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

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

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

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

Commercial income increase

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

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

Hamburger SV post €7.8 million profit for 2022/23

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

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

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

14th highest average attendance in Europe

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

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

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

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

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

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

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

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

FIFA written policy

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

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

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

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

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

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

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

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

Wage bill falls to €79.6 million

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

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

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

 

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

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

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

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

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

Sale of non-core assets

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

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

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

 

Rangers post £4.1 million loss for 2022/23

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

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

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

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

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

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

Player trading “requires attention”

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

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

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

 

Argentine clubs reject privatisation proposal from presidential candidate

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

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

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

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

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

Argentine FA opposes idea

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

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

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

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

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

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

Calls for stricter enforcement of FFP rules

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

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

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

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

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

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

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

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

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

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

Wage-to-revenue below 50 per cent

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

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

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

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

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

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

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

Financial liabilities rise to €458.5 million

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

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

 

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

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

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

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

Control of football operations

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

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

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

 

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

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

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

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

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

Focus on free-to-air TV

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

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

 

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

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

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

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

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

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

“Hamstrung by cashflow problems”

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

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

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

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

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

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

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

Sky stranglehold

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

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

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

Norwich City post £27.2 million loss for 2022/23

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

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

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

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

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

Wage bill falls to £56.4 million

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

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

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

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

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

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

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

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

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

Sixteen points deducted in two years

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

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

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

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

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

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

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

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

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

Greater focus on joint business model

Back in May, Germany’s professional clubs voted against plans to sell a 12.5 per cent stake in the Bundesliga’s media rights subsidiary in a proposed deal that would have lasted for at least 20 years. The DFL hoped to raise around €2 billion from the deal.

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

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

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

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

 

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

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

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

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

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

Loan or permanent move

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

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

 

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

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

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

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

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

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

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

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

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

Complaint filed in March

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Deals with Portuguese and Egyptian clubs

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

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

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

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

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

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

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

Fragility of pyramid

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

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

Apple in talks with LFP over Ligue 1 media rights

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

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

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

Target of €825 million per year

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

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

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

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

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

Lengthy ratification period

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

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

 

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

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

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

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

FFAR was introduced in January on a transitional basis, with an obligation by stakeholders to only use licensed agents coming into force on 1st October.

Strong opposition

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

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

 

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

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

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

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

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

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

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

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

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

Champions League semi-final win

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

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

 

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

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

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

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

“Irregularities” in agreements

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

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

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

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

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

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

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

Toto Wolff in talks with Ratcliffe about United investment

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

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

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

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

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

 

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

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

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

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

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

Habit of late payments

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

 

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

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

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

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

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

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

Wage bill rises to €61.8 million

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

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

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

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

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

European competition

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

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

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

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

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

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

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

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

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

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

Talks with rival group Libra

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

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

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

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

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

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

Legislation could be in King’s speech

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

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

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

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

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

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

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

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

Various financing options

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

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

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

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

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

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

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

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

Will not be spending big in January

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

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

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

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

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

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

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

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

Talks to take place on Thursday and Monday

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

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

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

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

Reading to face disciplinary commission over missed HMRC payments

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

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

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

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

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

Storey backs out of proposed takeover

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

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

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

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

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

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

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

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

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

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

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

Budget for 2023/24 projects revenues of €133.6 million

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

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