It represents only a footnote in a chaotic era for the club, but the impending closure of FC Barcelona's Spanish television channel, Barca TV, as part of a cost-cutting strategy seems at once at odds with the huge valuation the club gave its media operations last year, while representing something deeper about how clubs are interacting with their fanbases.

Last summer, the club asked for – and received - €200 million for selling two 24.5 per cent stakes to in Barca Studios to a media group and cryptocurrency business.

That investment the club said at the time, represented “confidence in the value of the project and the future of digital content in the world of sport.”

Barca Studios serves as a hub for developing and producing engaging and innovative content, focusing on enhancing the club's brand, narrative, and storytelling capabilities. Traditionally Barca TV, for which it provides content, would have been a key outlet for this. From the end of next month this will no longer be the case.

Barcelona will not renew their existing agreement with Telefonica, a Spanish telecommunications company, which currently handles the outsourcing of Barca TV. Over the past year, the club contemplated the possibility of assuming direct control of Barca TV and transforming it into a financially viable entity, but failed to identify a sustainable path forward.

Having been established in 1999, the channel is scheduled to be discontinued on 30 June, resulting in over 100 redundancies, including both employees and freelancers.

Spanish media quoting unnamed club sources revealed that this decision could potentially save the club approximately £11.5 million (€13m) per season.

This latest development represents yet another measure undertaken by the club to address the financial challenges that have plagued them in recent times. In order to stay afloat, Barcelona has been forced to pull various economic levers while grappling with a substantial wage bill.

But the closure of Barca TV seems to represent something else, something that transcends the Spanish club.

Only a few years ago major clubs were repositioning themselves as media companies. Now clubs all over Europe are stepping back from linear TV offerings, with Barca the most significant club to do so. Is Barca’s withdrawal just about its own short term financial priorities, or is this part of a broader retrenchment from those ambitions?  Has the money gone from this field?  Where does the future of club media rest?

Broader trend

Research carried out by Off The Pitch into club centred TV stations reveals that Barca TV’s impending closure leaves just a third of Europe’s leading clubs (the Super League 12, plus PSG, BVB and Bayern) with linear broadcast channels. Some have moved onto online only models; Inter’s online TV channel is free; others – like Tottenham and Arsenal – don’t offer them at all.

Sébastien Audoux, a longstanding former executive at Canal+, shared his perspective on the trend of club TV channel closures in Europe. According to Audoux, the approach of clubs prioritizing distribution control before content production was fundamentally flawed.

Audoux argued that true control over distribution is elusive, even with over-the-top (OTT) platforms, as ultimately there is a reliance on intermediaries like Apple or Google. The challenges were even greater for linear channels, which had to navigate through telecom companies and pay TV operators. Furthermore, these channels often struggled to offer compelling content compared to traditional media outlets, lacking sufficient programming to sustain a 24/7 schedule.

Instead, Audoux emphasized that ownership of production should primarily focus on nurturing and enhancing the club's brand as well as delivering greater value to sponsors and engaging with supporters.

By prioritizing content production and brand development, clubs gain the flexibility to explore various output options, catering to both business-to-business (B2B) and business-to-consumer (B2C) avenues. This approach allows for more strategic decision-making and enables clubs to adapt to evolving media landscapes while maintaining their unique identity.

“Owning the production should really be about owning and developing your own brand, narrative, storytelling, improving value for your sponsors, engaging with you fan base,” believes Audoux. “Authenticity being the most valuable asset here.”

Unviable model

According to Tom Hines, principal at J40 Media and a former head of media at Arsenal, the production costs associated with linear TV have been unviable for most clubs for quite some time. In addition, the challenge is exacerbated when third-party distribution separates the audience and their data from the club.

He gives the example of Arsenal’s noughties TV channel, which broadcast academy games as the core of its subscription product.

“They then realized that the number of subscribers they were getting and the cost of producing the Academy games meant that at one point, they might as well be bussing –  paying for busses to take the people who were actually watching online – to watch the games live,” he says.

