Atlético de Madrid have returned to profitability following the 2022/23 season, despite a decrease in turnover.

The club have reported a €0.4 million net profit, in contrast to a €22 million loss the previous year, as per the accounts accessed by sports website Relevo. These accounts are set to be approved at the General Shareholders' Meeting on 19 December.

Atletico's turnover reached €357.8 million, a decrease from the prior year's €377.8 million. However, the management successfully reduced the wage bill by over 15 per cent. Coupled with a €38 million profit from player sales – including Nehuén Pérez, Lodi, and Felipe – the club managed to achieve a modest profit.

Non-Payment for sponsorship

The club's net financial debt is at €514.3 million, slightly up from the previous year's €501.5 million. Atlético de Madrid presents a positive net equity of €111.1 million and a negative working capital of €98.8 million, improved from a positive net equity of €113.3 million and a negative working capital of €156.3 million at the end of the previous year.

To avert potential liquidity issues, Atlético de Madrid, as reported by Relevo, notes in its balance sheet that it can always obtain resources through the sale of player rights. This strategy enables the financing of new acquisitions for the team as well as its ongoing operations.

The club also disclosed plans to claim €20 million from Amber Technologies (WhaleFin) through arbitration, due to a failure in receiving a €40 million payment for sponsorship.

 

Tottenham reject Everton's claims over financial woes

Tottenham Hotspur are reportedly displeased with Everton's assertion that Spurs' acquisition of Richarlison for £60 million contributed to the Merseyside club breaching Premier League spending rules.

According to the Daily Mail, sources at Tottenham find Everton's claim "absurd" and are now less inclined to waive a £10 million fee related to Dele Alli's transfer.

The 41-page written judgement published by the Premier League's independent commission last Friday contained a claim from Everton that Tottenham had exploited their problems complying with profit and sustainability rules by driving 'a hard bargain' in the transfer market.

The club argued that Tottenham's hardnosed negotiation tactics and the eventual £20 million shortfall in Richarlison's transfer fee were "directly attributable" to their predicament. However, this reasoning was dismissed by the commission.

Tottenham sources maintain, according to the newspaper, that their bid for Richarlison was higher than those from Chelsea and Arsenal and that Everton's financial issues stem from their own mismanagement. They also noted that Everton had other assets, like Anthony Gordon, who could have been sold to alleviate financial pressures but was instead transferred to Newcastle six months later for £45 million.

Dele Alli deal

The two clubs had been discussing a restructuring of the deal for Dele Alli, which stipulates that Everton owes Tottenham £10 million after Alli makes seven more appearances. Given Everton's current financial woes, paying this fee would be challenging, but negotiations have not led to an agreement.

Tottenham insists on a fair settlement for both sides if the deal is to be renegotiated.

 

WSL and Championship clubs struggling to agree new commercial structure

Plans to establish a new commercial structure for the top tiers of English women's football are facing significant challenges.

Women's Championship clubs have expressed discontent with the proposed voting structure of the 'NewCo,' a temporary name for the entity intended to manage the elite women's club game in England from next summer, as reported by Daily Telegraph.

In a recent indicative vote, a majority of Championship clubs rejected the proposals because they would grant Women’s Super League (WSL) clubs slightly more voting power.

The Football Association (FA), which currently oversees both the WSL and Championship, has indicated it should not manage these leagues beyond next summer. Consequently, club CEOs from both leagues have been working to outline the NewCo's structure.

Revenue proposal

According to the newspaper’s sources, there is disagreement over how much voting power Championship clubs should hold. While governance matters would involve equal voting, Championship clubs would have less influence on some commercial deals.

The latest revenue proposals suggest a 75:25 split between the WSL and Championship, which some WSL clubs consider generous.

Despite the split being acceptable to many Championship sources, it's the voting rights that remain a sticking point. With time running out to establish the NewCo for overseeing the 2024/25 season and television rights negotiations pending, there's speculation that the NewCo might proceed without Championship clubs, covering only the WSL - a move that would likely be contentious.

Premier League clubs have voted against a proposal to fast-track a ban on loan moves between associated clubs during the January transfer window.

The temporary measure, aimed at safeguarding the integrity of the competition, failed to achieve the two-thirds majority (14 clubs), with only 12 clubs in favor, as reported by several media.

The current regulations allow for Premier League players to be sold and then potentially loaned back to the league with a team under the same ownership, provided it is at fair market value. This vote took place amid speculation of a possible loan move for Ruben Neves from Al Hilal to Newcastle United, both predominantly owned by Saudi Arabia’s Public Investment Fund (PIF).

The proposed measure was part of a broader discussion on related-party transactions, which includes issues like front-of-shirt sponsorship. The Premier League defines a related party as one having "material influence" over the club or being part of the same group of companies.

This definition encompasses several Premier League sides, including Newcastle and Al Hilal, Manchester City, Chelsea, and others that are part of multi-club models.

No vote

Premier League clubs were also anticipated to be divided over a vote on a new financial distribution model between the Premier League and EFL.

However, after a three-hour discussion, no vote occurred and will be rescheduled for a future date.

Leeds United owner sells minority stake to Ackerley Partners

49ers Enterprises, the US owners of Leeds United Football Club, has sold a minority stake to Ackerley Partners, a private holding company with interests in the NHL's Seattle Kraken.

Bloomberg reports that the transaction, which took place over the summer, aims to provide strategic capital to enhance Leeds United's football and commercial ventures.

The 49ers, who also own the NFL's San Francisco 49ers, took full ownership of Leeds in July after purchasing Andrea Radrizzani's remaining shares. Additionally, there is talk of another potential investor acquiring a minority stake, although this is not confirmed.

Leeds United is currently in a strong position to be promoted to the Premier League, standing third in the league.

Seattle sports market

Ackerley Partners is a private holding company for the Ackerley family who have long been role players in the Seattle sports market. Chris and Ted Ackerley are listed as minority owners in the Kraken, who joined the NHL in 2021. Their late mother, Ginger Ackerley, founded the Seattle Storm and formerly owned the Supersonics franchise.

Ackerley Partners' part ownership means Leeds will benefit from it's investors' participation.A spokesperson for the 49ers and Leeds United declined to comment to the media outlet on the matter.

ACF Fiorentina reveal net loss after massive drop in player sales

ACF Fiorentina have announced a significant increase in its operating revenues, reaching a record high of €147.9 million, marking a 33 per cent rise from the previous year's €111.1 million.

This growth is attributed to enhanced Serie A TV rights, sponsorships, advertising, and gate receipts, alongside earnings from the club's participation in the UEFA Conference League and Italian Cup finals.

Despite this, total revenues, including player trading, saw a decrease to €159.6 million from €233.2 million due to lower profit on player sales, which dropped to €7.7 million from €114.1 million the prior year.

The club reported a net loss of €19.5 million for the financial year, contrasting with the previous year's net profit of €46.8 million, which was significantly bolstered by gains in player trading. Total costs before depreciation and amortization increased to €118.7 million from €105.9 million, driven by a higher player wage bill.

EBITDA improvement

Excluding gains from player trading, EBITDA improved to €29.1 million from €5.2 million the previous year. Depreciation and amortization also went up to €55.8 million due to player registration rights and intangibles.

