The DFL has held positive talks with German clubs over recent days about its new plan to attract external investment into the Bundesliga, according to Kicker.

It had been reported last week that under the latest proposed deal, a stake of six to nine per cent in the Bundesliga’s media rights business would be sold, valued at between €750 million and €1 billion.

It is understood that if an agreement was struck with an investor worth €1 billion, around €600 million would be spent on the expansion of the league's business model, with a primary focus on digitalisation and improved media products.

A further €100 million would be provided to clubs to spend on overseas tours as part of efforts to boost the international appeal of the Bundesliga. The payments would be spread over the next six years. Currently, the league provides around €5 million per season for this purpose.

That would leave up to another €300 million, which would be handed out to clubs as compensation to cover the loss of media rights income incurred as part of the deal.

Greater focus on joint business model

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.

Kicker reported that according to numerous sources present at the DFL’s latest meetings with clubs, the new proposal is being viewed more favourably and seems at this stage set to win the required two-thirds majority from the 36 clubs in Germany’s top two divisions before negotiations can begin with potential investors.

It is believed that clubs are more likely to be in favour of the revised plans as they provide a greater focus on boosting the Bundesliga’s joint business model and the subsequent benefits for clubs.

Under the previous proposal rejected in May, 45 per cent (€900 million) was earmarked for clubs’ infrastructure, 40 per cent (€800 million) was to be spent on the digitalisation and internationalisation of the league, and 15 per cent (€300 million) was to be spent at the discretion of the clubs.

The new proposals will be discussed again at the DFL’s executive committee meeting on 14th November, before a vote on the issue at a general meeting in December.

 

Premier League clubs to vote on banning loan moves between MCO teams in January

Premier League teams are to vote at the next shareholders’ meeting on a proposal to fast-track a ban on loan moves for players between associated clubs in the January transfer window.

As reported by The Athletic, the English top-flight is recommending the temporary measure to protect the integrity of the competition and allow time to agree a longer-term solution amid the growing prominence of multi-club ownership (MCO).

If approved at the meeting, which will be held on 21st November, it will prevent potential deals such a possible loan switch for Ruben Neves from Al Hilal to Newcastle United in January. Both clubs are majority-owned by Saudi Arabia’s Public Investment Fund (PIF).

The step is part of a wider ongoing discussion about associated party transactions, including front-of-shirt sponsorship. Amid growing concerns among a number of its 20 members, the Premier League will endorse the significant rule change, even if it is only on an interim basis at first.

Loan or permanent move

At present there is nothing stopping Premier League players being sold in one window and the team they join then agreeing a loan or permanent move back to the division with a side operating under the same ownership when the market re-opens, provided it is deemed fair market value.

Some clubs want the rules to extend to permanent transfers and cover two windows after the initial transaction takes place, and this is likely to form part of the ongoing dialogue.

 

Negreira case: Prosecutors appeal against Laporta charges in time bar dispute

FC Barcelona president Joan Laporta could escape the investigation into corruption and bribery linked to the Negreira case following a fresh development in the saga.

According to Spanish media reports, anti-corruption prosecutors have appealed to the Barcelona court ruling on the case against Laporta’s indictment due to a dispute related to the initial time-barring of his inclusion.

Last month, the current Barcelona president was charged with suspected bribery over the payments made by the club to the former vice-president of the Spanish FA’s refereeing committee, José María Enríquez Negreira.

The charges relate to Laporta's first spell as Barça president, from 2003 to 2010, after the judge overseeing the case ruled the latter years of that tenure should not be time-barred.

Laporta, who returned as Barcelona chief in 2021, was not initially named as a defendant when charges for alleged bribery were filed against the club in September.

However, Joaquín Aguirre, the judge in charge of the case, ruled that Laporta and his board of directors should be added to the probe, from the time the payments were made, as it is a case of continued bribery.

This change to the investigation means it can cover the 10-year period prior to the last payment made to Negreira, in 2018, therefore encompassing the final two years of Laporta's first tenure.

In the latest twist, anti-corruption prosecutors Luis María García Cantón and Ricardo Sáez Garea have disputed this and will now await the outcome of their appeal.

Complaint filed in March

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

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

LaLiga has introduced a series of measures designed to relax its economic controls as part of efforts to allow Spanish clubs to be more competitive in the transfer market, according to Spanish media reports.

There are said to be four key changes, the first of which will allow current or new investors in a club to inject capital over two seasons, instead of having to spread the payments out over four seasons, as is currently the case. The idea is to allow clubs to benefit more quickly from fresh cash injections and increase their spending on new players.

The second change sees LaLiga modify the agreement reached with clubs in 2022 to deal with the losses derived from the impact of Covid-19. Under the original agreement, the debts accrued from the pandemic were to be paid off over the next five years, but it is understood this has now been extended to seven years.

The third measure relates to capital increases (the generating of funds by issuing new shares). Previously clubs raising money in this way had to dedicate a large portion towards improving their accounts, but under the revised economic controls they will be allowed to pay off Covid losses directly, which in turn will increase their spending limit allowed by LaLiga.

The fourth change relates to spending on stadia and other infrastructure. Under LaLiga’s agreement with CVC, clubs are permitted to spend 70 per cent of the funds they receive through this project on this area. The Spanish league will in future not take into account these expenses when calculating their spending limits.

LaLiga's executive committee reportedly approved the new measures at a meeting on Friday. It is understood the league then sent a five-page circular to all clubs outlining the changes, which came into force the following day.

Lowest transfer spend in Europe’s ‘big 5’ leagues

This summer, LaLiga teams spent the lowest amount on new signings among Europe’s ‘big 5’ leagues, with a total outlay of €453 million. That figure compares with €3.018 billion for Premier League clubs and €767 million for teams in the Bundesliga.

For the current 2023/24 season, LaLiga reduced the total spending limit for top-flight clubs by 16 per cent, with the aggregate cap falling to €2.563 billion.

