Arsenal have reported a loss of £52.1 million for the year ending 31st May, 2023.

The deficit compares with the £45.5 million loss recorded the previous year. However, the club said the result was impacted by “impairment write-downs on certain player registrations amounting to £18.1m”.

The loss excluding the impact of exceptional items for 2022/23 was £34 million, down from £45.5 million in 2021/22.

The underlying figures were boosted by Arsenal’s return to European competition, with the club reaching the last 16 of the Europa League, and a second place finish in the Premier League.

Football revenue for the year was £464.6 million, up from £369.1 million. Broadcast income climbed to £191.2 million, compared with £146 million in 2021/22, while commercial revenues reached £169.3 million, up from £141.7 million.

The return of European football meant there were 24 home fixtures, with matchday income amounting to £102.6 million, compared with £79.4 million the previous year. The club noted that this was the first time matchday revenue had returned to more than £100 million since 2014/15.

Player trading profit drops to £10.7 million

The profit on player sales was £10.7 million, down from £22.2 million, while player loans amounted to £1.5 million, compared with £2 million the previous year. Meanwhile, Arsenal’s total wage bill rose to £234.8 million, up from £212.3 million.

The club said in a statement: “During 2022/23 and subsequently during the summer 2023 transfer window, the club has again invested strongly in the development of its men’s first-team playing resources. This investment recognises that qualification for UEFA competition represents a pre-requisite to re-establishing a self-sufficient financial base.”

Spanish court dismisses Real Madrid and Athletic Bilbao lawsuit over LaLiga's deal with CVC

A Spanish court has dismissed the legal action taken by Real Madrid and Athletic Bilbao against LaLiga over its investment deal with CVC Capital Partners.

As reported by Spanish media, the Madrid court's ruling found nothing unlawful in the LaLiga Boost deal, which was struck back in 2021 and approved by 38 Spanish clubs.

The private equity firm agreed to invest a total of €2 billion into league-led growth projects in return for an 8.2 per cent share of LaLiga broadcast and sponsorship revenues for 50 years.

Real Madrid and Athletic filed a complaint in January 2022 claiming the deal would cause irreparable damage to Spanish football, and that it violated Spanish sports law and LaLiga's statutes.

LaLiga welcomes decision

In a statement, LaLiga welcomed the judge's decision, pointing out that the deal has allowed the majority of its clubs to make investments without state aid. The court ruling can be appealed.

Under LaLiga’s conditions for the CVC project, clubs are permitted to spend up to 70 per cent of funding from the total investment on infrastructure and other growth initiatives, with 15 per cent for servicing debt, and the other 15 per cent for signing players.

Last month, LaLiga said it was delaying the release of the last remaining payment of €350 million to its clubs as it wanted them to present details of how they will spend it.

Reading handed two-point deduction by EFL for failing to meet HMRC payment obligations

Reading have been hit with a fresh two-point deduction by the English Football League (EFL) for failing to meet HMRC payment obligations, with a further two points suspended.

The punishment brings the League One club’s total number of deducted points to six for the current season, after they were deducted four points earlier in the campaign for the late payment of wages.

In a statement yesterday, the EFL said Reading’s owner, Dai Yongge, has also been fined £100,000 for “his repeated failures to deposit an amount equal to 125 per cent of the club’s forecast monthly wage bill in a designated account”.

The EFL added: “Mr Dai has demonstrated an unwillingness to support the club’s current financial commitments, in contrast to his approach following the change of control in 2017. That is creating significant uncertainty, and the current impasse has to be broken.

“Therefore, the league urges Mr Dai to provide his club with the appropriate resources needed while at the same time accelerating his efforts to sell his majority shareholding to new owners, so that everyone associated with Reading, including staff, supporters and the local community, can move on and prepare for a positive future.”

Nineteenth in table

Reading, who dropped down to 19th in the League One table following the two-point deduction, said in a statement that “Mr Dai is proactively trying to secure the sale of the club with negotiations continuing with various parties”.

Reading’s total points deduction under Dai’s ownership is now 18. Last month, the club were also handed a suspended three-point penalty after a pitch invasion by fans protesting against Dai caused their League One fixture against Port Vale to be abandoned.

Borussia Dortmund have recorded large increases in both profit and total revenues for the first six months of the 2023/24 financial year compared with the same period the previous year.

The Bundesliga club reported a profit of €70.6 million, a rise of 71.4 per cent on the €41.2 million achieved in the first half of 2022/23, while total revenues, including player sales, reached €367.7 million, up from €308.2 million, an increase of 19.3 per cent.

Income from player trading amounted to €111.2 million, compared with €86.6 million in the first six months of the previous year, leading to a profit on player sales of €82.4 million, up from €62.2 million.

Turnover, excluding player sales, totalled €256.5 million, an increase from the €221.6 million earned in H1 2022/23. Broadcast revenues reached €109.3 million, up from €96.8 million, while matchday income rose to €27.6 million, compared with €21.1 million.

Commercial revenues remained stable, amounting to €70.5 million, up slightly from the €70 million generated in the corresponding period last year. Merchandise income reached €26.4 million, compared with €16.8 million, while conference, catering and miscellaneous income rose to €22.7 million, up from €16.9 million.

Wage bill rises to €126.7 million

In terms of costs, Dortmund’s wage bill rose by €14.4 million from €112.3 million to €126.7 million, while depreciation, amortisation and write-downs declined by €3.2 million from €49.8 million to €46.6 million. The club’s other operating expenses were up €18.6 million from €60.3 million to €78.9 million.

Commenting on the results, Trion Reid, an analyst at Berenberg, said: "We continue to believe that this well-run club’s revenue should be correlated with the growing popularity of football, yet the market cap is less than the current transfer value of the squad, with nothing attributed to the value of the brand or the fully-owned stadium."

 

Lyon record €60.6 million loss for first six months of 2023/24

Lyon have posted further heavy losses, with the Ligue 1 club recording a €60.6 million deficit for the six-month period ending 31st December, 2023, after suffering a €60.2 million loss in the corresponding period last year.

The result came despite total revenues, including player sales, reaching €172 million, up from €134.8 million in the first half of 2022/23.

The increase was driven largely by the club’s summer transfer activity, with income from player sales reaching a record €94.9 million for the period, more than double the €43.8 million earned in the corresponding period last year. The profit on player trading was €78.3 million, up from €31.2 million.

The transfer activity included the sales of right winger Bradley Barcola to Paris Saint-Germain for €40.5 million, centre-back Castello Lukeba to RB Leipzig for €30 million and midfielder Romain Faivre to Bournemouth for €14 million.

