With most of the Covid-19 restrictions lifted in Europe, the 2021/22 season commenced amid a palpable sense of relief throughout the industry. Clubs now anticipated a return to normalcy across the three pivotal revenue streams – matchday, broadcasting, and commercial income.

However, the central question lingers – have financial figures recovered to pre-pandemic levels? Has the industry, having navigated through a challenging era, made headway towards creating a more financially sustainable business model?

To gauge the pulse of the European football economy, we scrutinised the financial statements of 230 clubs from more than 15 leagues. This analysis involves comparing the 2021/22 financial statements with those from the last 'normal' year prior to the pandemic sweeping across Europe.

On the whole, turnover has rebounded to pre-Covid levels, with a 0,5 per cent increase evident when comparing the 2021/22 season to 2018/19 – from €21.27 billion to €21.37 billion. However, when it comes to the profitability of the clubs, the narrative is distinctly different.

Dissecting income streams

The ravages of Covid-19 on the economy of most football clubs in the 2019/20 and 2020/21 seasons are undeniable, with stringent fan restrictions and uncertainties from key stakeholders such as broadcasters and sponsors.

As our analysis uncovers, overall turnover in European football has bounced back to pre-Covid levels. However, when examined at a league level, only the Premier League and Ligue 1 from the 'Big Five' have outperformed the turnover figures of 2019.

Delving deeper into the three core revenue streams - matchday, broadcast and commercial - we observe a decline in two out of the three. Despite easing restrictions, matchday income has yet to reach pre-pandemic levels. 

This shortfall is primarily attributable to some of the larger leagues, with the German Bundesliga notably experiencing a near 50 per cent decline. Clubs in the non-Big Five leagues mirror this trend, exhibiting approximately the same level of matchday income in the 2021/22 season as in 2018/19.

Moreover, broadcast income has registered an overall decrease of around 4.6 per cent. This segues into the primary catalyst for the marginal increase in overall turnover – commercial income. Funds sourced from sponsors, events, hospitality and more have spiked by approximately 14.5 per cent.

This uptick is particularly prominent in the Premier League, where clubs witnessed a 28.2 per cent surge when comparing the figures from 2019 to 2022.

Rising expenses

While income is one aspect of running a football club, expenses form another significant part. An examination of industry performance at the EBITDA level reveals a disconcerting trend.

Clubs in the Big Five leagues have seen a decrease of around 216 per cent – shifting from a €683 million profit in 2018/19 to a €795 million loss in 2021/22. Meanwhile, all other clubs in our sample have experienced a total EBITDA decrease of 91 per cent. Only the Premier League maintained a total positive EBITDA in 2022.

Focusing on the Premier League, 16 out of the 20 clubs reported a positive EBITDA. Standouts on the negative side include Newcastle United and Everton. For Newcastle, the primary issue is the wage bill, which has nearly doubled since the Saudi Arabian takeover. Everton, on the other hand, are struggling both on the field and financially, failing to adjust their expenses and posting a negative EBITDA in four of the last five years.

However, these two English clubs appear modest in their financial distress when compared to some of the other significant European clubs. Paris Saint-Germain, Real Madrid, and AS Roma top the list of clubs reporting negative EBITDA figures, with losses of €254 million, €115 million, and €101 million, respectively. 

Identifying the underlying problem

While all football clubs experienced a dip in turnover during the pandemic, player wages continued to ascend. In total, wages have increased by 13.5 per cent from 2018/19, rising from €12.95 billion to €14.69 billion. Clubs in the Big Five leagues have disbursed 14.3 per cent more to their players, while the increase for all other clubs’ hovers around 10 per cent.

It's predominantly the players in the Premier League and Ligue 1 who benefit the most. However, a deeper dive into Ligue 1 reveals that the €400 million increase since 2018/19 is largely driven by Paris Saint-Germain. With a total wage bill of €729 million in 2021/22, the French powerhouse accounts for around 50 percent of the total wage bill in Ligue 1. In contrast, Marseille, the team with the second highest wage bill in the French league, has a wage bill of approximately €135.5 million.

The significant increase in wages, which outpaces the growth in turnover, has resulted in a rise in the wages to turnover ratio from 60.1 per cent to 68.8 per cent. Moreover, clubs have not only increased payouts to players but have also ramped up their investments in the transfer market. Investments in new players, reflected in player amortisations, have seen a 13.8 per cent rise across all European clubs.

Despite this being a general trend across nearly every European league, Premier League clubs once again lead the pack. Investments in players like Romelu Lukaku and Kai Havertz have propelled Chelsea to the top of the list for highest amortisation figures among all European clubs in recent years. With the takeover by American billionaire Todd Boehly in 2022, who has initiated a massive spending spree, it's likely that player amortisations will continue to rise in the coming years. 

Selling players is a cornerstone in business model 

The football industry often leans heavily on operating results, a key profit/loss figure. 

As player amortisations have risen, so too have operating losses, escalating from €3.79 billion in 2018/19 to €5.27 billion in 2021/22. Therefore, for many European clubs today, player trading is crucial for generating a profit before tax and interest (EBIT) or for offsetting substantial operating losses.

But the pandemic also heavily impacted the transfer market, leading to depreciation in player values. The financial figures for the 230 clubs in the sample reveal that the market continues to look adversely affected. Profits from player sales have dropped by 31 per cent when comparing the 2021/22 season to 2018/19.

A long road to a healthy industry

Although turnover took a hit during Covid-19, the European football industry failed to halt the escalating spiral of expenses as player wages and player amortisations continued to rise. In addition, clubs could not salvage their finances by selling players at huge profits, as the transfer market also took a hit and remains far from its former glory.
 

This development paints a daunting picture when examining the total EBIT (earnings before interest and taxes) for all clubs in our sample. A combined profit of €64.8 million in 2019 has been converted into a staggering loss of €2.66 billion in 2022.

Looking a bit deeper, the list of clubs with a negative EBIT is lengthy. Perhaps it would be more illuminating to spotlight those who actually made a profit. Among the larger clubs, Fiorentina, Manchester City, Brentford, Lille, and Brighton stand out. Among clubs from the non-big 5 leagues, FC Porto, Sporting CP, AZ Alkmaar and a good number of Scandinavian clubs’ feature.

Running a profitable club might seem daunting, but one principle should guide any decision-maker in a European football club: keep a keen eye on player expenses and consider leveraging football business market data for more informed and superior decision-making.

Manchester United are poised to achieve a staggering annual revenue of up to £640 million in the current financial year, as the much-discussed takeover saga surrounding the club continues to unfold.

The Glazer family, owners of Manchester United, are presently considering offers from Qatari banker Sheikh Jassim and Sir Jim Ratcliffe, the founder of chemicals firm Ineos.

Having initiated a strategic review last November, the Glazers indicated their willingness to sell the club. However, the bidding process has encountered delays, stretching out the proceedings.

