other in the Europa Conference League.

After AC Milan failed to qualify from this season’s Champions League group stage, both the Italian giants and Toulouse are now competing in the Europa League. In July, UEFA cleared the clubs to play in Europe after they agreed to take steps to ensure they were run independently.

New York-based RedBird acquired an 85 per cent stake in Toulouse for just over €10 million in 2020. Under the firm’s ownership, the team has earned promotion to Ligue 1 and last season won the Coupe de France.

 

Sporting Clube de Portugal pave way for minority investor by raising stake in SAD to 88 per cent

Sporting Clube de Portugal have taken a further step towards finding a potential new minority investor by raising their stake in the Ltd. company (Sporting SAD) from 84 per cent to 88 per cent.

The development has come after the club successfully bought back Mandatory Convertible Securities (VMOC) from Novo Banco using future media rights income. Sporting bought back €51.4 million worth of bonds for just €15.4 million, paying 27.9 cents on the euro.

The debt restructuring is set to make a path to new investment at Sporting easier by giving the club’s management greater control over such decisions.

The Portuguese giants have called an extraordinary meeting of their assembly members for 6th February to approve the greater control they are seeking over the SAD. The club will also take a vote on a new bond issue worth €50 million.

Capital to rise to €202 million

The increase in Sporting’s stake in the SAD is due to be completed on 15th February. As a result, the capital of the company will increase from the current €150 million to €202 million, of which around €177 million will be controlled by the club.

Earlier this month it was reported that Sporting have held exploratory talks with potential investors from around the world over the sale of a minority stake. It followed reports towards the end of last year indicating that Chelsea co-owners Todd Boehly and Behdad Eghbali have “very concrete interest” in a stake.

 

Preston North End chairman Craig Hemmings criticises lack of progress over Premier League-EFL deal

Preston North End chairman Craig Hemmings has criticised the Premier League over its failure so far to agree a financial settlement with the EFL after the Championship club posted a £12.2 million loss for the year ending 30th June 2023.

The deficit was down from a loss of £16.9 million in 2021/22. Turnover increased to a record £15.6 million, up from £13.8 million the previous year.

In a club statement announcing the financial results, Hemmings said: “I make no apologies for again commenting on the lack of level playing field in the Championship, due to some clubs benefiting from huge financial advantages, given to them via the Premier League parachute payments.”

He added: "We have lobbied consistently about a financial re-balancing of the football pyramid. … Whilst it is likely to be at least a couple of years before the [new independent regulator for English football] is in situation, it is a very encouraging step.

“Unfortunately, even though they have been repeatedly requested to do so by Government, the Premier League has thus far either refused, or has been unable, to agree to any new financial model with the EFL. Let us hope, for the benefit of all football, good sense prevails sooner rather than later."

Season ticket sales highest for over 60 years

Preston said their record revenues earned in the 2022/23 financial year were driven by “substantial improvements across all income streams, most notably season card and matchday ticket sales.”

Season ticket sales were the highest for over 60 years at 11,981, up from 7,557, while the average home game attendance rose to 16,269, up from 12,501. Shareholder financial support for 2022/23 was around £11 million.

 

Watford owner Gino Pozzo could face trial over alleged tax fraud charges at Granada

Watford owner Gino Pozzo could face trial on tax fraud charges in Spain related to his former ownership of Granada, according to media reports.

Spanish prosecutors claim he was part of a “long-term criminal plan” and if found guilty he could face 12 years in prison and fines of $40 million for what they call “a fraudulent strategy”.

The Public Prosecutors Office has outlined its case against Pozzo and four other defendants, including Granada, following a five-year investigation. If it progresses a criminal trial will take place at the National Court in Madrid.

Gino Pozzo faces three separate charges for “fraud in excess of €600,000”, which he has denied. The Pozzo family owns Watford and Udinese and previously controlled Granada between 2009 and 2016.

Spanish prosecution documents dated November 2023 allege that during that period Pozzo engaged in the “complex movements of funds linked to transfers and their financing” to “obtain illicit economic benefits to the detriment of the Spanish Treasury.”

“Complex strategy” involving capital gains

The prosecutors claim Pozzo engaged in “the execution of a complex strategy” which allowed “capital gains obtained by the club through the transfer of professional football players to be artificially transferred to Luxembourg and were not taxed in Spain, thus obtaining a considerable economic profit.”