However, turnover excluding player sales fell from €91 million to €77.1 million. The H1 2022/23 figure included the first payment of €16.5 million linked to CVC’s investment deal with the LFP. As a result, broadcast revenue for that period was €37.7 million, and fell to €17.7 million for H1 2023/24.

Among the other regular income streams, matchday revenue remained the same on €15.8 million, sponsorship and advertising income declined from €19 million to €16.7 million, and brand-related revenue was stable on €11.1 million.

However, there was a big increase in events income, which more than doubled from €7.4 million to €16.2 million due to the Red Hot Chili Peppers concert in July and five Rugby World Cup matches in the autumn, as well as the first events at the multipurpose LDLC Arena, which opened in November.

Wage bill drops to €84.5 million

As for costs, Lyon’s total wage bill was €84.5 million, down from €86.2 million. Personnel expenses for the playing squad fell by €8 million. However, non-sporting staff costs – which included those for the new general management appointed following the takeover of the club by John Textor’s Eagle Football Holdings in December 2022 – increased by €6.3 million.

Commenting on the results, Trion Reid, an analyst at Berenberg, said: “While EBITDA turned positive at €7.6 million, compared to a €23.7 million loss last year, higher exceptional and financing costs meant that the net loss was similar, at €60.6 million compared to €60.2 million last year.”

RWD Molenbeek purchase

Away from the results, Lyon confirmed that its parent company OL Groupe has acquired from Eagle Football its 99 per cent stake in the Belgian club RWD Molenbeek for €14.5 million. The club also revealed that ahead of its planned listing on the New York Stock Exchange, the corporate name of OL Groupe will change to Eagle Football Group before the end of next month.

Reid said: “We believe that the move to a multi-club structure represents an interesting strategy that could reduce the inherent sporting risk of an investment in a football club. However, the high debt and negative profitability of the group leave us still cautious on the shares, which trade on a calendarised 2024 multiple of 3.0x EV/sales.”

 

Sporting CP's half-year profit reaches €58.3 million due to player sales boost

Sporting Clube de Portugal have posted a profit of €58.3 million for the six-month period ending 31st December, 2023, 23 per cent higher than the corresponding period the previous year.

The result was achieved thanks to record total revenues of €178.1 million, with activity in the transfer market the key driver.

The club’s player trading in the summer generated €122.7 million in transfer fees, resulting in a profit on player sales of €86.3 million.

It meant that player trading generated 69 per cent of the club's total income in the period. Standing at €55.4 million turnover, not including player sales, suffered from the impact of the team playing in the Europa League this season after competing in the Champions League group stages in 2022/23.

Revenue from UEFA payments amounted to €10.4 million, down from €35.4 million in the first half of the previous year, a drop of 70 per cent.

Player expenses up

As for expenses, Sporting’s wage bill was €42.5 million, up 11 per cent year-on-year, while player amortisation also increased, reaching €20 million, a rise of 26 per cent.

 

Premier League auditor Deloitte awarded key contract related to new independent regulator

The Premier League’s auditor Deloitte has been awarded a key contract in helping to set up the new independent regulator for English football, according to a report from PA.

Sources have expressed concern to the news agency over a potential conflict of interest for Deloitte, which signed off the Premier League’s most recent set of annual accounts.

The involvement of the financial services firm has raised some eyebrows, at a time when the regulator’s precise remit is still unclear as the wait goes on for the publication of the Football Governance Bill.

The English Football League (EFL) and campaign groups want the new regulator to be able to review whether any new deal agreed between the Premier League and the EFL on how broadcast revenues are split meets the regulator’s stated aim of ensuring the sport’s financial sustainability.

It is understood that EFL clubs left a meeting with culture secretary Lucy Frazer earlier this month concerned that the regulator would not be given powers to correct any settlement which is agreed, something which football reform group Fair Game has said would be “unacceptable”.

Support on regulator’s operating model

A UK government source told PA that the Deloitte contract will involve the firm providing support around the design and implementation of the regulator’s operating model, and insisted the firm will not be providing advice on, or developing, regulator policy.

The source added that Deloitte will look at how the regulator is structured and staffed, as well as its systems and infrastructure requirements. They said any potential conflicts of interest would be managed in the usual way, and were considered as part of the procurement process.

The German Football League (DFL) has announced that controversial plans to sell a stake in the Bundesliga’s media rights business to a private equity firm have been abandoned, marking the second time in nine months such a proposal has been dropped.

The DFL’s decision, made at an Executive Committee meeting in Frankfurt yesterday, follows widespread fan protests and calls for a new vote over the latest plans, which were narrowly approved by clubs in December.

Earlier this month, Blackstone withdrew from the race to invest in the media rights unit, leaving CVC Capital Partners as the sole remaining bidder. Following Blackstone’s withdrawal, DFL had insisted that the plans remained on track.

However, in its statement issued yesterday, the league said its Executive Committee had “unanimously decided not to continue the process of concluding a marketing partnership.”

DFL supervisory board chairman and Executive Committee spokesman Hans-Joachim Watzke said: "In view of the current developments, a successful continuation of the process no longer seems possible.” He went on to stress that “returning to orderly match operations must be the primary goal of the DFL.”

Watzkeadded: “Even if there is a large majority in favour of the business necessity of the strategic partnership, German professional football is in the midst of a crucial test that is causing major disputes not only within the league association between the clubs, but also within the clubs between professionals, coaches, club managers, supervisory bodies, general meetings and fan communities, which is increasingly vehemently challenging match operations, concrete match processes and jeopardising the integrity of the competition.

“In view of the circumstances in the league association with its 36 member clubs, the viability of a successful conclusion of the contract in terms of financing the 36 clubs can no longer be guaranteed.”

Controversial voting behaviour

Watzke also addressed the calls for a fresh vote on the proposed media rights stake sale, and referred to the controversial voting behaviour of Hannover 96 managing director Martin Kind, who refused to reveal how he voted in December after being asked by the club’s members to vote against the plans.

“The Bureau, also taking into account all the legal aspects, has come to the conclusion that any further votes would not solve the problem,” Watzke said. “The starting point is the vote on 11 December 2023, which resulted in a 2/3 majority for a final mandate for the Presidium.

“This vote is considered legally effective within the Presidium and in the opinion of the lawyers. At the same time, it should not be overlooked that this vote lacks broad acceptance due to the events surrounding Hannover 96.

“However, any new vote with the aim of establishing this acceptance through a resolution would raise further legal questions regarding the assessment of the legally effective decision made in December 2023, which was not questioned or challenged by any club at the time, which would entail the risk of new legal questions or even disputes.”

Manchester United appoint INEOS directors to board as Ratcliffe investment is completed

Manchester United have appointed two new directors to the club’s board following the completion of INEOS owner Sir Jim Ratcliffe's purchase of a 27.7 per cent stake in the club.