Recent reports suggest that Sheikh Jassim’s bid, which encompasses the entirety of the club, is currently the most likely to be accepted. Sources close to the Qatari bid have expressed their eagerness to finalize the deal, particularly with the summer transfer window now open.

Supporters staged fresh protests against the Glazers at Old Trafford on Tuesday, underlining the ongoing discontent among sections of the fanbase.

Financial results

In their third-quarter financial results for the period ending 31 March, United raised their revenue guidance for the current financial year to a record-breaking £630 million to £640 million. The projection is driven primarily by record match attendance and matchday revenues. Ticket sales for the 2022/23 season surpassed the previous record set in 2016/17, with 2.4 million tickets sold.

The third-quarter financial results indicated an 11 percent increase in revenue compared to the same period last year. While broadcasting revenue slightly declined due to the club’s involvement in the Europa League instead of the more lucrative Champions League, this decrease was partially offset by Manchester United’s performance in domestic cup competitions.

However, the club’s cash and cash equivalents stood at £73.7 million, a decrease from £95.8 million during the same period last year, reflecting the significant investments made in strengthening the team.

UEFA Exco to discuss financial fair play

UEFA’s Executive committee meet in Nyon this afternoon, where the future of its financial fair play system will come under discussion, reports senior correspondent, James Corbett.

The Exco will hear from UEFA’s Working Group to enhance long-term sustainability of European football, which was set up by UEFA earlier this year to enhance the long-term sustainability and competitiveness of European club football.

The working group comprises 11 representatives coming from National Associations, the European Club Association, European Leagues, FIFPRO Europe and Football Supporters Europe.

The group aims to address the financial challenges faced by clubs and develop strategies to ensure their viability and success. It was set up to analyse and propose solutions for key issues such as cost control, revenue generation, competitive balance, and youth development.

Earlier this week UEFA’s Club Financial Control Body also met and it is understood that its discussions on financial controls will feed into the Exco meeting.

Closed discussions

UEFA sources have been tight-lipped on the nature of discussions and its president Aleksander Čeferin has been reluctant to speak with media since the organisation’s calamitous organisation of the 2022 Champions League Final almost ended in disaster.

However recent media speculation has suggested that UEFA is looking at how to limit abuses of capital gains practices, following a number of cases where clubs have been found to have exchanged players for vastly overvalued figures. It has also been suggested that UEFA will scrutinise multiclub ownership, with Chelsea’s recent acquisition of Strasbourg coming under particular scrutiny.

Canada Soccer considers bankruptcy protection amid financial struggles

Canada Soccer’s general secretary, Jason de Vos, has revealed that the federation may need to file for bankruptcy protection due to significant financial difficulties. The organization has encountered various problems, including budget cuts and pay equity disputes that led to the women’s national team going on strike earlier this year.

Discussions have been underway between Canada Soccer and both the men’s and women’s teams regarding a collective bargaining agreement, but no agreement has been reached thus far.

"A real struggle"

In an interview with Canadian outlet TSN, De Vos spoke of the association’s dire circumstances, stating, “We are in a real struggle. It’s not imminent, but we need to explore what bankruptcy entails and how it might affect our organization. We don’t have enough revenue coming in for the programs that need to be run, and that includes everything from grassroots coach education and referee development to youth national teams and our senior men’s and women’s teams.”

De Vos clarified that discussions about bankruptcy have taken place primarily for informational purposes and to understand the implications fully. He emphasized that bankruptcy is the last resort and that he hopes to avoid it altogether, but it is his responsibility to conduct due diligence on the matter.

These revelations emerge as the Canada Women’s national team prepares for their upcoming participation in the World Cup this summer, while the men’s team gears up for the CONCACAF Gold Cup.

De Vos highlighted the challenge of limited resources, stating, “The challenge is there isn’t enough budget to be able to make September and October matches happen at this moment. What we need is to play against tier-one opponents in games that move the needle. At this point, trying to find games against top teams in September and October is challenging.”

Manchester United official calls for stricter financial Regulation in women’s game

Francesca Whitfield, Head of Group Planning at Manchester United, has voiced her concerns over the widening gap between clubs in the women’s game and called for stronger financial regulations to address the issue. Speaking at the European Club Association (ECA) Women’s Football Summit in London, Whitfield emphasised the need for prompt action, citing the unique circumstances of the women’s game.

Highlighting the urgency, Whitfield was quoted by The Athletic as saying, “We should be looking to adopt financial regulation much earlier in the women’s game than we did in the men’s game to stop that gap widening. Currently in the WSL, we have a salary cap system which is 40 per cent of revenue, but that includes parent club income, meaning the larger clubs naturally benefit from shirt deals on the men’s side, and that’s creating a gap that is affecting the product.”

Whitfield urged for a comprehensive approach to financial regulation, not limited to domestic leagues alone. She stressed the necessity of European-wide measures to ensure that European tournaments maintain their status as premier competitions and remain at the forefront of the sport.

Different from men's game

Recognizing the disparities between the men’s and women’s game, Whitfield emphasised the need for tailored solutions, stating, “We can’t replicate what we did on the men’s side; the game is in a different space, and we need to ensure that we can invest, but we equally need to attract investment. Smaller clubs are not able to invest at that level, so how do we encourage them to do so if it’s not a fair playing field and they can’t possibly ever be competitive with how things currently are?”

Whitfield also highlighted the need for longer player contracts, as Manchester United aims to build a team for the long term. However, the prevalent trend in the women’s game of one or two-year deals poses a challenge. She expressed the club’s intention to retain players but stressed the importance of financial regulations to balance transfer fees and wage inflation, as these factors currently hinder investments in infrastructure.

The call for stronger financial regulation in the women’s game comes at a crucial juncture, as clubs grapple with the need for competitiveness, financial sustainability and a level playing field to ensure the continued growth and success of women’s football.

Newcastle United co-owner Amanda Staveley has found herself embroiled in a multimillion-pound bankruptcy dispute with a Greek shipping magnate, as revealed by The Telegraph.

Staveley, who played a key role in facilitating the acquisition of the Premier League club by Saudi Arabia’s sovereign wealth fund in 2021 and who has a 10 per cent stake in the club, has taken the matter to the High Court in an attempt to prevent Victor Restis, the shipping tycoon, from pushing her into bankruptcy. Recent legal filings disclose this development.

Mr Restis asserts that Ms Staveley has failed to repay a loan exceeding £35 million, which dates back over a decade. Lawyers representing Ms Staveley have made an application to the High Court, seeking to have a statutory demand issued by Mr Restis “set aside.” This action would prevent the Greek shipping tycoon from initiating bankruptcy proceedings against Ms Staveley if the debt remains unpaid for 21 days.

