Benfica have increased their latest bond issue covering the next three years to €50 million, according to a report from 2Playbook.

The Portuguese giants initially issued a bond of €35 million for the 2024-27 cycle early last month and it is understood they now wish to extend it.

The club will pay an annual interest rate of 5.1 per cent on the bond, and will use the new resources to repay the €35 million issue it made back in 2021, which is due to be repaid this July.

The club said in a statement last month that it will also allocate part of the bonds to the development of its ordinary activity, "as well as to diversify and optimise the sources of financing and strengthen liquidity.”

The cost of the operation is estimated at €1.6 million, so the net income for the club would now be €48.4 million following the increase.

Return to profitability

Benfica returned to profitability in the 2022/23 financial year, with a €4.2 million surplus after two successive years of losses driven by the impact of the Covid-19 pandemic.

Key to the result was a player trading profit of €88.9 million, up 38.5 per cent on the previous year. Operating income, not including transfer fees, rose by 15.6 per cent to €195.8 million.

The club’s transfer activity was also vital in delivering the €18 million profit earned in the first six months of 2023/24. A profit on player sales of €57 million more than compensated for a five per cent decline in regular income due to the team’s failure to qualify from the group stage of the Champions League.
 

 

Blackpool owner Simon Sadler appears in Hong Kong court to face insider trading allegations

Simon Sadler, the owner of EFL League One club Blackpool, has appeared at a court in Hong Kong in connection with allegations of insider dealing.

The British businessman, together with former trader Daniel La Rocca, is facing criminal proceedings alongside Sadler's company Segantii Capital Management Ltd.

No plea was entered when the pair appeared at Eastern Magistrate Court yesterday. They have been released pending the next hearing on conditions including bail of HK$1 million (£100,000) for Sadler and half that amount for La Rocca. The case was adjourned until 12th June.

In a statement, Hong Kong’s Securities and Futures Commission said it had commenced the proceedings "for the offence of insider dealing in the shares of a company listed on the Stock Exchange of Hong Kong Ltd prior to a block trade in June 2017".

A spokesman for Blackpool said: "We have been made aware of a charge brought in Hong Kong against the club's owner Simon Sadler which is entirely unrelated to the Club and its operations.

"It will remain business as usual for our day-to-day operations. We understand Mr Sadler will vigorously defend himself against the charge and there will be no further comment at this time."

£10 million paid to buy club

A lifelong Blackpool fan, Sadler, who was born and raised in the Lancashire town, paid around £10 million to take over the side in 2019, ending three decades of ownership by the Oyston family.

The club, who were promoted into the Championship at the end of the 2020/21 season but relegated after two seasons, are currently involved in several major developments in the town.

Permission was granted by Wyre Council last month for a new elite training ground between Blackpool and Poulton. The club is also working with Blackpool Council on proposals to build the Revoe Sports Village and replace the East Stand at the Bloomfield Road stadium, which is due to be partly funded by £6.5 million from Blackpool's Town Deal.

Further questions have been raised about the proposed takeover of Everton by 777 Partners after it was reported the club is calling in a leading firm of restructuring and insolvency advisers.

According to The Guardian, it is understood that Teneo – a global financial advisory firm with a large insolvency division – has been approached to advise the Merseyside club and its directors.

When asked by the newspaper about the firm advising Everton, Daniel Butters, Teneo’s CEO of financial advisory, said: “We don’t comment on any client situations.”

The move comes as the club are believed to still be waiting for a further £15 million of loans that 777 had pledged to provide Everton with last month.

The latest loan would have taken the amount the club had borrowed from the Miami-based firm to more than £200 million during the seven months since it was announced it would acquire Everton.

Financial difficulties

However, 777 appears to be experiencing further financial difficulties, with its low-cost airline Bonza entering voluntary administration in Australia on Tuesday. Meanwhile, 777 is understood to have parted company with its UK PR advisers after falling behind on paying its fees.

The latest developments have raised fresh concerns not only over whether 777 will be able to complete its takeover of Everton, but also how the club will be funded until the end of the season.

They have also raised questions about how long the Everton owner, Farhad Moshiri, can retain control of the club, only a month after assuring fans that 777’s takeover was entering the “home straight”.
 

 

Newcastle United set to redevelop St James’ Park instead of building new stadium

Newcastle United are set to move ahead with plans to expand and modernise St James’ Park following the completion of a feasibility study, The Daily Telegraph has reported.

It is understood the club wish to proceed with building on the current site in the city centre, rather than building a new stadium – although there is much still to be worked through and the blueprints for the expansion are not likely to be made public anytime soon.

An extensive, six-month feasibility study has been carried out, with architects offering a range of options to increase the capacity to more than 60,000, as well as modernise facilities inside the stadium.

However, before the redevelopment can begin, sources at Newcastle City Council have suggested Newcastle will want to discuss extending the length of their leasehold on St James’ Park, which currently has 70 years to run.

Two potential alternative sites

There were said to be two potential alternative sites under consideration. The first, on the banks of the River Tyne on the site of the Metro Radio Arena, has since been purchased for redevelopment as housing. The second idea was to completely rebuild St James’ Park on Leazes Park next to the existing stadium.

The idea now is to create a large, modern, multi-purpose venue that, as well as giving Newcastle one of the most spectacular and innovative stadiums in the country to play in, can also be used to host concerts and other sporting events.
 

 

CJEU adviser: Some FIFA rules on player transfers may be in breach of EU law

An adviser to the Court of Justice of the European Union (CJEU) has said that some of FIFA's regulations on player transfers may breach EU rules as they hamper footballers seeking to move to another team, as well as clubs looking to sign players.

The non-binding opinion was delivered following a case before the CJEU which centred on the former French player Lassana Diarra, who challenged FIFA's rules governing contractual relations between players and clubs.

Diarra signed for Russian club Lokomotiv Moscow in 2013 but his contract was terminated a year later by the club for alleged non-performance and “termination of the contract without just cause.”

Lokomotiv then applied to the FIFA Dispute Resolution Chamber for an order to pay compensation and the player counterclaimed for unpaid wages.

Diarra also claimed that a possible agreement with the Belgian club Sporting Charleroi had failed precisely because of the conditions laid down in FIFA’s rules – specifically that a new club would be held jointly liable with him for paying compensation to Lokomotiv.

The player subsequently sued FIFA and the Belgian FA in a Belgian court for damages and €6 million in loss of earnings. The Belgian court then asked the CJEU for guidance.

“Restrictive nature”

Advocate General Maciej Szpunar at the CJEU said judges should side with the player, writing in the non-binding opinion: "Some FIFA rules on transfer of players may prove to be contrary to EU law. These rules are of restrictive nature and may only be justified in specific circumstances."

He said the rules limit clubs' ability to recruit players and affect competition between clubs on the market for the acquisition of professional players. The CJEU, which will rule in the coming months, usually follows the majority of such recommendations.