Aston Villa owner V Sports in talks over investment in Spanish club Real Union

V Sports, the parent company of Aston Villa, is reportedly set to expand its multi-club portfolio through an investment in Spanish third-tier team Real Union, which Villa manager Unai Emery has a majority stake in.

According to Spanish newspaper Noticias de Gipuzkoa, Union, a founding member of LaLiga, are currently finalising negotiations with V Sports over a potential agreement.

Emery acquired a controlling stake in the club two-and-a-half years ago. Since their relegation from the second tier in 2009/10, Union has remained in the Spanish third division but the club has ambitions to earn promotion back to LaLiga 2.

Emery’s father and grandfather both played for the team, which is based in Irun, in the province of Gipuzkoa in the Basque Country.

Deals with Portuguese and Egyptian clubs

In February this year, V Sports agreed a deal to acquire a 46 per cent stake in Portuguese club Vitoria SC, and in April announced a partnership with Egyptian club ZED FC. V Sports is jointly owned by American billionaire Wes Edens and Egyptian billionaire Nassef Sawiris.

Plans for English football’s independent regulator confirmed in King's Speech

The new independent regulator for English football will come into force after British prime minister Rishi Sunak confirmed plans for the regulator in his King's Speech yesterday.

The Independent Regulator for Football (IREF) will have the power to step in to address cash flow and other systemic issues within clubs across the country.

"Legislation will be brought forward to safeguard the future of football clubs for the communities and fans," King Charles said in his speech.

The regulator will operate a licensing system which will apply to the top five tiers of English men's football with the power to act on issues including financial regulation compliance, corporate governance and fan engagement.

More stringent tests will be made on club owners, minimum standards of fan engagement will be introduced and clubs will not be allowed to join breakaway or unlicensed leagues.

Fragility of pyramid

A separate government briefing document said the fragility of the English footballing pyramid had been exposed in recent years.

"The collapse of Bury FC, the devastating impact of the pandemic on clubs, and the botched plan for a breakaway European Super League have all revealed the financial unsustainability of some clubs and the need for more accountability for fans," it said.

Apple in talks with LFP over Ligue 1 media rights

Apple is in discussions with the LFP over the acquisition of Ligue 1 domestic media rights for the next five-year cycle, according to a report from French TV channel RMC Sport.

The move comes after the LFP received no offers for the broadcast rights, which are for the five-year period running from 2024/25 to 2028/29, when it began the tender process last month. The organisation is now negotiating directly with interested parties.

Apple initially showed no interest in acquiring the rights but it is understood the American tech giant has now made an enquiry to the LFP, and multiple phone calls have taken place between the two parties over the past few days.
Apple’s interest in the Ligue 1 rights is said to have grown, with few other sports media rights currently on offer.

Target of €825 million per year

The LFP is targeting €825 million per year for its domestic rights from the next cycle, up from the current €624 million per year it receives from Amazon Prime (which has seven games a week, including the most important fixtures), Canal+ (two games a week) and Free (which shows near-instant highlights).

The proposed sale of Everton to 777 Partners has moved a step closer after the English FA ruled the firm’s co-founders are qualified to join the club’s board of directors once their takeover of the Merseyside club is complete.

As reported by The Daily Telegraph, the FA’s ruling means that Josh Wander and Steven Pasko have completed the first in a series of hurdles required for their Everton buy-out to go through.

However, the Miami-based firm must still pass the Premier League owners’ test, and the process of buying out majority shareholder Farhad Moshiri is still to be ratified.

The Premier League has been duty bound to study some of the more serious claims regarding the history of 777 and how they have run other businesses. However, Everton are said to be confident there are no grounds to block the sale.

Lengthy ratification period

Everton announced Moshiri’s agreement with 777 in September, when it was emphasised that a lengthy ratification period was underway. From the outset, there has been some criticism about the suitability of 777, which has since prompted attempts to reassure the Everton fanbase.

A statement at the time read: “777 has always strived to conduct its businesses in line with local laws and regulations. Where it has been suggested otherwise, we will defend our reputation vigorously by all legitimate means.”

 

FIFA’s new agent regulations banned in Spain by Madrid court

FIFA’s new agent regulations have suffered a fresh blow after a court in Madrid issued a ruling banning their application by Spain’s football authorities.

As reported by Spanish media, the Commercial Court number 3 of Madrid has prohibited FIFA and the Spanish Football Federation (RFEF) from applying the new rules in the country.

FIFA's Football Agent Regulations (FFAR) include a mandatory licensing system, prohibition of multiple representation to avoid conflicts of interest and 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.

Strong opposition

The rules have faced strong opposition across Europe. In May, Germany’s District Court of Dortmund granted an injunction for the most critical provisions of the FFAR. The ruling, which FIFA is contesting, means that the FFAR will not apply to any transfers with a link to Germany.

There are also ongoing actions in France and Italy, and an imminent ruling in the UK may also affect full implementation there.

 

Thomas Zilliacus to make Inter Milan takeover bid after securing $2.5bn from investors

Finnish entrepreneur Thomas Zilliacus has said he will present a formal bid to buy Inter Milan within the next two weeks after signing agreements with investors worth $2.5 billion.

Zilliacus announced on X (formerly Twitter) yesterday morning that his investment company XXI Century Capital had secured the commitment from additional investors and “will make an updated friendly offer for Inter Milan using part of the funds.”

He added: "XXI Century Capital has stated that it wants to invest in the football, fashion and real estate sector in Italy. The company will intensify investments with the injection of these new funds."

Later, in an interview with La Repubblica, the billionaire businessman shared further details of the timings of the bid and the proposed takeover.

“I’m serious, this week or next week at the latest, the current owners of Inter will receive an adequate proposal from me for the purchase of the club,” he said.

“I would like to have operational partners in place who share my vision. But, I want to be sure that they share my idea on how to manage the club, and that they see the future in the same way that I see it.”

He added: “I don’t want to invest in more clubs. I want to create a direct line with the Inter fan base, creating value and profit.”

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

Champions League semi-final win

Back in June, Zilliacus was reported to be considering a bid to buy Inter and was present at the San Siro for the club’s Champions League semi-final second leg win over AC Milan in May.