United confirmed the minority stake acquisition had been completed in a statement on Tuesday, and in an SEC Filings announcement yesterday revealed that INEOS co-founder John Reece and INEOS Sport chairman Rob Nevin have both been confirmed as board members.

The filing also confirmed that former CEO Richard Arnold resigned from the board last week. He stepped down from his role as CEO in November but remained on the board of directors until he handed in his resignation letter last week.

INEOS will assume control of United's football operations, with the group’s director of sport Sir Dave Brailsford and CEO of sport Jean-Claude Blanc also due to sit on the club’s football board.

Ratcliffe reveals more details of INEOS strategy

As Ratcliffe’s plans at United begin to take shape, the British billionaire has shared further details of the INEOS strategy, telling the Belgian newspaper De Tijd he needs to embark on a culture transformation at the club because it is not geared for success.

“We have to look at the organisation of the club, because it is not good at the moment,” Ratcliffe said. “Take the head coach [Erik ten Hag] for example: he must report directly to the CEO. That is no longer possible in a modern football organisation.

“We then have to ensure that the right people end up in the right positions. Every person in management must be world-class. And then it is important to create a positive, supportive, friendly and high-quality environment.

“That culture was missing before. Only in such an environment can you get the best out of sportsmen. If successful, the results will follow automatically. That’s the plan and I believe in it.”

Gary Neville invited to help regenerate Old Trafford

Meanwhile, according to a report from The Times, former United captain Gary Neville has been invited by the club to join a special committee to oversee the regeneration of Old Trafford and the surrounding area.

It is understood that Neville, who co-owns Hotel Football and University Academy 92, which neighbour the stadium, has had a series of meetings with Collette Roche, United’s chief operating officer, about the role.

Brentford owner Matthew Benham hires Rothschild and eyes £400 million valuation as sale kicks off

Matthew Benham, the owner of Brentford, has hired the multinational private and merchant bank Rothschild to advise on a potential sale of the West London club, according to a report from Sky News.

Rothschildis expected to kick off a formal process in the near future amid anticipation that Brentford will become the latest in a string of Premier League clubs to draw interest from US-based investors.

One insider told Sky that Benham, who initially invested in the Bees in 2007, was open-minded about whether to sell a minority or majority shareholding in the club, but that any deal would be expected to value it at more than £400 million.

The source added that if he does decide to offload a controlling stake, the current owner would want to remain as a minority investor for the long term.

"We must not stand still”

A spokesman for Brentford declined to comment on Rothschild's appointment or its potential valuation, but reiterated a statement issued to Bloomberg in December, which said: "Given the recent rise and growth of our club and the changing shareholder landscape within the Premier League, it's no surprise that there has been interest in investment opportunities at Brentford FC.

"While Matthew Benham's commitment to the club remains as strong as it ever was, it is only natural, and perhaps even essential, for us to carefully explore what new investment could potentially mean for the future of Brentford FC.

"We must not stand still and we remain absolutely determined to safeguard the long term future of Brentford FC and to remain competitive in the world's most challenging and successful league."

Mexico's Club America listed on stock market to help fund Azteca Stadium revamp ahead of 2026 World Cup

Club America has become the first football team in Latin America to be listed on the stock exchange, with some of the money raised going towards the renovation of its Azteca Stadium ahead of the 2026 World Cup.

The Mexico City-based club was listed on the Mexican Stock Exchange (BMV) on Tuesday under the name of the Ollamani company, which manages operations of the club, the stadium and other businesses owned by media company Grupo Televisa.

At the close of its debut on the stock market,Club America’s share price almost tripled, from 11.50 pesos (€0.6) to 29.99 pesos (€1.6). As a result, its market capitalisation went from the initial 1.37 billion pesos (€75 million) to 3.98 billion pesos (€216 million) at the end of the day.

$150-160 million renovation

The listing is a strategy by Grupo Televisa to finance the $150-160 million renovation of the Azteca Stadium, which will stage the 2026 World Cup opener and two other group-stage games, as well as one match in the first knockout round and one in the round of 16.

America, Mexico's most successful club and reigning champions, are the 10th most valuable soccer team in Latin America, according to last year's Forbes list, with a value of $256.1 million including the stadium.

The 83,264-capacity venue was the first venue to host two World Cup finals, with Pele's Brazil winning the first in 1970 and Diego Maradona's Argentina the second in 1986.

Rochdale target £2 million injection from 90 per cent stake sale to secure club’s future

Rochdale have launched a desperate plea for investment as the National League club bids to stave off the threat of liquidation by the end of next month, The Daily Telegraph reports.

The Lancashire club, who dropped out of the English Football League for the first time in 102 years last season, have been losing around £1.2 million every season for the past six years and are now fighting to avoid extinction.

Chairman Simon Gauge said the club is “looking for an investor to inject £2m to gain 90% of the club”, adding that it needs a new owner in place by the end of March.

Gauge has called an emergency meeting of shareholders at Rochdale’s Spotland stadium on 7th March in the hope of passing a resolution that can create conditions more favourable to potential investors.

“The existence of Rochdale AFC is at stake”

In a statement, Gauge said: “Let me leave you in no doubt, this resolution needs to be passed at the EGM for us to have any chance of securing the required investment that will ensure the long-term future of our club.

“If it isn’t passed, the threat of liquidation at the end of March is very real. The passing of this resolution does not guarantee saving the club, but it will certainly give it a fighting chance.

“To be clear, the existence of Rochdale AFC is at stake. The opportunity to give a long-term future is now in the shareholders’ hands.”

The Dutch Eredivisie has captured attention this season due to Ajax's initial struggles both on and off the pitch. However, the 36-time league champions have made a remarkable recovery and are once again contending for the coveted European qualification spots.

Traditionally, the league has been dominated by a triumvirate consisting of Ajax, Feyenoord, and PSV. Yet, the current season has seen other clubs emerge to challenge this established hierarchy.

Although it remains unlikely that these sub-top clubs will vie for the top or even second place in the foreseeable future, Ajax’s recent difficulties have injected a sense of optimism that the dominance of the big three is not impregnable.

Thus, it becomes fascinating to delve into the financial landscape of Dutch football, as unveiled in the latest financial reports from a range of clubs for the 2022/23 season. These insights will shed light on how the smaller teams stack up financially against the three powerhouses.

Rising turnover with one club clear at the top

Analysing the financial data from nine Dutch clubs for the 2022/23 season reveals a consistent upward trend, with each club experiencing a rise in turnover compared to the 2021/22 season. On average, a notable 21.1 per cent increase in turnover was observed, with FC Twente and AZ Alkmaar showcasing the most significant improvements.