 

Ronaldo targets Real Valladolid sale as Cruzeiro takeover completed

Ronaldo has indicated that he plans to sell his 51 per cent stake in Spanish second-tier side Real Valladolid after confirming the sale of Brazilian club Cruzeiro.

The former striker has sold his 90 per cent shareholding in the Belo Horizonte club to the entrepreneur and Cruzeiro director Pedro Lourenço in a deal reported to be worth R$600 million ($117.4 million).

At a news conference held to announce the takeover of the club, Ronaldo was also asked about his other football investments, and replied: "My answer will be a short one; Valladolid is next. I will take some time off [after selling both Cruzeiro and Valladolid]."

Ronaldo was accused by Cruzeiro supporters of failing to invest as much as promised and similar claims have been made against him as an owner of Real Valladolid since acquiring his 51 per cent stake in 2018.

Supporters of the Spanish club have criticised the Brazilian’s management for selling players for high transfer fees, but failing to re-invest some of that money into the squad.

Relegated twice

Valladolid have been relegated twice since the Brazil great took over. This season the club are aiming to return to the Spanish top-flight once again and are currently second in LaLiga 2, with only goal difference separating them from first-placed Leganes.

Ronaldo’s time as Valladolid owner has also been marked by a controversial change of badge and several legal complaints submitted by the Brazilian due to abuse he has received online.
 

 

Swansea City post £17.9 million loss for 2022/23

Swansea City have announced a pre-tax loss of £17.9 million for the year ending 31st July, 2023, after recording a £12.5 million deficit the previous year.

In a statement, the club said the latest losses were incurred despite turnover increasing by £1.8 million to £21.5 million, including a £600,000 jump in commercial revenue.

Player trading produced a profit of £4.5 million, a figure which does not include the sale of Joel Piroe to Leeds United in August for a fee reported to be above £10 million.

The Welsh club – who are currently 13th in the EFL Championship – said: “Operating expenses decreased slightly despite significant inflationary pressures that drove up certain costs during this financial year.

“Just as rising living costs are a primary concern for our supporters, increasing operational costs are a major challenge for Swansea City and all football clubs in the EFL.

“While losses have increased, Swansea City remains in compliance with EFL Profit and Sustainability rules.”

“Challenging” 2023/24 season

Swansea chairman Andy Colemansaid: “These accounts represent the financial year prior to my appointment as chairman and much of the budget had already been set for the 2023-24 financial year before my arrival in Swansea in August 2023.

“The 2023-24 season has been a challenging one. We have been working diligently to put the building blocks in place to turn around the footballing and financial performance of Swansea City.”

Ligue 1 clubs made a combined loss of €273.2 million in the 2022/23 financial year, less than half the €581.9 million deficit suffered in 2021/22, according to the latest analysis from French football’s financial watchdog the DNCG.

Paris Saint-Germain, who finished the year €109.8 million in the red, and Olympique Lyonnais, who suffered a deficit of €99 million, between them accounted for 77 per cent of the 18 Ligue 1 teams’
total losses.

By contrast, Lille closed the year with a profit of €30 million and seven other teams also finished in the black, between Clermont Foot's €14.9 million and Reims' €144,000.

Revenues were boosted by the LFP’s investment deal with CVC, with combined turnover for Ligue 1 and Ligue 2 clubs rising by 18 per cent to €2.7 billion, while player sales reached €760 million, up 64 per cent.

Without considering player trading, the total deficit for Ligue 1 teams alone would have been even more substantial: taking into account only turnover and operating costs, the figure was €869.1 million.

Operating revenues in the French top-flight rose to €2.4 billion, up around 7 per cent compared to 2021/22, when the figures almost returned to normal following the Covid-19 pandemic.

All items in Ligue 1, apart from broadcast revenue, grew compared to the previous year, with income from merchandising rising particularly strongly, up 76 per cent. Total revenues including player trading reached just under €3 billion, up from €2.4 billion in 2021/22.

PSG account for 45.9 per cent of Ligue 1 wage bill

PSG contributed 35 per cent of the league’s total operating revenues, with the club generating a turnover of €807.3 million.

However, the French champions’ wage bill of €621 million accounted for 45.9 per cent of the league’s total spend on personnel costs, which amounted to €1.43 billion. That figure was down slightly on the previous year, but the 18 clubs’ total expenses rose by 4 per cent from €3.1 billion to €3.3 billion.

 

DAZN threatens to sue DFL over Bundesliga TV rights auction

DAZN has threatened legal action against the German Football League (DFL) as the fallout from the Bundesliga domestic broadcast rights auction which began earlier this month continues.

The DFL was forced to suspend the auction process for the next five-cycle, running from 2025/26 to 2028/29, after DAZN claimed it had unlawfully awarded the deal for the largest bundle of games to rival Sky.

In a letter to the DFL’s joint CEOs Marc Lenz and Steffen Merkel sent on Thursday and seen by The Financial Times, DAZN said it would file a statement of claim in an arbitration tribunal to challenge the decision this week unless a solution could be reached.

In the letter, the UK-based streaming service said it was “determined to take legal action – if necessary before state courts – in order to achieve a correction of the unlawful behaviour of DFL”.

German civil courts

A person familiar with the situation told the FT that the legal process will start with arbitration but could continue in German civil courts. DAZN has until tomorrow to legally challenge the outcome of the auction.

The DFL said on Friday it had conducted the tender process “in a transparent and non-discriminatory manner”, and that DAZN’s complaints had “no basis and no justification”. It added: “Should DAZN file arbitration action, the DFL is well positioned for such proceedings.”

 

Masters: Premier League case against Manchester City 'will resolve itself in the near future’

Premier League CEO Richard Masters has said the league’s case against Manchester City over alleged breaches of its financial rules “will resolve itself in the near future.”

City remain in pole position to retain their English top-flight crown this season, which would be their second title since 115 charges were laid against them by the Premier League last February. It would also be their fourth in a row and sixth in the last seven seasons.

Asked whether a second City success while the charges remained outstanding would damage European league football, Masters said: “It’s not for the football authorities to start being selective about who they would like to win the league. The key point is that you’ve got that jeopardy until the final day. Who knows where we will be on May 19?”

Masters, who was speaking at the European Leagues general assembly last week, added: “Obviously we can’t comment on the case, the date has been set and the case will resolve itself at some point in the near future, and I cannot make any further comment on it.”

Decision in the case

An independent commission is set to hear the case later this year, but certainly not before the current campaign ends. Given the extent of the charges, a decision in the case may not come until next year.

City said at the time the charges were laid that they welcomed a review of the matter by an independent commission “to impartially consider the comprehensive body of irrefutable evidence that exists in support of our position”. The club added: “As such we look forward to this matter being put to rest once and for all.”

 

Newcastle sporting director Dan Ashworth looks at arbitration to force through move to Manchester United

The standoff over Newcastle United sporting director Dan Ashworth’s move to Manchester United is now on course to be decided by a third party, according to a report from The Athletic.