Winding-up petition

Additionally, Mr Restis has issued a winding-up petition against PCP Capital Partners LLP, a dormant company with Ms Staveley listed as a director. According to filings with Companies House, PCP Capital Partners LLP, which allegedly hasn't conducted business for five years, changed its name to Apollo Belvedere Services LLP on Friday, 23 June, 2023.

The Restis Group, where Mr Restis holds a prominent position, is recognized as one of the most influential entities in the global shipping industry. Lloyd's List, a respected industry publication, has listed him among the “100 most influential people in shipping.” Mr Restis is also involved in banking and financial services, media, hotels, and telecommunications.

A statutory demand is an official demand for debt repayment within 21 days. Failure to comply or successfully challenge the demand within that timeframe can lead to a bankruptcy order being sought from the court.

Represented by the Mayfair law firm Forsters, Ms Staveley has reportedly received advice indicating that a bankruptcy order cannot be served while the debt remains in dispute. However, representatives for Mr Restis hold a contrary view.

In response, Mr Restis' spokesperson was quoted: “Mr Restis has instructed Francis Wilks & Jones solicitors to recover an outstanding balance on a loan dating from 2008 from Amanda Staveley, and any application by her legal representatives to set aside our client's statutory demand totaling £36,841,287 (plus continuing daily interest) will be vigorously opposed.”

A spokesperson for Ms Staveley declined to comment on her High Court application to have the statutory demand set aside.

Serie A President: Saudi football deals “may lead to financial doping”

Lorenzo Casini, the president of Lega Serie A, has expressed concerns about the recent influence of Saudi Arabia in European football and the potential for financial doping.

Speaking on Radio Anch'io Sport on Rai Radio 1, Casini acknowledged the interest in Serie A players demonstrated by these lucrative offers but highlighted the risk of negative consequences. “There is no doubt that they can lead to financial doping phenomena," he said.

He emphasized that while the European market allows for the possibility of implementing salary cap rules to curb such phenomena, intervention from FIFA would be required for markets in other continents.

“As long as we are talking about the European market, the possibility of intervening with salary cap rules is a way to limit this type of phenomenon, but if we are talking about other continents, only FIFA can intervene with rules,” he added.

Casini alsonoted that the current market trend is predominantly focused on established players. He mentioned that even UEFA President Aleksander Čeferin had highlighted the tendency to sign players who are already well-established in their careers.

Casini suggested that it might be time to consider more sophisticated forms of salary caps, similar to those implemented in professional leagues in the United States. However, he emphasized that UEFA's involvement would be necessary for such measures, as a league alone cannot enforce them.

TV rights

Regarding Serie A TV rights, Casini said that the initial phase of negotiations resulted in lower than expected offers from operators. The process has now entered a private negotiation phase, and the outcome will determine whether the teams find the final price agreeable or not. If an agreement is not reached, a further phase of opening offers will begin on the Legea channel, followed by additional negotiations. Casini did not provide a specific figure for the expected value of the TV rights, expressing hope that it would be as high as possible.

"Under a billion a season? I don't have a glass ball, let's hope it's as high as possible."
 

Wembley Security strengthened to ensure incident-free 2024 Champions League Final, states FA Chairwoman

Aiming to prevent a repeat of the chaos witnessed at Wembley Stadium during the Euro 2020 final, the Football Association has said it is adopting a “testing to destruction” approach to its emergency plans.

Speaking to The Times, its chairwoman Debbie Hewitt has emphasised the need to learn from the disorganised situations that marred the last two Champions League finals in Paris and Istanbul. She acknowledged the vulnerabilities at Wembley that allowed over 2,000 ticketless fans to force their way into the stadium two years ago, stressing the importance of thorough preparation.

Hewitt said: “It is very important we learn the lessons from Paris and Istanbul... We have to convince every one of those Ex-Co members we have not only thought about it, but that we have planned for it.”

She expressed the significance of addressing security concerns as part of England’s bid for Euro 2028, stating, “One of the things I am absolutely convinced UEFA’s Ex-Co [Executive Committee] will ask us is ‘how can you assure us nobody will storm the turnstiles’... That is an important part of the bid.”

Mistakes are inevitable

She further emphasised the need for comprehensive planning and being able to demonstrate a well-thought-out strategy, highlighting the FA's commitment to preparedness. “Testing is crucial. We are paranoid about it and we try to test to destruction. I am sure we will make some mistakes that have yet to be made in other stadiums but it won’t be because we didn’t try to test,” Hewitt remarked.

“You can never be confident with something like that... You just have to be confident you have worked through what you would do if something did happen.”

The FA aims to ensure effective coordination among all stakeholders involved in emergency planning, including the police, stewards, and UEFA. Hewitt stressed the importance of a collective understanding and testing process, saying, “It’s making sure every one of the stakeholders completely and utterly understands and tests.”

In modern football, player loans have become increasingly prevalent as a strategic approach that offers mutually beneficial outcomes. Promising talents from top-tier teams are provided with valuable playing time at lower-tier clubs. Meanwhile, these clubs benefit from acquiring talented players without the financial commitment of permanent transfers. 

To address concerns regarding the practice of major teams "hoarding talent" and loaning them out, FIFA implemented regulations from the 2022/23 season onwards. These regulations impose limits on the number of non-homegrown players that a club can loan out.

However, despite the growing popularity of player loans, it is crucial to acknowledge that not all loan deals yield equal prosperity. This analysis breaks down how valuations of loanees in the major leagues changed over the course of their loan spells in the 2022/23 season. Some teams offloaded uncut gems and received sparkling diamonds in return, whereas other loanees completely lost their shine.

Loanees with the biggest value surges

The table presents the ten players who had the highest valuation increases during their loan in 2022/23, according to the Off The Pitch Player Valuation Tool.

At the top, Southampton’s Nathan Tella has seen his valuation skyrocket by €22.3 million during his loan phase at Burnley. With 17 goals and five assists in the Championship, Tella has been pivotal in securing Burnley’s promotion back into the Premier League. 

Relegated Southampton, who could benefit from this valuation surge if they sell Tella, may therefore question whether they could have utilised Tella's attacking prowess, particularly considering their meagre tally of 36 goals in the Premier League season.

Another success story from Burnley is the development of Jordan Beyer, who came on loan from Borussia Monchengladbach. Initially valued at €5.1 million, Beyer's consistent appearances in Burnley's starting lineup resulted in a significant increase in his worth, now put at €20.7 million. Consequently, it comes as no surprise that Burnley exercised their €15 million buy option on Beyer, which also made the loan deal a lucrative venture for Monchengladbach.

Noteworthy mention goes to Amad Diallo of Manchester United, who also spent the season in the Championship with a loan at Sunderland. At just 18-years-old in 2021, Diallo scored for United in the Europa League, fuelling hopes that he would be the next big star. 

But it has been during his spell at Sunderland that Diallo consistently showcased his incredible talent, netting an impressive 14 goals. This remarkable feat has boosted Diallo's valuation to a staggering €27.5 million, firmly establishing him among the rising stars of football.

