FC Barcelona have announced that the club’s economic vice-president Eduard Romeu has resigned from his position.

In a statement released yesterday morning, Barça said Romeu “has presented his resignation to president Joan Laporta due to the position's incompatibility with full-time dedication to his professional work.”

The statement added: “President Laporta has accepted the resignation and expresses his gratitude for Mr Romeu's work at the head of the Economic Area, which has focused on developing a feasibility plan that was implemented during this mandate and which has turned around the institution's financial situation.”

At a press conference held later in the day, Romeu said: “When I joined the management area of FC Barcelona, I had some professional occupations that were made to be able to combine them with the activity at the club. Now, things have changed, not of their own volition.

"The board has committed a great patrimony to ensure the viability of the club and the fact of having to pay bills has made me undertake new professional projects."

Romeu has served as Barcelona's economic vice-president since March 2021. Laporta said his duties will be taken over by the economic department, without giving details of who will be in charge.

The president added that Romeu “leaves this area of the club under control, which is something to be thankful for. He has been key in the economic work of the club and we will continue to follow his advice.”

String of exits

Romeu’s departure marks the latest in a string of exits by senior executives from Barcelona. Late last month, Maribel Meléndez stepped down from her role as the club’s corporate director, citing personal reasons.

Ferran Reverter left his position as Barça’s CEO in February 2022, also pointing to personal reasons. And last June, the director of the Espai Barça project, Jordi Llauradó, also left, followed in August by Ramon Ramírez, who was director of heritage and Espai Barça.

Manchester United clear £120 million of debt after Sir Jim Ratcliffe investment

Manchester United cleared £120 million from their revolving credit facility following Sir Jim Ratcliffe’s $300 million (£234.2 million) cash injection into the club, their latest filing to the U.S. Securities and Exchange Commission (SEC) has revealed.

United’s financial results for the second quarter of 2023/24, released on Tuesday, showed their debt totalling £773.3 million, but the SEC filing on Wednesday night revealed that on 28th February, United paid off £120 million worth of debt, reducing their overall debt down to £653.3 million.

The club’s revolving credit facility has a limit of £300 million and the balance now stands at £140 million, down from £260 million, following the payment.

The SEC filing also showed a £5.5 million payment to Richard Arnold after he stepped down as the club’s CEO in December. Arnold will be replaced by Omar Berrada, who has left his role as chief football operations officer at the City Football Group.

Major cost-cutting exercise

Meanwhile, Ratcliffe has appointed corporate restructuring firm Interpath Advisory to undertake a major cost-cutting exercise at United, according to a report from The Daily Mail.

The review by Interpath, which is an offshoot of accountancy firm KPMG, began earlier this month. The consultants are said to be working with the club to analyse all areas of United's business in an attempt to maximise the resources made available for football.

It is understood the review will firstly assess United's business costs such as travel bills and contracts with external companies, and then later this year analyse United's employee costs, which is expected to lead to a reduction of the club's staffing levels of between 20 and 25 per cent, which would mean the loss of hundreds of jobs.

United have by far the biggest staff of any club in the Premier League, with over 1,112 employees on the payroll compared to around 900 at Liverpool, 750 at Tottenham Hotspur, 720 at Manchester City and 700 at Arsenal.

Ratcliffe's other sporting investments run by INEOS are notoriously lean operations in contrast to United, where even staff concede privately that there is fat to trim following a huge expansion of their commercial and digital teams under the Glazer family's ownership.

EFL underlines disappointment over Premier League funding deal “setback”

The English Football League (EFL) has expressed its disappointment over the “repeated failure” of the Premier League to present a new financial settlement deal for clubs across its three divisions.

The EFL board met yesterday after Premier League clubs again failed to agree on a new offer for sharing revenues with EFL teams at a shareholders’ meeting on Monday.

In a statement, the EFL said: “Despite pressure from Government, fans and united voices across the professional game, the latest development represents a further setback.”

The EFL added that it “is clearly disappointed at [Premier League clubs’] repeated failure to put forward any new funding offer for EFL Clubs that would have significant benefits for the entire football pyramid.”  

The statement continued: “The League eagerly anticipates the introduction of the Football Governance Bill given it is now more important than ever that the Independent Regulator is provided necessary powers to secure the long-term sustainability of the pyramid.”

“Reconfirmed their commitment”

In a statement following its meeting on Monday, the Premier League said its clubs “reconfirmed their commitment to securing a sustainably-funded agreement with the EFL, subject to the new financial system being formally approved by clubs.”

The EFL said that it “now awaits a formal update from the Premier League as to how it proposes to re-engage on its latest commitment to deliver” such an agreement.

German football faces ‘€250 million liquidity gap’ after withdrawal of bank

The withdrawal of a German bank from the country’s football industry has created a €250 million liquidity gap which could lead to far more clubs only receiving their licence from the DFL under financial conditions, according to a report from Kicker.

VR-Bank Bad Salzungen-Schmalkalden, which currently has business relations with around 15 clubs – some from other parts of Europe, but the majority in Germany – has decided to move away from football as it battles with controversies related to allegedly highly speculative real estate transactions.

Sources indicated that the bank's football business amounts to around €250 million, although it declined to confirm this sum.

Bad Salzungen has provided several German clubs with loans in the form of overdraft facilities that could be used repeatedly. The loans were secured against future income such as media revenues or transfer fees and helped teams meet some of the DFL’s licensing requirements by showing they had enough liquidity to get through a full season.

Commitments valid until 30th June, 2024

According to Kicker research, the commitments from VR-Bank Bad Salzungen were valid until 30th June, 2024, meaning that German football is currently due to miss out on a sum of up to €250 million for the 2024/25 season due to the bank’s move away from football.

It means there is now a risk of a significant liquidity gap as replacement banks are often not easy to find. It is understood that compared with Bad Salzung, other institutions want much more proof of the collateral of future income. "They were simply more lax, without me saying that they were acting dubiously," one club executive said of the bank.

Benfica post €18 million profit for H1 2023/24

Benfica have reported a €18 million profit for the six-month period ending 31st December, 2023, thanks largely to further success in the transfer market.

The club made a player trading profit of €57 million for the period, more than compensating for a five per cent decline in regular turnover due to the team’s failure to qualify from the group stage of the Champions League.

The biggest player sale was that of academy product Gonçalo Ramos to Paris Saint-Germain for €65 million. Benfica will keep €58.7 million of the fee for the striker and could add another €15 million in variables.

The Portuguese giants also received a further €3.5 million in variables from the transfer of Uruguayan forward Darwin Nunez to Liverpool in 2022.

Among the regular income streams, broadcast revenue fell by 13 per cent to €68.2 million, with UEFA payments declining from €52.5 million in the first half of the previous year to €43.4 million for H1 2023/24.