As of June 30, 2023, Fiorentina's balance sheet showed strong capitalization with total assets of €414.4 million and total equity of €293.1 million, without any financial debts with credit institutions.

Transfer income secures KRC Genk record revenue

During the annual General Meeting of KRC Genk, the club's Board of Directors and management presented a positive financial report for the past season, despite the absence of European football.

The club's revenue increased by €27.7 million, reaching a record total of €88.4 million. Remarkably, this revenue growth was achieved without the additional income from European competitions and is largely attributed to transfer income, which saw an increase of €26.5 million compared to the previous fiscal year to a total of €50 million.

For Genk the 2022/23 season marked the first without COVID-19 restrictions, and KRC Genk's sporting success contributed significantly to the financial results. The team contended for the championship until the final seconds, creating a buzz that led to a 20 per cent increase in season ticket and individual game ticket sales.

Increasing costs

Investments were also made back into the player squad, with €30 million allocated for this purpose.

Additionally, the club's operating costs rose to €84.5 million due to increased sporting and non-sporting expenses, the integration of Jong Genk into the Challenger Pro League, and exceptional provisions, including a €1.5 million repayment to Jupiler Pro League TV rights holders for the early termination of the 2020-2021 season due to the pandemic.

Overall, KRC Genk reported a positive financial outcome of €261,000 and maintains an equity capital of €68.4 million.

MP calls for suspension of Everton's 10-point penalty

Ian Byrne, Labour MP for Liverpool West Derby, has brought Everton Football Club's recent 10-point penalty for breaching Premier League financial rules to the House of Commons.

He has tabled an early day motion calling for the suspension of the penalty until an independent regulator can review the case.

According to the motion, Everton's sanction for exceeding permitted losses by £19.5 million is described as "grossly unjust" and a "punishment lacking any legal or equitable foundation or justification." The motion criticizes the independent commission's decision and suggests that the Premier League requires independent scrutiny.

Independent regulator

Byrne's motion contrasts Everton's financial penalty with the fines imposed on clubs involved in the European Super League attempt, which were not sporting in nature. It calls for the establishment of an independent regulator and requests that sanctions be suspended until this new body can make its own determinations.

Everton has already indicated plans to appeal against the sanction, with the appeal expected during the current season.

Premier League clubs are set to revisit the contentious issue of the failed European Super League, as tensions resurface ahead of a pivotal shareholders' meeting scheduled for Tuesday.

The other 14 clubs outside the so-called "big six" are expected to pressure the larger clubs to contribute more to the £130 million rescue package intended for the football pyramid, reports the Independent.

The "big six" – Manchester United, Liverpool, Arsenal, Tottenham Hotspur, Chelsea, and Manchester City – now face renewed scrutiny from their Premier League counterparts over the "New Deal for football" financial distribution model between the Premier League and EFL. The other clubs argue that under the current proposal, they would bear a disproportionate financial burden due to their relatively lower incomes.

At Tuesday's meeting, there is a strong sentiment among members to renegotiate terms, including the possibility of introducing a transfer levy, according to the newspaper. This comes amid concerns that future regulations imposed by an independent regulator could be even more stringent without prior negotiation. The recent 10-point deduction imposed on Everton for profit and sustainability breaches has added to the urgency of these discussions.

Man City case

The league's divisions have not been this pronounced since the ESL debacle, which had initially united the "big six" in their economic interests but ultimately led to a rift following the plan's collapse.

The slow progress of Manchester City's case involving 115 charges of alleged financial regulation breaches has also contributed to the tension. Most Premier League clubs have been calling for a resolution since February 2023.

 

Manchester United's football director set to depart amidst new investment overhaul

According to the Manchester Evening News, John Murtough, Manchester United's football director, is set to leave the club as soon as Sir Jim Ratcliffe's investment is approved.

As has been reported for weeks, Ratcliffe's Ineos Group is on the verge of acquiring a 25 percent stake in Manchester United and is looking to implement significant changes behind the scenes. The British billionaire is seeking a new figurehead for the football department to steer the club in a fresh direction.

Murtough has been with United for nearly a decade and was appointed football director in March 2021 by former executive vice-chairman Ed Woodward.

This news comes on the heels of CEO Richard Arnold's announced exit after 16 years at the club. Ratcliffe has been actively preparing for the transition, having held virtual meetings with United co-chairman Joel Glazer and sending Ineos sporting director Sir Dave Brailsford to visit United's training complex.

Impending departure

Murtough's tenure saw praise for his work alongside manager Erik ten Hag during their first transfer window together, which included signing players like Casemiro and Lisandro Martinez.

Despite winning the Carabao Cup last season, United's current performance has been underwhelming, leading to increased pressure on Ten Hag and contributing to Murtough's impending departure.

 

Paris Saint-Germain plans to upgrade Parc des Princes to a 60,000-seat stadium

Paris Saint-Germain are actively pursuing a dual strategy to upgrade their home ground facilities, L’Équipe reports.

Despite the Parisian government's reluctance to sell the Parc des Princes stadium, PSG are continuing to engage architects for renovation plans while also eyeing a bid to acquire the Stade de France, with a final application deadline set for January 3, 2024.

The proposed renovations for the Parc des Princes include adding a retractable roof and installing a new pitch modeled after Real Madrid’s Santiago Bernabéu, according to the newspaper. Architectural firms Pierre Ferret and Populous are assisting in these ambitious refurbishment efforts. However, as of now, PSG have not made progress in negotiations to purchase the stadium.

Agreement with mayor

PSG would also like to increase the seating capacity of the Parc des Princes from its current 47,929 to 60,000. All renovations hinges on reaching an agreement with Paris Mayor Anne Hidalgo.

Given the challenges associated with finding suitable land for a new stadium and the complexities involved in buying the Stade de France, PSG hope to re-open discussions for purchasing their current home ground.

 

Werder Bremen accepted financial loss in 2022/23 to retain Bundesliga status

SV Werder Bremen reported a €3.8 million loss in 2022/23, as revealed by CEO Klaus Filbry at the club’s general meeting.

He highlighted that they had taken a calculated economic risk for the sake of sporting success, which paid off with the team maintaining its Bundesliga status.

In the previous year, Werder Bremen posted a positive result of €6.3 million, largely due to transfer revenues of €28 million. However, this past season's transfer earnings significantly dropped to €5.3 million.

The club chose not to sell more players, instead keeping their promotion squad intact and investing in new signings like Amos Pieper, Niklas Stark, and Jens Stage.

Compared to the previous year, the club also saw a significant increase in operating expenses by €29 million to €122.8 million. Most notably, the club’s wage bill surged by €13.4 million due to playing in the Bundesliga, as opposed to the second-tier football in 2021/22.

Back to profit

Including transfer income, Werder Bremen increased their total revenue to €115.3 million in 2022/23 (2021/22: €92.8 million).

“Against the background of the transfer revenues already achieved in the current 2023/24 financial year, we are confident that we will end this financial year with a positive result that will at least compensate for the deficit of the previous financial year,” Filbry said.