FC Twente's turnover surged by nearly 50 per cent, reaching €39.6 million, buoyed by their return to European football for the first time since the 2013/14 season. Similarly, AZ Alkmaar leveraged their European success from the previous season by advancing to the Conference League semi-finals in 2022/23, which resulted in a 40 per cent increase in their turnover to €49.5 million.

For the fifth consecutive fiscal year, Ajax retained their status as the highest earner in the league, boasting a turnover of €196.3 million. Their closest rivals, Feyenoord and PSV, reported turnovers nearly €100 million lower. Feyenoord's turnover stood at €99.1 million, attributed to their title-winning campaign, whereas PSV recorded a turnover of €97.6 million.

Despite trailing behind these two clubs in the 2022/23 season, Ajax distinguishes itself as the only Dutch club with the financial clout to compare with Europe's elite teams. 
It is crucial to note that the figures mentioned exclude earnings from player sales.

Including transfer income, Ajax's total revenue for the 2022/23 fiscal year escalated to €354.8 million. In contrast, Sparta Rotterdam's total income of €18.5 million starkly highlights the financial disparities within Dutch football.

Transfer income plays a significant role

Ajax's esteemed academy and astute recruitment strategies have culminated in a remarkable €551.2 million generated from player sales since the 2017/18 season. In contrast, PSV, AZ Alkmaar, and Feyenoord collectively amassed approximately €480 million from player sales over the same period.

In the 2022/23 season, Ajax's player sales soared to €158.5 million, a figure bolstered by the record-breaking sale of Antony, marking the highest transfer fee in the history of Dutch football. PSV and Feyenoord also made significant sales, fetching €77.4 million and €50 million, respectively.

On average, player sales accounted for 29.5 per cent of the total income among the nine clubs, encompassing revenue primarily from matchday, commercial activities, and broadcasting. Ajax, once again, stood out by generating 44.7 per cent of its total income from player sales, with PSV closely behind, where player sales constituted 44.2 per cent of their €175 million total income for the 2022/23 season.

Sparta Rotterdam and FC Twente reported the lowest percentages of total income derived from player sales, at 12 per cent and 14 per cent respectively, translating into approximately €2.2 million for Sparta Rotterdam and €6.4 million for FC Twente in transfer income.

For most clubs, the primary sources of revenue were transfer income and commercial earnings. Moreover, income from broadcasting exhibited significant disparities among the clubs. Ajax, for example, reported €55.6 million from broadcasting, starkly contrasting with the €3.5 million reported by Sparta Rotterdam, who finished 6th in the league.

This substantial financial disparity is largely due to Ajax's participation in the Champions League and subsequently the Europa League during the season, which significantly bolstered their financial position. Excluding the additional UEFA broadcasting revenue, domestic broadcasting income stood at €10.5 million for Ajax.

The other European participants in the 2022/23 season, Feyenoord and PSV, reported total broadcasting revenues of €29.2 million and €28.5 million, respectively, with €7.8 million and €10.1 million stemming from domestic broadcasting. This highlights the financial disparities and the impact of European competition on Dutch clubs' revenues.

Dutch football has a sustainable issues

The reliance on income from player sales by Dutch clubs has not only been remarkable in recent years but has also become essential for reducing losses or achieving profitability. This dependency underscores a longstanding issue where, in the absence of profits from player transfers, most clubs record an operating loss—a trend predating the COVID-19 pandemic.

Ajax disclosed an operating loss of €51.2 million, while PSV and Feyenoord reported losses of €42.1 million and €37.6 million, respectively. Among the nine clubs reviewed, the average operating loss was €20 million. This figure illustrates that, on average, the clubs would need to match this amount in profits from player sales to transition towards a sustainable business model.

FC Twente distinguishes itself as the solitary team to report an operating profit, underscoring their resilience and strategic management. Notably, FC Twente are also the last club outside the traditional big three—Ajax, PSV, and Feyenoord—to win the Eredivisie, achieving their inaugural title in the 2009/10 season. 

Following a period of struggle that culminated in relegation during the 2017/18 season, FC Twente's subsequent promotion has seen them consistently perform as one of the top contenders, securing 5th place in the 2022/23 season, merely three points adrift of AZ Alkmaar. This achievement highlights FC Twente's commendable recovery and their competitive stature within Dutch football.

Widening financial gap

When examining EBIT (Earnings Before Interest and Taxes), which includes profits from player sales, six out of the nine clubs presented positive outcomes. Nevertheless, Utrecht and Heerenveen found themselves at the less favourable spectrum, each reporting EBIT losses exceeding €5 million. Sparta Rotterdam also faced a slight setback, with a reported loss of €0.5 million.

The sale of key players Antony and Lisandro Martinez to Manchester United significantly boosted Ajax's financial performance, catapulting them to an impressive EBIT result of €62 million, a stark turnaround from losses in the two preceding seasons.

Trailing Ajax, PSV recorded an EBIT of €19 million, with Feyenoord not far behind, posting €9.5 million. Along with FC Twente, these clubs were the sole entities to document an enhancement in their EBIT relative to the previous year.

AZ Alkmaar experienced the most pronounced decline, with their EBIT plummeting from €23.7 million in the 2021/22 season to just €1.2 million in the latest fiscal period.

This significant downturn is largely attributable to a decrease in profits from player sales, dropping from €41.4 million in 2021/22 to €13.9 million in 2022/23. FC Groningen, which faced relegation, witnessed a considerable fall in their EBIT, reporting a reduction of €9.1 million to settle at €2.1 million.

This illustrates the volatile nature of football finance, where changes in player sales can markedly impact a club's financial health and operational success.

Could the financial dynasty of Ajax be over?

The recent financial disclosures from Dutch clubs underscore the growing economic chasm between Ajax and its domestic rivals. In the ongoing 2023/24 season, Ajax have persisted in its strategy of selling key players, such as Mohammed Kudus and Jurrien Timber, for cumulative fees reportedly exceeding €150 million. This strategy is set to further amplify the financial disparity between Ajax and other Dutch clubs in the current fiscal year.

Ajax have also continued its approach of scouting and investing in promising talents across Europe to replenish its squad. Yet, for the first time in recent years, the drawbacks of this strategy have become evident with their challenging start to the 2023/24 season. 

This development has thrust Ajax into the spotlight of Dutch football discourse, prompting speculation about the sustainability of their model, especially if they were to deplete their reservoir of marketable players. Given their recent history of operational losses, Ajax's reliance on player sale profits to achieve a positive financial outcome is starkly evident.

Moreover, Ajax's financial stability is heavily contingent on qualifying for European competitions, with a significant portion of their broadcasting revenue stemming from their participation in these tournaments. 

Failure to secure European qualification could jeopardize this crucial income stream. Conversely, this scenario could present a golden opportunity for other clubs to access the substantial financial rewards of European football.