The former Nokia executive had previously emerged as a potential buyer for Manchester United but dropped out of the running after criticising the Glazer family and Raine Group for hosting what he believed had been a poor bidding process.

 

FC Barcelona sued by former director seeking €1.8m in damages over Camp Nou revamp dispute

Former FC Barcelona director William T. Mannarelli has sued the club for defamation and is seeking €1.8 million in damages over a dispute related to the club’s revamp of the Camp Nou stadium.

Under previous Barca president Josep Maria Bartomeu, Mannarelli oversaw the Espai Barca Camp Nou redevelopment project for seven years. Mannarelli was dismissed from his role soon after Laporta replaced Bartomeu as president in March 2021.

As reported by The Athletic, the lawsuit alleges that, in order to persuade Barcelona’s ‘socios’ (club members) to accept the new regime’s much-changed and more expensive project, Laporta’s board deliberately disparaged the previous plan and defamed American-born architect Mannarelli.

“Irregularities” in agreements

At a press conference in August 2021, Laporta spoke about “irregularities” in the agreements signed with contractors for the old Espai Barca project, comparing it to the ‘Barcagate’ case, in which Catalan judicial investigators have found evidence of possible misappropriation of club funds.

Mannarelli’s complaint has been accepted by the Catalan court system, and a date will now be set for a hearing, at which Laporta and the former Barca CEO Ferran Reverter could be called to give evidence.

Sir Jim Ratcliffe will reportedly commit £245 million of his own personal wealth to upgrading Old Trafford and other club infrastructure when he completes his deal to buy 25 per cent of Manchester United.

As reported by The Athletic, the British billionaire’s investment would come out of his own pocket and would not add to United’s existing debt, which currently stands at £507.3 million. It has not yet been officially agreed or signed but the cash injection is expected to happen.

The Ineos owner’s funding would only be an initial investment – insufficient to completely fix the notable problems at Old Trafford, the club’s 74,000-seater stadium, and at Carrington, their training complex – with significantly more investment required in the future.

The Glazer family have been criticised for a lack of investment in Old Trafford during their 18 years in charge, during which the stadium has fallen behind the new homes of Manchester City, Tottenham Hotspur and Arsenal.

The leaky roof of the Stretford End of the ground was highlighted by supporters who were soaked by rain during the 1-0 defeat by Crystal Palace in September.

Toto Wolff in talks with Ratcliffe about United investment

Meanwhile, the Mercedes Formula 1 team principal Toto Wolff has said he has spoken to Ratcliffe about joining his bid to invest in United.

Ratcliffe owns a third of the F1 outfit, with Wolff and Mercedes owning equal shares. On potentially investing in United, Wolff told the Press Association: “Jim has shared the trajectory with me. I very much respect his values and we trust each other.”

In an interview with Sky Sports, the Austrian added: “I have never aimed for trophy investments but I like the competitiveness of the Premier League. If we felt I could contribute then I would consider joining him at Manchester United.”

According to The Times, Ratcliffe’s deal to acquire a minority stake in United is expected to be announced within the next two weeks after months of negotiations.

The agreement will result in him taking control of football operations, and while Ratcliffe is keen to improve the facilities, his key priority will be to significantly change the performance structure and personnel at the club.

 

777 Partners ‘to self-fund’ proposed £500 million Everton takeover

Everton’s prospective new owner 777 Partners has told the Premier League it will use its own resources to complete the proposed £500 million takeover of the Merseyside club rather than seek funding, according to The Daily Mail.

The American investment firm has begun disclosing details of the deal agreed with Everton’s current owner Farhad Moshiri to the Premier League, whose initial questions are said to be around the source and sufficiency of its funding.

777 claims to control assets worth almost £10 billion around the world through a complex structure of more than 60 companies involved in industries including debt financing, pay-day loans and aviation, as well as football.

The Miami-based firm owns Genoa and Hertha Berlin, as well as Standard Liège of Belgium, Vasco da Gama in Brazil, and the Paris-based club Red Star FC. It also has minority shareholdings in Sevilla and Australian club Melbourne Victory.

Habit of late payments

The commitment to be self-funding may be welcome news for Everton as the club is already saddled with loans totalling more than £350 million. However, 777’s habit of being late in making payments in areas of its sports business has led to scepticism over its promises.

 

Borussia Dortmund post €52.4 million profit for Q1 2023/24

Borussia Dortmund have reported a €52.4 million profit for the three-month period ending 30th September 2023, up from the €38.5 million surplus earned in the corresponding period the previous year.

The Bundesliga club have released their preliminary figures for the first quarter of the 2023/24 financial year, and said the result was achieved mainly due to a higher profit from player sales of €82.3 million, compared with €62 million in Q1 2022/23.

This is the result primarily of the transfer of Jude Bellingham to Real Madrid over the summer and is despite the comparison base including the transfer of Erling Haaland to Manchester City.

Total revenues amounted to €102.3 million, down slightly from €104.3 million in the first quarter of the previous year. Most of the ordinary income streams fell, with matchday revenue €7.7 million (Q1 2022/23: €9.5 million), broadcast income €37.8 million (€45.7 million) and commercial revenue €31 million (€33.4 million).

However, there were increases in merchandise sales, which reached €15.5 million, up from €8.1 million, and conference, catering and miscellaneous income, which amounted to €10.3 million, compared with €7.6 million the previous year.

Wage bill rises to €61.8 million

As for costs, personnel expenses increased from €57.8 million to €61.8 million, while depreciation and amortisation costs fell from €24.5 million to €23 million. Other operating expenses rose from €30 million to €36.3 million.

EBITDA for the period was €79.4 million, up from €73.3 million.

AC Milan owner RedBird Capital Partners is considering a potential sale of French club Toulouse FC, according to a report from Bloomberg.

A source told the newswire that the US investment firm is in the early stages of studying the feasibility of a sale of the club, and added that RedBird’s deliberations are ongoing and may not lead to a deal.