Earlier this week it was reported that Watford are in talks with the American multi-club ownership group The Football Co. (TFC) over the sale of an initial minority stake in the club.

The EPL CEO Richard Masters has confirmed an agreement in principle to pool media rights revenues with the Football League reports Senior Correspondent, James Corbett.

The deal, which is set to come in in 2025/26, opens up the way for a joint sale of media rights when existing contracts end.

Speaking before MPs at a Culture Media and Sport select committee hearing, Masters claimed that the deal would “essentially double” existing solidarity payments between the EPL and the EFL.

His counterpart, Rick Parry, said that the EFL would take 14.75 per cent of net media revenues from the deal, amounting to around £125 million annually over the first five years of the deal.

Independent regulator

But while acknowledging that it represented a “significant amount” and “a step in the right direction” it was “not the right answer. Parry said that it didn’t address concerns about the “cliff edge” between the EPL and Championship finances or the concerns laid out in the government’s White Paper on an independent regulator.

“We're very committed to the regulator, as you know. We're very committed in particular to carrying out the review of the football system, the independent review. Our belief is when that is done, when that review is completed, it will show that there is still a major systemic issue with finances,” he said

Parry pointed out that under the existing system, clubs relegated to the Championship had on average £110 million to spend on wages and transfers as a result of parachute payments, but those that didn’t had just £20 million.

“Clubs have to chose between sustainability and competitiveness. It’s a ludicrous choice,” he said.

Masters used the session to deny that the EPL had tried to kick a “new deal for football” into the long grass, saying that clubs had voted on proposals at two shareholder meetings before Christmas, without success. He said that they were meeting again over two days earlier next month and the issue was on the agenda for the first day. “I consider it the number one priority of the Premier League,” he said.

 

Masters: 777’s Everton takeover delayed over lack of “satisfactory answers”

Richard Masters has confirmed that 777 Partners takeover of Everton has been delayed because the governing body is still to receive “satisfactory answers” as part of its scrutiny of the takeover.

The Miami-based investment group had a bid for the club accepted by Everton’s majority shareholder Farhad Moshiri in mid-September and said at the time they expected to complete the deal by Christmas. Four months on the deal is still to close, amidst a succession of negative reports about 777’s business practices.

“Some processes take a matter of weeks,” Masters told MPs. “Some, if we haven't had satisfactory answers to the questions that we have asked, it takes a lot longer.”

Both the New York Times and the Norwegian investigative magazine, Josimar, have previously reported that key regulatory submissions have not been submitted to the EPL

Asked how long he expected a decision to take, Masters replied: “I don't know. I can't say. It is a very difficult question to answer”, subsequently adding that he hoped it would be “weeks”.

Multiple investigations

On Monday, Everton were charged for a second time with breaching the EPL’s profit and sustainability rules. Masters denied that the charges were politically motivated, with the parliamentary hearing imminent.

“I don't think it's messy. It's a very solemn duty, I have to say,” he said. “Nobody likes enforcing the financial rules. It's the first time the Premier League has done it.”

Masters refused to be drawn on comparisons between the fate of Everton and Manchester City, who have 115 charges against them. He said that a hearing for the City case had been set, but wouldn’t say when. He also confirmed that Chelsea were under investigation for rule breaches.

 

Watford potential investors revealed as U.S. multi-club group The Football Co.

Watford are in talks with the American multi-club ownership group The Football Co. (TFC) over the sale of an initial minority stake, according to The Athletic.

Reports of discussions between the EFL Championship club and a US investment group emerged earlier this month, and the potential new investor has now been named.

TFC’s talks with Watford – which have been active since at least last month – are said to be based around a valuation of £150 million to £200 million, with the possibility of a full takeover part of negotiations.

Representatives of TFC, which was established at the start of 2023, attended Watford’s most recent home game against Chesterfield in the FA Cup on 6th January, although the group’s chairman, the former US Marine and Goldman Sachs managing director Peter Grieve, was not among them.

As well as Grieve, TFC includes several other investors, some of whom already hold executive positions in football, business and marketing. Grieve is already co-owner of Bantu Rovers, a top-flight club in Zimbabwe, while another connection of the group is known to have links with a team in Slovenia.

Acquisitions in South America and CONCACAF region

In an interview with Off The Pitch in January 2023, Grieve said TFC had already made acquisitions in South America and the CONCACAF region, and that it had forged connections with “academies throughout the developing world”.