Last season Benfica reached the quarter-finals of the Champions League, but after failing to qualify for the knockout stages of UEFA’s elite competition this campaign they entered the last 16 of the Europa League. Income from the club’s domestic TV rights remained stable at almost €25 million.

Sponsorship revenues also stayed the same, at almost €12 million, but total commercial income increased by 25 per cent to €20.6 million, thanks to growth from additional activities such as the club museum and stadium tours. Matchday revenue grew by €1 million to €17.6 million, with a 26 per cent increase in VIP and hospitality revenues.

Wage bill rises to €62 million

As for costs, personnel expenses rose by 4 per cent to more than €62 million, while transfer amortisation costs increased by 24 per cent to €28.4 million. The accounts also showed that, on the back of the profit obtained during the period, the club increased its equity by 16 per cent, to €131.2 million.

Manchester United have reported a profit of £20.4 million for the second quarter of the 2023/24 financial year, up from the £6.3 surplus achieved in the same period the previous year.

The result follows the £25.8 million loss for the first quarter of the current year, and means the club made a loss of £5.3 million in the first half of 2023/24, compared with a deficit of £20.2 million in H1 2022/23.

United achieved record second-quarter revenues of £225.8 million for the three-month period ending 31st December, 2023, up from £167.3 million in Q2 2022/23.

Compared with the same period the previous year, Q2 broadcast income rose from £58.7 million to £106.4 million, while matchday revenue increased from £29.9 million to £47.6 million, with the club’s return to the Champions League, after playing in the Europa League last season, a key factor.

However, commercial income fell from £78.7 million to £71.8 million, which United said was primarily due to a one-off sponsorship credit in the prior year quarter.

United’s wage bill for Q2 2023/24 totalled £95.1 million, up from £77.3 million over the same period the previous year, also due to the club’s participation in the Champions League.

Exceptional costs of £9.6 million for Ratcliffe deal

The second-quarter profit was achieved despite United paying exceptional costs of £9.6 million in professional fees related to Sir Jim Ratcliffe’s deal to buy a minority stake in the club and the strategic review process that led to it.

That figure does not include the $31.5 million due to be paid to investment bank Raine Group, which advised the club throughout the strategic review.

United’s total debt stood at £773.3 million, up from £741.9 million at the same time last year, in part due to a £60 million drawdown on the club’s revolving credit facility in October.

FSG confirms return of Liverpool’s ex-sporting director Michael Edwards

Liverpool’s owner, Fenway Sports Group (FSG), has announced that Michael Edwards, the club’s former sporting director, has agreed to return to Anfield to help shape the post-Jürgen Klopp era.

Edwards’ new job title at FSG will be CEO of football. In a statement, FSG said that as well as heading football operations at Liverpool, the 44-year-old executive will be “supporting the growth of FSG in global football through additional investment and acquisition.”

He will be charged with helping to identify a second club, from which Liverpool can attract global talent, and will also lead a restructure of Liverpool’s footballing hierarchy.

Edwards will succeed the FSG president Mike Gordon as the day-to-day decision-maker on all footballing matters at the group. Gordon intends to reduce his involvement in the sport but will remain on the FSG board into which Edwards will now report.

Huge transition

Liverpool are in the midst of a huge transition following manager Klopp’s decision to step aside this summer, with his closest staff also scheduled to leave and sporting director Jorg Schmadtke already having departed.

Now that Edwards has accepted FSG’s offer, Richard Hughes, whose exit as Bournemouth technical director was confirmed last Wednesday, is now set to be confirmed as Liverpool’s new sporting director, with his arrival considered a formality.

Barça Visión IPO pushed back to November

The IPO of FC Barcelona’s digital unit Barça Visión has been postponed until November following the failure of the German investment fund Libero to pay the club €40 million for the purchase of a stake in the business.

As reported by Spanish media, the deadline for the merger of Mountain & Co, the special purpose acquisition company (SPAC) set up to channel the move on to the American stock market, with Barça Visión has been extended by a further six months until 9th November.

The latest delay to the merger, which will trigger the IPO, was approved with 99 per cent of votes in favour at a Mountain & Co shareholders' meeting. However, a number of shareholders abstained after deciding to abandon the process and requesting the redemption of all their shares.
The shareholding package of those investors who opted out amounted to 3.1 million shares, at a price of $11.42 per share, equating to up to €35.8 million of share capital.

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.

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 Barcelona had still not been paid by Libero after extending the deadline for payment to 31st December, leading Mountain & Co to request a further postponement.

Manchester United have announced that they will look into the feasibility of building a new stadium “of national significance” to replace Old Trafford.

In a statement, United said: “A joint task force has been created to explore options for regenerating the Old Trafford area of Greater Manchester, with the development of a world-class football stadium at the heart of the project.”

The ‘Old Trafford Regeneration Task Force’ will be chaired by Lord Sebastian Coe, former chair of the organising committee for the 2012 London Olympics. Other members will include Greater Manchester mayor Andy Burnham, Trafford Council CEO Sara Todd, and former Manchester United captain Gary Neville.

United said the task force “will assess the feasibility of a new stadium of national significance equipped to host international games and finals, as well as providing a modernised home for Manchester United.”

It added that the group “will bring together local leaders and national experts to examine how stadium development can support renewal of an area of the city with rich industrial history and huge potential for the future, and deliver social and economic benefits for the entire region.”

Ratcliffe preference for new stadium

While United are also considering options for redeveloping the current Old Trafford, the preference of the club’s new co-owner Sir Jim Ratcliffe is to build a new stadium and the club’s board is understood to be supportive of such a move.

In the United statement, Ratcliffe said: “This can be a major regeneration project for an area of Greater Manchester which has played such a key role in British industrial history, but which today requires new investment to thrive again.

“The north-west of England has a greater concentration of major football clubs than anywhere else in the world, yet we don’t have a stadium on the scale of Wembley, the Nou Camp or the Bernabéu. We will not be able to change that on our own, which is why this task force is so important to help us seize this once-in-a-century opportunity.”

 

Chelsea mysteriously drop Oman Air sponsorship deal

Chelsea have mysteriously terminated its sponsorship deal with Oman Air, which is thought to be worth £2 million-a-year and was announced last July.

Under what was described as ‘a multi-year deal’, Oman Air became Chelsea’s ‘airline partner’. However, it no longer features on the ‘club partners’ section of the official website, where Chelsea’s other sponsors are listed and sources have told The Daily Telegraph the deal has been terminated.

That means Chelsea currently do not have first-team front-of-shirt, sleeve or airline sponsors confirmed for next season.

Sources have suggested the problem over the deal arose on the Oman Air side, which forced Chelsea to agree to a termination, but neither party has commented or disclosed any details.

Deal to change chairman every five years

Meanwhile, the newspaper also reported that Chelsea’s owners can pass the chairmanship of the club between them every five years as part of an extraordinary written agreement.