This forecast includes summer transfers that occurred after June 30th, such as Niclas Füllkrug's move to Dortmund for a fixed transfer fee of €15 million, plus an additional €3.25 million based on performance.

Werder Bremen's net liabilities have been reduced to just over €20 million. Financial obligations from a medium-sized bond (originally €18.5 million) and a state-guaranteed loan (€20 million) will continue to impact the club's finances until at least the 2026/27 season.

Everton have been deducted ten points after being found guilty of breaching the Premier League’s profit and sustainability rules (PSRs).

The sanction, which was announced on Friday and came into effect immediately, was imposed by an independent commission following a disciplinary hearing last month. The Premier League referred Everton to the commission in March for an alleged breach of its PSRs in the three-year period up to 2021/22.

In a statement, the Premier League said: “During the proceedings, the Club admitted it was in breach of the PSRs for the period ending zeason 2021/22 but the extent of the breach remained in dispute.

“Following a five-day hearing last month, the Commission determined that Everton FC’s PSR Calculation for the relevant period resulted in a loss of £124.5 million, as contended by the Premier League, which exceeded the threshold of £105 million permitted under the PSRs.”

Everton have said they will appeal the punishment, which has seen them fall from 14th in the table to 19th. A club statement said it “believes that the Commission has imposed a wholly disproportionate and unjust sporting sanction.”

Interest on stadium loans

A key part of the case centred on interest payable on loans to build Everton’s new stadium at Bramley-Moore Dock.

While those were allowed to be factored into the club’s accounts for the 2020/21 financial year, the Premier League disputed that they were permissible a year later and, as detailed in the commission’s report, said: “Everton submitted misleading information about the stadium financing costs.”

Other aspects covered during the hearing included the impact of Covid-19, transfer levies and the inability to sell a player referred to as “Player X” because of a unique set of circumstances.

Compensation claim ‘could lead to further nine-point penalty’

Meanwhile, The Daily Mail has claimed that Everton could be forced into administration and given an additional nine-point penalty if a second independent commission rules that other clubs should be compensated for their spending breaches.

According to the newspaper, Burnley, Leeds United and Leicester City are pressing ahead with plans to bring a compensation claim against Everton after the club was found guilty of the PSR breaches.

It is understood that Everton's prospective new owner 777 Partners has committed to providing around £20 million a month to help with the club's running costs whilst the Premier League are assessing its takeover bid, but would not be willing to pay a compensation bill that could run into tens of millions of pounds.

Everton's current regime lack the funds to settle a significant compensation bill, which would leave the club facing administration and the automatic nine-point penalty introduced by the Premier League in 2004.

 

Paris Saint-Germain owner close to selling minority stake but ‘remains committed to club’

Paris Saint-Germain owner Qatar Sports Investment (QSI) is set to sell a minority stake in the club, The Athletic reports.

PSG’s chief revenue officer Marc Armstrong confirmed that talks are underway over a deal but insisted that QSI remains fully committed to the club and does not have plans to exit or cede majority control.

“We have no interest in selling the club, this will definitely be a minority stake,” Armstrong said.

He added: “The ownership are more committed to the club than ever, which can be seen by the money we have spent on Poissy [PSG’s new training ground, which opened this year] and what we are prepared to spend on the [Parc des Princes] stadium: those are both long-term investments.”

American private equity group Arctos Partners appears likeliest to invest in the French champions. Back in August, it was reported that the club’s president Nasser Al-Khelaïfi had met with senior executives from Arctos to discuss the acquisition of a stake which was expected to be between 5 and 15 per cent.

Stakes across multiple sports

Arctos has already acquired shareholdings in teams across multiple sports, including in football, as well as basketball and baseball. The firm holds a stake in Liverpool owner Fenway Sports Group, while it acquired a £29.2 million stake in Italian club Atalanta in May 2022.

Should a deal for PSG progress it is unclear what per cent would be sold, but the club expect it to value them above €4 billion.

 

Premier League's top clubs to receive larger share of prize money

The Premier League's top clubs are poised to receive a larger share of prize money starting from the 2025/26 season, as tensions rise following Everton's 10-point deduction for spending breaches.

According to the Telegraph, the merit-based system will shift from a 1.6 to one ratio to a 1.8 to one ratio, potentially increasing earnings by tens of millions for the biggest clubs.

This recalibration is influenced by international revenue growth and the Consumer Prices Index. Despite higher inflation rates benefiting smaller clubs next season, the long-term trend favors larger clubs, which has been a point of contention among Premier League members.

As clubs prepare to vote on the New Deal For Football, discussions are expected regarding how costs will be distributed among them. The deal aims to provide an additional £130 million per year to lower leagues, but the exact cost-sharing remains debated.

Spending cap

The pressure on the Premier League has intensified after Everton's punishment and subsequent calls for quicker implementation of a new independent regulator in English football.

The New Deal For Football represents a significant financial overhaul, with years of negotiation leading to broad support despite some reservations. The EFL is set to receive a substantial funding increase, while relegated teams will be allowed to spend up to 85 per cent of revenue on wages and transfers. Championship teams will face a 70 per cent spending cap but will benefit from increased solidarity payments and an "equity top-up" estimated at an additional 20 per cent of spending.

 

Lyon appoint L’Equipe boss Laurent Prud’homme as new CEO

Laurent Prud’homme is to become the new chief executive at Lyon after stepping down from his role at the French sports media outlet L’Equipe.

The Amaury group, which owns L’Equipe, announced Prud’homme’s departure as CEO on Friday. It is understood that Lyon owner John Textor convinced him to take up the role at the Ligue 1 club after being engaged in talks for several weeks.

Prud’homme will replace Santiago Cucci, who has been serving as Lyon’s interim CEO since July. General manager Thierry Sauvage is also departing as part of a restructure at the club.

Warner Bros. Discovery role

Prud’homme, who will take up his new role at Lyon in the coming weeks, was CEO at L’Equipe for almost three years. Prior to that, he was senior vice-president and general manager for France at Warner Bros. Discovery, including Eurosport France, for 20 years.

The outgoing L’Equipe CEO was chosen by Textor because of his knowledge of the main players in French sport, including the leaders of the FFF and the LFP. He also has a history with Lyon, the city where part of his family is from and where he completed his studies.

Prud'homme is joining Lyon at a difficult time for the club, who are currently bottom of Ligue 1 and last month announced a loss of €99 million for the 2022/23 financial year.

 

Real Betis return to profitability after Covid losses

Real Betis have reported a small profit of €0.17 million for the year ending 30th June, 2023, their first surplus since the Covid-19 pandemic.

The result follows a loss of €39.5 million the previous year and was achieved thanks to significant increases in revenue and a reduction in the club’s wage bill.

Turnover reached €148.7 million, up from €120.2 million in 2021/22. Last season, Real Betis finished in sixth place in LaLiga and reached the last 16 of the Europa League, after ending the season in fifth place and reaching the same stage of the Europa League in 2021/22.

Matchday income for 2022/23 rose to €24.9 million, compared with €20.1 million in 2021/22, while broadcast revenues amounted to €92.6 million, up from €84.1 million, with UEFA media rights income totalling €21.2 million, an increase from €17.6 million.