Grieve was previously in advanced discussions with another Championship club, Hull City, in 2016 but negotiations did not lead to an agreement. Last year, talks started over investment in Brazilian side Atletico Mineiro.

 

EFL exploring “all avenues” to expel rogue owner

EFL chairman, Rick Parry says that his organisation is “exploring every possible avenue” to force Reading owner Dai Yongge out of the club.

Yongge, who bought Reading in 2017, has cut financial support for the club following its relegation from the Championship last May.

Hundreds of protesting supporters invaded the pitch on Saturday, prompting the abandonment of its game against Port Vale. Reading are currently 21st in League One, three points from safety, and face potential points deductions as a result of Saturday’s action.

In a statement on Monday the EFL said: “We urge Mr Dai either to fund the club adequately or to make immediate arrangements to sell his majority shareholding to appropriate new owners so everyone can move forward with renewed optimism.”

Parry said at a parliamentary session on Tuesday that the league had pushed for a disciplinary committee to disqualify Dai before Christmas, but that the panel had found that that was not warranted and issued him with a fine instead.

“If he won't put money into the club, he's not going to pay the fines,” mused Parry.

“If you have a disqualified owner, then the natural consequence or the logical consequence for that owner is to divest. Whether Dai Yongge is going to do anything that's logical, frankly, remains to be seen.

“What we're trying to do is to explore every possible avenue that's open to us. That is the most logical one, that rather than punishing the club, punishing the fans, we start to punish the owner in an attempt to force a resolution.”

Fresh challenge

Parry said that the issue was complicated by the fact that Dai had sold Reading’s training ground and stadium to a company controlled by Dai and his brother, Dai Xiu Li – “a loophole that has thankfully now been closed” – and was refusing to engage eith the league.

“It's pretty extraordinary for an owner to effectively just sit there and do nothing,” he said. “That's a new one. We haven't seen that one before, so it's a fresh challenge.”

Parry called on the government to hasten its legislation to introduce an independent regulator, saying that he had seen drafts showing that it included “statutory powers to force divestment.”

“That's a massive step forward,” Parry added. “It's one of the reasons we are hoping that we get the regulator as soon as possible. Sadly, we're not going to get it in the next three weeks, which I think is the sort of time frame we're looking at.”

Everton are facing a second points deduction this season after being charged with another breach of the Premier League’s profitability and sustainability (PSR) rules, while Nottingham Forest have also been charged.

The Premier League said in a statement that the two clubs have been referred to an independent commission over the charges, which have been made “as a result of sustaining losses above the permitted thresholds for the assessment period ending Season 2022/23.”

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

An independent commission will hear the new cases by mid-April, with appeals to be completed by the end of May, and any sanctions imposed will take effect this season.

In November, Everton were handed an immediate ten-point deduction for a P&S breach relating to the period ending 2021/22, but they are appealing against the sanction.

In a statement, the club said: “The Premier League does not have guidelines which prevent a club being sanctioned for alleged breaches in financial periods which have already been subject to punishment, unlike other governing bodies, including the EFL.

“As a result - and because of the Premier League’s new commitment to deal with such matters “in-season” - the Club is in a position where it has had no option but to submit a PSR calculation which remains subject to change, pending the outcome of the appeal.

“The Club must now defend another Premier League complaint which includes the very same financial periods for which it has already been sanctioned, before that appeal has even been heard. The Club takes the view that this results from a clear deficiency in the Premier League’s rules.”

Forest limited to losses of £61 million

Under the PSR rules, if a club has been in the EFL during the assessment period the amount of losses allowed are even smaller. Forest would therefore be limited to losses of £61 million – £13 million for 2020/21 and 2021/22 when they were in the Championship plus £35 million for 2022/23.

Forest suffered a deficit of £45.6 million in 2021/22, when they were promoted from the Championship, and made a loss of £15.5 million the previous year. The club’s owner, Evangelos Marinakis, has invested more than £250 million on transfer fees since their return to the Premier League.

A statement from the club read: “Nottingham Forest acknowledges the statement from the Premier League confirming that the club has today been charged with a breach of the league’s Profitability and Sustainability Rules. The club intends to continue to cooperate fully with the Premier League on this matter and are confident of a speedy and fair resolution.”

 

777 Partners facing fresh lawsuit as investor claims $30 million in damages

Everton’s prospective new owner 777 Partners is facing another lawsuit after an investor started legal proceedings against the Miami-based investment firm, citing damages of more than $30 million, according to a court summons filed in New York last week.