Todd Boehly has been chairman since the current owners bought the club in 2022, which means Clearlake Capital, owned by Behdad Eghbali and Jose Feliciano, will have the opportunity to nominate their own representative in 2027.

The agreement is an option, rather than an obligation, and Boehly could remain as chairman for another five years in 2027 should Clearlake decline the opportunity to take over. Were Clearlake to take the chairmanship, then Boehly would be able to reclaim it in 2032.

Breakdown of shares

Chelsea have never officially confirmed the breakdown of shares in the club since the takeover, but The Telegraph said it has obtained the details of how the money and power is split. Its report revealed that Clearlake Capital, the private equity fund managed by Eghbali and Feliciano, owns 61.5 per cent of the shares and voting rights in the UK-based company behind Chelsea, 22 Holdco.

The remaining 38.5 per cent is split equally between Boehly, Hansjorg Wyss and Mark Walter, meaning each man owns a stake of just under 13 per cent. Boehly, along with Eghbali and Feliciano, is listed as a person of significant control.

While Boehly’s stake is entirely privately funded with his own money, Eghbali and Feliciano have smaller personal stakes within Clearlake’s 61.5 per cent fund that they manage.

 

Saudi sports vice minister: SPL preparing for new ‘wave’ of private investment

A senior figure at Saudi Arabia’s Ministry of Sport has said the country is anticipating a fresh injection of private capital into Saudi Pro League (SPL) clubs as it works to open up to investors.

Speaking at the Bloomberg Power Players Jeddah event last week, the Saudi vice minister of sport Bader Alkadi said: “We expect to have another wave of privatisation coming up soon. That gives us opportunity to make the investment in sport a sustainable investment, an investment that gives us a return to reinvest.”

He added that the flurry of player transfers last year, which brought stars including Neymar and Karim Benzema to the SPL, is also likely to continue. However, it is unclear whether they will be on the same scale.

Spending spree

Saudi Arabia and its sovereign wealth fund, the Public Investment Fund (PIF), have been on a sports spending spree in recent years and Bloomberg previously reported that it was considering a push to attract more outside investors to bolster the SPL.

The kingdom has bankrolled most of its own investments and initiatives thus far, but is seeking more private capital, not only in sports but in its push for more tourists and its aim to build dozens of mega projects that will support Crown Prince Mohammed bin Salman’s Vision 2030 transformation agenda.

Amanda Staveley, CEO of PCP Capital Partners and co-owner with the PIF of Newcastle United, said she sees a “fantastic opportunity” to take a stake in a Saudi club.

 

Everton takeover: More doubts emerge as 777 Partners faces lawsuit over asset transfers

The proposed takeover of Everton by 777 Partners is facing further uncertainty after it emerged that the Miami-based firm is being sued by a creditor who wants to stop it from transferring two subsidiaries, claiming that the transaction was designed to “shield” the assets.

As reported by Bloomberg, Obra Capital said in a New York lawsuit last week that 777 Partners attempted to transfer the two “cash rich” units in order to avoid repaying its debts. Obra said 777 transferred Sutton Specialty Insurance Co. and Sutton National Insurance Co. to co-founder Steve Pasko “for no consideration.”

The creditor said it loaned 777 $40 million in June 2020 and another $15 million the following year. While Obra said that 777 in June 2022 owed it more than $63 million, the debt currently stands at $22.4 million.

777 faces multiple lawsuits over unpaid debts and Obra said the transfer should be blocked to protect all of the investment firm’s creditors. Obra has also filed previous lawsuits against 777 and the insurer over the debts, both of which are still pending.

Questions over 777’s financial health

Obra also claimed that the planned purchase of Everton and its ownership of other clubs has raised questions about 777’s financial health.

“Until recently, 777 maintained a relatively low profile that kept its questionable business practices and penchant for stiffing creditors out of the public eye,” Obra said in the lawsuit. “Then in late 2021, 777 began buying multiple sports teams in Europe and Latin America.”

It added: “777’s flashy shopping spree raised questions about the source of its funding and the health of its business operations.” Obra said the additional attention from the Everton deal led 777’s “house of cards” to begin “crumbling down.”

777 has declined to comment on Obra’s legal action and claims about the firm.

BlueCo 22, the company that owns Chelsea, made a net loss of £653 million following its takeover of the club from Roman Abramovich, the firm’s accounts have revealed.

The entity, controlled by private equity firm Clearlake Capital and investors including Todd Boehly, acquired ownership of Chelsea in May 2022 following Russia’s invasion of Ukraine.

BlueCo 22’s accounts, covering the 16-month period from 2nd March, 2022 to 30th June, 2023 showed that the company’s revenue was £534 million, largely from Chelsea’s commercial, broadcast and matchday income. However, operating expenses, including staff costs, were more than £1.1 billion.

Since the end of the period covered by the accounts, BlueCo has spent £454 million on 22 players and sold 10 for £48 million.

The company’s accounts also revealed that Chelsea made a loss of £90.1 million for the year ending 30th June, 2023, after suffering a deficit of £121.4 million the previous year.

Turnover climbed above £500 million for the first time, increasing from £481.3 million in 2021/22 to £512.5 million for 2022/23. Commercial revenue rose to £210.1 million and matchday income to £76.5 million following the easing of government restrictions on the club after sanctions were placed on Abramovich the previous year.

However, broadcast revenue fell to £225.9 million, down from £235 million, despite Chelsea reaching the Champions League quarter-finals last season, due primarily to the club’s 12th-placed finish in the Premier League. The net loss was incurred despite a profit on the disposal of player registrations and fixed assets of £142.2 million.

Fresh doubts over PSR

Chelsea’s latest losses have raised fresh doubts about the club’s ability to comply with the Premier League’s Profitability and Sustainability Rules (PSR).

The rules permit losses of up to £105 million over three years, although certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.

In a statement, the club said: “Despite the loss in the year and the continued fallout from the sanctions placed on the club in the prior year, the Club continues to comply with UEFA and Premier League financial regulations.”

Meanwhile, BlueCo 22’s accounts showed that the company paid an initial €76 million for Ligue 1 club RC Strasbourg last June, as part of the Chelsea owners’ plans to expand their portfolio of clubs.

Leicester City face potential points deduction for alleged breach of Premier League's financial rules

Leicester City are facing a charge for allegedly breaching the Premier League's Profit and Sustainability Rules (PSR) which could lead to a points deduction next season, according to Sky Sports News.

It is understood Leicester's accounts for the 2022/23 financial year, which will be made public later this month and cover the season they were relegated from the top-flight, are expected to show they exceeded the £105 million losses permitted under PSR over a three-year period.

Sky understands that it could mean the club is formally charged by the Premier League as soon as next week.