Commercial income almost doubled, from €15.9 million to €31.2 million, as did the profit from player sales, which rose from €7 million to €13.8 million.

Wage bill falls to €94.6 million

Real Betis also reduced their salary costs in 2022/23, with the club’s total wage bill falling to €94.6 million, down from €99.8 million the previous year.

For 2023/24, the club has forecast record revenues of €188 million and a profit of €4.6 million as it anticipates further increases across its key income streams.

 

Luis Rubiales given three-year ban by Spain's Administrative Sports Court

Spain's Administrative Sports Court (TAD) has banned the former Spanish Football Federation (RFEF) president Luis Rubiales from all football-related activities in the country for three years.

As reported by Spanish media, the suspension, which disqualifies Rubiales from holding any position in Spanish sport, has been imposed as a result of two proposed sanctions, each for bans of one year and a half following his actions at the Women's World Cup final in Sydney in August.

One was for an abuse of authority when he kissed Jenni Hermoso at the medal ceremony, and the other for the touching of his genitals during celebrations while standing next to members of the Spanish royal family.

When it opened its case against Rubiales in September, TAD adjudged that Rubiales’ behaviour constituted a “serious” breach of conduct, but not “very serious”, which would have given the Spanish government the option of removing him from his post immediately.

Rubiales to appeal decision

According to Spanish media, Rubiales will appeal TAD’s ruling, which is independent of FIFA’s decision to ban the former RFEF president from all football-related activities at national and international level, also for three years.

FIFA announced last month that its Disciplinary Committee had found that Rubiales acted in breach of article 13 of the FIFA Disciplinary Code, which relates to offensive behaviour and violations of the principles of fair play.

Rubiales has already begun an appeal against the FIFA ban. He eventually stepped down as RFEF president on 10th September, but argued he was the victim of a "disproportionate campaign" and "excessive persecution."

Sevilla have recorded a loss of€14.8 million for the year ending 30th June 2023 despite an 18 per cent increase in turnover following their Europa League victory last season.

The loss follows the deficit of €20.4 million suffered in 2021/22. In both of the past two seasons, the club fell into the Europa League after failing to qualify for the knockout stages of the Champions League. In 2021/22 they reached the last 16 of the Europa League.

Total revenues in 2022/23 were €224.6 million, up from €189.8 million the previous year. Broadcast income rose to €163.9 million, compared with €144.3 million in 2021/22, with UEFA media rights revenues climbing to €80.4 million, up from €55.5 million.

Among the other key revenue streams, matchday income climbed to €20.7 million, up from €15.9 million the previous year, and commercial revenues amounted to €29.7 million, compared with €25.9 million.

The club made a profit on player sales of €34.9 million, down from a surplus of €43.1 million. The wage bill rose to €175 million, up from €157.6 million.

Inconsistent domestic form

Despite their success in Europe in 2022/23, Sevilla had a disappointing season domestically, finishing in 12th place in LaLiga, and their inconsistent form has continued this campaign, with the team currently in 13th place.

German clubs to vote on external investment plans at DFL general assembly in December

The DFL has said it plans to hold a vote next month among the 36 clubs in Germany’s top two divisions over its latest plans to attract external investment into the Bundesliga.

In a statement, the DFL said the vote will take place at its general assembly on 11th December. Teams will be asked whether an auction should be staged for the right to invest in the Bundesliga’s media rights business.

It has been reported that under the latest proposed deal, a stake of six to nine per cent in the unit would be sold over a 20-year period, valued at between €750 million and €1 billion.

Reverse auction

Back in May, Germany’s professional 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.

According to Bloomberg, this time around, the DFL is likely to use a reverse auction, asking private equity firms how big a stake they would seek for an investment of up to €1 billion in the media rights business.
 

Saudi state oil giant Aramco set to become FIFA’s biggest-paying sponsor in ‘$100 million per year’ deal

FIFA is set to agree a global sponsorship deal with the Saudi Arabian state-owned oil giant Aramco estimated to be worth at least $100 million per year, The Times reports.

According to the newspaper, Aramco, the world’s most profitable company, is expected to become one of FIFA’s top-tier partners in a relationship that would last until 2034, after Saudi Arabia was confirmed as the sole bidder for that year’s World Cup.

Sources in the marketing industry and those with knowledge of Aramco’s plans told The Times that talks over a sponsorship deal are at an advanced stage.

Aramco already has a number of sports sponsorships, including with the International Cricket Council for the Cricket World Cup, cricket’s Indian Premier League, Formula 1 and women’s golf.

“Escalator” built into deal

Ricardo Fort, the former head of global sponsorship at Visa and Coca-Cola and founder of Sport by Fort Consulting, said he believes the deal could be worth up to $100 million a year by the time Saudi Arabia hosts the World Cup, making it FIFA’s biggest-paying sponsor.

Fort estimates that the football governing body’s global partners pay $50 million a year and those at a lower tier $25 million, but that a top-tier package could be $75 million a year, with an “escalator” built into the deal every four years so that it would reach “at least $100 million per year” by 2034.

New York City FC unveil plans for first fully electric stadium in MLS

New York City FC have announced that their proposed new stadium in Queens will be the first fully electric professional sports stadium in New York and the first in the MLS.

The club has revealed details of its sustainability plan for the venue as the $780 million project formally enters the Uniform Land Use Review Process (ULURP) this week.

NYCFC, part of the City Football Group, is intending to build a 25,000-seat football-specific stadium on 23 acres of formerly-contaminated land at Willets Point.

The ground will be part of a wider project that includes 2,500 units of affordable housing, a 650-seat new public school, 250-bed hotel, and open space for the newly created community.

Solar panels on stadium roof

NYCFC said the new stadium will have solar panels installed on the stadium roof, with an emergency backup generator to be provided that would only operate during a utility power outage or when code required testing is performed.

The club said the stadium will also feature a water harvesting system below the pitch that will capture rainwater and re-use it for irrigation. It added that it is working to ensure there will be “accessible and affordable” public transport options for fans to reach the venue.

Saint Étienne owners ‘ready to sell club’ as losses mount

Saint Étienne’s majority shareholders, Bernard Caïazzo and Roland Romeyer, are looking to sell the Ligue 2 club, according to a report from L’Équipe.

The pair initially wanted to find new owners back in April 2021 when the club was still in Ligue 1, but dropped the idea following the team’s relegation in 2021/22.

However, it is understood the duo have now been forced to begin the search for a buyer, with losses of between €15 million and €20 million since the club dropped down to the second tier.

The sale of players including Denis Bouanga and Lucas Gourna-Douath helped raise €16 million following relegation, but sellable assets in the transfer market are now said to be limited, along with a lack of other options to generate additional funds. Saint Étienne are currently in fifth place in Ligue 2.

Price of €20-25 million likely

Caïazzo and Romeyer initially wanted to sell Saint Étienne for €100 million, following the sale of Nice to Sir Jim Ratcliffe’s Ineos group back in 2019 for the same amount, but a price of between €20 million and €25 million now appears more likely. KPMG has recommended that a sale be completed before 31st December.

Manchester City have become the first English club to surpass the €800 million turnover mark.

