AS Roma have posted a loss of €102 million for the year ending 30th June, 2023, a decline of more than half compared with the record €219.5 million deficit suffered in 2021/22.

The Serie A club have disclosed the headline figures for the year, although they are yet to file their accounts.

The club said that total revenues, including transfer income, reached €277.1 million, up from €205.8 million in 2021/22. Capital gains from player trading totalled €54 million, with the sale of Italian midfielder Nicolò Zaniolo to Galatasaray the biggest contributor.

Matchday income reached €63.6 million as a result of sold-out matches throughout the season, including in the Europe League. UEFA prize money totalled €18 million, up from €6 million the previous year, while commercial revenues climbed to €48.5 million, up from €38.5 million.

Roma’s total expenses decreased to €349 million, down from €400.9 million the previous year, with depreciation and amortisation costs falling by €22 million and the wage bill declining by €10 million.

UEFA FFP agreement

The Serie A club’s improved finances were key to meeting their UEFA Financial Fair Play obligations for 2022/23, which the European governing body confirmed in July.

Last September, Roma reached a four-year settlement agreement with UEFA after failing to meet their FFP requirements. The club was handed a €35 million fine but only paid €5 million due to the terms of the agreement.

 

DNCG allows Lyon to pay for new signings in January

Lyon have been permitted to spend money on new players in the January transfer window following the latest review of the club’s finances by French football’s financial watchdog, the DNCG.

The club, who are bottom of Ligue 1, announced the move in a statement, and said the DNCG had also approved the revised budget presented by owner John Textor for the 2023/24 season.

According to French TV channel RMC Sport, that budget provides scope for spending of up to €65 million in the winter window, although the club’s total outlay is not expected to rise above €50 million.

Under the agreement with the DNCG, all new player contracts will have to be validated by the watchdog in order to be approved, allowing it to continue monitoring the club’s expenditure.

It is understood the DNCG has loosened its restrictions on Lyon due principally to the €94 million generated from player sales in the summer, the €53 million promised by the sale of the US women’s team OL Reign to the Seattle Sounders, and a €320 million deal to refinance the majority of Lyon’s debt.

DNCG decision welcomed by club

The Lyon statement read: “Olympique Lyonnais takes note of the DNCG's decision and thanks it for having listened to its arguments, which allow it to regain its budgetary flexibility.

“By validating the new budget revised upwards presented to it by Olympique Lyonnnais and by simply asking it to respect it, the DNCG allows the club to present itself in a favourable situation before the winter transfer window so that it can consolidate its team through the acquisition of new players.

“In this context of the club's transformation, Olympique Lyonnais welcomes the decision of the financial regulator and is delighted to continue its relationship of trust with the DNCG.”
 

 

Inter Milan linked with Sheikh Jassim’s Qatar Islamic Bank over possible takeover bid

Fresh speculation has emerged about a potential new owner of Inter Milan, with Italian newsaper Il Giornale claiming that the Qatar Islamic Bank is interested in a takeover of the club.

According to the report, the bank is not a ‘classic’ investment fund, and indicated that it is the Qatar Islamic Bank itself that is interested. The bank’s president is Sheikh Jassim bin Hamad al Thani, who earlier this year led a failed €6 billion bid to buy Manchester United.

Il Giornale also claimed that it was FIFA president Gianni Infantino, now settled in Qatar and a well-known Inter fan, who suggested diverting the bank’s capital to a potential takeover of the Nerazzurri.

Thomas Zilliacus offer

The prospect of new owners at Inter has been raised several times over the last few years. Among the most recent came last month when Finnish entrepreneur Thomas Zilliacus said he would present a formal bid to buy the club after signing agreements with investors worth $2.5 billion.

Inter president Steven Zhang reiterated his desire to retain control of the club during its shareholders’ meeting in October. At the meeting, Inter announced losses of €85 million for 2022/23, down from €140 million the previous year.

 

KV Oostende face prospect of bankruptcy by January without new investment

KV Oostende, the Belgian club owned by Pacific Media Group (PMG), will be forced to file for bankruptcy if fresh investment is not found by the end of the year, according to Belgian media reports.

Concerns have mounted about the financial management of the club by PMG, which acquired the side back in 2020. The situation is said to have worsened of late, and while playing staff are still being paid in full there is reported to be no money left to pay suppliers.

In addition, a large proportion of transfer fees, as well as social security and tax payments due from the club, are yet to be paid. If their financial situation does not improve by the middle of this month the club could also face a points deduction.

Oostende were last season relegated from the Jupiler Pro League to the Challenger Pro League, where they are currently 14th in the table.

€8 million of debt

It is understood that PMG co-owner Paul Conway would like to bring new American investors into Oostende, although such a prospect is said to create a large degree of scepticism among fans and within the club. Oostende’s shares can be taken over free of charge, but around €8 million of debt would be added to any buyout.

 

FC Augsburg post €8.8 million loss for 2022/23

FC Augsburg have reported a loss of €8.8 million for the year ending 30th June, 2023.

Total revenues, including player sales, were €90.5 million, with broadcast income generating €45.1 million, commercial revenues bringing in €22 million, and transfer income totalling €10.3 million.

Expenses amounted to €99.4 million, with the club’s wage bill totalling €44.5 million, depreciation and amortisation costs €18.7 million, and transfer spending €6.7 million.

A key factor in the net loss was high depreciation costs due to investments in players over recent years, together with fewer player sales in the summer 2022 window.

In addition, the club invested in fan services and fan engagement, while keeping season ticket and merchandising prices stable despite increased costs.

Equity of €49.3 million

Augsburg stressed that despite the loss for 2022/23 it is economically stable and healthy, and pointed to equity of €49.3 million as at 30th June, 2023. The club claimed that only six Bundesliga teams had a better figure, including heavyweights FC Bayern Munich and Borussia Dortmund.

The club also pointed out that over the past five years it has generated a small combined profit in the mid-six-figure range despite the Covid-19 pandemic.

Matthew Benham, the owner of Brentford, is considering potential offers for a stake in the club and is set to appoint a bank to advise on the sale, Bloomberg has reported.

A club spokesperson told Bloomberg: “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.”