Change Lending LLC – the owner of The Change Company, the largest community development financial institution (CDFI) in the US – invested $17 million in 777 and its sister company 600 Partners in two tranches of preferred equity in September 2022 and February 2023.

Under the terms of the deal, if 777 failed to provide requested financial information to Change, or any “reputational risk” emerged, Change could make 777 buy back the preferred equity at the same price, plus any unpaid dividends.

The summons details Change’s attempts to get 777 to provide it with financial statements, including an audited balance sheet of 777’s assets. Frustrated by “delays and excuses”, Change told 777 it was triggering its repurchase rights in September 2023.

777 “initially signalled they would cooperate” with Change’s request but senior executives, including 777 co-founder and majority owner Josh Wander, “strung Change along for weeks”, making “excuse after excuse”, only to then stop responding entirely.

“Unsatisfactory financial condition”

In summarising its case, Change says it has “determined that the 777 Entities were in unsatisfactory financial condition” and that 777 has “exposed Change to unacceptable reputational risks”.

As a result, it says, Change is entitled to “compensatory and consequential damages” and all of its legal costs. 777 must now answer the complaint within 20 days of 9th January, the day the summons was served.

 

PSG stadium dispute: Paris mayor asks ex-France president Nicolas Sarkozy to help bring club back to table

The mayor of Paris, Anne Hidalgo, has asked the former French president Nicolas Sarkozy to help revive negotiations between Paris Saint-Germain and the Paris city council over the future ownership of the Parc des Princes stadium, L’Équipe has reported.

The development comes amid a breakdown in communications between the French champions and the Paris town hall over the potential sale of the venue to the club, with neither party having been in communication with the other for over a year.

PSG aspire to own their historic stadium, which they currently lease from the city council. However, the town hall has so far refused all offers from the club, as they would prefer not to sell the ground, and say that the club’s estimates are far below what they would be willing to accept.

The city council has attempted on more than one occasion to bring PSG back to the negotiating table, but the offers have been rebuffed or ignored. According to L’Équipe, this has led Hidalgo to contact Sarkozy, who is a notable fan of Les Parisiens, to help bring the club back to the table.

However, it is thought that a message of reconciliation provided by Sarkozy has so far fallen flat, with reports indicating it has either not been received or has gone down poorly among the club’s hierarchy.

Three months to decide

PSG president Nasser Al-Khelaïfi has informed the city council publicly that it has three months to decide on whether to sell the Parc des Princes, and that otherwise the club will look to move away from their stadium.

It is understood that PSG have been examining their options away from the Parc des Princes, and outside of Paris, with the site of a new stadium in the town of Montigny-le-Bretonneux currently assessed by PSG for its viability.

Earlier this month, it was reported that the club have decided not to pursue a move to the Stade de France after withdrawing from the race to buy the French national stadium.

 

EFL urges Reading owner Dai Yongge to ‘fund club adequately or sell majority shareholding’

The EFL has called on Reading owner Dai Yongge to either sell his majority shareholding in the club or meet his funding requirements for the League One team after handing out a fresh £50,000 fine to the Chinese businessman.

Reading are facing an increasingly dire financial crisis under the ownership of Dai, who first took charge of the club in 2017, and their home match against Port Vale on Saturday was abandoned early in the first half following a pitch invasion from protesting supporters.

Reading have been deducted 16 points across the last three seasons as a result of EFL charges, including four this campaign, and Dai was also personally charged with misconduct last month after failing to deposit 125 per cent of the club’s monthly wage bill into a designated account following a number of delays to wages.

That resulted in Dai receiving an initial fine of £20,000. In a statement, the EFL said a further £50,000 suspended fine has now been imposed after he missed Friday’s latest deadline to meet the same funding obligations.

The EFL said it “will now consider all available options it has under the Regulations and will have no hesitation in bringing further charges against Mr Dai.” 

The league added: “In the meantime, and for the sake of the future of Reading FC, its staff, supporters, and local community we urge Mr Dai either to fund the Club adequately or to make immediate arrangements to sell his majority shareholding to appropriate new owners so everyone can move forward with renewed optimism.”

In the hearing over the misconduct charge against Dai, the EFL had argued that he should face a 12-month disqualification. However, the independent commission ruled it would “not achieve the immediate objective of sourcing the required funds.”