The club's first Champions League victory played a significant role in increasing broadcast incomes, and its expanding commercial partnerships allowed it to outperform rivals, including Manchester United, in revenue for the third consecutive year. Just a month ago, Manchester United set the previous British turnover record.

Manchester City's total turnover of €825.7 million is second only to Real Madrid's €831.2 million. Analyzing the main revenue streams reveals that City leads in two of the three categories. While trailing behind the two Spanish giants and Manchester United in matchday income, City reports half the income of these clubs (€82.7 million). However, in broadcast (€344 million) and commercial income (€393 million), City ranks first and second in Europe, respectively.

The accounts also show that Manchester City now holds the record for the highest wage bill in British football. The arrival of Erling Haaland and bonuses from their Treble success led to a €68 million increase in salary costs, reaching €486.2 million last season. Only FC Barcelona have reported a higher total wage bill in Europe.

The club recorded a pre-tax profit of €92.4 million, a significant rise from the previous year's €49.3 million. However, without the substantial €139.9 million profit from player sales, the club would have incurred a loss of approximately €41 million.

“Doubling down on the proven philosophies”

Khaldoon Al Mubarak, City's chairman, described the year as the club's "greatest football and commercial year" in its history, emphasizing the importance of not resting on their laurels.

He stated, “In the aftermath of the Champions League win in Turkey and the completion of ‘The Treble’ the question I was asked most often was ‘How do you top that? The answer is by doubling down on the proven philosophies and practices that have brought us this success and to challenge ourselves to continue to constantly innovate in order to achieve new levels of performance both on and off the field.”

This is the first set of full-year accounts City has published since the Premier League charged the club with over 100 alleged breaches of financial regulations. Under the 'Risks and Uncertainties' section in the accounts, City note the charges by the Premier League and reiterates their confidence in not breaching any regulations.

 

Investigative report uncovers secret payments linked to Chelsea and Abramovich

Chelsea are under renewed scrutiny over how its former owner, Roman Abramovich, financed the club's success.

The Guardian, in collaboration with international partners, has uncovered a series of secret payments that may have violated football regulations, including those on Financial Fair Play. These transactions could potentially lead to Premier League sanctions against Chelsea, such as point deductions.

According to the investigation, known as Cyprus Confidential, tens of millions of pounds were channeled through offshore vehicles linked to Abramovich over a decade.

These payments were seemingly for Chelsea's benefit and raise questions about their disclosure in accounts submitted to football governing bodies.

Chelsea’s finances are already being examined by the Premier League in an investigation that runs from 2012 to 2019, after the west London club’s new ownership regime voluntarily reported that “incomplete financial information” had been submitted during Abramovich’s tenure.

“Allegations pre-date current ownership”

The documents suggest that Abramovich's companies made payments to individuals closely connected to key figures at Chelsea. Four sports lawyers told The Guardian that some of these payments might have breached FFP rules introduced by UEFA and adopted by the Premier League.

A Chelsea FC spokesperson said to the newspaper: “These allegations pre-date the club’s current ownership. They are based on documents which the club has not been shown and do not relate to any individual who is presently at the club.”

 

Manchester United's chief executive Richard Arnold steps down

Chief executive Richard Arnold is leaving Manchester United. Arnold, who took over as the club's top executive in February 2022 replacing Ed Woodward, is stepping down amid Sir Jim Ratcliffe's Ineos Group nearing the completion of a deal to acquire a 25 per cent stake in the Premier League club.

“It has been an incredible privilege to serve this great football club for the past 16 years. Through highs and lows, the constant has been the dedication of our employees and fans. I would like to thank all of them for their loyalty and commitment and wish everyone associated with the club the very best for the future,” Richard Arnold said.

Joel Glazer, Executive Co-Chairman, thanked Arnold for his “outstanding service to Manchester United”.

Patrick Stewart, currently serving as general counsel, will assume the role of interim chief executive while Manchester United searches for a permanent successor. Stewart has been representing United at recent meetings of both the Premier League and the European Clubs' Association.

The transition period between the announcement of Ratcliffe's investment and its approval by the Premier League is expected to last six to eight weeks. During this interval, Ratcliffe will not be able to influence club operations.

Year of turbulence

Arnold's tenure at Manchester United began in August 2007, and he has been instrumental in securing key sponsorship deals. Insiders also said he had succeeded in modernising the structure of United's football operations, even as the men's first team struggle in domestic and European competitions under manager Erik ten Hag.

The last year has, however, been one of turbulence amid ongoing uncertainty about the club's future ownership.

A strategic review was initiated by the Glazer family almost a year ago, although it is expected to be resolved within the next weeks with the confirmation of Ratcliffe's minority investment.

 

LaLiga CEO joins Atlético de Madrid as General Director

Óscar Mayo, the current Chief Executive Officer of LaLiga, will join Atlético de Madrid as the new General Director of Operations. His appointment is effective from January 15, 2024, following the completion of LaLiga's electoral process, in which Javier Tebas will seek re-election.

During his seven-year tenure at LaLiga, Mayo, who has been the CEO since 2021, played a crucial role in tripling the competition's commercial revenues. He was instrumental in the agreement with CVC, which brought nearly €2 billion into the competition, and in establishing joint ventures in China, the Middle East, North Africa, and the United States, as well as expanding the alliance with EA Sports.

LaLiga President Javier Tebas commented, "Óscar has performed excellently in every position he's held at LALIGA and his work has contributed substantially to the major milestones achieved in recent years."

Preparing for transition

Spanish media report that Mayo's move to Atlético Madrid aligns with the club's efforts to strengthen its organizational structure before the anticipated retirement of current CEO and major shareholder Miguel Ángel Gil Marín.

Mayo will be responsible for overseeing business and corporate services at Atlético, focusing on revenue generation, branding, internationalization, and operational management of facilities.

Jorge de la Vega, the former deputy CEO, will succeed Mayo. De la Vega, who has been preparing for this transition since his promotion in late October, will now take on direct executive responsibilities.

To further bolster the management team, LaLiga has appointed Juan Vicente Marín as deputy CEO. Marín, with over six years of experience at LaLiga, previously held the position of CEO of LaLiga Entertainment.

 

High transfer income compensates for significant decrease in Lyon turnover in Q1

In the midst of challenging times both on and off the pitch, Olympique Lyon have released its financial results for the first three months of the 2023/24 season.

The turnover, excluding player trading, fell 43 percent compared to the same period last year, dropping from €57.1 million to €32.6 million.

The primary negative factors were matchday and broadcast income, which decreased by 37 and 73 percent, respectively. This decline resulted from one-off income and weaker league performance this season compared to the same period last year.

Matchday income also suffered, including only three league games this season compared to five in the previous year. Regarding broadcast income, last year's €26.3 million included the first tranche of income linked to CVC's investment (€16.5 million) in the league's commercial subsidiary. However, even excluding this, revenue fell due to the club's league ranking – Lyon was 6th last season compared to being at the bottom of the league this season.