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

European competition

Earlier this year, UEFA looked into a possible conflict of interest stemming from both Toulouse and AC Milan potentially competing in the same European competition.

UEFA ultimately cleared the clubs to play after they agreed to take steps to ensure they were run independently. RedBird founder Gerry Cardinale resigned from Toulouse’s board ahead of the UEFA ruling.

Ligue 1 is currently working to negotiate a new media rights deal, which will be an important contributor to club revenue and likely impact any potential valuation of Toulouse.

Brazil’s Liga Forte União clubs agree to sell 20 per cent of media rights up to 2075 for R$2.6bn

More than half of Brazil’s Série A and Série B clubs have struck an agreement to sell 20 per cent of their broadcast rights to a group of international investors for the next 50 years, from 2025 to 2075.

The 25 clubs, who are all members of the Liga Forte União group vying to control commercial operations in Brazilian football, have agreed the sale of their media rights for R$2.6 billion (€490.9 million) to a group of investors led by US-based venture capital group Life Capital Partners.

The group also includes the General Atlantic and XP funds. Serengeti, which until recently was part of the group, has withdrawn from the partnership.

The clubs that have signed the agreement will receive a first payment totalling R$1.2 billion (€226.5 million) in the coming days. The remaining amount will be paid in two instalments over the next 18 months.

The Série A clubs in Liga Forte União are Internacional, Cruzeiro, Fluminense, Vasco, Athletico Paranaense, Botafogo, Coritiba, Goiás, Fortaleza, América and Cuiabá.

The Série B clubs are Sport, Ceará, Avaí, Chapecoense, Juventude, Atlético Goianiense, Criciúma, CRB, Vila Nova, Londrina, Tombense, Figueirense, CSA and Operário.

Talks with rival group Libra

The deal means the group of investors are able to negotiate the next broadcast rights deal for the Liga Forte Uniãoteams, and it is understood that the bloc of clubs now also want to talk with the rival Liga do Futebol Brasileiro (Libra) group to deliver a broader, centralised agreement.

UK government advertises for football independent regulator job to start in January

The proposed independent regulator for English football is set to move a step closer after the UK government advertised for a “very experienced leader” to become a top official at the new body.

The job advert for the interim chief operating officer of the Independent Football Regulator, listed internally on a civil service website and seen by The Athletic, says the successful candidate is expected to start in January 2024 at the latest.

The interim role is for 12 months but may be extended to 18 and will pay between £95,000 and £128,900 per year. The successful candidate will oversee the building of a transition team “with responsibility for the corporate setup” and engage with the football industry.

Applicants are asked to show evidence of “understanding of the English football pyramid” as well as a track record of working with public sector bodies and developing and implementing major projects.

Legislation could be in King’s speech

The government has repeatedly reaffirmed its plans for the regulator but the final details are yet to be ironed out amid lobbying from various interested parties.

Creating the new body requires a new law to be passed. The King’s Speech is when the UK government announces its upcoming policies for the next year, which are read out in parliament by the monarch.

Football finance expert Kieran Maguire said the job advert suggests a “high likelihood of legislation to create a regulator in the King’s speech”, adding that a “shadow regulator” could be formed before legislation being passed in parliament.

Inter Milan president Steven Zhang insists he will not sell club and targets refinancing of €325m Oaktree debt

Steven Zhang, the president of Inter Milan, has reiterated his desire to retain control of the club and is reportedly continuing to work on the refinancing of the €325 million debt it has with American fund Oaktree.

As reported by Gazzetta dello Sport, Zhang underlined his commitment to Inter during the club’s shareholders’ meeting held last week, which he attended remotely from China. At the meeting, Inter announced losses of €85 million for 2022/23, down from €140 million the previous year.

The Suning president told the meeting that he believes in the future of the project being pursued by the club, including the plans for its own new stadium, and stressed that he has no intention of selling the Italian giant.

The Oaktree loan, which is secured by Suning’s equity stake in Inter, matures in May 2024. It is understood Zhang is hoping to refinance the debt and reduce the interest rates, which currently sit at 12 per cent. Talks are said to be ongoing with at least two US credit funds and the goal is to resolve the issue by the end of 2023 or early 2024.

Various financing options

Inter has been considering various financing options as the May deadline approaches and there has been persistent speculation that one option was a sale of the club.

According to the report from Gazzetta, one proposal advisors have put to Zhang is including a new fund as a minority shareholder with a view to them eventually taking over the club, but it is believed Zhang has rejected the idea.

In recent weeks, Zhang has been dealing with Suning’s delicate financial situation following the Chinese government’s decision to allocate €650 million to the company to help ease its liquidity crisis.

Wolves are set to avoid punishment by the Premier League following their £140 million sale of players in the summer, according to The Daily Telegraph.

During the latest transfer window, 17 players departed Molineux as Wolves took desperate action to fend off the threat of sanctions for breaking the Premier League’s profit and sustainability rules, which allow clubs to make an adjusted loss of no more than £105 million over a three-year period.

With Everton facing a possible points deduction over an alleged breach of the regulations, Wolves are said to be confident that the squad exodus will ensure they avoid a Premier League charge.

The Telegraph understands that if Wolves had failed to raise around £90 million this summer, the club could have been in serious trouble next year.

Ruben Neves, Raúl Jiménez, Nathan Collins and Conor Coady were the most high-profile departures, and the £53 million sale of Portugal international midfielder Matheus Nunes to Manchester City then enabled Wolves to comfortably exceed the target.

Will not be spending big in January

Wolves remain under temporary restrictions and will not be spending big in the January transfer window, with the club midway through the critical final 12 months of the three-year cycle to comply with P&S rules.

The West Midlands club are currently 12th in the Premier League and five league games unbeaten under manager Gary O’Neil, who replaced Julen Lopetegui after he quit before the start of the season.

DFL to propose sale of 6 to 9 per cent media rights stake for €750m –€1bn in fresh talks with clubs

The DFL is set to begin new talks with German clubs this week about a revised plan to attract outside investment into the Bundesliga, Bild has reported.