The spokesperson said that Benham’s “commitment to the club remains as strong as it ever was,” before adding that it’s “only natural, and perhaps even essential” to explore what new investment could mean as Brentford look to stay competitive and safeguard their future.

Potential valuation of £500 million-plus

Brentford’s last published accounts – for the year ending 30th June, 2022 – showed a profit of £29.9 million from revenues of £140 million. Many teams are valued at a four-to-six multiple of revenues, which would give the club a valuation in excess of £500 million.

Kieran Maguire, a lecturer in football finance at The University of Liverpool, said Brentford’s valuation would be positively impacted by good player trading, their stadium, which was opened in 2020, and the Premier League’s record £6.7 billion broadcasting deal announced on Monday.

 

AC Milan owner RedBird ‘in talks with Investcorp’ over capital injection

The Bahrain-based fund Investcorp – which last year came close to acquiring AC Milan – has emerged as a potential candidate for fresh investment in the club, Italian media have reported.

According to Il Sole 24 Ore, talks have taken place between representatives of Milan owner RedBird Capital Partners, the American investment firm that took over the club last August, and a group of managers from Investcorp.

The talks are said to be among the latest discussions RedBird founder Gerry Cardinale has had with other potential investors in the club as he seeks a fresh capital injection.

Vendor loan of €600 million

Redbird is required to repay a vendor loan of €600 million, with an interest rate of 7 per cent, within the next two years to AC Milan’s previous owner Elliott Management.

It is understood that when it acquired the club last year, Redbird beat competition from Investcorp, which had appeared close to agreeing a deal for around €1 billion after securing a period of exclusivity to seal a takeover which then lapsed.

 

Sevilla shareholders reject 2022/23 accounts and management of board

Sevilla have failed to gain approval for their accounts for the year ending 30th June, 2023 from the club’s shareholders, who have also rejected the management of the board of directors as the chaos at the club continues.

In a statement, Sevilla confirmed that 53.36 per cent of shareholders voted to reject the 2022/23 accounts at the AGM of shareholders held on Monday, with 42.10 per cent in favour, while 56.99 per cent of the votes were against the management of the board of directors, with 41.24 per cent in favour.

It marks the second year in a row the LaLiga club’s accounts and board’s management have not been approved by shareholders, after similar action a year ago in relation to the 2021/22 financial year.

Record total revenues of €259.6 million

During the meeting, Sevilla CEO José María Cruz said the club earned a turnover of €214.3 million for 2022/23, with record total revenues, including player sales, of €259.6 million.

However, the club’s wage bill rose to €193 million, with other expenses amounting to €83 million, resulting in a net loss of €17.2 million, around €6 million lower than the deficit suffered in 2021/22.

In an interview with Palco23, the Sevilla vice-president José María del Nido Carrasco, said: "In 2022/23, it no longer makes sense to talk about losses attributable to the effects of the pandemic, even if we are still affected. The red numbers are due to the costs of Sevilla FC's first team.”

He added: "The problem is that we have been very ambitious in the preparation of the squad and this has meant an extra cost.” However, he stressed that "we have already put measures in place to reduce staff costs,” pointing out that the club’s wage bill has been reduced to €182 million for the current season.

 

Reading takeover by Genevra in doubt after owner Dai Yongge makes last-minute changes

Reading’s hopes of securing a new buyer for the club appear to have suffered a fresh setback, with the Luxembourg-based investment group Genevra Associates reported to be considering the withdrawal of its takeover bid.

Genevra has been in advanced talks with Reading owner Yongge Dai over a potential deal but according to The Daily Telegraph is now ready to pull out as negotiations have stalled.

The newspaper understands that Yongge has allegedly made a number of significant changes to the final terms of the sale, which has plunged the Genevra takeover into doubt.

Last week, the hedge fund was hopeful of being granted exclusivity but it is believed that Yongge’s latest demands have delayed the process.

Deepening crisis

The English Football League board is set to hold its monthly meeting later this week, with the deepening crisis at Reading certain to be under discussion.

Reading have been docked 16 points in three seasons under the ownership of Yongge and are currently in the League One relegation zone.

The club, who were knocked out of the FA Cup by non-League Eastleigh on Sunday, were also late paying staff last week. It is understood the remaining staff members were paid their salaries on Monday.

The Premier League has announced the agreement of a new record £6.7 billion domestic TV deal which will see current partners Sky Sports and TNT Sports (formerly BT Sport) show up to 270 live games a season from 2025/26.

The Premier League said the four-year agreements – which also include a deal with the BBC to continue showing free-to-air highlights – are “the largest sports media rights deals ever concluded in the UK.”

The league confirmed that the contracts will deliver a total of £6.7 billion in revenue over the four years, “inclusive of a four per cent increase in live rights value compared to the previous process”. An extra 70 matches will be shown per season compared with the current deals.

A Premier League statement read: “Sky Sports has been awarded live rights packages B, C, D and E, covering a minimum of 215 live matches per season, which will include more than 140 matches played at weekends, evening matches on Fridays and Mondays and full coverage of three midweek match rounds. For the first time, Sky Sports will also broadcast all 10 matches on the final day of each season.

“TNT Sports has been awarded live rights package A, covering 52 live matches per season, including exclusive coverage of matches played on Saturdays at 12.30pm and full coverage of two midweek match rounds.

“For the first time in the UK, all matches taking place outside of the Saturday 3pm ‘closed period’, including those displaced to Sunday 2pm because of club participation in European competitions, will be broadcast live.”

The BBC will show highlights of all 380 matches each season on its Match of the Day programme, and will also have additional digital rights for the BBC’s online platforms.

No live matches on Amazon

The deals announced by the Premier League mean that Amazon will not be showing any live English top-flight games from 2025/26. The company’s Prime Video streaming service has been showing all the matches from two midweek rounds per season since 2019/20. Under the new deal, those games will be broadcast on TNT.

 

Manchester United and Ratcliffe set to confirm 25 per cent stake sale next week

Manchester United and the British billionaire Sir Jim Ratcliffe are expected to announce the long-awaited £1.25 billion deal for a 25 per cent stake in the club within the next few days, according to Sky News.

It is understood the two parties have pencilled in early next week to confirm the transaction, although sources told Sky the timetable could yet slip again.