These examples clearly demonstrate that the most prosperous loan moves have predominantly occurred in the Championship this season. In fact, four out of the five loanees with the most significant value growth emerged from loans to the Championship. This trend is not new, as proven by established players such as Conor Gallagher and Harvey Elliott, whose initial valuation surges occurred during their respective Championship loan spells.

Club Brügge with clever loans

It is not just loans to the Championship that can prove prosperous, though. According to the Off The Pitch Player Valuation Tool, very few teams have seen consistent value increases for their loaned players during the 2022/23 season. 

One club that stands out in this regard is Belgian top team Club Brügge, who have impressively executed seven loan moves without witnessing any decrease in player value. Three players from Club Brügge have particularly flourished during their loan spells. 

Cyle Larin, a 28-year-old forward, joined Valladolid on loan in January and made an immediate impact by scoring eight goals. Despite Valladolid's relegation from LaLiga, Larin's ability to become the club's top scorer in just half a season has substantially elevated his value to €11.5 million within a remarkably short timeframe.

Maxim De Cuyper and Thomas Van den Keybus, both promising young prospects, embarked on a two-season loan journey at KVC Westerlo. Their contributions were instrumental in Westerlo's promotion to the Belgian Pro League last season and their commendable 7th-place finish this season. As these players now return to Club Brügge, their values have experienced a surge to a collective €8.9 million, reflecting an impressive almost 78 per cent increase since January.

Chelsea and Spurs loan players saw general depreciations

Our analysis also reveals that not all loan spells result in successful trajectories and substantial value surges for the players involved. On the contrary, some teams have experienced the opposite outcome, witnessing depreciations in the value of their loaned players.

Take Chelsea for instance, who have had six players from their first team loaned out for the full 2022/23 season.

All six players had a negative growth in their valuation during the loan. Romelu Lukaku, in particular, had a lacklustre spell at Inter Milan, leading to a significant decline in his value from €83.6 million to just €42.1 million.

London-born winger Callum Hudson-Odoi endured an injury-plagued loan spell at Bayer Leverkusen, receiving only 604 minutes of playing time.  To put this into perspective, Hudson-Odoi played more minutes in the Premier League for Chelsea in each of the last three seasons. Consequently, his value followed a similar trajectory to Lukaku's, plummeting to a mere €14.9 million, halving his initial worth. 

However, these unsuccessful loan spells pale in comparison to the story of Tiemoue Bakayoko. Since joining Chelsea in 2017 for €40 million, the midfielder has spent most of his time on loan at various clubs, most recently a two-year stay at AC Milan.

Unfortunately, Bakayoko's loan tenure in Italy has been far from fruitful, as he has not started a game since January 2022. The loan agreement reportedly includes an obligation-to-buy clause contingent on the number of appearances Bakayoko makes. 

Given his current valuation of €2.9 million, significantly lower than the clause's value range of €15-20 million, it is unsurprising that AC Milan is hesitating to activate it. The same situation is assumed to affect Malang Sarr's development at AS Monaco due to a similar clause in his loan deal.

The return of these depreciated players to Chelsea this summer only exacerbates the challenges they face with a bloated squad. However, it is important to highlight that loans from Chelsea's U21 squad, such as Levi Colwill to Brighton and Ian Maatsen to Burnley, have proven lucrative in terms of increasing the valuations of these young players.

Furthermore, it is not only Chelsea who have encountered regrettable loan deals.

Fellow London club Tottenham also witnessed a depreciation in the value of several players who were on full-season loans and are now returning to the club.

The graph illustrates the depreciation in value experienced by five players loaned from Tottenham this season, plummeting by between €5 million and €11 million. While the risk of a player or two experiencing a decline in value is always present, having five players on loan with such poor trajectories raises concerns about the loaning strategy at the club.

Are Championship loans the way to go?    

Interestingly, both Tottenham and Chelsea have predominantly opted to loan their players to foreign clubs, particularly within the big five leagues. While the international experience is undoubtedly valuable, this diverges from the trend we uncovered - that the most prosperous loans are often to the Championship. 

Of course, it can be argued that players loaned out from top-tier teams often require greater challenges beyond the Championship. Also, there are several examples of unsuccessful loan periods in this league. 

However, the loan players sent out by Chelsea and Tottenham this season highlight the risks of sending loanees abroad, whereas clubs that chose the Championship route generally witnessed the return of increasingly lucrative assets.

Chelsea’s owners have completed a deal to buy a majority stake in Ligue 1 club Strasbourg, kickstarting the multi-club project being pursued by Todd Boehly and Clearlake Capital.

The size of the stake is unknown but it is understood Chelsea will have close to a 100 per cent ownership. French media reported that the West London club are paying €75 million for their share.

It is understood that Chelsea want to own two to three clubs in order to expand their portfolio of players and develop synergies between the different teams.

Keller to remain Strasbourg president

According to L’Équipe, Marc Keller will continue as Strasbourg president after he negotiated guarantees from Chelsea’s owners that he would remain in the post for several years to come. There were 11 shareholders at Strasbourg and Keller’s 27 per cent stake gave him the biggest share.

The takeover is expected to significantly improve the French club’s finances and provide a boost to their plans to renovate the La Meinau Stadium and the club’s training facilities.

 

FC Barcelona aiming to cut wage bill to €120 million below LaLiga limit

FC Barcelona’s economic vice president Eduard Romeu has said the club is targeting a major reduction in its wage bill next season as part of efforts to operate in a financially sustainable manner.

Speaking at a press conference at the Spotify Camp Nou, Romeu outlined the club’s plans as it looks ahead to its first post-pandemic season without the economic cushion that the sale of some of its assets have provided over the past couple of years.

The economic vice president revealed the aim is for Barça’s wage bill and transfer amortisation costs not to exceed €528 million, which would mean reducing spending by more than €120 million compared to the €648.8 million limit set by LaLiga in February.

Romeu did not elaborate on how the club would achieve such a reduction but said the Catalan giants are also aiming to operate without the need for economic levers while remaining in line with LaLiga’s spending controls.

"The priority is to put ourselves in positive results with recurring operations, without levers", he explained.

Possible deal for 49.9 per cent of BLM

However, asked about the possibility of further asset sales, Romeu did not rule out a deal for 49.9 per cent of the Catalan giant’s retail arm, Barcelona Licensing and Merchandising (BLM), "if we see that from the industrial point of view it makes sense.”

The proposed move was approved by FC Barcelona members last June as the club explored how to ease its financial woes.

Asked about the economic levers the club have so far completed – the sales of 25 per cent of its TV rights and 49 per cent of Barça Studios – Romeu defended the decision to reinvest the resultant funds in the playing squad, explaining that "the locomotive of this club is the sporting successes of the men's first team".