It is understood that Ashworth is set to take Newcastle to arbitration to help facilitate his move to Old Trafford, with the two clubs currently at an impasse over the issue of compensation.

Newcastle have been seeking as much as £20 million but Manchester United are unwilling to meet that figure. Ashworth will be supported by Manchester United in an arbitration case anticipated to start next month and last a number of weeks.

Ashworth was placed on gardening leave by Newcastle in February after informing the north east club he wished to explore the opportunity at Old Trafford.

Football operations overhaul

New co-owner Sir Jim Ratcliffe is overhauling football operations at Manchester United, with Manchester City’s Omar Berrada taking over as CEO this summer and Jason Wilcox already installed from Southampton as technical director.

Meanwhile, Newcastle’s process to replace Ashworth is well underway and Dougie Freedman of Crystal Palace is among the candidates.

 

Andre Villas-Boas elected as new FC Porto president

Andre Villas-Boas has been elected as the new president of FC Porto, succeeding Jorge Nuno Pinto da Costa, who had a 42-year run with the Portuguese club. V

illas-Boas, a former Chelsea and Tottenham Hotspur manager, secured the presidency with an overwhelming 80.3 per cent majority, receiving 21,489 votes in the election.

"Winning, winning titles and sustaining our club for the future is what I want," Villas-Boas stated, emphasizing his commitment to the club's success and future.

He also acknowledged the legacy of Pinto da Costa, expressing gratitude for his contributions to Porto and assuring him that "this is and always will be his home."

Challenging season

Villas-Boas's election comes at a time when Porto is experiencing a challenging season, currently standing third in the Portuguese top flight and having been knocked out of both the Champions League and Portugal's cup competition.

Despite these setbacks, Villas-Boas's victory reflects a strong mandate from the club's members and a promise of renewed energy and focus for FC Porto.

LaLiga is set to become the first European league to hold official matches overseas according to its president, Javier Tebas, who stated that the move could occur as early as the 2025/26 season.

In an interview with Expansión, Tebas said the US is expected to be the chosen destination for this internationalization effort. It follows a recent development in the longrunning legal case between FIFA and Relevent Sports, a partner of LaLiga.

Earlier this week, the US Supreme Court permitted Relevent Sports’ antitrust case against US Soccer (USSF) and FIFA to proceed. The move reignites the possibility that regular season matches between foreign clubs could take place on American soil.

Relevent Sports has long accused the USSF and FIFA of conspiring to prevent it from hosting regular season matches between foreign clubs in the US.

Halted attempt

In December 2019 an attempt to play a LaLiga game between Villareal and Atletico Madrid in Miami was halted after the Spanish federation RFEF issued an injunction blocking the fixture.

Tebas emphasized the importance of this move, citing the US as LaLiga’s largest international market, and said that LaLiga would be following the pattern set by NBA and NFL, which have played fixtures overseas for years. The latter body recently announced plans to play a regular-season match at the Santiago Bernabeu Stadium.
 

 

Perez faces legal challenge in bid to extend Real Madrid presidency

An independent association representing Spanish football fans has filed a legal request to halt the electoral proceedings for the presidency of Real Madrid.

Current club president Florentino Perez is set to pursue re-election for a sixth term in 2025, with his last extension uncontested in 2021. The 77-year-old has held the position for a combined total of 21 years over two stints, from 2000 to 2006 and since 2009.

However, the Federacion de Accionistas y Socios del Futbol Espanol (FASFE), an autonomous fan network comprising supporters club associations across Spanish football, alleges “serious irregularities” in Real’s electoral process.

According to FASFE's court submission this week, Madrid’s election regulations grant the club control over selecting voting “delegates” from its 100,000 members (socios), purportedly violating sports laws governing the governance of “socio-owned” clubs in Spain. FASFE is petitioning for the suspension of the delegate selection process, which is scheduled to commence this Sunday.

“In defence of the rights of our members who are socios of Real Madrid, given the serious irregularities presented by the elections called for by the delegate members of the club, we have requested to the judge for a precautionary measure to suspend the electoral process,” stated FASFE.

“We demand that these elections have all democratic guarantees and that all members, regardless of whether or not they support their club’s president, can present themselves and participate on equal terms in the electoral process.”

Socio worries

FASFE contends that enabling dissenting voices within Madrid’s socio base to be heard is crucial, particularly as the club plans revisions to its statutes that could jeopardize its “fan-owned” model in the future.

Perez mentioned at last year’s assembly his intention to implement a new financial framework for the club, potentially allowing increased external investment to compete with state-owned clubs, while assuring that this wouldn’t undermine socios’ ownership.

Throughout his tenure, Perez has repeatedly amended the club’s statutes, imposing stricter eligibility criteria for presidential candidates and limiting potential opponents. A 2012 members vote, restricted potential contenders to individuals who have been Madrid socios for at least 20 years and possess sufficient personal wealth to secure a bank guarantee equivalent to at least 15 per cent of the club’s budget. The incumbent has been unopposed in the last three elections.
 

 

Ajax CEO reshuffled following share controversy

Ajax’s supervisory board have announced an agreement with Alex Kroes, which will see him step down as CEO and chairman of the board and start the role of “titular technical director”.

Kroes was suspended three weeks ago after the supervisory board discovered that he had purchased over 17,000 shares in Ajax a week before the planned announcement of his appointment last August.

An agenda item pertaining to the matter at an Extraordinary General Meeting of shareholders scheduled for 21 May will now be withdrawn, but the supervisory board says it reserves the right to reassess Kroes’ new position should it be determined that there has been a serious breach of insider trading regulations.

Resolution in the interest of Ajax

Ajax’s chairman, Michael van Praag, said in a statement, “We have engaged in extensive discussions with various stakeholders within and outside of Ajax in recent weeks, including the Executive Board and Alex himself. This change was made possible under certain conditions. Ajax needs to progress, and we believe it is in the club's best interest that we have reached this resolution together. Alex will assume a significant role in the football-technical aspects of the organization, particularly in the realm of player acquisitions and sales.”

Kroes, who has always insisted on his innocence of wrongdoing, said that he was “pleased” to have found a resolution and said that it was evidence of how the club had “collectively prioritized the interests of Ajax and football”.

“The focus at Ajax must return to the game itself,” he added. “We require everyone’s support to conclude this season successfully while also laying decisive groundwork for the upcoming one.”
 

 

Spanish FA put under government control

The Spanish government unveiled on Thursday the establishment of a specialised committee tasked with overseeing the country’s football federation (RFEF) until new elections are held.

The National Sports Council (CSD), the government agency responsible for sports, stated that the decision was made “in response to the crisis within the organisation and in defence of Spain's general interest.”

The initiative comes after months of turmoil, including a corruption probe and a controversial incident involving former RFEF chief Luis Rubiales, who kissed player Jenni Hermoso without consent during the presentation ceremony for Spain's Women’s World Cup success in Sydney.