Under the agreement, Ineos Sports will take two boardroom seats at Old Trafford, although neither Ratcliffe nor Sir Dave Brailsford, the former cycling supremo who heads Ineos's sporting operations, is expected to join the club's public company board.

Tender offer

The $33-a-share deal will be structured as a tender offer to acquire 25 per cent of the listed A-shares. The Glazers will also sell 25 per cent of their B-shares, which carry greater voting rights, to Ratcliffe as part of the deal.

The Ineos owner plans to commit £245 million from his multibillion-pound fortune to United's ageing infrastructure as part of the transaction, with the bulk of that capital being handed to the club in the near term.

Adding together the cost of the stock purchase and the other capital for investment means that Ratcliffe will be committing around £1.5 billion on day one of his partial ownership of United.
 

UK government backs Karen Carney’s independent review to boost women’s football

The UK government has endorsed the independent review presented by former England international turned pundit Karen Carney designed to help boost women’s domestic football across the country.

The review was commissioned following England’s Euro 2022 triumph and published in July 2023. It set out a series of strategic recommendations aimed at leveraging the success of the women’s national team and charting a course toward a prosperous and sustainable commercial future for women’s football in the UK.

Carney’s review called for a firm commitment from the English FA and NewCo – the company which is set to take over the running of the women’s professional game from the 2024/25 season – to fully professionalise the Women’s Super League (WSL) and Women’s Championship.

Other proposals are intended to elevate minimum operating standards, enhance physical and mental health provisions, establish elite training facilities, and fortify support structures for players transitioning out of the sport.

Additional key recommendations include carving out a dedicated broadcast slot for women’s football, raising club standards for fan engagement, and enhancing funding flows across the football pyramid.

Implementation group to be set up

In a statement, the UK government said culture secretary Lucy Frazer has accepted the recommendations and has challenged the FA and wider stakeholders “to go further and set a new standard for women’s sport.”

To ensure the recommendations are acted up on quickly, the government will convene an implementation group comprising key stakeholders – including the FA, NewCo, and others – to ensure the milestones are met.

In addition, a board of women’s sports will be established in the new year, featuring leading industry figures to address common challenges and accelerate the growth of women’s sport beyond football.

The government said it is committing increased investment in grassroots facilities for women and girls, and pointed to last week’s announcement of a £30 million cash injection with the FA to build around 30 new 3G pitches and accompanying facilities designed to prioritise women’s and girls’ teams across England.

FA highlights financial difficulties

The FA said it welcomed the recommendations outlined in Carney’s review and would continue to discuss them with the government. However, it also highlighted the financial difficulties that could be encountered when addressing the review’s pledge to improve the pipeline of talent by increasing the number of academies (Emerging Talent Centres).

In a statement, the FA noted that while the central investment from the men’s game into academies via the Premier League is £88 million per year, the FA’s overall budget for women’s academies is £3.25 million a year.

“For transformative change, solidarity payments into the women’s game from the men’s game could help bridge the gap until women’s academies too can become financially sustainable through transfer fees,” the FA said.

 

UEFA to expand Women’s Champions League and introduce second-tier competition from 2025/26

UEFA have announced a major overhaul of its women’s club competitions, with an expanded format for the Women’s Champions League and the introduction of a new second-tier competition.

The changes, which were approved by the UEFA executive committee meeting in Hamburg at the weekend, will come into effect from the 2025/26 season.

The revamped Champions League will consist of an 18-team league stage with three home and three away games, followed by knockout rounds.

At present, the competition features a 16-team group stage, for which only three teams earn a place directly by winning their domestic leagues, with the remaining teams competing via playoffs to qualify. The format has drawn criticism as some of Europe’s biggest teams, including Arsenal and Wolfsburg, have exited before the group stage.

No change to men’s Euro 2024 prize money

UEFA also confirmed that the total prize money for the men’s Euro 2024 will be €331 million – the same as for the Euro 2020 tournament, which was postponed to 2021 due to the Covid-19 pandemic.

The distribution of the money will also be maintained. The maximum amount the winning team can reach, if they have won all three matches in their group, is €28.25 million.

Each team will receive €9.25 million for participating, with match bonuses of €1 million for a win and €500,000 for a draw. Qualification for the round of 16 will bring €1.5 million per team, with a quarter-final place €2.5 million, and reaching the semi-finals €4 million. The winner will receive an additional prize of €8 million, and the runner-up €5 million.

The DFL has received four initial offers from investment firms for a stake in the Bundesliga’s media rights business, according to German outlet Kicker.

The league is understood to be seeking bids of between €900 million and €1 billion for a maximum stake of 8 per cent. The successful bidder will hold the television, advertising and digital rights to the Bundesliga for 20 years.

Kicker has reported that the offers received by the DFL so far are from Advent, Blackstone, CVC and EQT. Despite also being considered as a potential investment partner, Bridgestone is not believed to be one of the interested parties and has refrained from making an offer.

Positive talks with clubs

It was reported last month that the DFL had held positive talks with German clubs about its latest plan to attract external investment into the Bundesliga. Hans-Joachim Watzke, the CEO of Borussia Dortmund, last week expressed his support for the proposed deal. However, SC Freiburg and 1. FC Köln have both spoken out against it.

The DFL is to hold a vote among the 36 clubs in Germany’s top two divisions over the plans at its general assembly on 11th December. A two-thirds majority is required for the process to proceed. It is expected that any deal would then be finalised by March.

Back in May, German clubs voted against plans to sell a 12.5 per cent stake in the Bundesliga’s media rights subsidiary in a proposed deal that would have lasted for at least 20 years. The DFL hoped to raise around €2 billion from the deal.

 

Everton lodge appeal against 10-point penalty for financial rules breach

Everton have formally submitted an appeal over the ten-point deduction imposed on the club last month for breaching the Premier League’s profit and sustainability rules.

The Merseyside club are appealing against the severity of the punishment, which was delivered by an independent commission, and a new panel is set to hear the case again in the new year.

In a statement issued on Friday, Everton said: “Everton Football Club has today lodged with the Chair of the Premier League’s Judicial Panel its appeal of the decision by a Premier League Commission to impose a 10-point deduction on the Club. An Appeal Board will now be appointed to hear the case.”