However, with PSV and Feyenoord currently securing the Champions League spots for the season, the competition for the remaining European qualifications is fierce. While these funds could provide a substantial financial uplift for clubs outside the traditional top five, the limited availability of European spots may perpetuate the existing disparities within Dutch football. 

This dynamic threatens to solidify the entrenched hierarchy, making it increasingly difficult for lower-ranked clubs to challenge the dominance of the established elite.

The Premier League has called an emergency meeting of its 20 clubs to finalise a financial settlement with the English Football League (EFL), according to Sky News.

The meeting, which has been planned for 29th February, is said to be part of a last-gasp bid to reach agreement on the so-called ‘New Deal’ before the UK government publishes legislation that will establish an independent football regulator.

It is understood the Premier League has notified clubs that it intends to convene the meeting to thrash out a New Deal proposal that can be presented to their 72 EFL counterparts.

The meeting will come at around the same time that culture secretary Lucy Frazer publishes the Football Governance Bill, which intends to hand a new watchdog powers to impose a financial settlement on the sport.

Sources told Sky there would be an option to vote on the New Deal at the 29th February meeting, but that an additional gathering had also been scheduled for 11th March if it is needed to get a sufficient number of top-flight clubs voting in favour.

Final figure

The New Deal is projected to cost Premier League clubs anywhere between £837 million and £925 million over six years, with the final figure dependent upon the payment of an £88 million sum for the current season.

Last week, it was reported that Frazer had urged English football's 92 professional clubs to resolve their differences over the prospective settlement. The culture secretary held separate talks with Premier League and EFL club executives last Thursday during which she told them not to wait until the new watchdog is established to put the finishing touches to the New Deal.

DFL Executive Committee set to take fresh look at Bundesliga investment plans

The German Football League (DFL) is to hold fresh internal discussions this week over the controversial plans to sell a stake in the Bundesliga’s media rights business to a private equity firm, German media have reported.

According to the German Press Agency (dpa), the DFL Executive Committee wants to take another close look at the ongoing investor process, while Sport Bild has reported that a meeting of the management committee has been planned for today.

In addition, ‘information events’ with Germany’s 36 first and second division teams have been scheduled for 28th and 29th February, to provide the clubs with updates on the plans, as well as another general meeting in March.

The developments come amid fan protests and calls for a new vote over the proposals – although it is understood the DFL is yet to receive an official request for a fresh vote.

Earlier this month, Blackstone withdrew from the race to invest in the media rights unit, leaving CVC Capital Partners as the sole remaining bidder.

Martin Kind: “They will all jump ship”

Meanwhile, Hannover 96 managing director Martin Kind – whose voting behaviour attracted controversy when the plans were narrowly approved by clubs in December – has heightened tensions after predicting that the investor deal will no longer be concluded.

"They will all jump ship," he told German news agency NDR, claiming that failure for a deal to go through would mean stagnation. "And that means always going backwards,” he said. “I fear that it will also have an impact on the negotiations of the TV contracts of the future. And sponsors."

Hannover 96’s members have said they requested Kind to vote against the plans to bring in outside investment, but the executive is still refusing to reveal whether he voted yes or no. "How I voted, only I know,” he told NDR. “Nobody knows, everything else is speculation, and that's why I reject a discussion on this topic.”

LaLiga cuts FC Barcelona spending cap to €204 million

LaLiga have reduced FC Barcelona’s spending cap for the current season to €204 million following the conclusion of the January transfer window.

The figure compares with the previous limit of €270 million set in September 2023, and €648 million last February.

The cap indicates the amount Spanish clubs are permitted to spend during a season on players, coaches, youth teams and other outgoings. Real Madrid continue to have the highest cap in LaLiga at €727 million, with Atletico Madrid second at €303 million.

Barcelona’s real squad cost for 2023/24, including the total wage bill and transfer amortisations, is officially budgeted at €492 million. As they have exceeded their level, under LaLiga rules they must make cuts before signing any more players.

Vitor Roque deal

In January, Barcelona’s only transfer activity was the acquisition of Brazilian forward Vitor Roque from Athletico Paranaense. The deal, worth €30 million plus potential add-ons, was agreed last summer.

Barcelona were able to register Roque to play due to the long-term absence of 19-year-old Gavi. The Spanish midfielder’s recent anterior cruciate ligament injury has ruled him out for the rest of the season.

LaLiga’s financial rules give clubs flexibility in case a registered player suffers an injury that will keep them out for longer than four months. The affected club can register a replacement so long as their wages do not exceed 80 per cent of the injured player’s.

Everton takeover: 777 Partners arm suffers rating downgrade as wait for Premier League approval goes on

Freshconcerns have emerged over Everton’s prospective takeover by 777 Partners after 777 Re, the Bermuda-based reinsurance arm of the American investment firm, had its credit rating downgraded for the second time in three months.

The development comes after it was reported that the Premier League has asked 777 to provide further information on how it intends to fund Everton for the next three years should its takeover proceed.

The Merseyside club had been expecting a directors and owners’ test decision by the end of February but, according to The Times, the league contacted 777 Partners last Thursday to request new information.

The American credit ratings agency AM Best said it has downgraded 777 Re’s financial strength rating from B (fair) to C-minus (weak), and assessed its balance sheet strength as “very weak”.

The ratings agency said that was due to 777 Re’s “significant exposure to less liquid affiliated investments” in other parts of the 777 group that are not performing well, and some weakness in its risk management.

In a statement, AM Best said: “The company is working with the Bermuda Monetary Authority to reduce its exposure to affiliated assets.”

Sources close to 777 insisted to The Times that the action by the credit ratings agency has no effect on the company’s footballing operations, nor the takeover of Everton.

CFO departure

Meanwhile, in recent days, 777 has moved to reassure its own staff over its finances after the recent departure of Damien Alfalla as chief financial officer.

Co-founders Josh Wander and Steve Pasko wrote in an internal memo: “We are pleased to announce that Brett Kaufman will be stepping into the role of CFO for 777 Partners. We are confident that this change will fortify our future growth and are excited to welcome Brett into the 777 family . . . We appreciate your continued support and enthusiasm during this transition.”

FC Porto post €35 million profit for H1 2023/24

FC Porto have reported a profit of €35 million for the six-month period ending 31st December, 2023, after suffering a loss of €10 million in the same period last year.

Key to the result was a significant increase in transfer revenues, with the profit from player trading reaching €39 million, up from €4 million in the first half of 2022/23.

The biggest transfer fee was generated by the sale of Portuguese midfielder Otavio, who moved to Saudi Pro League club Al Nassr for €60 million.