The German newspaper revealed that under the latest proposed deal, a stake of six to nine per cent in the Bundesliga’s media rights business would be sold, valued at between €750 million and €1 billion.

Most of the investment would go to the development and growth of the Bundesliga in areas such as digitisation, internationalisation and improved media products. The clubs would receive one compensation payment for their TV income.

Back in May, Germany’s professional clubs voted against plans to sell a 12.5 per cent stake in the Bundesliga’s media rights subsidiaryto a private equity firm in a proposed deal that would have lasted for at least 20 years.

The required two-thirds majority from the 36 clubs in Germany’s top two divisions was not found. If approved, it would have allowed the DFL to conclude the bidding process and begin negotiations over a deal, from which it hoped to raise around €2 billion.

Talks to take place on Thursday and Monday

According to Bild, amid its renewed attempt to seek approval for potential investment, talks between the DFL and clubs from the Bundesliga and Bundesliga 2 will take place this Thursday and next Monday.

The report claims that if a clear majority is in favour, the DFL president and supervisory board will announce on 14th November a new round of negotiations with potential investors that would begin on 7th December.

If the clubs then approve a deal with a two-thirds majority, giving a mandate to the DFL directors, it would mean that if the conditions of the deal are right, it could be concluded without the clubs needing to vote on the issue again.

It is understood the DFL is aiming to bring a new deal into play in the second quarter of 2024, when negotiations begin for the media rights for the 2025/26 season. The German league hopes it would help drive up the price of the rights.

Reading to face disciplinary commission over missed HMRC payments

Reading have been referred to an independent disciplinary commission by the EFL after failing to pay HMRC money owed for unpaid debts in September and October.

The club were served with a second winding-up petition in four months over the issue on Tuesday. They were also hit with a fresh transfer embargo on 29th September and cannot pay to sign any players for the next three transfer windows after accumulating 30 days or more of late payments in the current 12-month period.

Reading, who were relegated from the Championship last season and are currently bottom of League One on six points, have already been docked four points this season for failing to pay their players on time and neglecting to comply with an EFL order to deposit funds in an account.

In a statement, the EFL said a commission will decide whether another sanction is appropriate. The league’s CEO Trevor Birch said: “This is a challenging situation for all involved and we understand the frustrations of supporters and the negative impact sporting sanctions and further charges are having on the football club.”

The EFL also said the proceedings against Reading owner Dai Yongge are continuing following the failure to deposit an amount equal to 125 per cent of the club’s forecast monthly wage bill in a designated account. The hearing against Dai is expected to take place by the end of November.

Storey backs out of proposed takeover

Meanwhile, there has been a fresh development in Reading’s search for a new owner, with the British businessman and former Formula One team backer William Storey saying he has decided not to pursue a proposed deal to buy the club.

Last month, media reports indicated Storey was poised to acquire the club for £50 million, with terms on the deal broadly agreed following negotiations with Dai Yongge.

Storey had reportedly pledged to clear club debt in a deal which included the stadium and the state-of-the-art Bearwood Park training ground. Reading denied that a takeover had been agreed following the reports.

In a post on X (formerly Twitter) yesterday, Storey wrote: "After signing a contract & exclusivity in Oct we entered a period of due diligence. … My investors & I have decided not to proceed. I wish the club & loyal fans the very best & hope they get an owner who will invest for long term success."

Athletic Bilbao members approve 2022/23 accounts and 2023/24 budget

Athletic Bilbaomembers have given their backing to the financial management of the club under Jon Uriarte, who was elected as the club’s president last June.

At the LaLiga club’s ordinary general assembly, held on Tuesday, members approved the accounts presented by the club for the 2022/23 financial year and the budget laid out for 2023/24.

It comes a year after members rejected the club’s accounts for 2021/22, forcing the club to modify them before they could be approved.

Last month, Athletic reported that the club broke even during the year ending 30th June 2023 after suffering a loss of €10.6 million in 2021/22.

Total revenues were €123.9 million, down from €126.6 million, but operating income reached €119.1 million, compared with €109.3 million in 2021/22. The club pointed to the ending of Covid restrictions as a key factor behind the increase, with sponsorship and commercial income up by €6.8 million.

Operating expenses fell to €123.8 million, down from €126.5 million, which the club said was due to a lower wage bill and containing “non-strategic expenses”.

Budget for 2023/24 projects revenues of €133.6 million

Athletic are anticipating a further improvement in their finances next year. The budget approved for 2023/24 projects total revenues of €133.6 million.

Athletic members also voted in favour of all other points on the agenda at the assembly, including the management of the board of directors, the equalisation of some social quotas in season tickets, and draft referendums and consultations.

West Ham United are reportedly eyeing interest from Qatar after a stake of up to 10 per cent in the club was put up for sale by Vanessa Gold, the daughter of the club’s late joint-chairman David Gold.

As reported by The Times, the stake has drawn interest from international investors and club insiders believe the opportunity may attract an offer from Qatar following Sheikh Jassim bin Hamad al-Thani’s failed bid to buy Manchester United.

Ms Gold’s family has a 25 per cent shareholding in West Ham and she is working with the Rothschild bank to sell part of that stake. It is believed that if the price was right, Ms Gold may be willing to sell the entire shareholding.

Kretinsky not expected to buy shares

According to The Times, the Czech billionaire Daniel Kretinsky, who acquired a 27 per cent stake in West Ham in 2021, is understood to have been consulted on Ms Gold’s decision to sell but he is not expected to buy the shares. Other investors have already been sounded out.

David Sullivan retains the biggest stake in the east London club at just under 39 per cent, while the financier Tripp Smith has 8 per cent.

In a statement published by West Ham on Tuesday, Ms Gold, who succeeded her father as joint-chairman of the club after his death in January, confirmed she was looking to sell part of the family share.

“I would consider selling a proportion of our shares to the right partner,” she said. “I have spoken to each of the other three major shareholders at West Ham United, David Sullivan, Daniel Kretinsky and Tripp Smith, who have been very supportive.”