The Premier League also released a statement confirming Everton’s appeal, in which it pointed out that the club had admitted breaching financial rules which allow for losses of no more than £105 million over three seasons.

It said: “Everton Football Club has appealed the decision of an independent Commission to impose a 10-point deduction on the club, after its admission of a breach of the Premier League’s Profitability and Sustainability Rules.

“The club lodged the appeal to the Chair of the Judicial Panel today, who will now appoint an Appeal Board to hear the case.”

Cost-cutting moves

It was reported last week that Everton could be at risk of an additional points deduction this season after it was confirmed that any new breach of the Premier League’s profit and sustainability rules should be dealt with by the end of May.

The Toffees are preparing to submit their accounts for the 2022/23 financial year to the Premier League. Clubs now have to do so before 31st December instead of March as part of new measures designed to fast-track straightforward breaches of financial rules.

There are said to be fears that Everton could find themselves sailing close to the wind again. However, sources close to the club have insisted to The Daily Telegraph that they are well within budget after a significant drop off in spending last season.

The departure of £250,000-a-week James Rodriguez had been a major relief for Everton’s wage bill following his departure in the autumn of 2021. The club went on to sell Richarlison to Tottenham Hotspur for around £50 million in the 2022 summer window, while Anthony Gordon moved to Newcastle United for more than £40 million in January.

However, last summer Amadou Onana, Dwight McNeil and Neal Maupay all arrived for multi-million pound fees, and there were other unforeseen factors during the 2022/23 campaign that will have been a headache – including several as a result of the sanctions brought against then sponsor Alisher Usmanov in March 2022.

 

RSC Anderlecht revenues up 29 per cent to surpass €100 million mark

RSC Anderlecht have released details of their financial results for the year ending 30th June, 2023, which show that the Belgian club earned total revenues (including transfer income) of €101.2 million, an increase of 29 per cent compared with 2021/22, when the club’s income amounted to €78.5 million.

Anderlecht said the team’s run to the quarter-finals of the Europa Conference League, as well as the transfers of Spanish defender and midfielder Sergio Gomez to Manchester City and 17-year-old Belgian striker Julien Duranville to Borussia Dortmund, were the main contributors to the higher income.

Commercial and operational revenues also increased, despite a disappointing season domestically, with the club finishing 11th in the Jupiler Pro League regular season and failing to qualify for the play-offs.

Anderlecht achieved an operating profit of €24 million, although the net result was a loss of €6.1 million. The club noted that this contrasted with the €1.3 million net profit earned in 2021/22, but stressed that this surplus was “strongly influenced by the conditional waiver of debt by main shareholder Alychlo.”

Wage bill drops 4 per cent to €54.7 million

Anderlecht’s wage bill for 2022/23 was €54.7 million, down by 4 per cent from the previous year, which the club said was achieved despite the indexation of salaries for company staff and the impact of the new tax regulations for professional footballers in Belgium.

Operating costs rose by around 10 per cent to €32.4 million, which the club attributed to inflation in energy prices, the integration of its RSCA Futures youth academy into the second-tier Challenger Pro League, and the costs associated with European travel in the Europa Conference League.

Commenting on the outlook for the current financial year, Anderlecht stated: “Thanks to the consistent implementation of our strategic plan and a strict but future-proof financial policy, RSC Anderlecht is also on track to close the 2023-2024 season with a better result.”

FIFA’s new agent regulations have suffered a further setback after agents in the UK won an injunction against the global governing body over the application of the rules within the country.

FIFA's Football Agent Regulations (FFAR) include a mandatory licensing system, prohibition of multiple representation to avoid conflicts of interest and – most controversially – the introduction of a cap on agent fees.

FFAR was introduced in January on a transitional basis, with an obligation by stakeholders to only use licensed agents coming into force on 1st October.

However, as reported by The Independent, the UK agents, who had joined forces appealing the new reforms, have now won an arbitral award that is almost certain to cause FIFA to go back to the drawing board.

The ruling means that four of Europe’s ‘big five’ leagues now have similar restrictions in place, with the UK following Spain, Germany and France. There are also ongoing actions in Italy.

FIFA to consider appeal

Sources close to the situation told The Independent that FIFA will look into grounds for an appeal – but that is more narrow when challenging an arbitral award. Cases can be brought, however, when errors of law are made.

 

Crystal Palace ‘seek £45 million’ to help fund stadium upgrade

Crystal Palace are looking to raise £45 million to fund the redevelopment of their Selhurst Park stadium, according to a report from Bloomberg.

Chairman Steve Parish is hoping to raise funds from the Premier League club’s other major shareholders, which include Eagle Football Holdings chairman John Textor, and American private equity investors Josh Harris and David Blitzer.

Textor owns in excess of 40 per cent of the shares in Crystal Palace, while a company controlled by Harris and others, including Blitzer, holds roughly another 40 per cent of the club.

Palace, who are currently 13th in the Premier League, plan to increase their ground’s capacity from 26,000 to more than 34,000 by building a new main stand which will replace the current main stand, which was built in 1924.

According to Palace, the upgrade will boost corporate hospitality and provide opportunities to hire the venue outside match days. The southeast London club hopes to start work on the project next summer.

Cost of revamp set to climb above £150 million

A source told Bloomberg that the cost of the stadium revamp is likely to exceed £150 million. Costs have increased since it was first planned, but Parish has said it will provide an additional £20 million to £30 million each year in revenues.

 

Everton at risk of further points penalty this season as Premier League fast-tracks rule breaches

Everton could be at risk of an additional points deduction this season after it was confirmed that any new breach of the Premier League’s profit and sustainability rules should be dealt with by the end of May.

The Merseyside club were last month handed a ten-point penalty by an independent commission after being found to have broken the financial rules, which allow for losses of no more than £105 million over three years.

As reported by The Times, there are fears that if the same calculation system is used, Everton could find themselves sailing close to the wind again.

The club, who have dropped into the relegation zone following their points deduction, are preparing to submit their accounts for the 2022/23 financial year to the Premier League. Clubs now have to do so before 31st December instead of March.

Under new regulations brought in during the summer, straightforward breaches of financial rules will be fast-tracked so they are dealt with before the end of the season.