It is within the rules for a Premier League PSR breach to lead to a club being punished in the Championship. However, Leicester will not face a points deduction this season.

The Premier League voted at its AGM last summer to introduce new rules to fast-track financial breaches as has happened with Everton and Nottingham Forest – but those new rules were introduced after Leicester had been relegated, and so don't apply to them.

Avoided sanction from EFL

The development comes after Leicester avoided sanction from the EFL earlier this week, despite their latest accounts indicating they were on course to break the Championship’s financial rules by the end of the season.

The EFL is reportedly planning to change its rules to close a loophole that it feels Leicester have exploited in order to avoid being subjected to a strictly-controlled business plan.

Fears grow over long delay to independent regulator as Premier League pushes for diluted powers

The independent regulator for English football is in danger of being delayed until the end of the year, as the process enters a “critical” three weeks, according to a report from The Independent.

Government legislation was expected at the start of last month following months of planning, but there have been no further developments since beyond talks.

It is understood that if the necessary bill is not published by 27th March there is unlikely to be any chance of it getting through until after the next general election, which will take place by January, 2025.

That would also inevitably bring rewriting of the bill, which would likely push the implementation of the regulator until the end of the year.

The strength of the regulator has been one of the main sources of contention, with the Premier League lobbying the government to water it down after sounding a warning last year over risks to future investment in the game.

Talks over new Premier League-EFL deal

Concerns over a delay to the regulator have emerged as secretary of state for culture, media and sport Lucy Frazer has been involved in connected talks over a new financial deal between the Premier League and EFL. An agreement is virtually a prerequisite of the bill.

The Premier League has another meeting on Monday to try and finalise its stance, and insists that the ambition is to get a deal over the line. There is said to be an optimism that it has taken a turn through the last round of negotiations.

RSC Anderlecht sale under investigation over suspected fraud

The Brussels Council Chamber has begun an investigation of alleged fraud into the sale of RSC Anderlecht to current owner Belgian businessman Marc Coucke back in 2017.

As reported by The Brussels Times, Belgium’s federal prosecutor is pursuing 16 suspects, five of which are companies and 11 individuals.

Anderlecht’s former owners and their associates are suspected of selling the club above its true value. The prosecutor seeks to bring them before a correctional court for deception, forgery, money laundering, corruption, breach of trust, and violation of professional secrecy.

Among the accused is former sports director Herman Van Holsbeeck, who reportedly admitted to fraud during his interrogation by the Central Office for the Suppression of Corruption (OCRC).

Ex-president

Other implicated parties include Anderlecht’s ex-president Roger Vanden Stock, former CEO Jo Van Biesbroeck, former CFO Rene Trullemans, and the then club’s lawyer.

Player agent Christophe Henrotay, already in legal sights for other football-related cases, and two of his associates, along with the British company Foot Innovation owned by Henrotay, are also suspected.

The English Football League (EFL) is planning to change its financial rules to close a loophole that it feels Leicester City have exploited in order to avoid being subjected to a strictly-controlled business plan.

Under the financial rules, Leicester were allowed to lose up to £83 million over the last three years - two of which were in the Premier League, with rules in the top flight allowing £35 million losses per year on average, while the EFL says a maximum of £13 million can be lost per season in the Championship.

However, the EFL's independent club financial reporting unit discovered that Leicester were on course to have losses in excess of £83 million for the three-year period.

Leicester did not breach the EFL rules, but their accounts showed they were on course to do so by the end of the season. As a result of the predicted rule breach, the EFL followed its own procedures and told Leicester they wanted the club to submit to a business plan, enforced by the EFL, to ensure the club returned to compliance by the summer.

However, Leicester objected to that suggestion, arguing that because they were in the Premier League for most of the period, the EFL rules did not apply to them. They asked for the matter to be reviewed by the independent Club Financial Reporting Panel, who found in Leicester's favour.

In discussions with the football authorities

A Leicester statement read:

"Although the Club is pleased that the CFRP's decision found in its favour, it is concerned that it was necessary for the CFRP to intervene in this way to prevent the CFRU from acting outside of established EFL rules.

"Leicester City confirms it is in discussions with the football authorities regarding its profitability and sustainability calculations. Notwithstanding the CFRP's decision, the club remains committed to seeking an appropriate overall outcome in this matter."

Burnley could sue Premier League for compensation over Everton's PSR punishment

Burnley are reported to be taking legal advice over suing the Premier League for compensation following Everton’s six-point penalty – reduced from ten points following an appeal – for breaching the league’s Profitability and Sustainability Rules (PSR).

It emerged last year that several Premier League clubs were considering legal action against Everton after they were charged with spending breaches, but that prospect has dissipated due to the club’s financial problems.

However, according to The Daily Mail, Burnley are exploring the possibility of bringing a financial claim against the Premier League on the grounds that they were relegated to the EFL Championship due to what they regard as the top-flight’s failure to enforce its financial rules in real time.

Burnley finished four points behind Everton in 18th place in the 2021/22 season, the final campaign of the three-year period for which the Merseyside club have been punished for overspending, but would have stayed up had the six-point penalty been imposed during that season.

Burnley and Leeds United wrote to the Premier League in May 2022 with a warning that they reserved the right to sue due to concerns over Everton’s spending after they posted losses of £371.8 million over three years without being charged.

Weighing up the costs

Everton were charged with breaching PSR the following March, and now that the case has finally concluded Burnley are understood to be considering their options. Their decision will be based on weighing up the costs of taking legal action against the potential reward should they be successful.

In an interim judgement last summer the chair of independent commission that heard Everton’s case, David Phillips KC, ruled that their Premier League rivals would be entitled to pursue compensation if the club were found guilty.

Brazilian club Coritiba’s owner seeking partner to share 90 per cent stake

The private equity firm Treecorp is seeking a partner for part of its 90 per cent shareholding in the Brazilian club Coritiba, according to a report from Bloomberg.

Treecorp, a Brazilian financial group, agreed to buy control of Coritiba last May following a change in the law allowing clubs to seek outside investment. The firm is now understood to be working with London-based Oakwell Sports Advisory to help it seek a partner.

Sources told Bloomberg that Treecorp, which has committed to invest $100 million in Coritiba over 10 years, would ideally like to team up with a multi-club owner that could fit the team into its structure.

They added that it could also pair up with a strategic partner that could help the club be more competitive, and that the firm is also keen to bring in the latest technology.

Pipeline of players

Like many Brazilian teams, Coritiba, who are based in the country’s southern state of Parana, have enjoyed a healthy pipeline of players who have gone on to play in Europe after earning fees for their home club.

Winger Igor Paixão signed a five-year deal with Feyenoord in Holland in 2022 after playing for Coritiba. In 2020, Manchester City brought in the then 17-year-old defender Yan Couto from Coritiba. He is now playing on loan at Girona in LaLiga.