Turnover, not including player sales, grew by 5 per cent to €108 million. UEFA payments rose by 6 per cent to €54 million, while broadcast income remained on €18 million. Matchday income climbed by €1 million to €11 million, while commercial revenues reached double digits, rising to €10 million, up 11 per cent year-on-year.

"These results do not include the €9.6 million related to access to the knockout stages of the Champions League, because this amount will not be counted until the third quarter of this year," the club said.

As for expenses, Porto’s wage bill was €43 million, 16 per cent lower than the first half of 2022/23, following the payment of bonuses last year for direct qualification to the Champions League as Primeira Liga champions in 2021/22.

Legends to invest €60-€70 million for stadium improvements

Porto also provided further details of its strategic agreement with Legends announced last November designed to enhance the stadium experience for fans and hospitality guests at the Estádio do Dragão, and increase matchday revenues.

The club said the US company will take "a minority stake in one of the companies with commercial rights of the FC Porto Group", and will receive an injection of between €60 million and €70 million in the fourth quarter of the year.

Queens Park Rangers post £21.1 million loss for 2022/23

Queens Park Rangers have reported an EBIT loss of £21.1 million for the year ending 31st May, 2023, down from £24 million the previous year.

The result came despite the EFL Championship club both lowered their wage bill to £25.4 million and not signing any new players for fees in 2022/23, which meant player amortisation also decreased. The club made a profit on player sales of just over £1 million, up from £0.2 million in 2021/22.

However, turnover amounted to £23.3 million, up from £22.1 million the previous year, but still not enough to cover the wage bill. Matchday income was £5.7 million, up slightly from £5.6 million in 2022/23, while broadcast revenues totalled £8.8 million, compared with £9.2 million the previous year.

Shareholders lend club £30.5 million

The accounts also showed that shareholders lent QPR a further £30.5 million in 2022/23 to fund the losses incurred by the club, after lending £16.9 million the previous year.

DFL supervisory board chairman Hans-Joachim Watzke has called for calm amid fan protests and demands for a new vote over the plans to sell a stake in the Bundesliga’s media rights business to a private equity firm.

Blackstone withdrew from the race to invest in the media rights unit last week, leaving CVC Capital Partners as the sole remaining bidder. Jost Peter, chairman of the fan group ‘Our Curve’, claimed Blackstone’s withdrawal was the “first success of the protests”.

However, Watzke – who announced last month that he is to step down from his role as Borussia Dortmund CEO next autumn – has sought to reassure fans and the game as a whole over the prospect of welcoming investment from CVC.

In an interview with German newspaper Bild, he claimed that CVC knows "there will be zero influence with us. Zero. There will be no new kick-off times and nothing like that with us.

“We need them for international marketing, their job is to help us reach fans all over the world better. They have accepted all our red lines and don't want to reform our football in the slightest – we are responsible for that”.

He added: "We are not selling shares, but are looking for a partner who will help us move forward overall. Above all, we must not and will not sell ourselves to any partner. We need to ease the tension in our relationship with investors. An investor is not inherently a bad thing."

Appeal to supporters

Watzke also appealed to supporters not to further escalate their actions after a ramping up of protests against private equity involvement in the Bundesliga over recent weeks, with many matches disrupted. An invitation from the DFL for further talks on its plans has been rejected by fan representatives.

"If someone is negative about this process, you have to accept that,” Watzke said.

“It just has to remain respectful and not escalate further. At this point, I ask the fan groups not to push the escalation point any further. Our offer of talks stands, and of course we are all ready to have these talks – not publicly, but trust-building. We need to enter into intensive dialogues as soon as possible."

 

Nottingham Forest working on plans to increase City Ground capacity to 40,000

Nottingham Forest are aiming to increase the City Ground’s capacity from 29,550 to 40,000 amid hopes that long-held plans to redevelop the stadium will finally come to fruition.

Club chairman Tom Cartledge told The Athletic that Forest want to extend the Bridgford Stand by another 5,000 seats, as well as replace the Peter Taylor Stand with a two-tier 10,000-seat structure.

However, he acknowledged there are still obstacles to negotiate and said the club hopes to extend its current lease with Nottingham City Council, which owns the land the stadium sits on, or potentially buy the freehold.

“If the city council gives us the nod, he [club owner Evangelos Marinakis] wants me to get on with everything straight away,” he said.

Shipping containers

Some work is already underway at the stadium, with a new corner box of executive suites on each end to be built from shipping containers – inspired by Stadium 974 in Qatar at the 2022 World Cup.

Forest also intend to build a new state-of-the-art training ground, with an announcement expected soon about location, as well as open a museum in the bowels of the Trent End.

 

SPFL to meet Premiership clubs amid criticism of governance review

Scottish Professional Football League (SPFL) chairman Murdoch MacLennan and CEO Neil Doncaster are to meet Premiership clubs this week amid criticism of the league’s governance and leadership.

The SPFL has announced that the independent governance review, commissioned after the league body lost a long-running legal dispute with Rangers over its title sponsorship deal with Cinch, has now been delivered to all member clubs.

As reported by Scottish TV news programme STV News, six Premiership teams – Aberdeen, Motherwell, Livingston, Rangers, St Johnstone and St Mirren – have already pointed to “serious concerns” over the report’s independence and transparency, as well as the overall governance of the SPFL.

The league later said it had addressed “factual inaccuracies” regarding the club’s claims, which were outlined in an open letter.

Already-scheduled meeting

The six top-flight clubs had called the chairman and CEO to a meeting on 27th February to discuss their issues, with all other member clubs invited to attend.

However, MacLennan, Doncaster and SPFL non-executive Karyn McCluskey will now meet representatives of all Premiership clubs at an already-scheduled meeting this week, with the governance review on the agenda.

 

Chelsea confident of appointing Brighton head of recruitment Sam Jewell

Chelsea are reported to be confident of securing the appointment of Brighton & Hove Albion head of recruitment Sam Jewell, 16 months after appointing his predecessor Paul Winstanley.

According to The Athletic, Brighton are aware of Chelsea’s offer and will allow Jewell to decide whether he wants to move to the Stamford Bridge club.

Brighton would like to keep Jewell but are aware of the attraction of a potentially lucrative proposal and while no agreement has been reached, it is understood the head of recruitment is leaning towards accepting the Chelsea offer.

Sporting directors

Winstanley became one of the sporting directors at Chelsea in November 2022, which led to Jewell taking up the Brighton role on an interim basis.

Jewell, son of former Wigan Athletic manager Paul, was appointed head of recruitment permanently in February 2023 but, a year later, could be following his predecessor to west London.

The combined total revenues of top-flight clubs in Europe are projected to reach €26 billion for the 2022/23 financial year after reaching a record level of just under €24 billion in 2021/22, according to a new report from UEFA.