Investigations into a multi-million euro corruption case during Rubiales' tenure resulted in the dismissal of other RFEF executives after police raided its headquarters in Madrid last month.

“The Spanish government has taken this step to address the severe situation facing the RFEF and to facilitate the organisation’s process of renewal,” the CSD emphasised.

The newly formed Commission for Supervision, Normalisation, and Representation will be led by independent individuals of renowned reputation, the CSD added.

“Political interference”

Spain aims to move past a string of scandals within the RFEF, but the move could bring it into conflict with FIFA as it prepares to co-host the 2030 World Cup. FIFA statutes fiercely guard against what it judges “political interference” and such government interventions have in the past seen member associations placed under suspension.

"FIFA and UEFA will seek additional information to assess the extent to which the CSD's appointment of the so-called 'Supervision, Normalisation and Representation Commission' may affect the RFEF's obligation to manage its affairs independently and without undue government interference," the governing bodies said in a joint statement.

Everton’s majority shareholder Farhad Moshiri has instructed the club’s financial advisors to find new investors amidst concerns that the club’s takeover by 777 Partners may fall through, reports senior correspondent, James Corbett.

The development, first reported by Bloomberg and independently verified by Off The Pitch, sees Deloitte instructed to find an alternative buyer for the 146 year old club.

777 agreed to buy Everton last September with an expected Christmas completion date, but seven months on, amidst a barrage of negative headlines, the deal still hasn’t closed. Last month Moshiri wrote to supporters insisting that the deal was in the “home straight”.

Last week 777 missed a deadline set by the Premier League to repay a £158 million loan to MSP Capital as one of the conditions of their takeover. The Miami based group, who have previously lent Everton £160 million, say they have secured an extension to meet that milestone, but the delay casts further doubt on the Everton deal.

Stadium stake

The possible breakdown in the takeover comes amidst an admission by the club’s acting CEO, Colin Chong, that Everton may not retain full ownership of their new 53,000 capacity stadium at Bramley Moore Dock.

The comments came to light after a recent meeting between Chong and the Everton Shareholders Association, which represents the interests of Everton’s minority shareholders, who make up around 4 per cent of the club’s total ownership.

At the meeting Chong said Everton intended to “keep a majority, and thus controlling interest, in the Everton Stadium” raising speculation that the club – which currently owns the stadium development company – may be forced to sell some of the new development, which has cost around £700 million.

The development on the banks of the River Mersey is slated for completion later this year, with the club due to move in for the start of the 2025/26 season.

Chong also told the shareholders meeting that following the resignations of three of the club’s directors last May, payouts of £7 million to the departed were decided upon and “approved by the former Board of Directors”. Everton’s Articles of Association forbid directors to vote on their own remuneration. Chong said that “due to matters of confidentiality he couldn’t say anything further.”

 

Cardiff City claim €120.2 million in compensation from Nantes in Emiliano Sala case

Cardiff City are demanding Nantes pay them €120.2 million in compensation over the death of Emiliano Sala, according to a report from L'Equipe.

The Argentine striker died in a plane crash en route to Cardiff in January 2019, and the Welsh club and Nantes have been involved in a bitter dispute since the tragedy occurred.

L'Equipe has reported that Cardiff now want damages for the relegation they suffered from the Premier League in the 2018/19 season. It is understood the club, who had agreed a €17 million deal to sign Sala from Nantes, was due to present the €120.2 million invoice before the Nantes Commercial Court yesterday.

Data analysis
The figure is said to be based on data analysis from Analytics FC, a firm enlisted by Cardiff, which concluded the club had a 54.2 per cent chance of avoiding relegation with Sala due to the expected goals and points gained had he played.

Maurice Nussenbaum, a French legal and financial expert brought into the case by Cardiff, argued the financial loss without him amounts to around €120.2 million as it includes money lost following their relegation and “reputational damage.”

Nantes have launched a counter-claim, which according to L'Equipe is based on “moral damage”, and they are demanding Cardiff are fined.

 

Inter Milan in talks with US fund over new loan to refinance €375 million Oaktree debt

Further speculation has emerged about a new loan being negotiated by Inter Milan as the club’s owners Suning look to refinance their €375 million debt to Oaktree Capital.

According to a report from Corriere della Sera, the club’s ownership are in talks with the US fund Pimco over a new three-year loan worth €400 million. The report claims the agreement could be made official within the next few days.

The Oaktree loan, which is secured by Suning’s equity stake in Inter, matures on 20th May. Under the terms of the deal, agreed back in May 2021, the amount must be repaid or control of the club would pass to the American firm. The total debt comprises the original €275 million loan plus interest.

While Suning has been negotiating with Oaktree to extend next month’s deadline, the Chinese group has also been exploring the possibility of refinancing the debt with a new loan.

Earlier this month, La Gazzetta dello Sport reported that Inter were in talks about a new loan from an unnamed UK-based fund willing to agree more favourable conditions than those offered by Oaktree for any extension.

It is believed that Oaktree has offered terms only of 12-24 months, with the interest rate also increasing sharply from the 12 per cent on the original loan. However, the UK fund was said to have offered Suning a new three-year loan of around €400 million with an interest rate only slightly above 12 per cent.

Time to weigh up possible projects

Further details of the loan being discussed with Pimco were not reported by Corriere della Sera. However, it is understood a three-year loan could give Suning time to weigh up possible projects, including a new stadium, or look to sell the club, possibly to Middle Eastern investors.

According to the newspaper, although Suning would prefer to retain control of Inter, it would consider proposals of €1.2 billion and above for a sale of the club, which would allow it to repay debts held by the club and its parent company while guaranteeing a profitable exit.

 

Nice post record €64 million loss for 2022/23

Nice, who are owned by Manchester United co-owner Sir Jim Ratcliffe’s INEOS group, have reported a record loss of €64 million for the 2022/23 financial year, bringing the Ligue 1 club’s total deficit since the pandemic to €157.5 million.

The result means the French club, who were acquired by INEOS in 2019, have ended the last four years in the red and are yet to make a profit under the British billionaire businessman’s ownership.

In 2022/23, the club – which does not detail the breakdown of its business in its accounts – increased its losses by 8 per cent compared to the previous year, despite also growing its turnover by 8 per cent to €65.8 million.

Much of the increase in the deficit came from Ratcliffe's commitment to improving the quality of the playing squad, which led to a 46 per cent increase in the club’s wage bill, to almost €108 million.

Below European places

Despite the extra investment, the team finished ninth in Ligue 1 last season, below the European places, after finishing in fifth place the previous campaign, qualifying for the Europa Conference League, where they reached the quarter-finals last season.

In spite of the poor results on and off the pitch, Ratcliffe injected €5.9 million in a deal that raised the club's share capital to €11.6 million. With five games left to play of the current campaign, Nice are fifth in Ligue 1 and fighting to qualify for the Champions League next season.