FC Barcelona looking for new sponsor to help balance 2023/24 accounts

FC Barcelona are looking to agree a deal with a new sponsor which could play a pivotal role in the club’s efforts to balance their accounts for the 2023/24 financial year, Mundo Deportivo has reported.

The sector or location of the new potential commercial partner has not been disclosed, although Barça president Joan Laporta has recently made several trips to Dubai with the aim of closing a new deal. It is understood that if agreed the contract with the new sponsor would be highly valuable to the club.

The Catalan giants are currently forecasting a loss of around €30 million for 2023/24, far worse than the calculations made at the beginning of the season, when they anticipated closing the year in the black.

That figure does not include the €40 million owed by the German investment fund Libero for the purchase of a stake in Barça Visión, which has prompted the club to postpone its planned IPO of the digital unit.

Barcelona are said to believe the money will be collected before the end of the 2023/24 financial year, even if it is through another company.

Stadium move

Barça’s temporary move to the Lluís Companys Olympic Stadium in Montjuïc, while the Camp Nou is being revamped, is said to be a key factor behind the club’s projected losses for the current year.

Barcelona had originally expected to generate around €80 million from matchday income at the venue. However, attendances have been lower than expected, averaging 40,000 in a stadium with a capacity of 56,000.

Fleetwood Town under pressure over ownership of club by convicted fraudster

Fleetwood Town are coming under growing pressure over the continued ownership of the EFL League One club by the convicted fraudsterAndy Pilley, The Athletic reports.

Last July, Pilley was sentenced to 13 years in prison for ripping off small businesses and charities across the UK via his utilities companies, stealing money from vulnerable people and becoming rich in the process.

Despite resigning as a director of Fleetwood’s parent company immediately after his conviction, Pilley still owns the club.

EFL rules required him to divest his shares after the “disqualifying event” of his lengthy prison sentence, but nine months after his conviction, this has not happened.

The group of energy companies Pilley founded in 2002, BES Utilities, is still deeply intertwined with the club on which he has spent £30 million. Its logo is on the team’s shirts and the company headquarters is based in the stadium.

The BES Utilities group includes BES Commercial Electricity Ltd and Business Energy Solutions, both of which are based in the Parkside Stand at Fleetwood Town.

“Continued dialogue”

Fleetwood said they are in a “continued dialogue” with the EFL about a change of ownership. “Andy Pilley (is) in the process of divesting of his shares,” a spokesperson said. “Mr Pilley resigned as a director of the club shortly after the verdict.”

Aston Villa have announced a £119.6 million loss after tax for the year ending 31st May, 2023, after achieving a small profit of £0.3 million the previous year.

A key factor in the huge deficit was a 42 per cent increase in the club’s wage bill, which reached £194.2 million, compared with £137 million in 2021/22.

Turnover rose to £217.7 million, up from £178.4 million, largely due to the extra revenue from the team’s seventh place finish in the Premier League, after ending the previous season in 14th.

Those seven places were worth an extra £19 million and also saw the club return to Europe for the first time in over a decade. They will be competing in the last 16 of the Europa Conference League this month. The club are currently fourth in the Premier League, which would lead to a place in the Champions League next season. Matchday and commercial income also increased in 2022/23 but Villa spent a further £63.7 million on new players while generating a profit of over £22 million from player sales.

In a statement, the club said: “This investment is part of the reason why employee wage costs rose to £194.2m (up from £137m) although there were also increases in central support functions to support the growth of the Club which resulted in a 9% increase in overall employee numbers.

“The amortisation of player contracts also increased by £10m to £92.5m reflecting the increased investment in playing staff.”

PSR breach set to be avoided

Despite the massive overall loss, Villa are not expected to be in breach of the Premier League’s profitability and sustainability rules (PSR), which allow for losses of up to £105 million over three years. Some costs can be deducted, such as investment in youth development, infrastructure, community and women’s football.

The club said: “It is important to note that these figures are in line with the strategic business plan, and we continue to operate within the Premier League’s Profit and Sustainability rules.”

Villa also revealed that it almost doubled the amount it spent on Villa Park – one of the Euro 2028 venues – to £13.4 million, up from £7.1 million, and said they will “continue to seek opportunities to increase the capacity of the stadium [but] we recognise that this must be done in tandem with improvements to the local transport network".

FIFA withdraws Wanda sponsorship rights amid dispute over missed payments

FIFA is locked in a dispute with Dalian Wanda, one of its highest-paying sponsors, and has ceased activating the company’s sponsorship rights after it missed scheduled payments, according to a report from SportBusiness.

The Chinese commercial property conglomerate announced its FIFA Partner deal with the governing body back in 2016 at the height of China’s sports investment boom. The deal was set to run for 15 years, from 2016 to 2030.

The Wanda Group company logo did not appear on pitchside advertising boards during the recent FIFA Beach Soccer World Cup in Dubai and had been removed from the governing body’s FIFA+ streaming platform last week. However, the logo continues to appear on the federation’s main website.

FIFA and Wanda are expecting to hold more discussions soon over the issue, which has been triggered by a shift in Chinese government policy and the heavy impact of the Covid-19 pandemic on Wanda’s property empire.

Both parties told SportBusiness they would not comment on the matter due to its confidentiality.

Focus on domestic market

The Wanda-owned Infront agency has helped oversee the implementation of the sponsorship deal with FIFA, as well as agreements with other rights-holders. The activation of the sponsorship has largely focused on Wanda’s domestic market.

The deal was the first of Gianni Infantino’s reign as FIFA president and the first top-tier sponsorship deal to be signed by the governing body since an agreement with Russian oil and gas company Gazprom in 2013.

EFL secures record deals of ‘at least £148 million’ for international TV rights

The English Football League (EFL) has announced that it has secured record deals, reported to be worth at least £148 million, for its international TV rights over the next four years.

In a statement, the EFL said two agencies, Pitch International and Relevent Sports, will represent the organisation across global TV markets until the conclusion of the 2027/28 season.

According to The Athletic, the deals could see the EFL earn more than the minimum guaranteed £148 million, which in itself is a 40 per cent increase from the previous deals.

It is understood the EFL will receive at least £104 million from Pitch, which covers Europe, the Middle East and North Africa, sub-Saharan Africa, Asia, Australia and New Zealand, and £44 million from Relevant, covering the Americas.

Under the deals, Pitch will distribute 155 Championship games, 38 League One and League Two matches, all promotion play-off fixtures, Carabao Cup rounds, and three EFL Trophy matches.

Relevent Sports will sell all EFL matches, promotion play-off games, Carabao Cup rounds, and three EFL Trophy fixtures and will also manage all betting rights throughout the US.