FIFA confirms Saudi Arabia as sole bidder for 2034 World Cup after Australia decides not to bid

FIFA has announced that Saudi Arabia are the sole bidder to host the 2034 World Cup after Australia opted against mounting a rival bid.

The global governing body said the hosts for 2034 as well as 2030 will be confirmed at a FIFA congress in late 2024.

FIFA announced last month that Spain, Portugal and Morocco were the sole joint bidders for the 2030 World Cup, with the opening three matches due to take place in Uruguay, Argentina and Paraguay to mark the tournament’s centenary.

Football Australia said in a statement it had “explored the opportunity” of seeking to host the 2034 event, but had “reached the conclusion not to do so”.

The association added that it will instead focus on bids to host the Women’s Asian Cup in 2026 and the men’s Club World Cup in 2029.

FIFA had said the 2034 World Cup would be held in Asia or Oceania, and an Australian bid was regarded as the only potential challenger to Saudi Arabia, which announced its intention to bid shortly after FIFA’s decision.

Johnson points to tight turnaround

Football Australia CEO James Johnson said Australia would have found it difficult to compete with Saudi Arabia's bid.

Speaking to reporters in a video call from Doha, he said: "We have to be realistic, Saudi is a strong bid, they've got a lot of resources. ... Their government top down are prioritising the investment in football and that's difficult to compete with.”

Johnson also expressed dismay at having such a tight turnaround to explore hosting in 2034, with FIFA calling for bids on 4th October, giving would-be hosts just three weeks to submit their expressions of interest.

"It was a little bit of a surprise that it was going to be an earlier process, but look, we're adults and we've just tried to roll with it and deal with the cards that we've been given," he said.

Bournemouth owner Bill Foley in advanced talks over minority stake in Hibernian

Bournemouth owner Bill Foley is in advanced talks about buying a minority stake in Scottish Premiership club Hibernian as he looks to expand his multi-club group, The Athletic reports.

Foley is the managing partner of Black Knight Football Club, a group of American investors who acquired Bournemouth last December and then purchased a 30 per cent stake in French side Lorient a month later.

Last month, the group, which includes Chicago Bears minority owners the Ryan Family and Hollywood actor Michael B. Jordan, was named as the preferred bidder for the new A-Leagues franchise in Auckland, New Zealand.

Crossroads moment

Foley’s move for Hibs marks a crossroads moment for Scottish football, as it has previously resisted the march of the multi-club groups. Until now, the Scottish FA has blocked anyone who owns at least 25 per cent of another professional club in Europe from buying shares in Scottish clubs.

However, with multi-club ownership now common across Europe, that ban has quietly been replaced with a more case-by-case approval process, although nobody has tested it yet.

That could be about to change, though, with Edinburgh-based Hibs among several Scottish clubs in talks with multi-club investors. Dundee, Dundee United and Livingston are three of the clubs currently on the market.

Sheffield Wednesday owner Dejphon Chansiri asks fans for £2 million to prevent lengthy transfer ban

Dejphon Chansiri, the controversial owner of Sheffield Wednesday, has asked fans to raise £2 million within the next few days to save the club from a multi-window transfer embargo.

The Thai businessman made the remarkable request in an interview with Sheffield newspaper The Star, and said the funds were needed to help the club pay an outstanding debt to HMRC and cover wages.

The Owls, who are bottom of the Championship after making their worst ever start to a season, were put into a registration embargo by the EFL last week for late payment of the HMRC fee, which Chansiri confirmed was due on 23rd October.

Chansiri said he had a “cash-flow problem” and also admitted that players and club staff might not be paid in October.

Under EFL regulations, Wednesday could face a lengthy transfer ban if the monies owed to HMRC are not paid by 10th November and if wages due at the end of last month were not paid.

Clubs who accrue 30 days worth of breaches within a year, running from 1st July to 30th June, are liable to be banned from registering new players for three transfer windows.

“Don’t call yourselves the owners”

Chansiri said: "If 20,000 people gave £100 then it's £2 million, and it'd be clear –so we can finish it. That would cover everything, HMRC and the wages.”

Addressing Wednesday fans, he added: “If you don’t want to save your club, then don’t call yourselves the owners and me the custodian.”

Last month, Chansiri warned he would not put any more money into the club after apparent “insults” from supporters. In a lengthy statement published on the club’s website, he wrote: “I am not willing to inject more money while I am being treated unfairly by those fans.”

Financial transactions relating to the signings of Willian and Samuel Eto’o will be scrutinised as part of the Premier League’s investigation into secret transfer-related payments made by Chelsea under Roman Abramovich’s ownership, according to a report from The Times.

Sources have told the newspaper that the transfers of the Brazilian midfielder Willian and the Cameroonian striker Eto’o from the Russian club Anzhi Makhachkala in August 2013 are part of the investigation after they were flagged up by Chelsea’s current owners.

Anzhi signed Willian for £30 million from Shakhtar Donetsk in January 2013, and then sold him to Chelsea for the same amount in August that year. Eto’o joined Chelsea on a free transfer a day afterwards.

The Times understands that financial records indicate that payments may have been made to “Russian entities” that were separate to any transfer fee. There is no suggestion either player had any knowledge of separate payments.

Secretive offshore companies

As revealed by The Times back in August, the Premier League is investigating payments of millions of pounds by Chelsea between 2012 and 2019 to secretive offshore companies.

The payments were uncovered during the due diligence process that was undertaken by the Todd Boehly-Clearlake Capital consortium when they were buying the club from Abramovich last year.

After the takeover was concluded, Chelsea then reported these payments to the English FA, Premier League and UEFA. As well as the payments to offshore companies and Russian entities, at least one alleged payment to a player’s family is believed to be under scrutiny.

 

Former RFEF president Luis Rubiales given three-year ban by FIFA

Former Spanish Football Federation (RFEF) president Luis Rubiales has been banned from all football-related activities for three years by FIFA.

The governing body had provisionally suspended Rubiales for an initial period of 90 days after he kissed the Spanish forward Jenni Hermoso on the lips during the medal ceremony at the Women’s World Cup final in Sydney in August.