 

Borussia Dortmund appoint Lars Ricken as new managing director of sport

Borussia Dortmund have announced that Lars Ricken is to become the club’s new managing director of sport as part of a restructure ahead of the departure of the club’s longtime CEO Hans-Joachim Watzke next year.

Ricken, who has been the head of Dortmund’s youth department since January 2021, will take up the newly created position from 1st May, 2024. The 47-year-old, who is a former BVB player, has signed a contract keeping him in the role until 30th June, 2027.

Watzke, who will step down from the club’s management board at the end of 2025, will continue to be responsible for the human resources, communications and strategy divisions until then. The CEO had already announced in January that he wanted to hand over responsibility for the sporting department this summer.

As part of the restructure of the club’s sporting leadership, Dortmund confirmed that Sebastian Kehl will remain as sporting director, and said that Ricken “will start talks about a possible contract extension” for Kehl in the summer.

Sven Mislintat to return as technical director

Dortmund also announced that Sven Mislintat will return to the club on 1st May, taking up the role of technical director. Dortmund said he will have “a focus on squad planning and report directly to Ricken and Kehl in his new role.”

Mislintat previously held various positions at BVB from 1998 to 2017, most recently as director of professional football. During this time, Mislintat, who previously worked as chief scout, was responsible for the discovery of Shinji Kagawa and Jadon Sancho, among others.

Most recently, Mislintat worked as director of football affairs at Ajax, who parted ways with the 51-year-old after just four months last September following allegations of irregularities surrounding the signing of ex-Stuttgart player Borna Sosa. Mislintat was found not guilty of a conflict of interest during his time at the Dutch giants following an investigation by KPMG.

The English FA has defended its decision to drop FA Cup replays following criticism from the English Football League (EFL) and lower-league clubs due to the financial incentives the games offer.

The FA and the Premier League announced last Thursday that replays from the first round proper were to be scrapped from the 2024/25 season in a six-year agreement to restructure the competition "in light of changes to the calendar, driven by the expanded UEFA competitions".

The decision was called “frustrating and disappointing” by EFL CEO Trevor Birch, but the FA has insisted an increase in games being broadcast in the early rounds will help offset any loss of revenue for lower-league clubs.

An FA statement issued on Friday read: “We have been discussing the calendar for the 2024-25 season with the Premier League and EFL for well over a year.

“Removing Emirates FA Cup replays was discussed in the early meetings and all parties accepted that they could not continue. The discussions then focused on how to make all of our competitions stronger, despite having fewer dates available and wanting to maintain player welfare.

“The changes to the Emirates FA Cup achieve this by returning it to a weekend competition on every round, and ensuring that we have exclusive broadcast slots in an increasingly congested calendar.

“To clarify, we have also increased the number of Emirates FA Cup matches that will be broadcast in the early rounds, which will lead to additional guaranteed broadcast revenue for EFL and National League teams.”

Discussions over future of calendar

The EFL initially suggested it had not approved the scrapping of replays, stating it had “previously been involved in discussions over the future of the calendar” but these had been based on “the agreement of a new financial deal with the Premier League for EFL clubs which has not progressed”.

A number of EFL clubs also claimed they and the National League and grassroots game had not been consulted over the decision. However, the FA argued the EFL had been represented on the Professional Game Board, which approved next season’s calendar.

The EFL released a second statement on Friday in response to the FA’s, stressing that while it was involved in initial conversations around the change in format, it was not formally consulted and did not agree to replays being scrapped.

The EFL statement read: “The agreement which now sees the abolition of replays from the competition format was agreed solely between the Premier League and FA. Ahead of the deal being announced there was no agreement with the EFL nor was there any formal consultation with EFL clubs as members of the FA and participants in the competition.”

 

Vitesse Arnhem relegated after 18-point deduction by Dutch FA but retain license

Vitesse Arnhem have been given an 18-point deduction by the Dutch FA (KNVB) due to licensing issues, meaning they will be relegated from the Eredivisie this season, ending their 35-year spell in the top-flight.

The huge points penalty, imposed by the KNVB independent licensing committee, places Vitesse at the bottom of the league on minus one point with four matches remaining. They are 25 points behind RKC Waalwijk in the relegation play-off spot.

The KNVB said the club has been given the sanction as they have persistently fallen short of meeting the requirements of licensing regulations over an extended period.

Vitesse said they would not appeal as it could jeopardise their current license. In a statement, the club said it “will seize the chance of retaining the license with both hands.”

The Vitesse statement added: “A points penalty had been hanging over the club's head for quite some time. Having previously received a fine of 100,000 euros – for failing to report the termination of the banking relationship by Revolut – such a punishment seemed unavoidable.

“After all, the club could not meet certain licensing requirements. For example, Vitesse did not submit the half-year figures correctly, acted incorrectly with regard to ING Bank and the Ministry of Economic Affairs and Climate Policy, and the Wladimiroff report has not been able to demonstrate that there are or are no connections between Vitesse and Roman Abramovich.”

“This is the harsh reality”

Vitesse interim general manager Edwin Reijntjes said: "Although this is a dark day for everything and everyone who cares about Vitesse, this is the harsh reality. On the other hand, and I really want to make this clear to everyone, we are extremely happy with the opportunity offered to us to retain our license. This was also hanging by a thread.

“However, the reaction of the License Committee clearly shows that there is confidence in the club's new course. We cling to that and continue to do so at full speed. I've said it before: Vitesse can't and shouldn't disappear!"

 

Financial resurgence: Borussia Mönchengladbach reports profit for 2023

Borussia Mönchengladbach have successfully navigated a financial turnaround, as the club is set to report a profit for the fiscal year 2023 after three years of losses.

This positive development comes ahead of the club's general meeting on Monday evening, where Managing Director Stephan Schippers will present the financial results, writes Kicker.

According to a preview in the club's member magazine, Schippers will announce that despite the significant revenue declines caused by the COVID-19 pandemic and its aftermath, Gladbach has managed to generate a "significant profit" in 2023.

This marks a recovery from cumulative losses totaling approximately €56 million over the previous three fiscal years, with deficits of €16.8 million in 2020, €14.6 million in 2021, and €24.7 million in 2022.

"Although we have achieved the turnaround as aimed last year, I emphasize that we mustn't rest on our laurels. Our goal for the coming years must be to operate in such a way that we end up with a black figure," Schippers stated.

Invest every euro

He also reaffirmed one of the club's guiding principles: "We want to invest every euro we earn into sports - but we will only spend the money we can take in."

The anticipated annual turnover for 2023 is around €200 million including transfer revenue, which would be Gladbach's second-highest ever, despite not having income from international competitions and slipping down the TV money table.

Key revenue drivers included higher spectator income post-pandemic and increased sponsorship - both significant aspects of economic stabilisation.

 

FC Porto sell 30 per cent of stadium commercial rights to Spanish firm for €65 million

FC Porto have struck a 25-year deal with Spanish investment firm Ithaka to sell 30 per cent of the economic rights to their Dragão stadium in exchange for €65 million.