Reading are also facing a separate charge over a continued failure to settle tax bills with HMRC that is due to be heard by a commission at the start of next month.

Repercussions likely for abandoned match

The EFL said it will meet with Reading fans this week to discuss the latest developments. However, the abandonment of Saturday’s game will likely lead to repercussions.

“The EFL Board will discuss events at Saturday’s match during its meeting later this week as it has a responsibility to the League’s member clubs and the competition to ensure all 72 clubs meet the requirements of the rules as previously agreed by EFL clubs,” it said.

The German Football League (DFL) has expressed its opposition to the notion of a revenue-sharing agreement similar to that agreed between Serie A and DAZN as it prepares to launch its tender for the next cycle of domestic Bundesliga TV rights.

The DFL is waiting for Germany’s cartel office, the Bundeskartellamt, to rule on whether the ‘no single buyer rule’, which blocks the exclusive sale of live rights to a single broadcaster, will be removed before launching the tender in the next few months. However, in the meantime informal talks are said to be taking place.

Under the current deal, which finishes at the end of the 2024/25 season, the DFL earns €1.1 billion per year, mostly from DAZN and Sky Deutschland. The Bundesliga is believed to be facing a significant challenge in maintaining at least the same figure in the next cycle, given the market conditions.

However, the idea that the DFL shares in the success of subsequent subscription sales for DAZN, but receives a lower guaranteed amount, has been rejected by the league. DFL joint-CEO Steffen Merkel has argued that guaranteed revenues are needed for clubs to better plan their budgets over the
course of the cycle.

Speaking to German newspaper Bild, he said: "As soon as you include sales-dependent components in a contract, the offers for rights packages are no longer comparable one-to-one. For example, if one broadcaster offers us €100 million and 50 per cent of subscription revenues, and another offers us €120 million but only 20 per cent of revenues, we have a problem when it comes to comparing the two proposals."

DAZN revenue-share key to Serie A deal

Last October, Serie A agreed a deal worth at least €4.5 billion with DAZN and Sky Italia to retain the rights to show matches in Italy for the five-year cycle running from 2024/25 to 2028/29.

The inclusion of a revenue-sharing agreement with DAZN was key to ending months of stalemate in the talks. Serie A CEO Luigi De Siervo claimed that as a result, the total value of the deal could “far exceed that of the previous three years” and reach the publicly stated target of €1 billion per season.

 

West Brom in talks with American businessman over potential £60 million takeover

West Bromwich Albion are reported to be in advanced talks with American entrepreneur Shilen Patel over a potential takeover of the EFL Championship club.

According to The Daily Telegraph, Patel has emerged as the preferred choice for Albion’s Chinese owner Guochuan Lai, with a period of exclusivity set to be granted this month, after making progress towards an agreement in recent weeks.

Last month it was revealed that three parties were keen to buy the West Midlands club, who are beset by financial difficulties and facing the prospect of losing first-team players in the January transfer window.

Patel is now said to be at the front of the queue to complete a takeover, which will cost an estimated £30-35 million, with additional loans taking the overall price closer towards £60 million.

Software company founder

Previously the founder and CEO of HealthAxis Group, a software company based in Tampa, Shilen Patel is the son of Dr Kiran Patel, whose net worth is an estimated $400 million. Shilen Patel has now assumed control of the family business.

Lai acquired West Brom from Jeremy Peace for more than £200 million in July 2016. He has come under heavy scrutiny after declining to pay back a £5 million loan which was paid to one of his companies in June 2021.

 

Negreira case: FC Barcelona paid ‘to get sporting benefit,’ ex-referee tells police

A fresh development in the Negreira case has emerged which raises further questions for FC Barcelona over the club’s payments to the former vice-president of the Spanish FA’s refereeing committee, José María Enríquez Negreira.

According to documents seen by El Mundo, Jose Luis Gonzalez Gonzalez, a former LaLiga referee, has told Spanish police how he understood that Barça hired Negreira’s services "to get some kind of sporting benefit.”

Gonzalez Gonzalez also stated that Negreira would have made Barcelona understand "that he had some power over the referees" in Spain.

As the investigation into the case continues, El Mundo has obtained access to 21 statements made by referees to the Spanish Civil Guard, with Gonzalez Gonzalez's deemed to stand out the most.

Gonzalez Gonzalez, who retired in 2020, also expressed his belief that Negreira and his son "took advantage" of Negreira's position "to obtain an economic benefit".