High transfer income

The report revealed exceptionally high player revenue of €90.5 million, a significant increase from €43.9 million the previous year. This increase was due to the sale of eight players such as Bradley Barcola, Castello Lukeba, and Romain Faivre during the summer transfer window. Including this figure, Lyon's total revenue increased by 22 percent, from €101 million to €123.1 million.

Analyst Trion Reid from Berenberg commented, "We retain our view that the lack of Champions League football and the likelihood of missing out again next season, combined with the high debt level, mean that the shares represent a risky investment."

Real Sociedad are on course for a major boost to their finances after qualifying for the last 16 of this season’s Champions League.

As reported by Spanish media, the LaLiga club – who have reached the knockout stages of UEFA’s elite competition for only the second time in their history – have already exceeded the competition revenues earned last year in just four months.

For the year ending 30th June 2023, the club’s total competition income was €60.8 million, and so far this season, in four months, Real Sociedad have earned €64.1 million, which includes €39 million in UEFA prize money. If the club remains in its current sixth place in LaLiga it would earn a further €25 million.

The club’s board, headed by president Jokin Aperribay, will present a budget for total revenues of just over €150 million for the year on 14th December.

Commercial income increase

Real Sociedad are also looking to build on their increase in commercial income in 2022/23, which reached more than €20 million, up from€12 million in 2021/22.

A key factor in the increase was the club’s Japanese player Takefusa Kubo. Signed from Real Madrid last summer, the right winger is an idol for football fans in Japan.

Hamburger SV post €7.8 million profit for 2022/23

Bundesliga 2 club Hamburger SV have reported a profit of €7.8 million for the year ending June 30, 2023 despite missing out on promotion for the fifth time last season.

In a statement, HSV said it was the club’s best annual result since the spin-off of HSV Fußball AG in 2014, and followed the surplus of €1.05 million achieved in 2021/22 – the first time it had earned a profit.

Total revenues rose to €113.8 million, up from €89 million, while EBITDA reached €24.4 million, compared with €12.4 million in 2021/22. Net financial liabilities as at June 30, 2023 were €14 million, down from €31.4 million at the end of the previous year.

14th highest average attendance in Europe

Last season, there were 11 sold-out home games at the Volksparkstadion, with an average attendance of 53,564 across 17 home games – the 14th highest in Europe. The stadium had an occupancy rate of 94 per cent.

HSV CEO Dr. Eric Huwer said a key factor in the health of the club’s finances was the large number of spectators attending matches.

"The sporting enthusiasm of our team and the outstanding matchday experience with a unique fan atmosphere, which will continue to carry us this season, are certainly the main reasons for these key figures,” he said.

US Supreme Court seeks Biden administration view on US Soccer antitrust case

The US Supreme Court has asked the Biden administration for input on a lawsuit accusing US Soccer and FIFA of illegally thwarting billionaire Stephen Ross’s efforts to stage regular-season matches in the US between foreign teams.

According to US media reports, the justices are considering whether to hear US Soccer's appeal of a lower court's decision to allow the lawsuit by New York-based Relevent Sports to proceed.

The lawsuit, filed in 2019 in Manhattan federal court against US Soccer and FIFA, claimed the ban violated American antitrust law and sought to stop the two organisations from implementing it.

Ross has been trying for years to arrange a regular-season match between two top foreign teams, including a proposed Barcelona-Girona showdown in Miami in 2018.

FIFA written policy

Relevent says US Soccer and FIFA blocked the plan because they wanted to protect Major League Soccer’s monopoly on regular-season games in the American market.

FIFA eventually adopted a written policy barring regular-season games outside an affiliated league’s home territory.

Valencia CF have reported a €1.2 million loss for the year ending 30th June 2023, a vast improvement on the €44 million deficit suffered in 2021/22.

Operating income reached €121 million, up 10 per cent compared with the €110 million earned the previous year.

Competition revenue doubled to €12.3 million, reflecting an increase in ticketing income and also the €3 million the Spanish Football Federation (RFEF) agreed to pay Valencia to settle the conflict over the distribution of funds for the club’s participation in the 2020 and 2023 Spanish Super Cups, both held in Saudi Arabia.

Income from season ticket holders and members reached €15.2 million, up 36 per cent on 2021/22, while commercial revenues returned to pre-pandemic figures of €23.4 million, approaching the record €25.2 million set in 2018/19.

However, broadcast income fell by €3 million to €67.7 million, due to Valencia’s 16th place finish in LaLiga, as well as the league’s agreement with CVC, which earns a proportion of LaLiga’s media rights income in exchange for the injection of funds to clubs.

Capital gains from transfers contributed more than €22 million. Valencia has now accumulated a profit from player sales of €88 million since 2020/21.

Wage bill falls to €79.6 million

As for costs, Valencia’s total operating expenses were €134 million, a drop of 19 per cent from €165 million the previous year.

Valencia spent €83.7 million on staff, a fall of 11 per cent, with the outlay on salaries decreasing to €79.6 million, a decline of 12 per cent and the lowest figure since 2016/17.

The club’s net debt was €297 million as at 30th June 2023, down €44 million (13 per cent) compared with the end of the 2021/22 financial year.

 

MLS club Seattle Sounders in advanced talks to buy NWSL team OL Reign from Lyon

MLS club Seattle Sounders have entered advanced talks to acquire the Seattle-based NWSL team OL Reign, according to a report from Sportico.

OL Groupe, Lyon’s holding company, which was taken over by American businessman John Textor last December, bought OL Reign for $3.5 million in 2019, but is understood to be aiming to sell the club for up to $50 million.

Expansion NWSL clubs in both the Bay Area and Boston are paying around $53 million for their franchises. Sportico recently valued OL Reign at $49 million.

The Reign were put on the market earlier this year shortly after Michele Kang, owner of the NWSL’s Washington Spirit, bought the Lyon women’s team.

Sale of non-core assets

OL Groupe said late last month it was exploring the sale of non-core assets as part of efforts to stabilise its finances. The group made losses of €99 million for 2022/23, up from €55 million the previous year.

A representative for OL Reign said: “The process on the sale of the club continues and we will share updates as they become available.”

The Sounders said in a statement that the club has “long admired” the Reign since the NWSL team’s inception, and has “deep respect” for the organisation. The team declined to comment on any acquisition talks.

 

Rangers post £4.1 million loss for 2022/23

Rangers have reported a loss of £4.1 million for the year ending 30th June 2023, after suffering a deficit of £0.9 million in 2021/22.

Total revenues were £83.8 million, down from £86.8 million the previous year. During the 2022/23 season, the club reached the group stage of the Champions League and finished second in the Scottish Premiership.

A key factor in the increased deficit is £10 million jump in operating expenses - from £85 million to £95 million.

The club reported a profit on player sales of £23.6 million, after the club earned a player trading profit of £11.2 million the previous year.

Aside from player trading, the key ordinary income streams saw relatively little year-on-year change, with matchday income £39.9 million (2021/22: £41.9 million), commercial revenue £6.3 million (£7.3 million), broadcast income £6.2 million (£7.2 million), and UEFA prize money and solidarity payments £18.5 million (£17.3 million).

Staff costs climbed to £64 million, up from £54.8 million.

Player trading “requires attention”

Writing in Rangers’ annual report, chairman John Bennett said that the club’s activity in the transfer market “requires attention.”