Streaming services

The EFL said that as part of the new agreement, “clubs will be able to continue international streaming services direct to fans overseas, where matches are not being broadcast exclusively, enabling those based abroad the chance to watch their team’s matches throughout the whole season”.

Premier League clubs to face sanctions for inflating sponsorship deals under new rules

Premier League clubs will face sanctions if they try to secure inflated sponsorship agreements or cheaper transfer deals with companies, organisations or other teams connected to their owners, The Times reports.

New rules published in the top flight’s handbook are much tougher and aim to block clubs bypassing financial controls by earning unfair amounts via means such as sponsorship from a company linked to an owner, or by signing a player cheaply from another club in the same ownership group.

Under the revised rules, teams can now be charged with a breach of the rules if they do not “use all reasonable care” to ensure deals are of fair market value.

There will be no fixed tariff of sanctions should rule breaches occur –all penalties would be available to an independent commission, depending on the severity of the offence.

The updated Premier League handbook states that the rules “seek to ensure the long-term financial sustainability of clubs by extinguishing reliance on enhanced commercial revenues received from entities linked to the club’s ownership”.

Bitter split

It is understood the new rules caused a bitter split in the league when a vote on them went through last month. It was thought to be the closest in the Premier League’s history, with 12 clubs voting for the changes and six against, with two abstaining, just passing the threshold of a two-thirds majority.

The details outlined in the handbook are said to help explain why some clubs were pushing strongly for the revised rules – and why state-connected clubs such as Manchester City and Newcastle United, or those in multi-club ownership groups, were fiercely opposed.

Southampton have reported a £87 million loss for the year ending 30th June, 2023, far higher than the £6 million deficit suffered the previous year.

The club, who were relegated from the Premier League in the 2022/23 season for the first time in a decade, generated turnover of £145.5 million, down from £151 million.

The Saints’ total wage bill increased from around £99 million to £106 million, with the men’s first team accounting for £89.4 million.

Approximately £14.6 million in costs were also incurred from changing managers twice during the 2022/23 campaign. Ralph Hasenhuttl was replaced by Nathan Jones, who joined with coaches Alan Sheehan and Chris Cohen, before he was sacked and Ruben Selles was hired.

The figures resulted in an operating loss of £42.7 million, and this was compounded by a loss on player trading of £44 million.

Big player sales after relegation

The biggest player salesfollowing Southampton’s relegation from the Premier League were completed after the end of the period covered in the 2022/23 accounts.

They included the sales of Belgian midfielder Romeo Lavia to Chelsea for £58 million, English midfielderJames Ward-Prowse to West Ham United for £30 million, and English full-back Tino Livramento to Newcastle United, also for £30 million.

Everton takeover: Premier League decision to take at least another week as concerns grow over club’s future

A decision by the Premier League on the proposed takeover of Everton by 777 Partners can be ruled out for at least another week, according to a report from The Daily Telegraph.

The development comes as pressure mounts on the top-flight to make a decision on the proposed deal as working capital and new stadium financing is assured only to 31st March.

It means that Everton’s financial future will be plunged into major doubt if the takeover saga remains unresolved by the end of the month.

More meetings are anticipated between the Premier League and the Miami-based investment firm in the coming days to clarify outstanding questions face to face.

Independent oversight panel

However, even if the Premier League board is then satisfied it has received all information, under the league’s toughened owners’ and directors’ test an independent oversight panel of KCs will be called in to review conclusions.

The precedent set by Sir Jim Ratcliffe’s acquisition of a 27.7 per cent stake in Manchester United has led insiders to conclude that further process alone will take another seven days.

Mercury/13 completes first club ownership deal with controlling stake in Como Women

The women’s football investment group Mercury/13 has announced the acquisition of a controlling stake in the Italian Serie A club Como Women, marking the first deal with a team struck by the group.

Como Women, who were founded in 2020 but have roots going back to 1997, have risen through the divisions of Italian women’s football over recent years and were promoted to Serie A in 2021/22.

Stefano Verga, who has led Como Women since the team’s inception, will remain as club president and shareholder, alongside pre-existing owners Simone Verga, Manuela Colombo and Cristian Larghi.

Mercury/13’s co-founders and co-CEOs, the Greek-Argentine businesswoman Victoire Cogevina Reynal and Venezuela-born, US-based tech entrepreneur Mario Malavé, will join the club’s board of directors, alongside Verga.

“Strategic commercial partnerships”

Mercury/13 plans to build a multi-club ownership group in the women’s game and is aiming to invest $100 million into clubs worldwide.

In a statement, the group said it “aims to help transform Como Women into one of Europe's foremost clubs, providing a nurturing environment for players to flourish in their careers on and off the pitch.”

Mercury/13 added that central to its vision for the club is “the pursuit of strategic commercial partnerships that recognise the pivotal role of women's football in advancing gender equality on a global scale.”

Cogevina Reynal said: “Through innovative partnerships with forward looking sponsors, we are determined to transform Como Women into a symbol of empowerment and celebration of women in Italy and beyond.”

The German Football League (DFL) joint CEOs, Steffen Merkel and Marc Lenz, have defended the way voting was carried out among clubs over the proposed private equity investment in the Bundesliga’s media rights business after the controversial plans were dropped last month.

Asked in an interview with Kicker “would you like to know how [Hannover 96 managing director] Martin Kind really voted in December?”, Lenz replied: “No – and not by any of the 36 clubs, because there was consensus in the league association for a secret ballot. … The problem at Hannover is a long-standing unresolved conflict within the club.”

Bundesliga and Bundesliga 2 clubs narrowly approved the plans to sell a stake in the league’s media rights unit at the DFL general assembly on 11th December in a private vote, with exactly the minimum two-thirds majority reached.

Kind’s vote – suspected to be in favour of the plans – was seen as decisive, and anger was sparked when he refused to reveal how he voted after being asked by Hannover’s members to reject the investment proposal.

Over the ensuing weeks, amid widespread and increasingly disruptive fan protests across German football, calls grew for a new, transparent vote on the issue before the DFL’s decision to drop the plans.

Also dismissing suggestions that the general assembly vote should have been held in a different way, Merkel said: “A few days before the vote, it was still expected that far more than 24 clubs would vote in favour of such a process. However, the situation has arisen and led to such a controversy in particular because we had a vote with exactly 24 votes in favour, ten against and two abstentions.

“If it had been 29 to seven or 28 to eight, as one might have assumed based on the preliminary talks, no one would have discussed the supposedly decisive vote of a single club.”

“We are certainly not stopping our work”

Commenting on how the dropping of the investment proposal affects the DFL’s plans to boost the global appeal and media rights value of the Bundesliga, Merkel added: “We have been thinking for a long time about how we can develop the league in the interests of the 36 clubs, independently of the search for a strategic partner.

“We are certainly not stopping our work – the partner process was by no means the only topic on our agenda. We will discuss everything else in the coming weeks in the committees and regional conferences. Before deciding on the search for a strategic partner, possible alternatives were already discussed.”