 

Aston Villa agree shirt sponsorship deal with betting company BK8 despite fan concerns

Aston Villa have agreed a three-year deal with controversial Asian gambling firm BK8 despite widespread fan opposition to the move.

In a statement, the club confirmed that BK8 will be the club’s front-of-shirt sponsor until the end of the 2025/26 season – after which Premier League clubs will no longer be permitted to promote betting companies on their shirt fronts.

Villa also unveiled their new home shirts for the upcoming season featuring the new logo. The move comes after months of speculation about whether the club would partner with the firm.

In January, the Aston Villa Supporters' Trust (AVST) claimed they had been misled by the club after now former CEO Christian Purslow said gambling firms would not be pursued as principal sponsors.

AVST said then they were “extremely disappointed" and called for the club to “re-evaluate” their agreement with BK8, which was dropped by Norwich City back in 2021 over sexualised adverts with young women.

Villa met supporters to hear their concerns but have decided to go ahead with the deal.

Contribution to local charity

For Villa’s third kit, which will be unveiled later in the summer, BK8 have said they will make a contribution per adult shirt sold, to a local charity in Birmingham.

BK8 EMEA managing director Michael Gatt said: “Over the next three years of this deal we will work tirelessly to make an impact in this area with a number of programmes across the region that engage with Villa supporters locally but also on a global scale.”

 

FIFPRO report highlights concerns over medical checks and lack of pay for women’s players during World Cup qualifying

FIFPRO has highlighted major concerns about the wide disparity in standards, including medical checks and match fees, seen across confederations during qualifying for this summer’s Women’s World Cup.

In a new report, the players’ union published the results of a survey of the 362 players who participated in qualification matches, which found that 70 per cent were not provided with a pre-tournament ECG heart check-up, while 54 per cent were not provided with a pre-tournament medical.

Of the players polled, 66 per cent also said recovery facilities were not of an elite standard or did not exist, with 70 per cent saying that gym facilities were not of an elite standard, while 59 per cent said they flew economy class, including for flights over long distances.

FIFPRO women’s football lead Sarah Gregorius said: “Any stat below 100 per cent in access to important medical checks is unacceptable.”

The survey also revealed that 29 per cent of players did not receive any fee for participating, while 66 per cent had to take unpaid leave or vacation from another job to play for their national team.

“Meaningful changes”

In their jointly signed foreword to the report, FIFPRO president David Aganzo and general secretary Jonas Baer-Hoffmann said: “In highlighting these conditions and the status of players across the globe, FIFPRO firmly calls on the industry to take a closer look at the qualification processes in each of the six confederations.

“This is so we all can commit to meaningful changes that look at the overall opportunities the FIFA Women’s World Cup can deliver to a greater number of players than those that just appear at the final tournament in July and August this year.”

More details have emerged of the case being made against Juventus by the Turin Public Prosecutor's Office in the ongoing criminal Prisma investigation into the club’s financial practices.

According to a report from Tuttosport, the Turin prosecutors had requested the dismissal of the charge of false invoicing originally listed in the case in relation to the club’s capital gains practices, and the investigating judge has now accepted this request.

It is understood that before the trial, the prosecutors had noted that the initially disputed invoices had not led to significant impacts on the club’s financial statements and therefore did not deliver a “concrete tax advantage”.

The other charges of false corporate communications of a company listed on the stock exchange, obstruction of supervisory bodies, and market manipulation remain as part of the investigation.

As well as the club itself, former board members including Andrea Agnelli, Pavel Nedved and Fabio Paratici are facing allegations in the case.

Alleged secret player payments

The latest revelations about the case also shed new light on the allegations that Juventusagreed a series of secret player payments during the early stages of the Covid-19 pandemic.

Tuttosport reports that having listened to them, the prosecutors believe the Juventus board of statutory auditors – also listed in the case – were unaware of the club’s operations with respect to salary manoeuvres and side letters, unlike the auditors who took care of Juventus’ accounts in the three-year period from 2018 to 2021.

The investigation is set to continue, with Italy’s Supreme Court due to make a decision about the territorial jurisdiction and therefore whether the case will continue in Turin or take place elsewhere, with Milan or Rome the most likely alternatives. A hearing is due to take place on 26th October.

FIGC settlement

Last month, Juventus reached a settlement with the Italian Football Federation (FIGC) over the alleged irregularities in the club’s salary payments to players.

The club agreed to pay a fine of €718,000 and also not to appeal against the 10-point deduction handed down over the separate FIGC case which found the club guilty of false accounting in relation to capital gains.

Juventus have consistently denied wrongdoing and have said their accounting was in line with industry standards.
 

In football’s summer of Saudi, where the oil rich Gulf kingdom seems destined to dominate the global back pages and transfer market, the press conference in Jeddah on 5 June offered what seemed like a dull footnote in comparison to what was to follow.

At it, the Saudi Minister of Sport, Prince Abdulaziz bin Turki Al-Faisal, announced that PIF would be investing in four of the country’s biggest clubs - Al-Hilal, Al-Nassr, Al-Ittihad and Al-Ahli, and that the clubs would be converted into companies owned by the fund.

In effect a kind of Multi Club Ownership (MCO) vehicle was being created, given PIF’s majority stake in Newcastle United, although the benefits for having ownership of four domestic rivals was never clearly elucidated in the blizzard of press releases that followed this announcement.

Also omitted from the aforementioned press releases was a further announcement.

The Prince added that fellow Pro League clubs were to be transferred to private companies: Al-Qadisiyah Club to Saudi Aramco, Diraiyah Club to the Diriyah Gate Development Authority, AlUla Club to the Royal Commission for AlUla and the Suqoor Club to NEOM.

Given the sports law that privatised Saudi sports clubs two years ago this should perhaps not be too exciting, but for one crucial factor: PIF owns three of these companies outright and a $160 billion stake in the fourth – Aramco, the world’s third biggest company by market cap.

In a sweep the Saudi Prince had announced the creation of the world’s second largest MCO, albeit one heavily skewered towards the Saudi Pro League.

The PIF MCO is behind only City Football Group, which has 15 clubs, but with at least nine clubs, is ahead of Pacific Media and Josh Blitzers’ portfolio (eight clubs each) and 777, which has seven.

Huge Business Backing

It is unclear why Saudi Arabia has structured the ownership of its domestic clubs in such a way, and the Pro League’s PR consultants did not respond to Off The Pitch’s queries.

Nevertheless, taking PIF’s overarching interest in the clubs, the companies under its ownership that were handed these clubs are worthy of closer attention. Prince Abdulaziz described them, not without justification, as “some of the biggest entities within Saudi Arabia”. But as parent companies of football clubs – irrespective of their ties to PIF – they are among some of the biggest on the planet.

The AlUla Development Company is a $15 billion real estate development and asset management designed to develop the cultural sites. Similarly the Diriyah Gate Development Authority is vested with $50 billion to develop its significant historic and cultural sites, including the Turaif District UNESCO World Heritage Site.