He wrote: “Player trading will always be inherently volatile, yet Rangers must replace sporadic “wins” with systematic success.

“It is a given that it all begins with player recruitment. This is an area of priority for your Board, and we anticipate that the coming months will see a strengthening in the leadership and processes of our football department, specifically with this in mind.”

 

Argentine clubs reject privatisation proposal from presidential candidate

Argentina’s largest football clubs have rejected a proposal for them to be privatised outlined by presidential candidate Javier Milei a week ahead of his run-off with rival Sergio Massa.

The idea proposed by populist candidate Milei is to transform Argentine teams from non-profit associations to private companies, or Sports Corporations (SADs).

However, major football clubs including Boca Juniors, River Plate, Independiente, San Lorenzo, and Racing have released statements attacking the proposal, while teams from lower divisions and provinces have also voiced their opposition.

Boca Juniors explained they want to remain "faithful to their origins" and to the principles "defended for almost 120 years" while remaining a non-profit civil association, because "our club belongs to its people".

Boca have been joined by other clubs also insisting that they are owned by their members and supporters, and emphasising their integral role within their communities and the cultural fabric of Argentina.

Argentine FA opposes idea

The Argentine FA has also spoken out against the proposal and expressed its support for Massa. In a post on X, Pablo Toviggino, the association’s treasurer and president of its federal council, wrote: "It is time to publicly show support for Sergio Massa. Let each of the Argentine football clubs demonstrate in defence of their institutions. No to SAD! No to the privatisation of football.”

Real Madrid president Florentino Perez has reiterated his support for the European Super League, declaring it "more necessary than ever" and criticizing UEFA's proposed Champions League reforms as an "absurd project." His comments were made during Real Madrid's annual general meeting.

According to Perez, football is facing an "unprecedented institutional crisis" that requires immediate action to ensure its survival. He expressed concern that football management is not considering the fans' interests, stating, "European football does not belong to the president of UEFA. Spanish football does not belong to the president of La Liga. Football is no one's monopoly, because football belongs to everyone.”

He emphasized that “the sole and main objective of the Super League is to improve, modernise and strengthen the European competitions and, naturally, without privileges and without anyone being excluded, because it will be a fully meritocratic competition.“

Perez's remarks come as the European Court of Justice is set to deliver a final verdict on December 21 regarding the legality of UEFA and FIFA's actions in attempting to block the Super League and sanction the clubs involved.

Despite widespread withdrawal from the initial 12 founding clubs of the Super League after fan protests, Real Madrid maintains that no club has officially left the Super League company established before its announcement. UEFA president Aleksander Ceferin has previously criticized Super League proponents as "selfish" and "greedy," a sentiment echoed by LaLiga president Javier Tebas.

Calls for stricter enforcement of FFP rules

In response, Perez condemned UEFA's Champions League reforms, which are set to introduce a 'Swiss League' format starting from the 2024/25 season.

“This proposed new format is best suited to the political system of governance at the top of UEFA, and to the balances of power on which their re-election as directors depends,” Perez said.

He argued that these changes would further distance fans from the sport, particularly younger audiences, and fail to innovate or consider the needs of players and fans.

Perez also called for stricter enforcement of Financial Fair Play rules, accusing some clubs of non-compliance without repercussions. He criticized LaLiga for attacking Real Madrid's assets and a lack of transparency in its operations.

Tebas countered these allegations on social media, accusing Perez of spreading "very serious lies" about LaLiga.

FC Bayern Munich's financial triumph: Revenue and profits skyrocket in 2022/23

FC Bayern München have announced a record-breaking financial performance for the 2022/23 season, with a significant increase in both revenue and profit.

The club's total revenue including transfer income reached €854.2 million, while earnings before taxes (EBT), saw a substantial rise from €17.1 million to €54.5 million. Consequently, the net profit for the year climbed to €35.7 million, marking an increase of €23 million from the previous season.

According to Michael Diederich, CFO and vice-chairman of FC Bayern München AG, the club have had an "extraordinarily successful financial year" despite challenging economic conditions marked by inflation and recession in Germany.

At FC Bayern's AGM Sunday Diedrich highlighted that the club's record turnover and profitability boost have strengthened its financial position, with equity reaching new heights. Remarkably, FC Bayern remains debt-free, a rarity among Europe's elite football clubs, underscoring their financial independence.

Wage-to-revenue below 50 per cent

Diederich attributed the financial success to significant increases in commercial income from sponsorship and merchandising, as well as a high transfer surplus at around €110 million.

He also noted that due to a balanced cost structure, the personnel cost ratio was kept well below 50 per cent. The positive financial results will allow FC Bayern to increase its dividend payout from €0.10 to €0.30 per share.

Lyon agree deal to refinance €320 million of debt at 5.8 per cent interest

Lyon have reached a deal with a group of investors to refinance €320 million of private placement notes that will pay 5.8 per cent interest as the club looks to tackle its mounting debts, according to a report from Bloomberg.

The revelation has come after the club’s holding company OL Groupe said in a statement last Wednesday that it had reached a preliminary agreement with a “group of leading global financial institutions” to refinance the “substantial majority” of its debt and that of its subsidiary Olympique Lyonnais SASU, for a total amount of €320 million, without disclosing pricing. Sources have told Bloomberg that the deal is expected to close in the next three to four weeks.

In last week’s statement, Lyon said the proceeds will allow the club to repay the balance on long-term debt used to fund its stadium, government-backed loans obtained on the back of the Covid-19 pandemic, and other amounts owed to private parties, including Holnest, the family office of Jean-Michel Aulas, the former controlling shareholder of the club.

The private placement notes, which have a final maturity in 2044, got an investment grade rating from KBRA Europe and DBRS Morningstar of BBB+ and BBB respectively – three and two notches above a speculative-grade rating. The club was advised by Goldman Sachs in the refinancing.

Financial liabilities rise to €458.5 million

Lyon’s accounts for the year ending 30th June 2023, released late last month, showed that total financial liabilities had risen to €458.5 million, up from €383.4 million in 2021/22.

The club, who are currently bottom of Ligue 1, said they were considering a listing on the New York Stock Exchange next year as well as the sale of non-core assets after they announced losses of €99 million for 2022/23, up from €55 million the previous year.

 

Sir Jim Ratcliffe deal for minority stake in Manchester United close to being agreed

Sir Jim Ratcliffe's deal to become a minority shareholder in Manchester United is expected to be agreed during the next international break around the middle of this month, and possibly as early as this week, the BBC reports.

It is expected Ratcliffe's Ineos Group will pay around £1.25 billion to buy a 25 per cent stake, although it is still not entirely clear what the structure of the deal will be, nor if there will be specific dates that would allow Ratcliffe to increase his shareholding.

Last week it was reported that the British billionaire businessman will commit an additional £245 million for infrastructure works related to Old Trafford and the Carrington training complex when he completes the deal.

Control of football operations

Media speculation has also indicated that Ratcliffe wants to assume control of the football operations side of the club. Sources with a close working knowledge of Ratcliffe have told the BBC it was "impossible to imagine" he would agree to being a silent partner.