Rubiales, who eventually stepped down as president in September, claimed the kiss was "mutual", but Hermoso has consistently said it was not and later filed a legal complaint against him.

In a statement released on Monday, FIFA said 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.

“FIFA reiterates its absolute commitment to respecting and protecting the integrity of all people and ensuring that the basic rules of decent conduct are upheld,” the statement added.

Rubiales to appeal decision

FIFA said the decision “remains subject to a possible appeal”, which later on Monday Rubiales confirmed he intends to pursue.

In a post on X (formerly Twitter), the Spaniard said: "I will go to the last resort so that justice is done and the truth shines. Due to the many efforts of some politicians, media and institutions, the disproportion and injustice committed is becoming increasingly clear.”

 

Ex-Newcastle owner Mike Ashley in talks with Reading about takeover

Former Newcastle United owner Mike Ashley has flown to Reading for talks about a potential takeover of the troubled EFL League One club, talkSPORT has reported.

The radio station understands that delegates from Ashley's Frasers Group flew into Berkshire by helicopter on Sunday to meet representatives of Reading's current owner, the Chinese businessman Dai Yongge.

Reading are struggling with severe financial problems and have already been docked four points this season for failing to pay their players on time and neglecting to comply with an EFL order to deposit funds in an account.

The club, who are bottom of League One on six points, are also under a transfer embargo for failing to pay their tax bill to HMRC. The latest fan protest against Yongge came on Saturday, when supporters held a march before the club’s home game against Portsmouth, which ended in a fifth successive league defeat.

Earlier this month, Reading denied that a takeover had been agreed following media reports indicating the British businessman and former Formula One team backer William Storey was poised to acquire the club.

However, Reading did reveal they had been approached with declarations of interest in purchasing the club from “several parties” as Yongge looks to sell.

Previously linked with Derby and Charlton

Ashley, whose turbulent 14-year tenure at Newcastle came to an end in October 2021 when Saudi Arabia's Public Investment Fund (PIF) acquired the club, has since been linked with a return to football ownership and had previously been reported to be keen on Derby County and Charlton Athletic.

Real Madrid are set to borrow around €370 million from institutional investors to help finance the renovation of their Bernabeu stadium, according to a report from Bloomberg.

Sources told the newswire that the club is raising the money through a private debt-issuance, which will be paid back with funds from ticket revenues in what is called a waterfall payment structure.

Madrid have raised debt several times since 2019 to pay for their stadium renovation. The project, which is mostly complete, will increase the ground’s capacity, and also includes the installation of a removable pitch that will allow the club to shift the grass surface into storage while it hosts other events, such as concerts or tennis matches.

General assembly to take place on 11th November

Because Real are owned by the club’s members, the borrowing must be approved by them at a general assembly. The club confirmed on Friday that the next general assembly will take place on 11th November.

 

Inter Milan take legal action over missed payments from DigitalBits sponsorship deal

Inter Milan have confirmed they are pursuing legal action against Zytara, owner of the club’s former sponsor DigitalBits, after the agreement was terminated due to missed payments over the last two seasons.

An update on the saga was included in the financial statement covering the club’s 2022/23 financial year, released on Friday by Inter Media and Communication, which manages and operates the club’s media, broadcast and sponsorship business.

Inter revealed that the Court of Milan has issued an injunction requested by the club following their termination of the contract with Zytara, and said “we are currently proceeding with the fulfilments necessary to properly notify the counterpart.”

The club added: “On May 26, 2023, we exercised a plea of full default against the sponsor, declaring the sponsorship agreement terminated for non-performance by Zytara Labs.

“In order to protect our interests, with the support of an outside law firm, we then proceeded to file with the Court of Milan an appeal for an injunction against Zytara Labs, also taking into due consideration the costs associated with the respective alternatives envisaged and the concrete possibilities of obtaining from the sponsor the sums owed by them under the aforementioned agreement.”

No payment made since end of 2021/22 season

Inter confirmed that since the end of the 2021/22 season no payment has been made by Zytara to the club for contractual fees or performance bonuses relating to the sponsorship deal.

Under the four-year partnership signed with Inter, DigitalBits was the club’s sleeve sponsor for the 2021/22 season, before replacing Socios as the main shirt sponsor for the 2022/23 campaign. Inter said Zytara still owes the club €31.4 million: €1.6 million for 2021/22 and €29.8 million for 2022/23.

After removing the cryptocurrency firm’s logo from their website, billboards and youth and women’s team shirts, at the end of April 2023 Inter also removed it from their men’s team shirt and ordered the “immediate payment of any outstanding amounts contractually due at that date,” the club said.

Inter began their agreement with current main sponsor Paramount+ for the final few games of last season, including the Champions League final.

Manchester United have reported a net loss of £28.7 million for the year ending 30th June 2023 despite earning revenues of £648.4 million – a record high for a Premier League club.

The deficit comes after the club made a loss of £115.5 million in 2021/22, when revenues reached £583.2 million. The record earnings were generated despite United being in the Europa League, rather than the Champions League, last season.

The club’s failure to qualify for UEFA’s elite competition led to a decrease in broadcast income to £209.1 million, down from £214.9 million. The club said playing in the Europa League was “mostly offset by improved performance in both domestic and continental competitions.”

Commercial income for 2022/23 rose to £302.9 million, up from £257.8 million the previous year, with sponsorship revenues climbing to £189.5 million compared with £147.9 million in 2021/22, which United said was due to new sponsorship agreements and the club’s 2022 pre-season tour.

Matchday revenue reached £136.4 million, compared with £110.5 million the previous year, which United attributed to the team playing seven more home games across all competitions, as well as “strong demand for match by match hospitality offers.”

Wage bill falls to £331.4 million

Total operating expenses for 2022/23 were £681.1 million, down from £692.6 million the previous year, with United’s wage bill falling to £331.4 million, compared with £384.2 million in 2021/22, which the club said was due to squad turnover and the team not playing in the Champions League.