 

Wolves report £67.2 million loss for 2022/23

Wolverhampton Wanderers are expected to avoid being charged with breaches of the Premier League’s profitability and sustainability rules (PSR) despite reporting another heavy loss.

The club recorded a deficit of £67.2 million for the year ending 31st May, 2023 after suffering a loss of £46.1 million the previous year.

The latest financial result takes the club’s combined losses from the last two years to £113.3 million. PSR permits losses of up to £105 million over three years, but certain costs can be deducted, such as investment in youth development, infrastructure, community and women’s football. Thus, the club are expected to avoid the same faith as Everton and Nottingham Forest..

Change of manager increases staff costs

For the 2022/23 financial year, Wolves’ turnover was £168.6 million, up from £165.5 million in 2021/22. However, operating expenses rose to £269.2 million, after totalling £223.9 million during the previous 12 months.

Player amortisation costs amounted to £79.2 million, compared with £60.9 million in 2021/22, while the total wage bill climbed to £141.6 million, up from £120.6 million.

Of the increase in personnel costs, £14.5 million related to non-playing staff, due largely to the change of manager from Bruno Lage to Julen Lopetegui. Lopetegui’s salary was considerably higher than Lage’s, and the club also had to agree to a settlement deal with Lage and his staff, meaning they were effectively paying two management teams for part of the year.

 

Newcastle United aiming to stay at St James’ Park and grow capacity to 60-70,000 despite challenges

Newcastle United want to remain at St James’ Park and expand the stadium into a multipurpose venue that will drive significant revenue growth – despite facing a series of complex challenges, The Daily Telegraph reports.

Sources have told the newspaper that it is the overwhelming preference of the club to remain where they are, even though plans to increase capacity to between 60-70,000 would mean having to overcome several obstacles, both architecturally and in terms of planning issues.

With Grade One listed buildings behind the East Stand, and a road with a Metro tunnel and station underneath behind the Gallowgate End, some difficult choices would have to be made.

A feasibility study into the proposed redevelopment is continuing to consider viable options, and while possible sites for a new stadium have been talked about, it now appears that rebuilding their old home is the most likely route the club is going to take.

“Number one approach”

Newcastle CEO Darren Eales said: “St James’ Park is a great location at the heart of the community. If we can expand St James’ Park, then clearly that would make sense. But we have to know what’s possible. That is our number one approach, and that’s what our experts are doing now.

“We’ve got world leaders looking at it in terms of what is architecturally possible and what that would mean from a capacity and revenue perspective.”

 

FC Barcelona consider ending Nike kit deal and setting up own brand

FC Barcelona are considering ending their partnership with Nike and instead creating their own brand to manufacture their kit, Spanish media have reported.

The American sportswear giant has supplied kits to the Catalan giants since 1998, and the deal – understood to be worth £73 million a year – is currently set to run until June 2028.

However, according to Spanish newspaper Sport, Barça are prepared to move on from Nike, with several alternatives being considered.

Puma are reportedly prepared to pay more than £85 million a year to replace the deal, but Barcelona are instead debating the groundbreaking step of establishing their own brand.

Club president Joan Laporta is believed to be in favour of the approach, which would likely see them partner with a “large multinational” that would manufacture and distribute the shirts.

End partnership early

It is understood that Barça are determined to end the partnership with Nike early. The club’s lawyers are said to be confident that a dispute with the apparel corporation could be won if the split couldn't be resolved amicably.

Speaking on the situation earlier this month, Laporta told Marca: “The operation has been deteriorating, we think [Nike] have breached the contract. … They have not presented themselves. In words, yes. When we have shown our teeth, they have made the effort but it is not enough. It is at this point that we want to find the best solution.”

 

Saudi Arabia launches bid campaign for 2034 World Cup

Saudi Arabia has officially launched its bid campaign to host the 2034 FIFA World Cup, with the unveiling of its bid logo and official website.

The Gulf state was confirmed as the sole candidate to host the tournament in October, after Australia decided not to bid. The Saudi Arabian Football Federation (SAFF) has now begun its campaign under the slogan ‘Growing. Together’.

SAFF said its bid seeks to highlight the parallel between Saudi Arabia’s rapid development and the transformative potential of hosting the World Cup. The logo is made up of intertwined rows of multi-coloured ribbons, displaying football and cultural symbols.

The bid launch comes amid continued intense scrutiny over Saudi Arabia’s human rights record, its treatment of women and views on same-sex relationships.

Mass executions, for a variety of crimes, are still common and critics of the government face house arrest, imprisonment and even torture. The conditions the vast migrant worker population live and work in have also been heavily criticised.

“Rapid transformation”

SAFF president Yasser Al Misehal said: “Telling our football story to the world is of massive importance. And we believe ‘Growing. Together.’ is the perfect, yet simple description of our approach to hopefully hosting the tournament in 10 years’ time.

“Bidding to host a FIFA World Cup is only made possible by the rapid transformation the country is enjoying. We’ve made unprecedented progress in both the men’s and women’s game and our bid is an open invitation to the world to join us on this exciting journey.”

The Premier League is to hold face-to-face talks with Everton’s prospective new owner 777 Partners as part of the final decision-making process on the proposed takeover, according to The Times.

It is understood an agreement to meet has been struck between the league and the Miami-based investment firm, which has been waiting for approval since last September to purchase Farhad Moshiri’s 94 per cent stake in the Merseyside club.

The discussions come two weeks after the Premier League, as part of its owners’ and directors’ test, asked 777 to submit further information about the group’s source of funding and its ability to fund Everton over a three-year period.

777 has so far loaned the club around £190 million to cover day-to-day running costs and those incurred through the building of the new stadium at Bramley-Moore Dock.

Frustration over length of process

There is said to be frustration at 777, whose co-founder Josh Wander is in the UK this week, over the length of time the decision-making process around the takeover has taken amid suggestions 777 will not continue loaning money to Everton beyond March.

Even if 777 pass the owners’ and directors’ test, it would still need to be officially ratified by an independent oversight panel, as was the case with Sir Jim Ratcliffe’s acquisition of 27.7 per cent of Manchester United, which was completed earlier this month.

Bolton Wanderers 25 to 35 per cent stake held by group led by Trafigura head of oil

A group of investors led by Ben Luckock, global head of oil at trading house Trafigura Group, is now a significant minority shareholder in EFL League One club Bolton Wanderers, Bloomberg has reported.

Sources have told the newswire that the group, which consists of around 25 families, some of whom are also executives at Trafigura, now owns around 25 to 35 per cent of the shares in the club. They invest in the club through an entity called BMLL Limited.