The funds will be used for investment into and around the 21-year-old stadium as well as boosting its commercial potential, encompassing sponsorship, naming rights and other venue-based income such as stadium tours and the hosting of concerts.

Porto said the deal, which is due to start at the beginning of the 2024/25 season, is designed to “increase the use and economic profitability” of the 50,000-capacity stadium, which the Primeira Liga club owns and operates.

Of the €65 million, €30 million will be fully invested into the stadium during the initial years of the deal. Porto will recover full economic rights to the venue’s operations when the 25-year agreement ends.

Legends partnership

The deal follows the unveiling of a 15-year strategic partnership between Porto and premium sporting experiences company Legends last November.

Under that tie-up, Legends is in charge of naming rights and sponsorship deals for the stadium and securing global partnerships for the club, as well as working with Porto to improve the matchday experience for fans.

Brazilian club Flamengo have proposed using the sale of their site in the Gavea neighbourhood of Rio de Janeiro, where the club is based, as security to raise more than $100 million as they look to advance their plans to move to a new stadium.

As reported by Brazilian news outlet UOL, the club’s president Rodolfo Landim has approached the Rio mayor Eduardo Paes with the proposal.

Flamengo estimates the Gavea site which holds significant historical importance for the club – will generate R$440-510 million ($83-97 million).

The club has been considering building its own stadium with a potential capacity of 100,000 for some time in an attempt to manage match days more effectively, as well as growing revenues.

Such a move would mean leaving the Maracana stadium, which Flamengo shares with crosstown rivals Fluminense.

Gasometro targeted as possible new home

As a potential option for their new home, Flamengo are said to be keen on the ‘Gasometro’, a 116 square metre plot of land in downtown Rio that was acquired by the City of Rio de Janeiro in 2012 for R$220 million ($42 million).

The site was then sold to the Porto Maravilha Real Estate Investment Fund, which is managed by the bank Caixa Econômica Federal. It is understood the bank wants R$200-500 million ($38-95 million) for the Gasometro, but negotiations between the two parties are believed to have been difficult.

The proposal for Flamengo to construct their own stadium has the support of mayor Paes but the club will now be required to submit a formal proposal if it wants to proceed.

 

Premier League clubs may need independent regulator approval for moving games overseas

Premier League clubs may require approval from the new independent regulator for English football should they wish to play any home matches abroad, it has emerged.

As reported by The Athletic, the development has come about due to a clause inserted into the Football Governance Bill that was introduced to the UK parliament last month.

The possibility of taking one-off domestic league fixtures abroad has increased after FIFA was dropped from a landmark lawsuit by the US events promoter Relevent earlier this month.

The Premier League would, though, likely not be among the first movers to take games abroad, with LaLiga, Serie A and Ligue 1 far more likely to act sooner. Back in 2018, Relevent was thwarted in its attempts to take a LaLiga fixture between Girona and FC Barcelona to Miami.

FIFA prepared to revisit its policies

FIFA’s directive, issued in 2018, said that domestic games ought to be played in their home territory, but FIFA and Relevent settled on their case last week, with the world governing body seemingly prepared to revisit its policies on the issue.

The case was settled without prejudice, meaning Relevent reserves the right to reopen its litigation should FIFA not come up with a satisfactory reconsideration of its position.

This has left many people within the football industry to believe that FIFA is stepping back from the struggle and leaving it to individual leagues, federations and confederations to tussle over the matter of whether domestic games can be played outside of a home territory.

 

Eintracht Frankfurt in talks with new Milwaukee USL team over possible partnership

Eintracht Frankfurt are exploring another potential tie-up with a club in the US as they seek to increase their access to the growing market for the sport, Bloomberg has reported.

Sources have told the news outlet that the Bundesliga club has been holding talks on a possible partnership with the new United Soccer League (USL) team being formed in Milwaukee.

Eintracht are said to have discussed a range of options that could include cooperation in areas such as talent development.

The USL announced in 2022 that it had awarded a franchise to a club led by investor Jim Kacmarcik and Milwaukee Pro Soccer. The team, which is still debating its name, will join the league in 2026.

Growing pool of playing talent

Led by CEO Axel Hellmann, Eintracht Frankfurt are seeking to boost their exposure to the growing pool of playing talent in the US.

The club already has a partnership with Forward Madison FC, another Wisconsin-based team that counts Kacmarcik as an investor. The clubs are hosting joint youth camps on Forward Madison’s grounds.

Completion of the proposed takeover of Everton by 777 Partners has been pushed back once again after the Miami-based investment firm was granted a last-minute extension to repay a £160 million loan.

A source close to negotiations told The Guardian that a deal had been agreed over the money owed by the club to a consortium made up of another American investment firm, MSP Capital, as well as the businessmen Andy Bell and George Downing.

The length of extension granted was said to be “weeks not months”, and repayment of the debt is a condition of 777 taking over the club.

According to corporate documents filed in the Isle of Man, MSP, Bell and Downing hold security over the new stadium development at Bramley-Moore Dock, as well as a charge over just over half of Farhad Moshiri’s 94 per cent stake in the club.

They could have chosen to have taken control of Everton themselves on Monday, but instead have granted 777 more time to repay the debt.

Seven-month mark

The latest missed deadline drags the Everton takeover saga past the seven-month mark since Moshiri agreed to sell his shareholding in the Merseysideclub to 777.

The firm has faced months of scrutiny about its ability to raise the funds to complete the deal. However, last month Moshiri assured supporters that the deal was in the “home straight”.

 

Chelsea face PSR doubt due to £76.5 million hotels deal under scrutiny from Premier League

Chelsea are facing fresh uncertainty over their compliance with the Premier League’s profitability and sustainability rules (PSR) after it emerged that the league has yet to approve the value of the £76.5 million sale by the club of two hotels to a sister company.

As reported by The Times, the hotels deal was a loophole that appeared to have helped Chelsea avoid breaching PSR, as it enabled the club to claim the full sum as profit in the 2022/23 financial year.

However, the accounts for that year stated the deal had not yet been assessed to be of “fair market value” under the Premier League’s associated party transaction (APT) rules and that the conclusion “may result in a material change to the gain recognised in these financial statements”.

Both Chelsea and the Premier League declined to confirm whether the fair market value assessment had been concluded.

“Other operating income”

Chelsea’s loss for 2022/23 was reported as £89.9 million, but it would have been £166.4 million without the hotels deal.

The club also reported a further £30.6 million as “other operating income”, including recharging £17.1 million “litigation costs” to their holding company and a £12.5 million settlement fee, though it is unclear what that was for.

 

FC Barcelona given option to cancel Barça Visión IPO by end of April without €40 million Libero payment

FC Barcelona could cancel the planned IPO of their digital unit Barça Visión by the end of this month following the failure of the German investment fund Libero to pay the club €40 million for the purchase of a stake in the business, a statement to the SEC in the US has revealed.