Neom is a $500 billion PIF-owned development that will include smart towns and cities, ports and enterprise areas, research centres, sports and entertainment venues and tourist centres, spread across 26,500 square kilometres. As for Aramco, only Apple and Microsoft are bigger corporations globally by market capitalisation, which at the time of writing stands at more than $2 trillion. In April PIF doubled its stake in the oil company to 8 per cent.

Distorting impact

Dr Dan Plumley, Senior Lecturer in Sports Finance at Sheffield Hallam University, says that the sheer size of these corporations has eluded most commentary on what is happening right now in Saudi. The comparisons with China, he adds, where hundreds of millions were spent on football over several years in the middle of the last decade without being sustained, are likely to be premature too.

“We've seen comments coming out from senior people involved that they want the Saudi League in the top ten leagues in the world,” he says. “I don't think that's beyond the realms of possibility if we're talking about a five to ten year project, because actually you can make up a fair bit of ground quite quickly.”

Plumley says that the sums being spent by Saudi clubs on players in Europe will have an impact on domestic transfer markets. He says the “most interesting” piece of transfer business doesn’t relate to Ronaldo or Karim Benzema, but the proposed €55 million transfer of Ruben Neves from Wolves to Al Hilal – one of the highest fees ever paid for a player in the last year of their contract.

“That’s going to distort that middle fee range,” he says. “[Players like Neves] are not even perhaps in the peak of their careers, but are at the end of contract, or coming towards the end of contract with their club. What that's going to do to that particular market, I think that's where a lot of the distortion will be.”

Extended influence

Does the PIF football family extend even further? As Chelsea prepared to trade players in an attempt to offset some of the past year’s £600 million transfer binge, five high profile Chelsea players with a combined value of as much as £200 million were linked to moves to Saudi, while the club’s co-owner Todd Boehly was pictured on social media in Saudi.

Why does this matter? Boehly’s partners at Chelsea, Clearlake Capital, a diverse fund which has a 60 per cent stake in the London club, reportedly includes PIF among its investors. 

Clearlake do not publish details of its investors, but none of the shareholders own more than five per cent – although that still opens up the possibility that PIF own as much as 3 per cent of Chelsea via Clearlake.

“Clearlake and PIF have an excellent relationship,” tweeted the CBS journalist, Ben Jacobs.

“And the latter are driving many high-profile moves to Saudi on behalf of Al-Nassr, Al-Hilal, Al-Ittihad, and Al-Ahli. Chelsea see an opportunity to offload some players to Saudi. And PIF have multiple Chelsea players on their radar.”

What is going on? Is this some kind of evil genius strategy to break FFP? Buy a big club in another confederation and use it as a money pit for all your aging players and balance the books in one go? Or is it just coincidence? Why would PIF bail out one of Newcastle’s rivals?

Jacobs, who has excellent connections in the Gulf, having lived and worked in the region for many years, suggested that the Chelsea-Saudi deals were for the benefit of growing the Saudi Pro League, rather than the London club, which has nevertheless lived beyond its means over the past year.

“With all these high-profile deals the club is often selected quite late in the process,” he wrote, “But the aim is to populate all four clubs with stars to create Riyadh and Jeddah rivalries with global appeal. Next season there will new TV deals, and an English highlights show is expected.”

Other sources have pointed to Clearlake and PIF’s reputations as serious investment corporations. “These are vehicles that are going to be used to dodge sports-financial regulations, frankly,” one industry insider said.

Extended influence

Although not all of its deals are made public, PIF’s tentacles clearly go far.  Unrelated to Chelsea, for example, Boehly’s real estate investment business, Cain International, last year partnered with PIF in a $900 million investment in Aman Group, a luxury hotels company.

In football it holds sway in its other private equity investments.  Earlier this year it disclosed investments in dozens of private equity and venture capital firms via its Sanabil Investments arm. These included CVC Capital Partners, which holds stakes in LaLiga and LFP’s media rights deals, and which has been linked to similar deals with the Bundesliga and Serie A.

Unlike other such funds, CVC does not invest in individual clubs. But as it stands there is no duty for a fund to report who its investors are to a league or governing body, throwing up a plethora of potential conflicts of interest.

Earlier this year Roy Vermeer, the director of legal affairs at world football players union FIFPRO, warned of the dangers of MCOs operating in the shadows.

“We always talk a lot about the City Football Group and Red Bull, but I am sure there are plenty of others out there that we don’t know about that are transferring players between each other,” he told Play The Game.

“It’s much more than the integrity of the Champions League and teams playing each other. Behind the scenes there is so much more, like moving players around and non-sporting motives.”

UEFA’s latest benchmarking report found 180 clubs worldwide with around 6,500 players under contract in 2022, but Play the Game’s own research identified an additional 76 clubs with shareholders or owners with significant stakes or influence in other clubs – a discrepancy that shows how poorly regulated and monitored MCOs are.

Earlier this year the European Club Association CEO Charlie Marshall told Off The Pitch that the issue of MCOs will inform the body’s next “detailed piece of our strategic thinking”.

“There is clearly a period of reflection and understanding: What it all means, what are the different models? What are the pros and cons of the different models? Our starting point is definitely not multi club ownership is bad. I mean, that's not a starting point.”

Off The Pitch contacted the Saudi FA’s PR representatives asking for comment on the PIF-backed acquisitions and questioning what the rationale and aspirations are for it. We also asked for a spokesperson to discuss developments in Saudi football. Neither request was responded to.

A number of European clubs are calling for a “fair market investigation” into Saudi Arabia's interest in signing players from Chelsea and Wolves, according to a report from The Daily Telegraph.

Hakim Ziyech and Kalidou Koulibaly from Chelsea, along with Wolves captain Ruben Neves, are among several top-flight players being linked with moves to play in the Saudi Pro League.

Clubs in Europe are understood to be questioning the sudden transfer interest in the players amid the desire of both Chelsea and Wolves to meet Financial Fair Play (FFP) rules.

A European rival club claimed that investigations need to be started over the transfer business.

“Bottomless pit of cash”

“PIF has so many investments around the world that it should be compelled to prove there are no conflicts of interest as it spends big with its bottomless pit of cash on ageing players,” one European club told The Telegraph.

“Watch clubs use Saudi this summer across Europe as a get out of FFP jail free card. It becomes even murkier should PIF have investment interest in both the selling and buying club.”

The spending spree in the Saudi Pro League has been led by the Saudi Public Investment Fund (PIF), which also owns 80 per cent of Newcastle United, and is a major investor in Chelsea’s joint owner Clearlake Capital.

 

RedBird chief Gerry Cardinale steps down from Toulouse board to help club meet UEFA competition rules

Gerry Cardinale, founder of AC Milan owner RedBird Capital Partners, has resigned from his post as a board member at Toulouse FC, according to a report from French outlet Les Violets.