Premier League responds to Greater Manchester mayor’s claims

Meanwhile, the Premier League has written to the mayor of Greater Manchester, Andy Burnham, rejecting his claim that there was an “an abuse of process and regulatory malpractice” in the hearings that led to Everton’s ten-point penalty.

In a letter sent last weekend to the league, Burnham argued that the organisation “sought to introduce a new sanctions policy” during the independent commission’s review of the case, leading to an “arbitrary decision” that “seemed to result from the pressure applied by the Premier League”.

Sources familiar with the content of the Premier League’s letter produced in response – written by the league’s chair, Alison Brittain – have told The Guardian that the league denies Burnham’s accusations, arguing that no sanctions policy had been devised and that there was no attempt to impose it on the commission.

Instead, the letter argues, the league’s recommendation on a possible sanction (believed to be 12 points in total) was a one-off calculation based on the known elements of the case, and formed part of a standard process.

 

Manchester City and Premier League ‘agree trial date’ over 115 alleged breaches of financial rules

Manchester City and the Premier League have reportedly agreed an initial date for a trial as they prepare to clash over the charges made against the club by the top-flight back in February of 115 alleged breaches of financial regulations.

According to The Daily Mail, proceedings are expected to begin in the late autumn of next year. The league and its current champions will face off in front of an independent panel, and sources with knowledge of the situation said a conclusion may not follow until the end of next season.

It is understood that what has been a highly confidential process is currently at the stage where statements are being taken from witnesses – which is likely to remain the case until next spring.

If the trial goes ahead on time, a verdict would be likely around the summer of 2025. Delays, however, may well push the proceedings back further, and an appeal of the eventual outcome from either party would add significant extra time.

Court of Arbitration for Sport not an option

Should they need to, City may well explore further avenues, although they would not be able to go to the Court of Arbitration for Sport, where they successfully had their UEFA-delivered Champions League ban overturned.

City are accused of breaching 115 regulations over 14 seasons from 2009/10 onwards. The charges include claims over financial reporting and a lack of co-operation with a Premier League investigation which was opened in 2018.

City deny any wrongdoing, and have previously insisted that they have “irrefutable evidence” to back their case.

Bundesliga clubs VfL Bochum and Heidenheim have both announced their financial results for the year ending 30th June 2023.

VfL Bochum reported record turnover, including transfer revenue, of €86.8 million. The club earned a profit of €8.1 million, after recording a surplus of €5.9 million the previous year. Expenses amounted to €78.7 million.

A key factor in the results was a profit on player sales of €16.5 million thanks in large part to the sale of homegrown defenders Armel Bella-Kotchap and Maxim Leitsch to Southampton and 1. FSV Mainz 05 respectively in the summer of 2022.

The club’s revenues were also boosted by reaching the round of 16 of the DFB-Pokal. The team finished 14th in the Bundesliga last season and are currently in the same position for the current campaign.

Bochum have forecast a loss of €3.9 million for 2023/24 as part of what managing director Ilja Kaenzig described as a "controlled offensive” designed to help secure the club’s top-flight status for another season.

In the summer 2023 window, Bochum did not generate comparable transfer revenues to the previous summer, while the licensed player budget was increased by almost a quarter to €41 million.

Heidenheim incur deficit due to player bonuses and lack of player sales

Heidenheim, who are playing in the German top-flight for the first time in their history after finishing top of Bundesliga 2 last season, posted a loss of €1 million for 2022/23. Total revenues, including player sales, amounted to €39 million.

The club, who are currently 13th in the Bundesliga, said the year ended with a deficit due to the bonuses paid out to players for the promotion season, as well as the decision to keep hold of their key players instead of cashing in on potential transfer income.

Heidenheim also revealed a huge jump in their membership, from around 3,000 to 9,000, after securing top-flight status, with the same number of season tickets sold for the 2023/24 season.

 

Al-Hilal land Esteve Calzada from Manchester City as new CEO

Saudi Pro League club Al-Hilal have announced the appointment of Manchester City chief commercial officer Esteve Calzada as their new CEO.

The Spaniard, who has spent 12 years in the commercial department at City, and took on the role of CCO four years ago, will take up his new position in Saudi Arabia in January.

Calzada is said to have been an instrumental figure behind the commercial transformation of City over the past decade. Earlier this month the club announced record revenues of €825.7 million for the 2022/23 financial year, including commercial income of €393 million, the second highest in Europe.

The Catalan also had a big impact at FC Barcelona, where he was the club’s chief commercial and marketing officer between 2002 and 2007 and helped oversee significant commercial growth for the LaLiga giants.

Other European executives at SPL clubs

Calzada joins other European executives at the helm of Saudi Pro League clubs, including the Italian Guido Fienga, formerly Roma CEO and now CEO of Al Nassr, and the Portuguese Domingo Oliveira, who was previously CEO at Benfica and is now CEO of Al Ittihad.

Al Hilal currently top the Saudi Pro League standings after 14 matches. Managed by Portuguese coach Jorge Jesus, Brazilian Neymar is the star of a squad that also includes the likes of goalkeeper Bono, Ruben Neves, Kalidou Koulibaly, Aleksandar Mitrović and Milinković-Savić.

 

Lyon owner John Textor confident of positive outcome after latest DNCG meeting

John Textor, the owner of Lyon, has spoken confidently about the outcome of the club’s latest meeting with French football’s financial watchdog, the DNCG, despite the team’s difficulties on and off the pitch.

The French club, who were taken over by the American businessman last December, are currently bottom of Ligue 1 and last month announced losses of €99 million for the 2022/23 financial year, up from €55 million in 2021/22.

Back in July, the DNCG decided to monitor Lyon’s transfer activity and wage bill for the 2023/24 season after finding financial irregularities in the budget presented by Textor for the year. The body also imposed transfer spending restrictions on the club.

In an interview with French TV channel RMC Sport following his most recent reunion with the watchdog, Textor pointed to the huge leap in player sales income seen in the club’s latest accounts, and spoke about the improvements initiated by the spending limits placed on the club by the DNCG.

Textor said: “Obviously, we’ve done very well on the numbers. We indicated the first quarter of the next fiscal year to be quite successful. Everybody knows what we did on player sales.”