Many, both at United and in close proximity, believe the club will benefit from "a new pair of eyes" looking at how it is run. It is expected Sir Dave Brailsford, the former performance director at British Cycling, will be heavily involved.

The precise date for confirmation of the deal is still to be formalised, although the BBC has been told it will not be today as club legend Sir Bobby Charlton's funeral is being held.

 

US National Women’s Soccer League strikes $240 million four-year media rights deal

The US National Women’s Soccer League (NWSL) has signed a new four-year domestic broadcast rights package reported to be worth $240 million, 40 times the value of its previous agreement.

The NWSL said in a statement that under the new deal, which takes effect next year, the partnership with Paramount’s CBS will be extended, and games will also be shown on Disney’s ESPN and ABC, Amazon Prime Video and Scripps Sports.

The number of nationally televised fixtures will nearly quadruple under the partnerships, from 30 to 118 each year.

The remainder of the NWSL regular-season schedule will be part of a domestic direct-to-consumer package produced and distributed by the NWSL. The league said this will build on its 2023 season international direct-to-consumer platform. The NWSL’s previous three-year contract with CBS signed in 2020 was reportedly worth $4.5 million.

Focus on free-to-air TV

As reported by The Financial Times, NWSL commissioner Jessica Berman stressed the importance of expanding women’s football on free-to-air TV, and noted that over the past year average viewership had risen by 18 per cent on CBS’s linear network, and total viewership had grown by 41 per cent.

“In order for us to experience growth, we need to have massive exposure so we can’t be behind a paywall,” she said.

 

Reading owner Dai Yongge flies to England for talks to sell crisis-hit club

Dai Yongge, the owner of troubled EFL League One club Reading, has flown into England for crucial takeover talks, and is expected to make a decision on a preferred bidder early this week, according to a report from The Daily Telegraph.

Yongge is said to be assessing a number of offers to buy the club, who were relegated from the Championship last season and are currently bottom of the third tier.

Former Newcastle owner Mike Ashley and Luxembourg-based investment group Genevra Associates are believed to be two parties interested in a takeover. It is understood that Genevra has recently submitted a revised and final bid, and remains hopeful of agreeing a deal with the Chinese businessman.

Once Yongge has selected a preferred bidder, a period of exclusivity will be granted for the party to complete a deal. If that process runs smoothly, Reading could have new owners by the start of next year.

Yongge is under huge pressure to sell up and the next few days are regarded as vital for Reading’s short-term future. A winding-up order by HMRC was dropped last week after Yongge settled an overdue tax bill, but the club remain in severe financial difficulty. They have been deducted 16 points by the EFL in the last two years for financial breaches.

“Hamstrung by cashflow problems”

Mark Bowen, Reading’s head of football operations, admitted in a statement last Thursday that a sale of the club could be close.

“Daily operations at the club continue to be hamstrung by cashflow problems, the search for new owners is encouraging but naturally time-consuming,” he said.

“We are in constant discussion, negotiation and engagement with an encouraging number of individuals who, we believe, are all capable of making viable takeover bids.“

Amazon is exploring a potential bid for Premier League broadcast rights which could threaten Sky Sports and TNT Sports’ dominance of the domestic market, The Daily Telegraph reports.

With smaller packages of matches unavailable in the current tender process, media rights experts had previously predicted Amazon would walk away from the negotiations for the next cycle, which will run for four years from 2025/26 to 2028/29.

Amazon has been showing 20 matches per season since 2019/20, and while it is still very early days in deliberations at the company, there is understood to be some interest in at least one of the five packs for the new four-year cycle.

An increase from the current three-year term is said to be appealing to emerging challengers like Amazon and DAZN because there is more long-term certainty around production investment.

Sky stranglehold

It is understood that new competitors might worry TNT more than Sky, which has a stranglehold over the most valuable Premier League rights, including the Sunday afternoon slots, at present.

Amazon and DAZN would be expected to bid for the slightly cheaper of the five new packages, which range in fixture volume from 42 to 65. TNT, formerly BT, currently screens 52 live matches per season, including 32 Saturday 12.30pm kick-offs.

Rights analysts maintain Sky and TNT remain in pole position to retain the lion’s share of matches, however. The tender process for the new deal officially began on 18th October, with 270 of the Premier League’s 380 matches per season being sold, up from 200.

Norwich City post £27.2 million loss for 2022/23

Norwich City have reported a loss of £27.2 million for the year ending 30th June 2023, up from the £23.6 million deficit suffered the previous year.

The EFL Championship club’s turnover fell to £75.6 million, compared with £133.9 million in2021/22, due largely to the decrease in broadcast revenue following the club’s relegation from the Premier League.

The Canaries incurred an operating loss before player trading of £1.5 million compared to an operating profit of £2.9 million in 2021/22. The club noted that the impact of amortisation from player purchases impacted the figures, resulting in the net loss.

Norwich generated a modest profit of £3.6 million from player sales in the 2022/23 financial year. However, the club – who are currently 17th in the Championship – stressed that during the summer 2023 transfer window it generated “significant” profits on player sales.

These included the transfers of academy products Max Aarons to AFC Bournemouth and Andrew Omobamidele to Nottingham Forest, as well as Milot Rashica to Besiktas.

Wage bill falls to £56.4 million

As for costs, total operating expenses in 2022/23 were £101.6 million, down from £161.7 the previous year. The club’s wage bill was £56.4 million, compared with £118 million in 2021/22.

Norwich invested £5.7 million in club infrastructure during the year, including construction of a state-of-the-art recovery hub at the Lotus Training Centre, as well as refurbishment works undertaken to the Lion & Castle pub at Carrow Road.

UK government refuses to commit to using Reading as test case for football regulator

The UK government has said it cannot commit to using the troubled EFL League One club Reading as a test case to see how the new independent regulator for English football will operate.

As reported by The Guardian, the culture minister, Sir John Whittingdale, has told parliament he hopes the new regulator will be established quickly and before the next general election, which will be held by January 2025 at the latest.

Whittingdale said football clubs such as Reading that are in financial turmoil will “continue to inform policy development and decisions” about how the regulator is set up, but added he could not commit to a pilot scheme at present.

The culture minister was speaking in response to a question from Matt Rodda, the MP for Reading East, who described the situation at the club as “heartbreaking” and said fans “want our Reading back”.

Rodda asked whether Reading could become a pilot for the proposed regulations, if the club is sold before the Football Governance Bill is approved by parliament.

While Whittingdale said he “fully recognise[s] the plight of Reading Football Club,” he said that the government “cannot commit to a pilot at this stage”.

Sixteen points deducted in two years

Reading, who were relegated from the Championship last season and are currently bottom of League One, have been deducted 16 points by the EFL in the last two years due to various financial issues.

This season, the club have been docked four points for failing to pay their players on time and neglecting to comply with an EFL order to deposit funds in an account.

They have also been hit with a fresh transfer embargo and cannot pay to sign any players for the next three transfer windows. In addition, at the end of October the club was served with a second winding-up petition in four months over unpaid debts to HMRC.

Several fan protests have taken place against Reading’s owner, Chinese businessman Dai Yongge, who is looking to sell the club.