It is understood that Cardinale stepped down from his duties during a general meeting on 9th June. The move has come after both Toulouse and AC Milan qualified for European competition next season, with the Ligue 1 club due to play in the Europa League and Milan competing in the Champions League.

Under UEFA rules, two clubs with the same owner cannot be guaranteed permission to compete unless one is in the Champions League and the other in the Europa Conference League.

Three other members of both clubs’ boards

Les Violets understands that Cardinale will now be solely dedicated to the management of AC Milan, although it remains to be seen whether the other three members of both clubs’ boards – Alec Scheiner, Niraj Shah and Isaac Halyard – will keep both of their posts.

According to Tuttosport, the decision from UEFA over whether both Toulouse and AC Milan can play in Europe next season is likely to come in the middle of next week.

 

Ceferin points to need for spending cap amid competitive balance concerns

UEFA president Aleksander Ceferin has said the European governing body is considering introducing a spending cap for clubs as part of attempts to maintain competitive balance across the continent.

Earlier this month, reports suggested that UEFA was exploring a radical plan to bring in a limit on the total amount that clubs could spend on player wages and transfers in a single season.

Speaking to the Dutch broadcaster NOS, Ceferin said the aim of any spending cap would be to “prevent two or three teams that have unlimited resources from reaching a budget of 10,000 million.”

He added: "We don't want two or three clubs that have unlimited resources to reach a budget of 5 billion or more, otherwise our competition would no longer be interesting. Virtually every club, every club I've spoken to, agrees.”

Capital gains limits

Meanwhile, according to a report from L'Equipe, UEFA is also looking at how to limit abuses of capital gains practices following a number of instances where some clubs have been found to have exchanged players for vastly overvalued figures.

On 28th June the UEFA executive committee will vote on amendments to its financial sustainability rules, which are said to include proposed changes to the transfer accounting regulations to prevent abuse of capital gains and ensure equal treatment.

The proposal is that if UEFA deem the prices of the players exchanged do not correspond to their real market value, UEFA’s Club Financial Control Body (CFCB) will not allow their inclusion in the clubs’ budgets at those amounts.

The measure could come into force for the current market window, although it is not clear at present how the assessment would be carried out.

 

Khaldoon Al Mubarak: City Football Group will not stop growing

Manchester City chairman Khaldoon Al Mubarak has said that the 13-club City Football Group will continue to grow their global influence and will invest considerably in all their operations, including players, coaches, facilities and academies.

Speaking in part two of his annual end of season interview posted on City’s official website, Al Mubarak said: “It’s always about growth. You grow, you pause, you get things in order, and then you start the next step, one step at a time. We’re not going to stop.

“We’re going to keep going and we’re going to keep investing and we’re going to keep growing value, and we’re going to keep bringing happiness to every community and every club we have in the world, and hopefully we’ll keep bringing success in every club and team we have around the world.

“It’s been a great journey over the last 15 years but I’m excited about the future and it’s about now, the next 10, 15 years too.”

Stadium expansion

Al Mubarak also commented on the recently submitted plans to increase capacity at the Etihad Stadium to more than 60,000 as part of a £300 million development which will also include a hotel, shops and 3,000-capacity covered fan zone.

The City chairman said it will not be the last improvement at the stadium. “It’s very exciting,” he said. “Every year there’s always something new, every year, because there’s always a need to improve and evolve and grow. We don’t stand still. We never stood still.

“Every couple of years we will do something, whether it’s the Tunnel Club, whether it’s the new stands, whether it’s the seating.

“We’re always in growth mode, we’re never in contentment and pause and ‘let’s just milk the asset’. This is about building value and growing value, and it’s about reinvesting consistently into this club.”

 

Agents launch legal action against FA and FIFA over new rules

A number of leading football agents have launched legal action against the FA and FIFA over new rules that will limit their fees.

Four of the biggest agencies – CAA Base, Wasserman, Stellar and ARETÉ – are challenging the new regulations, and an arbitration tribunal is due to decide on the case before the rules come into force on 1st October.

The agents are challenging the FA over its National Football Agent Regulations (NFAR), which cover English domestic transfers. The action against FIFA covers its agent regulations which apply to international transfers.

The rules will cap agents’ payments to 10 per cent of a transfer and 6 per cent of a player’s contract. No such restrictions are in force at present.

Capped fees viewed as anti-competitive

A source with knowledge of the legal actions told The Times that the agents believe the capped fees, along with some other regulations, are anti-competitive.

In a statement, the FA said: “An expedited timetable has been agreed and it is expected that a decision will be given by an arbitral tribunal appointed under FA Rule K by 30 September 2023. No further details can be provided due to confidentiality restrictions.”

Manchester City chairman Khaldoon Al Mubarak has said he has "very strong views" on the Premier League’s 115 charges for alleged rule breaches made back in February and has insisted the allegations should not taint the winning of the treble.

Speaking in part one of his annual end of season interview posted on City’s official website, Al Mubarak said: “I can’t talk about them unfortunately for legal reasons. And what I would typically always do is comment after, so I think we’re going to go through the legal process.

“These are proceedings that take whatever time they take and when we’re done we’ll have a conversation. I’ll give you my very blunt views, I promise you that. I have very strong views on that.”

City claimed only the second treble in English football history after winning the Champions League, Premier League and FA Cup, and Al Mubarak expressed his frustration at attempts to tarnish the club’s success.

“It’s very frustrating because it takes so much from the great work that’s happening at this club and it’s happening not just on the football pitch,” he said. “What these players have achieved this year, the treble, is incredible.”

He added: “Today, the value of [the City Football Group] is over $6 billion. We’ve created so much value – we’ve brought in world-class investors. Why? Because we have a commercial machine here that is one of the best in the world. Our executives are being targeted by the best teams in the world – always.”

Net profits in transfer market

Al Mubarak insisted that City have earned their success due to the club being “very well run”, and in response to criticism of their spending he pointed out that they have routinely posted large net profits in the transfer market in recent seasons.

City recorded a net transfer profit of £68.5 million in 2020/21, £67.7 million in 2021/22 and look set to post an even higher profit for last season after generating around £193 million from player trading, including £65 million from the sale of academy products.

Chelsea refused permission by Premier League to sign sponsor deal with Paramount+ and face fan criticism over talks with Stake.com

Chelsea appear to be facing a number of challenges in their attempts to secure a new front-of-shirt sponsorship deal for next season.

The West London club are seeking a replacement for mobile network Three, whose three-season agreement ended this summer, and had been hoping to secure a deal with the American streaming platform Paramount+.

However, according to The Daily Mail, the Premier League has refused Chelsea permission to sign the deal and is said to be taking the stance amid concerns it would upset the competition’s broadcast partners.

The league is believed to have told Chelsea that the agreement would not be permitted under the Deed of License – the contract between club and Premier League which covers a wide range of broadcasting and media matters.