Other operating expenses for the year rose sharply to £163.2 million, up from £117.9 million the previous year. United said this was “primarily due to costs associated with the men’s first team pre-season tour and increased matchday costs associated with progression in domestic cup competitions.”

The Old Trafford club also reported long-term debt of £507.3 million, down from £530.4 million at the end of 2021/22. The figure was given as $650 million in the accounts – unchanged from the previous year – but United said the year-on-year change in the exchange rate meant the figure in sterling was lower for 2022/23 compared with the previous year.

Inter Milan confirm €85 million deficit for 2022/23

Inter Milan have recorded losses of €85 million for the year ending 30th June 2023, after suffering a deficit of €140 million the previous year.

Turnover, not including income from player sales, amounted to €425.5 million, compared with €439.6 million in 2021/22, but total costs decreased to €465.5million, down from €527.9 million.

Broadcast revenues reached €196.5 million, up from €155.8 million in 2021/22, due largely to the team’s run to the Champions League final, while matchday income rose to a record €78.9 million, compared with €41.7 million the previous year, driven by the easing of Covid restrictions as well as the club’s performances on the pitch.

However, commercial revenues fell to €74.5 million, down from €81.7 million in 2021/22. Income from player sales amounted to €37 million, with capital gains totalling €29 million.

As for expenses, the club’s total personnel costs fell to €226.9 million, compared with €248.4 million in 2021/22, with the wage bill for players amounting to €142.9 million, down from €152.5 million in 2021/22.

Depreciation and amortisation costs declined sharply to €122.2 million, compared with €168.7 million in 2021/22, of which €89.9 million related to players, down from €101 million in 2021/22.

Net debt as at 30th June 2023 amounted to €308.8 million, compared with €268 million at the end of the 2021/22 financial year.

New stadium a priority

Commenting on the results, Inter president Steven Zhang said: “Last year, the club achieved a major reduction in losses thanks to the process of financial rebalancing that we are following with the combined action of reducing costs and increasing revenues.

“The continued support of the majority shareholder has helped sustain the club's ambitions and development.”

Corporate CEO Alessandro Antonello added: “Our most important mid-to-long-term goal is the construction of a new stadium owned by Inter. Time is the crucial factor now and our current focus is on plans to build a new stadium in the Rozzano neighbourhood.”

Lyon ‘considering US flotation’ as losses rise to €99 million

Lyon are reportedly considering a listing on the New York stock exchange next year as well as the sale of non-core assets after announcing losses of €99 million for the year ending 30th June 2023, up from €55 million the previous year.

The Ligue 1 club, who were taken over by John Textor last December and a currently bottom of the league, plans to focus on men's football and the consolidation of its financing, which involves divesting non-strategic assets, and it is also mulling a potential IPO.

It emerged last month that Lyon have invited bids for either 40 per cent or full control of the 16,000-seater LDLC arena, a new multipurpose venue due to open next month. The club is at the same time exploring the sale of its US women’s team, OL Reign. In May, Textor’s Eagle Football Holdings sold a 52 per cent stake in Lyon’s women’s team to US businesswoman Michele Kang.

The French club are also aiming to reduce their overall debt. The latest accounts show that financial liabilities rose to €458.5 million, up from €383.4 million in 2021/22.

Spiralling wage bill

Total revenues for 2022/23 rose to €289.7 million, up from €252.6 million in 2021/22. Income not including player sales reached €199.1 million, compared with €160.5 million the previous year, while player trading generated €77.3 million, up from €53.6 million.

However, personnel costs spiralled to €156.7 million, compared with €99.4 million, while external costs rose to €52.4 million, up from €40 million.

777 Partners could pay reduced price for Everton if club are deducted points

777 Partners, the prospective new owners of Everton, are expected to pay a reduced price for the club if a points deduction is imposed for an alleged breach of the Premier League’s financial rules, according to The Times.

Everton’s case is currently being heard by an independent commission after they recorded losses of £304 million over a three-year period, well over the permitted amount of £105 million set out by the Premier League.

Earlier this week, The Daily Telegraph reported that the Premier League has recommended Everton are given a 12-point deduction. The hearing has now finished, with the commission considering its verdict.

Everton have stressed they have complied with the rules and insisted they would “robustly defend” their position, arguing that exemptions, including those related to the coronavirus crisis, would clear them of any wrongdoing.

According to The Times, the planned takeover by 777 Partners has contingency plans in place should the club be deducted points and if they are relegated as a result.

Any points deduction would be imposed straight away and docking 12 points would leave Everton on minus five for the season so far.

Factored into deal

Sources with knowledge of the takeover process told The Times that Everton’s case, and the possible repercussions, have been factored into the deal and will affect the final price 777 pays.

Three possible sanctions are said to have been outlined to 777: a heavy fine, a transfer embargo and a points deduction. It is understood the takeover has been structured so that any of those sanctions, as well as relegation this season, would result in 777 paying a lower price and the whole deal is heavily performance related.

Manchester United CEO Richard Arnold ‘expected to leave’ if Sir Jim Ratcliffe completes bid for 25 per cent stake

Richard Arnold is expected to leave his role as Manchester United CEO if Sir Jim Ratcliffe’s bid for a minority stake in the club goes through, The Athletic reports.

Arnold has held the position since taking over from Ed Woodward last February. However, with the club’s board set to vote on selling a 25 per cent share in the club to Ratcliffe, it is understood that Arnold’s future has been discussed.

Ineos owner Ratcliffe is seeking sporting control through his proposed £1.3 billion investment and part of his plan is to shake up the club structure.

While not technically a football decision, it is believed that Arnold understands his departure would be likely in that scenario. However, the exact timeline for his exit should a deal be completed remains unclear.

Given the complexities of Ratcliffe’s bid, the process could yet take several weeks and in that period Arnold will continue to lead the club.

Ex-Juventus CEO Jean-Claude Blanc in line for interim job

According to The Athletic, former Juventus CEO Jean-Claude Blanc is under consideration to replace Arnold, at least in the interim. The French executive left a high-ranking role at Paris Saint-Germain last December to oversee the entire Ineos Sport portfolio.