The deadline for the merger of Barça Visión with Mountain & Co, the special purpose acquisition company (SPAC) set up to channel the move on to the Nasdaq stock exchange, was extended last month by a further six months until 9th November.

However, according to the statement to the SEC, Barcelona have renegotiated the pre-agreement reached with Mountain & Co, and now have the option of aborting the operation "at its sole and absolute discretion at any time after April 30, 2024," if the club does not find a new investor to cover Libero’s lack of payment before the end of the month.

The merger agreement previously signed between Mountain & Co and Barça Fusión gave the SPAC the new digital content business at a valuation of €900 million. The conglomerate includes Barça Vision, Barça Studios and Barça eSports. The other investors are Socios, blockchain company Vestigia and Mediapro CEO Jaume Roures.

Previous delays

Barcelona had originally planned for Barça Visión to go public last autumn, and the plans were then pushed back to March this year. It emerged at the start of the year that the club had still not been paid by Libero after extending the deadline for payment to 31st December, leading Mountain & Co to request a further postponement.

LaLiga has already reduced Barcelona’s spending limit for 2022/23 due to Libero's non-payments, and the club could now face further financial difficulties if the planned IPO of Barça Visión is abandoned altogether.

Chelsea's financial challenges have been highlighted in their latest accounts, which show a wage bill that has soared to £404 million, surpassing the salary costs of both Liverpool and Manchester United – only eclipsed by Manchester City's £422.9 million, which included significant bonuses for their Treble-winning season.

Despite these high costs and an overall loss of £89.9 million, Chelsea chairman Todd Boehly expressed confidence that the club would comply with the Premier League's financial regulations in the future.

The accounts of Chelsea FC Holdings Ltd for the year ending June 30, 2023, reveal that the club faces a task of aligning with Profitability and Sustainability Rules (PSR). To meet these requirements, the club may need to generate considerable revenue through player sales by the end of June.

The accounts also reveal a property transaction that was not previously disclosed when parent company Blueco 22 Ltd published its figures. Chelsea reported an income of £76.5 million from selling two hotels on the Stamford Bridge site to Blueco 22 Properties Ltd, another subsidiary of Blueco 22 Ltd.

Boehly stated in the accounts: "The club continues to balance success on the field together with the financial imperatives of complying with UEFA and Premier League financial regulations."

£745 million on transfers

Despite making a net profit of £62.9 million from player trading and reaching the Champions League quarter-finals last season, Chelsea still posted a significant loss. With no European income this season and a record £75.1 million spent on agents' fees alone, financial pressures remain.

The accounts also reveal that in 2022/23 – or the first year under the Todd Boehly-Behdad Eghbali ownership – the club have spent a remarkable £745.2 million on player acquisitions, including the likes of Mudryk, Cucurella, Fernandez and Fofana.

 

Leicester City avoids points deduction amid financial dispute

Leicester City have received a significant boost in their promotion bid as they will not face a points deduction this season amid financial breaches, escalating their dispute with the EFL.

Leicester have been charged by the Premier League for allegedly violating profitability and sustainability rules (PSR). However, an EFL arbitration panel has ruled that the club cannot be penalised this season, although sanctions are likely next season, regardless of which division they are in.

The EFL's chief executive, Trevor Birch, had written to Richard Masters, the Premier League’s CEO, advocating for a sanction to be applied immediately. Leicester contested this move and successfully delayed any punishment through an application that the arbitration panel upheld.

The EFL expressed frustration, claiming Leicester took legal action without prior notice. Despite this setback, the EFL acknowledged that their regulations did not permit them to enforce a points deduction in the current season.

Fair competition

In a statement, the EFL emphasized the importance of compliance with P&S rules and their commitment to applying PSR to ensure all clubs meet financial obligations for fair competition.

Leicester City responded last month by announcing plans to initiate legal proceedings against both the Premier League and Football League due to the actions taken by these organizations. "LCFC continues to try and co-operate constructively with both the Premier League and the EFL to reach a lawful resolution of any issues relating to PSR," read a statement from Leicester.

 

Chelsea smash agent fees record: Spending £75m in two windows

Chelsea have set a new record by paying £75.1 million to agents and intermediaries over the 12 months leading up to February 1, 2024, contributing to Premier League clubs surpassing £400 million in such fees for the first time.

Chelsea’s summer signings included the £115 million move to buy Moises Caicedo from Brighton, the £58 million deal with Southampton for Romeo Lavia and the £40 million transfer of Cole Palmer from Manchester City.

The reigning champions of agent fees, Manchester City, previously held the highest figure at £51.6 million but have now increased their spending to just over £60 million. Chelsea's leap from £43.2 million has placed them at the top of the list for agent fees.

Liverpool and Manchester United are the only other clubs that have spent above £30 million, with Luton Town spending the least in the Premier League at £2 million. The collective total for all 20 Premier League teams reached £409.6 million.

Consistent increase

The scale of the agent fees paid out by Chelsea are another indication of the club’s enormous investment in the playing squad, totalling more than £1 billion, under the Clearlake-Boehly ownership.

The FA's report on intermediary fees has shown a consistent increase year on year since it began publishing details for a 12-month period starting from October 1, 2015, to February 1, 2016, when fees were at £46.6 million. The progression has been notable: from £174.2 million in 2016-17 to the current figure exceeding £400 million.

 

777 Partners in talks with investor to provide loan to secure takeover

777 Partners has held last-minute talks to help fund its takeover of Everton, according to Bloomberg.

The media outlets reports that 777 held talks with private markets investor Blue Owl Capital Inc. about arranging a £360 loan tied to the club’s new stadium.

The takeover of Everton hinges on repaying a £158 million loan to a group of investors led by MSP Sports Capital. MSP’s loan is due to be paid on April 15. If the loan isn’t repaid, MSP could take ownership of Everton, multiple sources have reported.

At the same time, the Guardian reports that Everton have paid approximately £30 million in interest to Rights & Media Funding (RMF), a Cheshire-based company.

This substantial outflow of cash, which equates to around £438,000 per week, is detailed in the club's latest accounts. However, Everton have recently altered its accounting policy, a move that has allowed it to report reduced losses by excluding most of these interest charges from its profit and loss account for 2022/23.

The club's recent accounts reveal that Everton have chosen to exclude £19 million of the interest charges from its 2022/23 profit and loss statement. Additionally, it has restated its accounts for 2020/21 and 2021/22 to remove another £6 million in interest charges, thereby decreasing its reported losses.

Everton justifies this accounting shift by claiming that the interest is related to the construction of their new stadium at Bramley-Moore Dock and should be considered an investment rather than an expense affecting profit and loss.

However, this rationale contradicts previous statements made by the club. In discussions with The Guardian during autumn 2022, a spokesperson for Everton's owner Farhad Moshiri stated that he and the club were financing the new stadium project, with over £300 million in equity funding provided for various related costs including land acquisition and preparation.

Further penalties?

The spokesperson emphasized that Everton Stadium Development Ltd (EDSL), the entity responsible for the stadium project, had no debt and had received significant equity injections.