Overwhelming opposition to Stake.com deal

Chelsea and are now understood to be in talks over a one-year deal with gambling company Stake.com, despite the looming ban on betting sponsorships.

However, as reported by The Guardian, Chelsea supporters have expressed overwhelming opposition to the proposed agreement. A survey of fans conducted by the Chelsea Supporters’ Trust found that 77 per cent disagree or strongly disagree with the proposed deal.

In a statement, the CST warned that such a sponsorship would make a “total mockery” of the good work that the Chelsea Foundation had pioneered on gambling harm awareness workshops in schools in West London.

“It would be short-sighted and would force many of our members to see any future CFC Foundation projects as tokenistic,” it said. The CST asked the club’s board to commit an open dialogue over any decision.

Lyon face possible sanctions as owner John Textor asked to inject €60 million into club

French football’s financial watchdog, the DNCG, has demanded that Lyon owner John Textor finds an additional €60 million to inject into the club before 30th June.

As reported by L’Équipe, Lyon’s budget for next season is deemed to be unbalanced by the DNCG. Ligue 1 and Ligue 2 clubs are required to present a balanced budget for the forthcoming season before the end of June, or else face sanctions which can range from a fine to relegation.

The move has sparked concerns that Textor’s company Eagle Football, through which he owns Lyon, is running low on cash. The American businessman also holds his 40 per cent stake in Crystal Palace, 90 per cent shareholding in Brazilianclub Botafogo and 80 per cent stake in Belgian team RWD Molenbeek through the investment vehicle.

Lyon women’s team sale

The required €60 million injection into Lyon could be funded through player sales, or a direct provision of additional cash and Textor is said to be unfazed by the demands made by the DNCG.

Eagle Football representatives have stressed that the €60 million gap does not reflect the club’s latest financial accounts, as well as the decision to sell the Lyon women’s team to American entrepreneur Michele Kang – which Textor hopes will generate €50 million.

They also point out that the gap could be made up through the sale of the US women’s team OL Reign owned by Lyon. However, the DNCG require concrete evidence that a transaction has closed, rather than mere promises of future money.

Commercial departments of football clubs all over Europe are facing a tough summer. And heatwaves seem to be the least of their problems.

Just last week, according to SportsBusiness, Chelsea saw a bumper front-of-shirt sponsorship deal fall through with a crypto-currency firm, which will see the Todd Boehly-owned club try to sign a deal with gambling firm Stake.com instead. The collapsed deal, replacing the current $43 million a year deal with telecoms company 3, could be seen as forewarning of a stressful period ahead for commercial executives trying to land new, lucrative deals.

In the Premier League alone, no fewer than six clubs had to either renew or replace their front-of-shirt deals after the season, with Chelsea being one of the biggest clubs trying to clinch a new agreement before the new season kicks off.

Smaller deals

According to Conrad Wiacek, head of sport analysis at GlobalData, clubs will generally have to settle for slightly smaller deals compared to those expiring.

“Of course these deals should be looked at in the light of developments at each and every club. However, looking at the overall trends we can’t ignore the fact that this summer it is a buyer’s market.”

Wiacek, who has been monitoring sponsorship deals since 2013, explains that in some ways, the current climate - where club executives are trying to convince major brands around the world that they should be the front-of-shirt sponsor of a European club from one of the 10 biggest leagues - could be a “perfect storm”.

There are obviously club-specific things factors which will have a significant influence on the value of each single deal – but in the bigger picture there are several external factors putting pressure on the sponsorship market.

“We have the Ukraine crisis, inflation is a big thing in most countries and the cost of living is on the rise. All these things are bad news if you are a brand willing to connect with a global football club.”

“Clubs have to realise that peoples’ life patterns are changing these years due to the aforementioned reasons, and even though there is some sort of understanding in the industry that football can go through even the biggest of crisis without too many scratches – financially speaking – then I guess everyone now understands that football doesn’t exist in a bubble. Football is very much part of society, also when it comes to global brands facing an economical climate where they have to spend less money on sponsorships,” says Wiacek.

However, he says the current climate could be much worse and he expects most clubs to sign decent deals – although some sides will have to lower their expectations.

“Football is still a very strong vehicle. Football offers an emotional connection that nothing else matches globally. Yes if you are a global brand, you can pick a rock star or a supermodel, and it could definitely help your brand. But football is still something very special with tens of thousands of fans travelling around Europe once in a while, and around countries every weekend, to support their team. And brands do see the value in this, so money is still to be found in the market – but deals will be smaller.”

Looking specifically at the Chelsea deal, executives at the Stamford Bridge club will have to cope with the fact they have just finished a disaster of a season, with quite a few managerial changes; that there is no European football season next year; that the club will have to undertake a serious overhaul of their massive squad - while the ownership change last summer is also piling on the pressure amid Chelsea’s search for a new front-of-shirt sponsor.

“It wasn’t Chelsea who invaded Ukraine, obviously, but these things do influence the value of a deal. Now Chelsea have sorted out their ownership situation but some brands may hold their breath to see how the new ownership is doing things. They have a new manager coming in, Mauricio Pocchetino, and American brands would be watching [to see] if they could connect with this very big club. But I expect Chelsea would have to settle for a deal in the region of around $35 million a year,” says Wiacek.

The situation is also a bit tricky at Manchester United. According to the analyst from GlobalData, the club seem to be heading in the right direction on the pitch under the new manager Ten Hag, but there is uncertainty in terms of the ownership of the club. TeamViewer, the current front-of-shirt sponsor, has made it clear it is willing to drop the last year of the contract, which should be around $50 million a year.

“My bid would be that the contract will run out, meaning that they will continue the partnership also in the next season. The ownership situation at the club is insecure, and as a sponsor you don’t know what you sign up to. Also from Manchester United’s point of view they might bet on the fact that they are in an even better situation after next season, meaning that they could actually trying to push for an even bigger deal than the current one. Because they still have significant brand strength.”

Gambling and crypto

Looking at some of the broader trends, there is the fact that in the coming season, 2023/2024, English clubs can actually play with a betting brand on the front of their shirt. Most executives knew that this was coming, that politicians and leagues wanted to terminate their relationship with gambling companies, but then quite a few clubs went to crypto firms instead and got themselves some pretty big deals in the years after Covid-19.

But the global crypto crash has meant that clubs can’t rely on these types of firms.

According to Wiacek, clubs at the bottom of the Premier League in particular have been quite reliant on gambling firms as front-of-shirt sponsors, but top teams from the Championship have received their share of money from that sector as well.

“We are going to see some of the traditional sectors coming back to football. It could be financial services and the automotive brands. We should also pay attention to tech companies. There are so many things going on in terms of AI, so there might be tech companies out there, with a profile connected to AI, who would see significant value in being connected to millions of football fans,” Wiacek says.