The Club Finance and Investment Landscape report – previously called the European Club Footballing Landscape report – also concluded that commercial income for 2022/23 was set to exceed domestic broadcast revenues for “the first time in decades”.

Early-reporting clubs’ commercial revenue rose by more than €700 million on the previous year to stand at €5.4 billion – an increase of 14 per cent on the previous year and up 30 per cent on the pre-pandemic level from 2019. UEFA found that 80 per cent of early-reporting clubs achieved increases in commercial revenue in 2022/23.

The data for 2021/22, based on analysis of more than 700 top-flight teams, showed that the commercial income earned by the clubs reached a record €7.8 billion, a rise of 14 per cent on 2020/21.

Sponsorship income increased by eight per cent, while other commercial revenues were up by 27 per cent, boosted by the removal of restrictions on the use of stadiums and increases in merchandising revenue.

Player wages rise by less than 1 per cent

The report also noted that in 2022/23, player wages grew by less than 1 per cent, the lowest growth level on record, “contributing to the re-balancing of the wages/revenue ratio for many clubs.” The increase compared to a rise of 4.7 per cent to €12.8 billion in 2021/22, up 13 per cent on the pre-pandemic level of 2019.

However, UEFA also pointed to rising debt levels across European clubs, with bank debts expected to pass the €12 billion mark in 2022/23, a 50 per cent increase on the level seen before Covid.

Everton takeover decision expected by end of February

Everton and their prospective new owner 777 Partners are expecting contact from the Premier League this week over the potential takeover of the club as the league’s directors and owners’ test finally reaches its conclusion, The Daily Telegraph has reported.

It is understood that all outstanding questions have been answered by the Miami-based group, with the club still confident it will learn its fate within the next two weeks.

Approval from the English FA, Women’s Super League and Championship Board is also said to be pending, with sources confirming to the newspaper that due diligence is ongoing.

Premier League contact with 777 over the coming days is expected to include an exact date for a decision, although others with understanding of the clearance process expressed some caution around the likelihood of 777 being given a specific date this week.

The Premier League never details a public timeline for its process. Newcastle United were kept waiting 18 months for approval of their takeover by the Saudi Arabian Public Investment Fund (PIF).

777 optimism

It is believed that for 777, there remains optimism the deal will finally be signed off, despite having aimed to be completed by Christmas. Clearance from the Financial Conduct Authority was provided in December but Premier League CEO Richard Masters suggested last month that questions still needed to be answered while speaking at a Culture, Media and Sport Committee hearing.

The Premier League’s directors and owners’ test has been tightened in recent years, but resolving the Everton situation is now said to be top priority after Sir Jim Ratcliffe’s acquisition of a 25 per cent stake in Manchester United was cleared earlier this week.

Belgian clubs’ total losses rise to €193 million for 2022/23

Clubs in the top two tiers of Belgian football posted a cumulative loss of €193 million for the 2022/23 financial year, according to figures released by the licensing commission of the Belgian FA (RBFA).

The combined deficit exceeds the €156 million loss for 2021/22 by €37 million. Belgian champions Antwerp registered a record deficit of €46 million, while Standard Liège (€19 million), AA Gent (€19 million), OH Leuven (€18 million), Lommel (€14 million) and Zulte Waregem (€12 million) were the other main loss-makers.

The only clubs out of 25 not to suffer a deficit were Club Brugge, Union, STVV, Racing Genk, Kortrijk and Cercle Brugge.

Belgian Pro League CEO Lorin Parys listed three factors for the huge losses – high wage bills, increased taxes and fines for breaking the broadcast contract early during the Covid-19 pandemic.
He told local media: “It is a fact that clubs pay players too much. The inflationary wage spiral must stop.”

Wages to revenue ratio

At present, Belgian clubs spend 88 per cent of their revenue on wages. However, by 2025 Pro League teams will be punished if they have not brought the ratio down to 70 per cent.

Parys said: “That is a soft form of a salary ceiling, intended to contain losses in the long term. The good news is that 13 clubs already meet the 70 per cent criterion. Nineteen clubs achieved the target benchmark of 90 per cent in 2023.”

West Brom takeover agreed with Shilen Patel set to become chairman

English Championship club West Bromwich Albion have agreed a takeover deal with Florida-based businessman Shilen Patel.

Patel emerged as the preferred candidate to takeover the club by outgoing owner Guochuan Lai, who had been in control of West Brom since September 2016.

Patel will acquire an 87.8 per cent shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club.

The takeover is set to be ratified next week.  Patel, who owns a minority shareholding in Serie A club Bologna, will be named as West Brom’s chairman.

“I am thrilled and grateful to have reached an agreement to become the custodian of West Bromwich Albion Football Club,” Patel said.

“The club’s exceptional history, support, and potential set it apart even here in the cradle of football.

“My goal is to help the club achieve a future worthy of its history as a pioneering top-flight club that marshals the pride and passion that have defined the Albion for generations.

Repay loan

Earlier this week, Lai agreed a deal to repay a loan he secured on shares in West Brom’s parent company to speed up the takeover process.

Lai acquired the West Midlands club from Jeremy Peace for over £200 million in July 2016.

Sir Jim Ratcliffe and INEOS have received Premier League approval to buy a 25 per cent stake in Manchester United after passing the league’s owners’ and directors’ test.

The Premier League confirmed in a statement yesterday that its board has approved the acquisition of the stake, as well as a further investment of $300 million in United.

The deal is now expected to be completed in the next few days as the English FA signs off a final agreement after Ratcliffe extended his purchase offer until the end of this week.

According to club filings to the US Securities and Exchange Commission (SEC), as of the close of Friday 19.4 million shares had been validly tendered, meaning that Ratcliffe has already passed the threshold to complete his deal.

The Premier League statement read: “The Board agreed to the change of the club’s ownership structure last week, and this has now been officially ratified by an Independent Oversight Panel.The Premier League’s Owners’ Charter has also been signed.

“This is the first acquisition of Control to be reviewed and approved by a new Independent Oversight Panel following changes to the process which were agreed by Premier League clubs in March 2023.The Premier League now awaits confirmation of the transaction’s completion.”

United shares up 6 per cent

United’s Class A shares rose by more than six per cent to almost $21 in post-market trading on Monday after Ratcliffe pushed the deadline for his tender offer to Friday from midnight Tuesday.

As reported by Bloomberg, the advance erased losses from earlier in the trading day amid speculation over whether the offer would be extended.

In December, Ratcliffe agreed to buy a 25 per cent stake by allowing investors to swap about one-quarter of their Class A stock holdings for $33 per share, well above the current market price.