Moreover, an Everton spokesperson had explicitly told The Guardian that "There is no stadium funding from RMF". These assertions were made within the financial year when Everton have now retrospectively removed £19 million of interest payments from its reported losses.

This change could potentially lead to further penalties from the Premier League, which has already deducted points from Everton this season for breaches of profitability and sustainability rules.

 

Crystal Palace reports bigger loss despite significant turnover growth

Crystal Palace have reported a turnover exceeding £180 million, marking a 12.5 per cent increase from the previous year. This historic result is attributed to a combination of factors, including an improved finish in the Premier League standings and growth in commercial revenue across various streams.

According to the club's financial review, the majority of the revenue increase stems from the Premier League's enhanced distribution payments, which are part of a new television broadcast cycle that began in the 2022/23 season.

Crystal Palace also managed to maintain a flat squad wage bill at £101 million while securing a higher league position.

This fiscal discipline contributed to a 40 per cent surge in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation), with squad wages accounting for 56 per cent of revenue, down from 63 per cent in the previous year.

The club also highlighted an increase in intangible assets (from £89.6 million to £104.4 million), indicating significant investment in the squad.

Potential new shareholders

Despite these positive trends, Crystal Palace highlight they have faced economic challenges such as inflationary pressures affecting all business areas, including their newly operational Academy facilities. Expenses also included costs associated with managerial changes during the season and integrating the CPFC Women’s team into the club's group of companies.

The loss before tax stood at £27.5 million compared to a £24.2 million loss the year before.

Looking ahead, Crystal Palace have secured loans from directors amounting to £12 million and approved a £45 million equity fundraise through a capital call from existing shareholders. This move may also open opportunities for additional equity investment from new shareholders.

Premier League clubs have unanimously agreed in principle to introduce new financial fair play regulations from next season at their latest shareholders’ meeting, held in London this week.

As reported by The Athletic, the profitability and sustainability rules (PSR) that have capped how much money clubs can spend over the last decade are set to be scrapped from the start of the 2025/26 season.

They will be replaced with a similar “squad cost control” rule to the one adopted by UEFA in 2022. However, if approved, the new system would work as a shadow to the existing PSR regime next season.

It is understood there were two votes at this week’s meeting. The first, which received unanimous backing, was to progress discussions on the finer details of the Premier League squad cost rules, with a view to adding the new regime to the rulebook this summer.

The second, which was said to have been supported by a strong majority, was on how the new regulations would be phased in.

Under the proposed new regime, clubs will only be allowed to spend a set percentage of their annual turnover on the wage bill for the first team and its coaching staff, plus the amortised costs of their transfer fees and all agents’ fees.

However, the key difference between the Premier League and UEFA regulations will be that it will operate a two-tier system, with clubs playing in European competition only able to spend 70 per cent of their turnover, while teams not competing in Europe able to spend 85 per cent.

Financial penalties

Contrary to recent reports, clubs that breach the Premier League’s rules will still be subject to points deductions. However, some teams are still said to be keen to explore the possibility of introducing financial penalties, instead of points deductions, for minor breaches of the squad cost rule.

Some clubs have suggested this could work like a US-style luxury tax, while others have preferred to talk about a “buffer zone” for less serious cases that do not merit points deductions.

This, among several other discussions about the finer details of the new rules, will all be resolved at the league’s two-day AGM in Harrogate, with a final vote on the matter set for 5th June.

 

Premier League clubs to be handed £106 million bill to fund independent regulator

Premier League clubs are facing a bill of at least £106 million to fund the first ten years of the new independent regulator for English football through a compulsory UK government levy, according to a report from The Daily Mail.

It is understood the government has recommended that top-flight clubs pay at least 80 per cent of the regulator's operational costs, which officials have forecast to be £132.8 million over its first decade.

In addition, it is believed the Premier League will be forced to pay back the vast majority of the regulator's start-up expenses, to initially be funded by the government, which will cost it millions more.

Guidance prepared by the Department for Culture, Media and Sport (DCMS) seen by The Daily Mail states that “these clawback costs, once determined, would therefore be added to the levy.”

The DCMS also makes clear that “it is our expectation that at least 80 per cent of the levy will be covered by Premier League clubs”.

Remaining costs to be split between EFL and National League

It is thought that the remaining 20 per cent of costs, totalling around £2.6 million-a-year, will be split between the 72 EFL and 24 National League clubs on a proportional basis, with smaller clubs paying the least.

The Premier League has yet to discuss how its £10.6 million-a-year bill will be divided, which could lead to more internal wrangling between the top-flight clubs.

 

Sheffield United to start their next season in EFL with two-point deduction

The English Football League (EFL) has announced that Sheffield United will be deducted two points at the start of the next season in which they play in the EFL.

In a statement, the league said: “The sanction relates to the 2022/23 season, when the club defaulted on a number of payments to other clubs. These defaults cumulatively were in excess of 550 days.”

A further two-point deduction has been suspended until the end of the season in which the initial deduction is enforced, and will only be imposed if the club defaults on further payments.

The Blades returned to the Premier League this season after finishing second in the EFL Championship in 2022/23. However, they are currently bottom of the top-flight and nearing relegation back to the second tier, standing nine points from safety with seven games left to play.

“Negotiated settlement”

A statement from Sheffield United read: “The club has co-operated with the EFL to reach a negotiated settlement on the issues in question.

“While disappointed to have the deduction imposed upon the return to the EFL and highlighting that awaiting overdue monies from several other clubs affected Sheffield United's financial situation, the club took the view that it was better to reach an agreement which minimised the risks of a higher deduction or further transfer embargoes being imposed, and being distracted by lengthy and costly legal proceedings.

“The club is now in a position to close this matter and concentrate on the future.”

 

Chelsea cannot start Stamford Bridge rebuild until 2027 under new deal to buy land next to stadium

Chelsea cannot start any rebuild of Stamford Bridge until 2027 at the earliest, as part of their £80 million deal to buy a plot of land next to the stadium, The Evening Standard has reported.

Earlier this week, the West London club finalised the purchase of a 2.47-acre site belonging to Stoll, a housing charity for veterans.

The deal clears the path for Chelsea to redevelop Stamford Bridge, although the club is still considering its options: a complete stadium rebuild, a stand-by-stand redevelopment or a move to a new site.

However, Chelsea will not take possession of the site until 2027, giving an opportunity for residents to be re-housed during a leaseback period.

Parts of the Sir Oswald Stoll Mansions will need to be included in any plans to develop Stamford Bridge, because they are Grade II-listed.

“Helpful and supportive”

Stoll CEO Will Campbell-Wroe told The Evening Standard: “We chose Chelsea partly because they have been helpful and supportive. We have been next to Chelsea for 100 years and hope to be for the next 100 years.

“Both Stoll and Chelsea understood the moral obligation, and we are keen to build out that relationship. It is a long-term community relationship as well as the commercial transaction.”