Lyon’s results for the first quarter of 2023/24, announced earlier this month, showed that the club earned exceptionally high player revenue of €90.5 million, a significant increase from €43.9 million for the corresponding period the previous year.

Including the income from player sales, Lyon's total revenue for Q1 2023/24 reached €123.1 million, a rise of 22 per cent from €101 million in the first quarter of 2022/23.

Textor added: “You think you get to buy a club and show up and get to do what you want, and normally that’s true. But the DNCG turned our hand into making certain decisions which ended up being pretty good for the club.

“We got some sales done and I do think the players that we brought in are at the same level as the players we sold, if not better. So maybe some tough love in the last hearing was a good thing for us.”

Debt refinancing deal

Also on the agenda during the meeting with the DNCG was the deal announced this month by Lyon with a group of investors to refinance the “substantial majority” of its debt for a total amount of €320 million.

The proposed structure of the deal, reported to be of private placement notes that will pay 5.8 per cent interest, has received investment grade ratings of BBB+ from KBRA Europe and BBB from DBRS Morningstar.

“We communicated the strength of the financing of all the debt,” Textor said. “Credit agencies think that the health of the business is going in the right direction.”

The Premier League has reportedly scheduled a summit with its clubs for 12th December to discuss progress towards a 'New Deal' for English football after a meeting last week ended without a resolution.

Sources told Sky News that next month’s gathering would discuss the potential funding of the deal, which could be worth more than £900 million to English Football League (EFL) clubs over a six-year period.

The Premier League is said to be scrambling to gain approval for what would be a landmark financial distribution agreement with the lower leagues.

It is understood that revised rules on player amortisation and a potential funding deal for women's professional football will also be on the agenda.

However, changes to associated party transaction (APT) rules to prevent player loans between associated clubs in different leagues, which were vetoed at last week's meeting, have been excluded.

Divisions on critical issues

The scheduling of the meeting is said to underline growing pressure on the Premier League board to reconcile emerging fractures on critical issues of financial and sporting integrity.

A number of club executives are believed to have become increasingly alarmed about the approach to tackling differences on the APT reforms and other issues.

There are also said to be deep misgivings over the negotiation of the New Deal with the EFL, in particular among some clubs outside the ‘big six’, who have warned that the settlement could cause serious financial damage to them.

 

Women’s Super League and Championship clubs agree on NewCo to run top tiers from 2024/25

The English Women’s Super League and Women’s Championship have reached an agreement to proceed with a new company that will take over the running of the women’s professional game in the country from the 2024/25 season.

As reported by The Athletic, under the agreement to establish ‘NewCo’ WSL clubs will receive 75 per cent of the combined revenues from the two divisions and WSL clubs will have all the voting power on commercial and broadcast matters.

All 24 clubs backed the measures after WC clubs had rejected the proposals earlier this month. Clubs had been unable to reach an agreement over voting power on certain matters regarding how NewCo will function.

Of the 12 WC clubs, 11 rejected the initial agreement. Crystal Palace chairman Steve Parish led the opposition and only Charlton, who currently top the WC, voted in favour. However, after the initial vote, the English FA gave WC clubs an ultimatum: back NewCo or WSL clubs may go alone.

Nikki Doucet appointed NewCo CEO

Nikki Doucet, a former Nike director and investment banker, has been appointed NewCo’s CEO, and will take up her role with immediate effect.

The FA has run the WSL since it was formed in 2010, and the Championship since it was established in 2014. Last July, the association announced its desire for the WSL and WC to become an independent entity instead of being solely owned by the FA.

Napoli have reported bumper financial results for the year ending June 30th, 2023 after winning their first Serie A title in 33 years, with a record profit of €79.7 million following a deficit of €51.9 million the previous year, according to Calcio Finanza.

That is also the highest ever recorded net profit in Serie A - beating their own record from the 2016/17 season. Figures very much align with Off The Pitch's financial forecast published in October.

Total turnover including player income amounted to €359.2 million, compared to €175.9 million in 2021/22, with broadcast income reaching €160.9 million, up from €89.9 million the previous year.

As well as the club’s domestic triumph, the huge leap in media rights revenues was driven by the team’s run to the Champions League quarter-finals, after competing in the Europa League during the previous campaign.

Of the total broadcast revenues in 2022/23, €78.7 million came from Serie A and €76.7 million from UEFA, compared with €68.2 million from Serie A and €15.5 million from UEFA in 2021/22.

Matchday revenues also increased significantly, rising to €37.9 million, up from €12.1 million the previous year, while commercial income reached €58.6 million, compared with €37.2 million in 2021/22.

Player sales on the climb

Profit on player sales amounted to €79.6 million compared to €10.8 million in 2021/22.

Player sales in 2022/23 included those of Kalidou Koulibaly to Chelsea for €41.9 million, Fabian Ruiz to Paris Saint-Germain for €22.5 million, and Andrea Petagna to Monza for €10 million.

Napoli’s costs remained broadly stable, amounting to €242.5 million, up from €241.1 million in 2021/22. The club's wage bill fell to €111.2 million, compared with €130.3 million in 2021/22, with player salary costs declining to €89.7 million, down from €109.7 million the previous year.

 

LFP ratifies agreement with CVC amid Le Havre opposition

The LFP has formally ratified its agreement with CVC Capital Partners struck last March amid the ongoing legal controversy surrounding Le Havre’s opposition to the deal.

In a statement, the LFP said that at its general assembly held last week clubs voted overwhelmingly in favour of the key aspects of the deal, which saw CVC acquire a 13 per cent stake in the LFP’s media rights business worth €1.5 billion.

Each issue related to the agreement was approved, with at least 97 per cent of the clubs and other football stakeholders voting in favour. However, as reported by L’Équipe, many more clubs abstained compared to the vote held on 1st April last year when French teams initially approved the deal.

The official ratification of the agreement has come despite legal objection from Le Havre, who claimed the deal unfairly disadvantaged them following their promotion to Ligue 1, as they received less financial gain than if they had remained in Ligue 2.

Le Havre were among only a handful of clubs, also including Ligue 2 club Paris FC, to oppose the move to ratify the CVC agreement. Le Havre’s legal challenge to the deal is set to be reviewed by the Paris Judicial Tribunal today.