Bundesliga media rights business stake sale: Blackstone considering dropping out of bidding

Blackstone is reported to be considering withdrawing from the race to acquire a stake in the Bundesliga’s media rights business, according to a report from Bloomberg.

The American private equity firm is said to be concerned about how long a deal could take to come to fruition after a number of clubs called for a new vote on the plans, which were narrowly approved in December.

It is also understood that structuring and economic factors make it hard for Blackstone to see how it would make a deal work.

A withdrawal would leave CVC Capital Partners as the sole remaining bidder. Sources told Bloomberg that CVC is still committed to pursuing a potential deal.

Ramping up of fan protests

Blackstone’s deliberations come after a ramping up of fan protests against private equity involvement in the Bundesliga at the weekend. Many matches, including the top-of-the-table clash between Bayern Munich and Bayer Leverkusen, were delayed as fans threw sweets and bouncy balls onto the pitch.

The game between Hamburger SV and Hannover 96 was interrupted after Hannover fans showed a banner of the club’s managing director, Martin Kind, behind a crosshairs.

Meanwhile, the publication Spiegel Sport last weekend criticised Blackstone chairman Stephen Schwarzman, observing that in 2010 he compared planned tax increases by president Barack Obama with Adolf Hitler’s invasion of Poland. Schwarzman apologised for the analogy at the time, while maintaining his criticism of the tax proposal.

English clubs overtaken by French teams as top January transfer spenders

French clubs topped the table for spending on international transfer fees in January, with a total outlay of $291.9 million, according to FIFA’s latest International Transfer Snapshot.

The figure was more than double the amount spent by French teams in the previous January window and saw them leapfrog English clubs, whose spending dropped by almost 80 per cent compared to their record outlay in January 2023.

Nevertheless, English teams were still the second highest this January, totalling $184 million. It was the first time since 2017 they have not been the highest winter spenders, amid caution over the Premier League’s profitability and sustainability rules (PSR).

In France, five Ligue 1 clubs Paris Saint-Germain, Marseille, Rennes, Lyon and Nice – spent more than $20 million. Lyon had the biggest outlay, spending more than $50 million on seven new arrivals, while Paris Saint-Germain spent $40 million.

The top five for total spending was completed by Germany ($151.8 million), Spain ($148.7 million) and Brazil ($122.6 million). The outlay on transfer fees across the men’s game reached $1.46 billion, the second-highest amount for a January window, bettered only by the record $1.57 billion spent last winter.

Women’s football transfer spending climbs to record $2.1 million

In the women’s game, spending on transfer fees reached a new record of $2.1 million for January, following the $3 million spent last summer, also a record. The latest window included Chelsea’s signing of striker Mayra Ramirez from Levante for a world record fee of €450,000.

There was a 33 per cent increase in player transfers including a transfer fee within the women’s game. The list of incoming transfers was jointly headed by England and Spain, each with 29 transfers, with Sweden and the USA joint top of the table for outgoing transfers, with 30 apiece.

Premier League clubs have narrowly approved tougher new associated-party transaction (APT) rules despite the threat of a legal challenge from one of its teams – understood to be Manchester City.

As reported by The Times, 12 clubs voted in favour of the changes and six against at a Premier League shareholders meeting on Friday, with two clubs abstaining. It is thought to be the closest vote in the league’s history – exactly meeting the requirement of a two-thirds majority.

APT rules cover sponsorship deals with companies connected to the clubs, and any player transfers between teams in the same ownership group to ensure they are of “fair market value”.

They aim to stop sponsorship deals being artificially inflated or for clubs to benefit from buying players cheaply – or selling them for inflated prices – from or to associated clubs.

The Premier League confirmed in a statement that amendments had been agreed to the rules by clubs at the shareholders meeting. It said: “Following a full review of the existing Associated Party Transactions Rules and Fair Market Value assessment protocols, clubs agreed to a series of amendments to further enhance the efficiency and accuracy of the system.”

Arbitration proceedings

According to Sky News, the 20 top-flight clubs were notified on Thursday that one of them had informed the Premier League that it could resort to arbitration proceedings to prevent the new associated party rules being adopted.

There was speculation on Friday that Manchester City was the club which had objected to the reforms. It is understood to have told the Premier League that the changes were unlawful in English competition law. The Premier League has said it is confident the rules are compatible with English law.

Cityhave previously expressed their opposition to tighter APT rules. Their stadium is named after Etihad, the Gulf state's flagship airline, and is said to have been among those voting against restrictions on loan signings between clubs with common ownership during a ballot on the issue in November.

A City spokesman declined to comment to Sky News on whether it was the club which had threatened legal action over the APT rules, but disputed the assertion that it was state-owned.

 

FC Barcelona to postpone Barça Vision IPO due to Libero's non-payment of €40 million for stake

FC Barcelona are to postpone the IPO of Barça Visión following the failure of the German investment fund Libero to pay the club €40 million for the purchase of a stake in the digital unit.

Libero announced last August it would be purchasing a 9.8 per cent share of Bridgeburg Invest, the holding company which controls Barça Vision.

However, at the beginning of this year it was reported that Barcelona had not been paid by Libero after extending the deadline to pay them until 31st December. The company was said to be the third prospective shareholder in the subsidiary to fail to deliver on planned payments.

According to El Economista, Mountain & Co – the special purpose acquisition company (SPAC) set up to channel the move on to the American stock market – has now asked its shareholders to push the IPO back once again given the impossibility of meeting the 9th March deadline. A new date is yet to be confirmed.

Barcelona had originally planned for Barça Visión to go public last autumn. The club initially sold 49 per cent of the digital unit to Orpheus Media and Socios.com for €200 million last year. Libero and another investment firm, NIPA, had agreed a deal to repurchase a 29 per cent share from Orpheus Media and Socios.com, leaving them with 9.75 per cent each, while Barcelona would retain their 51 per cent majority stake.

Court orders Barça to pay €22.7 million over tax case

Meanwhile, Barcelona have been ordered to pay €22.7 million after Spain’s National Court ruled that the club incorrectly paid tax on player agent fees between 2012 and 2015.

The court has upheld the penalty imposed by the Resolution of the Central Economic Administrative Court (TEAC), after the Catalan club appealed its decision in 2020.

The state argued that agents provide a service to their players – not the clubs – and therefore Barcelona’s payments to them should be subject to personal income tax. Barcelona argued the opposite – that agents provide a service to the club and their fees should not be attributed as payments to their players.

However, the court said it is “abundantly clear” from the TEAC’s case that there has been tax simulation.

In a statement, Barcelona said they will appeal the National Court’s decision to the Spanish Supreme Court, and that they were “surprised” by the National Court’s ruling. The club added: “This ruling does not entail any payment obligation for the club at present, this contingency being properly provisioned in the annual accounts.”