In addition, the former match official branded the consultation reports that Negreira's son prepared "useless" and a "mere formality" to "justify" the payments Barça made to Negreira.

"My opinion is that Negreira reached an agreement with the directors or members of FC Barcelona [for them] to benefit in a private capacity from these payments", he stated.

Payments of €7.3 million-plus over 17 years

The Negreira case was initially brought after prosecutors filed a complaint last March over payments of more than €7.3 million over 17 years to firms owned by Negreira, allegedly for referees to act in favour of Barcelona. Both the club and Negreira himself have denied any wrongdoing.

Barcelona were originally charged with alleged corruption in sport, corruption in business, false administration and the falsification of commercial documents. Charges of bribery were added in September after a judge said Negreira "exercised public functions" as vice-president of the Spanish FA’s refereeing committee, equating him to a civil servant.

 

Sampdoria capital gains investigation: Six former board members summoned by prosecutors

Six former members of the Sampdoria board of directors have reportedly been summoned to appear before the Genoa Public Prosecutor's Office as part of the investigation into the club’s accounting practices.

According to La Repubblica, the suspects, who were board members under Massimo Ferrero’s ownership of the club, are accused of various violations, including "false corporate communications, issuing invoices for non-existent transactions, and fraudulent declaration through the use of fictitious invoices in relation to the purchase and sale of footballers".

It was also reported that prosecutors now have access to confidential information relevant to the case obtained from the computers of a number of professionals, including lawyers, accountants and auditors.

The purpose of the summons is to examine the material found on the computers in a selection process carried out “in adversarial proceedings for non-repeatable acts”.

The investigation aims to uncover details of Sampdoria’s approach to capital gains, including the alleged use of false invoices, relating in particular to the transfer of players from 2018, including seven who moved between Sampdoria and Juventus.

As well as Ferrero, the club’s former vice-president Antonio Romei and ex-board member Alberto Bosco, who is still working at the club as chief operating officer, are under investigation.

Guardia di Finanza investigation into Ferrero

Ferrero became Sampdoria owner back in 2014, but resigned as president in December 2021 following his arrest by the Italian law enforcement agency Guardia di Finanza as part of an investigation into corporate crimes and bankruptcy.

There is reported to be a connection between that investigation and the allegations against Sampdoria over their financial management. The Guardia di Finanza investigation revealed alleged violations, including false accounting, defrauding the state and embezzlement of public funds used to settle debts of Ferrero's film companies in Rome.

 

Saudi Pro League expands number of foreign players allowed at each club

The Saudi Pro League has changed its rules to increase the number of foreign players allowed, with each club now permitted to register ten non-Saudi players, up from the current eight.

Only eight will be able to take part in each match, and of the ten overseas players allowed, eight will be without an age limit, but two would have to be born after 2003 in order to “boost investment in young talent”, the league said.

The changes will come in from the 2024/25 season. There will also be another change, with squads squeezed from 30 players to 25.

Top global stars

Since the flagship signing of Cristiano Ronaldo in December 2022, the Saudi Pro League has attracted a number of other top global stars, including Neymar, Sadio Mane, Karim Benzema and Jordan Henderson.

The majority of foreign signings have been captured by one of the ‘big four’ teams owned by Saudi Arabia's Public Investment Fund (PIF): Al-Ittihad, Al-Ahli, Al-Nassr and Al-Hilal.

However, Henderson, who joined Al-Ettifaq last July, is reportedly in search of a move back to Europe over concerns about his England prospects ahead of this summer’s Euro 2024.

Newcastle United CEO Darren Eales has admitted that the club may have to sell at least one of their star players to avoid breaching the Premier League’s profit and sustainability rules after the club announced a loss of £73.4 million for the year ending 30th June 2023.

That figure follows the £72.9 million deficit the club suffered in 2021/22. The losses will be significantly reduced for PSR calculations once factors such as depreciation, youth development and the club’s academy are considered.

However, in a video interview on the club’s website, Eales conceded that to be compliant with the regulations – which allow for losses of no more than £105 million over a three-year period – Newcastle will have to consider selling players, including some of their biggest stars.

Asked if any of Alexander Isak, Sven Botman and Bruno Guimarães could be sold this summer, Eales said: “On any player, at any time, it depends on circumstances. It’s difficult to say specifically on certain players, but I can say that, if we’re going to get to where we want to get to, at times it is necessary to trade your players.”