European Super League clause

Meanwhile, it has been reported that the LFP’s contract with CVC contains a number of stipulations, including a safeguard against the European Super League.

According to L’Équipe, CVC pushed the inclusion of a clause stating it should be compensated if a French team decides to participate in the Super League. Under the agreement, the LFP would have to return in full the €1.5 billion paid by CVC if a French club decided to participate in a breakaway competition.

 

Borussia Dortmund CEO Hans-Joachim Watzke backs DFL’s new plan for external investment

Hans-Joachim Watzke, the CEO of Borussia Dortmund, has underlined his support for the DFL’s latest attempt to attract external investment into the Bundesliga and said if a deal was secured it could help drive significant growth for the club.

The DFL is planning to approach investment firms about a deal worth between €900 million and €1 billion for a stake in the Bundesliga’s media rights business and clubs are due to vote on the plans next month.

As reported by Kicker, Watzke told the Borussia Dortmund shareholders' meeting that "a significantly expanded internationalisation" could be a growth driver "without selling the values of German football.”

He said a deal with an external investor would give clubs the funds needed to increase their activities overseas and capitalise on the interest in the Bundesliga abroad, but stressed that certain initiatives would not be wanted.

"This is not a sale of the Bundesliga. Nothing is being sold," he said, before appealing for trust and listing moves that he hoped would be off the agenda. "We don't need a Super Cup in Saudi Arabia. We don't need any extra kick-off times. No partner can demand that from the DFL. We are autonomous in this respect," he said.

Support for expanded Champions League

Watzke said he also believes the new Champions League format to be introduced from 2024/25 will benefit Borussia Dortmund and other German clubs. The CEO estimates Dortmund will earn an extra €18-20 million compared with the current format if they qualify.

"In Germany, we have to be careful that we don't reject everything just because it's new,” he said. “I think the new format is much more interesting and exciting. There are eight different opponents in the group stage."

 

DFL invites five investment firms to bid for media rights business stake

The DFL has invited five investment firms to apply for a stake in the Bundesliga’s media rights business as its latest attempt to attract external investment into German football continues to move forward.

According to a letter sent by the DFL to Germany’s 36 professional clubs, which has been seen by Reuters, the potential strategic partners being considered are Advent, Blackstone, Bridgepoint, CVC and EQT.

Sources told Reuters that the DFL expects preliminary bids from at least four of the investment firms at the beginning of December.

In the letter sent to clubs, the DFL said bidders would be expected to pay between €900 million and €1 billion to the league over the next few years. The DFL added that such a deal could help strengthen the Bundesliga’s media product and expand its digital and international business.

Maximum stake to be 8 per cent

It is understood the maximum stake available in the newly founded marketing company is 8 per cent, and that the successful bidder will hold the television, advertising and digital rights to the Bundesliga for 20 years.

The DFL is to hold a vote among the 36 clubs in Germany’s top two divisions over the plans at its general assembly on 11th December. A two-thirds majority is required for the process to proceed.

 

Proposed purchase of Women’s Championship side Lewes FC called off as men’s team left out of deal

The proposed multi-million pound purchase of English Women’s Championship side Lewes FC by the investment group Mercury/13 has been dropped over a conflict with the club’s principle of funding their men’s and women’s teams equally.

In a statement, the club said: “Lewes FC & Mercury/13 have mutually decided to bring conversations about a potential investment partnership to an end.

“After a mutual diligence process, the parties have agreed that the club’s foundational principles diverge considerably from Mercury/13’s operating priorities, which makes a partnership challenging at this time.”

In August, Mercury/13, led by Greek-Argentine businesswoman Victoire Cogevina Reynal, had entered into a period of exclusivity in its negotiations to become the new majority owner of Lewes’ women’s team.

In 2017, Lewes became the first club in the world to divide their budgets for men’s and women’s football equally and are currently owned by 2,573 fans.

At a vote last month among those fans over whether or not to move forward with discussions around the proposed investment, 67.8 per cent of those who voted were in favour of the proposal.

However, the turnout was just 42 per cent, and according to The Daily Telegraph there were concerns at Mercury/13 that there was not a clear majority of support for the idea across the club’s existing ownership.

Mercury/13 aiming to invest $100 million in women’s teams

Mercury/13, whose members include former England forward Eniola Aluko, is aiming to invest $100 million into women’s football clubs worldwide. Sources told The Daily Telegraph that the group still intends to buy a women’s club in England, and will now discuss alternatives.

Inter Milan have recorded total revenues for the three months ending 30th September, 2023 of €166 million, 56 per cent higher than the income earned in the first quarter of the previous year.

The increase was mainly due to the capital gains generated from the sales of goalkeeper André Onana for €51 million to Manchester United, and Croatian midfielder Marcelo Brozovic, who was signed for €17.5 million by Saudi Pro League club Al-Nassr.

Inter’s performances on the pitch have also contributed to the strong financial performance. The club are currently top of Serie A and have already qualified for the last 16 of the Champions League.

UEFA media rights revenues for the first quarter reached almost €41 million, compared to just over €39 million in the corresponding period last year, despite playing one fewer match.

Big increase in sponsorship revenues

Revenues have also been boosted by a significant increase in commercial income. Inter have projected that sponsorship revenues will rise to €71 million for the 2023/24 financial year, up from €54 million in 2022/23.

Towards the end of last season, the club agreed a new front-of-shirt sponsorship deal with the American streaming service Paramount+. The agreement followed the suspension of Inter’s deal with blockchain firm DigitalBits over a series of missed payments.

 

Real Madrid appeal over LaLiga broadcast initiatives dismissed by national court

Real Madrid have lost their latest legal battle against LaLiga, over the new TV access requirements and media rights distribution introduced by the Spanish league at the start of this season.

Under the new system, LaLiga clubs that voluntarily give broadcasters more access to players and coaches, such as allowing cameras into changing rooms, will earn more in media rights income.

Madrid have been the only club not to agree to all the new measures, and back in August filed a complaint with Spain’s national criminal court, Audiencia Nacional, requesting the suspension of the changes.

Los Blancos accused LaLiga and its president Javier Tebas of corporate crimes, including disloyal administration, misappropriation, imposition of abusive agreements and corruption in business.