Bolton, who are currently third in League One, have struggled in recent years, and were rescued from liquidation by Luckock’s brother, Nick, and current Bolton chair Sharon Brittan in 2019, who shared connections via the venture capital industry.

“Drifted up over time”

Ben Luckock, who first invested in Bolton around two years ago, told Bloomberg that the size of the group’s shareholding had “drifted up over time” and that he’d got involved after having been convinced by his brother’s sensible approach to investing in a football team.

“Some of the hard yards had already been done by then,” he said, adding: “We’re willing to be very much in the background. I’ve got a huge amount of trust in my brother and zero interest in delving into any control aspects.”

Barnsley post £4 million loss for 2022/23

Barnsley have reported a loss of £4 million for the year ending 31st May, 2023, after suffering a deficit of £7 million the previous year.

The accounts covering the 2022/23 season, which ended with the Reds reaching the League One play-off final, showed the South Yorkshire club made an operating loss of £5.9 million and a player trading profit of £1.9 million.

During the period covered, the club sold several players following relegation from the Championship in 2021/22, including Cauley Woodrow, Carlton Morris, Callum Brittain and Michal Helik.

Turnover for 2022/23 fell to £9.5 million, down from £15 million, primarily due to a significant reduction in EFL distributions and Premier League solidarity income derived from broadcasting rights. Income from EFL distributions fell to £2.9 million, compared with £8.6 million in 2021/22.

Broadcast revenue declined to £0.3 million, down from £0.6 million, while commercial income dropped to £0.6 million, compared with £0.7 million.

However, matchday income rose from £2.9 million to £3.4 million, due to improved attendances and additional revenue generated from reaching the play-off final, and merchandise income increased from £0.7 million to £0.8 million.

Shareholders inject equity of £6 million

Barnsley also confirmed that the club's shareholders injected equity of £6 million to ensure it was able to meet its ongoing financial commitments during the year. The report added that in the post year end period, the club had received further equity injections of £3.6 million.

The figures also revealed that the club is still owed over £2 million on instalments from player sales by other teams.

Revenue streams being affected by Barnsley remaining in League One was cited among the principal risks and uncertainties facing the club going forward, alongside cash management within the constraints of available capital and a lack of influence over principal revenue streams relating to central broadcasting contracts.

German Football League (DFL) Chairman Hans-Joachim Watzke has said that the disruption of a key private equity investment deal in German football is the work of a vocal minority, not the wider fan base.

“A mere five percent of organised fans opposed the investment, yet their influence was enough to unsettle the clubs and ultimately freeze the deal,” Watzke said in a call to international journalists, including Off The Pitch, from New York on Tuesday.

His comments follow last week’s collapse of a deal between the DFL and CVC Capital Partners to bring in private investment to the Bundesliga’s media rights business.

Last December, 24 of the 36 clubs in the Bundesliga and second-tier Bundesliga 2 voted to permit the DFL to commence negotiations to sell an eight per cent stake, valued at €1 billion, in its media rights subsidiary. Following Blackstone’s withdrawal from negotiations earlier this month, CVC were the only remaining bidder.

Watzke highlighted the unique challenge in German football, where traditionalist views often clash with the modernisation efforts of its leaders.

He spoke of the general scepticism towards the term “investor” and the ingrained traditions across German society that render such financial engagements sensitive.

“Germans are traditional, perhaps even a bit old-fashioned,” he said. “In Germany, investor is perhaps not the best word.”

Despite the investors’ assurances and clear boundaries safeguarding the fans’ interests, a deep-seated mistrust persisted, he added. “The dilemma lies within the societal fabric itself; any new proposal is met with scepticism,” he added.

Organised fan groups ultimately wielded significant power, enough to shift the sentiment among Bundesliga clubs. Watzke claimed that “average fans” had no problem with the deal and only “five percent of the fans – which is not so much, but they're the organised fans – were against it.”

He said that there was an initial consensus supporting the investment, but the tide turned as fan protests intensified.

“When I recognised that the majority was not there, then I stopped it,” he added.

Highlighting the ramifications, Watzke said that the financial stability of giants like Bayern Munich and Borussia Dortmund, the club of which he is CEO, remains unaffected, but he voiced concern for the rest of the league.

“The setback will predominantly impact the smaller clubs, those who would have benefited immensely from the financial boost to level the playing field,” he added.

North American launch day

The row over the collapsed CVC deal, somewhat overshadowed Mr Watzke’s day in New York, where he was opening Borussia Dortmund’s first office in North America, building on their international presence and mirrored in their successful establishments in Shanghai and Singapore.

The two Asian offices generated €10 million per year each in commercial revenue, he said, and he expected the US operation to lift revenues from €4 million annually in the Americas to a similar sum.

Watzke emphasised the strategic importance of aligning with the surging interest in soccer among American youth ahead of next year’s FIFA Club World Cup and the World Cup in 2026.

“We played in San Diego, in Las Vegas, and in Chicago, and you can smell it. The younger people, they are very close now to soccer.” He said this connection steered Dortmund's decision towards anchoring a permanent base in New York, aiming to forge stronger ties with the American audience and stakeholders.

Watzke firmly believes that “now is the right time” for this venture, particularly highlighting the potential market readiness following the tenure of Christian Pulisic at Dortmund and the current involvement of Giovanni Reyna, who is anticipated to return from his stint at Nottingham Forest at the end of the season.

“We want to make a lot of things. Now we open our office, but it’s a commitment to American soccer, and we want to bring the club to the different regions in the US.” He underscored the intent to expand Dortmund’s academy, host tournaments, enhance their social media footprint, and increase sponsorship revenues. He also spoke of the importance of fan clubs in the US: Dortmund currently have thirty three; he has ambitions for 100.

“The local people must get a feeling that Borussia Dortmund are there and they are not only there to get money but they are there to explain football and their own competence in creating world-class players.” He emphasized a long-term commitment, promising, “If we now go to New York, we will be there in 10 years, you can be sure.”

Club World Cup details

Watzke also revealed that he had held talks with the FIFA President, Gianni Infantino, about the expanded FIFA Club World Cup, which will be staged in the United States in June and July 2025 and for the first time played by 32 teams.

Little has been shared by FIFA so far about the financial impact of the tournament. Watzke played down the financial relevance, saying that it served mostly as a window to promote Dortmund to the rest of the planet.

Expressing high hopes for the tournament’s impact he said: “The whole world will watch this Club World Cup, and for us to be there as only one of two German clubs, it's a very, very big thing.”

Would the financial impact not merely reinforce financial disparities within the German game, with Bayern and Dortmund pulling ever further away from the chasing pack?

“I hope that we will get richer, and I hope Bayern Munich not,” he joked.

“But it does not work like that.  This tournament is only every four years, not like Champions League every year. With the income [from the] tournament, and it will be a very big tournament, but only every four years, you cannot change the relations in Germany. Never ever.”