He added: “It is counterintuitive and part of the system of PSR that there is an incentive to trade your players if you want to reinvest, by the nature of the boundaries.”

Newcastle, who were acquired by Saudi Arabia’s Public Investment Fund in October 2021, have spent more than £400 million on players since the takeover.

Total revenues reach £250.3 million

The club’s accounts for 2022/23 show that total revenues rose to £250.3 million, up from £180 million the previous year, with significant increases across all the main revenue streams.

Matchday income reached £37.9 million (£27.5 million in 2021/22), broadcast revenues climbed to £165.5 million (£124.1 million), and commercial income rose to £43.9 million (£26.5 million).

Operating expenses for the year totalled £230.2 million, up from £206.3 million in 2021/22, with the club’s wage bill amounting to £186.7 million, compared with £170.2 million the previous year. Amortisation costs reached £86.8 million, up from £49.7 million. The club made a profit on player trading of £2.8 million, down from £5.8 million in 2021/22.

In the 2022/23 season, Newcastle finished in fourth place in the Premier League, earning Champions League qualification for the first time in 20 years. They also reached the EFL Cup final, their first major cup final in 24 years.

 

A22 CEO Bernd Reichart: Plans for new European competition have support of 40 to 50 clubs

Bernd Reichart, CEO of A22, the sports management company set up to support the European Super League, has claimed that plans for a new European competition have the support of between 40 and 50 clubs and “will revitalise domestic leagues".

In an interview with the Spanish sports newspaper El Mundo Deportivo, Reichart was speaking in the wake of the European Court of Justice (CJEU)’s verdict on the Super League delivered on 21st December.

On that same day, following the announcement of the CJEU’s decision, A22 unveiled a proposal for a new competition “based on sporting merit” which it said would involve 64 men's and 32 women's teams playing midweek matches in a league system across Europe.

Asked by El Mundo Deportivo how many clubs are interested in the project, Reichart said: “We have been in contact with all those who we had previously visited … to configure and create this proposal. Our format is based on an exchange with the parties involved in football, primarily the 40 or 50 clubs with whom we have been talking.”

The German media executive, who once again declined to name any teams that could become part of the new league, was then asked whether such a number would provide a good base for the competition to be launched at the start of the 2025/26 season.

“Right now we don't venture dates,” he said. “We want to do things right. We share proposals and visions with the fans: the best football in Europe, with more attractive matches than the old and the new Champions League and also for free.”

“Does not invade the national calendar”

Reichart was also quizzed about fears that clubs would reserve their best players for the Super League, snubbing the national leagues. "This is already happening on some days. There are European and national tournaments,” he said.

“The Super League does not invade the national calendar. It pairs and maintains the competitive dynamic of qualifying for the Super League with a good year in the domestic tournament. This strengthens the clubs that return with economic resources and the best talents in their domestic league. They can build better teams and retain or sign talent. And that also fuels and revitalises the national championship.”

 

Los Angeles FC set to complete Grasshoppers takeover and ‘help Bayern Munich comply with UEFA MCO rules’

MLS club Los Angeles FC are reportedly closing in on a deal to buy the Swiss Super League team Grasshopper Club Zurich, German outlet Kicker has reported.

Talks on a potential agreement were first revealed by Bloomberg last October and came after LAFC invested in Austria’s FC Wacker Innsbruck last April.

According to Kicker, if completed the deal to acquire Grasshoppers would help Bayern Munich, who began a joint venture with LAFC last year, comply with UEFA’s regulations over multi-club ownership and participation in European competition.

Unveiled last March, the partnership between Bayern and LAFC, called Red&Gold, is designed to boost player development for both teams, with each club owning 50 per cent of the venture's shares.

The collaboration has since been joined by the Gambinos Stars Africa academy in Gambia, founded by Helmut Hack, the former president of Bundesliga 2 club Fürth, and in December it acquired majority ownership of Uruguayan first division club Racing de Montevideo.

Multi-club strategy

The managing director of Red&Gold, which is registered at Bayern's Säbener Strasse training ground, is the Bundesliga club’s head of youth development Jochen Sauer, and the initiative is a key part of the German giants’ own multi-club strategy.

It is understood that if LAFC acquired Grasshopper Club Zurich, and if either the Swiss team or Innsbruck were to qualify for Europe, Bayern would avoid questions from UEFA over its MCO rules, since LAFC would hold shares in the clubs, rather than Bayern itself.