However, as reported by Spanish media, the court has rejected the club’s appeal over the issue and upheld a decision made by the Central Court of Instruction in September to dismiss its complaint.

Set to miss out on €13 million

Real Madrid are expected to miss out on around €13 million of income this season if they continue with their refusal to comply with the requirements introduced by LaLiga.

The new system affects the 25 per cent of the ‘audience recognition’ criteria for media rights revenue distribution, which is understood to total around €130 million for the current campaign.

 

Fiorentina hit with fresh stadium financing blow over proposed use of €55 million EU funds

Fiorentina have suffered a fresh blow over the financing of its stadium revamp after a court in Rome rejected an appeal from the Municipality of Florence against a decision related to public funding of the project.

The Italian government had originally planned to release €55 million of its Covid-19 recovery funds as part of a €193.4 million overhaul of Fiorentina’s 40,000-seat Artemio Franchi stadium – a move which proved highly contentious within Italy and elsewhere.

The plan to use the EU money for the project – from funding designated for rejuvenating dilapidated urban neighbourhoods – was approved in Italy last year when Mario Draghi was prime minister.

However, in May this year the government announced that the proposed use of the recovery funds had not been approved by the European Commission and that it could no longer release the money.

According to Italian media reports, the Rome-based Regional Administrative Court of Lazio has now backed up the decision to block the funding.

In the reasons for its ruling, the court stated that the Commission “has raised criticisms about the compatibility of the project", adding that it did not believe there was “consistency between the objectives pursued and the objectives of social cohesion which … characterise the measure in question.”

Florence to appeal

The Municipality of Florence has announced that it intends to appeal against the ruling to the Italian Council of State, convinced, it said, "even more of its own reasons and of the unjust and unjustified damage to the City and the metropolitan area of Florence.”

Atalanta have reported a profit for the eighth consecutive year, closing the 2022/23 financial year with a net profit of €5.6 million, slightly down from €6.4 million in the previous season.

The club's turnover for the year ending June 30, 2023, was €132.2 million, a decrease from €160.5 million in the previous year.

The decline in revenue is partly attributed to a drop in television rights income, which fell to €66.5 million from €95.9 million after the club participated in the Champions League group stage in 2021/22. Matchday, commercial and other income were all stable.

On the expense side, Atalanta managed to lower the club’s wage bill from €88.8 million to €87.1 million. EBITDA showed a €8.7 million profit, but as in most other football clubs Atalanta had to rely on player sales to make a net profit.

Increasing player sales

In 2022/23 profit on player sales surged to €63.2 million from €45.3 million, which secured the Italian club another profit on the bottom line.

Atalanta sold players like Romero (Tottenham), Freuler (Forest), Malinovskyi (Marseille), and Pessina (Monza) in the financial year.

 

Forest owner expands football portfolio with majority stake in Rio Ave

Nottingham Forest owner Evangelos Marinakis is set to take a significant step in expanding his football portfolio by acquiring an 80 percent stake in Portuguese club Rio Ave FC.

The investment, amounting to at least €20.5 million, comes after the club's members voted overwhelmingly in favor of Marinakis' involvement, which will be formalized following Rio Ave's transition into a sports limited company (SAD).

Marinakis, who has owned Nottingham Forest since 2017 and led the club back to the Premier League after a 23-year absence, also owns Greek powerhouse Olympiacos.

His latest venture into Portuguese football includes not only taking on the majority ownership of Rio Ave but also committing to clear the club's debts and inject funds for player transfers in the upcoming January window.

Jorge Mendes involvement

According to the club's statement, Marinakis' investment will also facilitate enhancements to Rio Ave's stadium and academy, signaling a comprehensive approach to bolstering the club's infrastructure and competitive potential.

Rio Ave president Alexandra Cruz confirmed in an interview with Portuguese media that renowned football agent Jorge Mendes played a pivotal role in orchestrating the deal.

This move by Marinakis underscores his growing influence in European football and his commitment to investing in the sport across different leagues.

 

Newcastle United initiates formal process for stadium expansion

Newcastle United's CEO Darren Eales has announced that the club has initiated "a formal process" to consider the expansion of St James' Park, their 52,000-capacity stadium, reports the Athletic. This move follows the club's commitment to enhance their home ground after the takeover in 2021.

According to Eales, who spoke at a fan event at the stadium, Newcastle United are conducting a stadium feasibility study to explore potential expansion options. He acknowledged that many fans have their own ideas about possible developments.

Eales emphasized the importance of fan input in this process, stating that a world-class agency will be engaged to assess what is architecturally feasible with a fresh perspective.

Supporter survey

As part of this study, a supporter survey will be distributed to gather valuable feedback on ticket demand, desired facilities, and overall expectations for the stadium's future.

No decisions have been made yet, but the feedback from this survey will be crucial in determining the direction of the feasibility study. The outcome will depend on what is architecturally possible, combined with ticket demand and facility requirements, to decide the best way forward for Newcastle United.

 

Premier League clubs consider private equity-style investment in Women’s Super League

According to Bloomberg, Premier League clubs are considering a private equity-style investment in the Women’s Super League (WSL), as discussions about the future of the league continue.

The Football Association (FA), which currently oversees the WSL, has been exploring various options for its development and growth.

“A number of options have been looked at,” says an FA spokesperson to the media. "We will pursue the options we feel are in the best interests of the sustainable development and growth of the game.”

Women's football in England is experiencing rapid growth, with record-breaking viewership numbers, such as the recent Chelsea vs. Liverpool match that attracted over a million viewers on BBC. Despite this, the league is still largely loss-making.

Some Premier League teams, preferring anonymity due to the sensitivity of the topic, favor investing in the WSL's commercial operations rather than directly funding the women's league. This approach mirrors actions taken by other leagues, like Spain's La Liga, which have sold stakes in their media rights to improve finances.

London based interest

The FA's request for £25 million from top-flight men's clubs to support the elite women’s league has faced challenges in garnering sufficient support. A proposed £20 million interest-free loan from the Premier League to the WSL was also not voted on as planned.

In 2020, Bridgepoint, a London-based private equity firm, expressed interest in acquiring a stake in the WSL, as reported by Sky News. Clubs without WSL teams are hesitant to fund the league, seeing it as advantageous to wealthier clubs with both men's and women's teams.