“So they went from a paid subscription model to a data exchange model. So you could sign up for Arsenal TV for free, but you had to give us your email address and you had to log in whenever you wanted to consume the content.”

He argues that streaming channels are not the future of club media and may not have a place in a club's media portfolio. Instead, archives, behind-the-scenes content, and club features can only contribute meaningfully to a direct-to-consumer (D2C) offering only if they include live, top-flight games. This is not going to happen any time soon.

Nevertheless Hines believes that clubs and leagues that demonstrate agility and innovation in their production processes can generate revenue at the margins. While the closure of Barca TV in June will result in the loss of 120 jobs, re-evaluating the workflows of such a large team and leveraging AI and automation in content archiving, capture, and production can significantly reduce costs.

Direct to consumer

Hines says that the pronouncements on the death of football clubs as media companies are premature.

“Football clubs are or can be media companies,” he says. “And I think that you need to have at least a group of people within a football club who are thinking that way, even if the whole club isn't, even if that's not what's driving the commercial strategies, even if that might be kind of in conflict with what your communications team are thinking.

“I think it's important that there are a group of people there who are thinking, ‘Yes, we are a media company. We can create a media company off the back of this.’ I think what that means or how you execute that has changed in the last few years, certainly changed in the last six years since I started at Arsenal. And clubs are still trying to figure out what kind of media companies they actually are, and also how much interest there is beyond the live match.”

Direct digital monetization of fans remains the prevailing trend, he adds, and this transcends video content. He points to the ascent of Web3 as representing a key development. While the initial attempt to introduce fan tokens may have been “a somewhat blunt moneygrab” he says, the advancement of blockchain technology will eventually revolutionize how clubs engage with their fans, resulting in tangible financial benefits.

Going back to our starting point, Hines says that the closure of Barca TV represents “a really good eye catching example that shows us where clubs perceive the value of fan engagement to be.”

“That being a shift from reach and sort of ‘inactionable eyeballs’ to direct relationships with the fans.”

Overdue reset

Neil Joyce, CEO of CLV group which works with football clubs and other entertainment businesses on digital engagement, tells Off The Pitch that the migration of club owned TV stations to digital propositions is part of a “long overdue reset” going on in the space.

Joyce highlights a significant shift taking place in the sports and fandom landscape, urging football clubs to transition from brand-building to adopting high-growth models similar to direct-to-consumer (D2C) brands. Joyce emphasizes the importance of content development and fan customization as the foundation for football clubs to establish subscription-based models and cultivate relationships with global fans.

“Content is the catalyst as an engaging value proposition to provide the connection to fans," he says. This connection, according to CLV group's Fan Moneyball analysis, unlocks a substantial revenue opportunity of over $300 million in content streaming for larger European clubs.

Joyce points to successful behind-the-scenes formats such as “All or Nothing,” “Drive to Survive,” and the captivating story of “Welcome to Wrexham” as evidence that storytelling can effectively reach and convert new fans, audiences, and followers. He suggests that sport, media, and entertainment are converging as industry verticals and mutually beneficial partners, with each having elements of heroism, underdog narratives, and high drama. This convergence opens up limitless possibilities for engagement-efficient non-live event channels across various digital formats.

“Clubs obviously do not have the back-catalogues of a Disney or a Warner Brothers, however, they do have legacy, ongoing stars, up and coming talent, the high growth of their women's teams to create new stories,” says Joyce.

“The key question that the clubs needs to answer is whether they want to keep being disinter-mediated by broadcasters, social media platforms and a fixation on ratings data vs invest proportionately to where their fan revenue opportunities [exist]. which will require philosophical change to act like a D2C organisation where customer lifecycle and LTV metric are critical.

“Whilst there is a short-term requirement to all businesses and football is no different, are Netflix or Amazon the meal ticket or are they really there to eat the clubs lunch?”

Farewells

Ultimately the reality facing Barca TV – like that facing club TV channels everywhere – is quite prosaic: the world has moved on from a linear broadcast model that is heavy in overheads but has ultimately lost its reach.

According to Barcelona’s annual accounts, its global streaming channel Barca TV Plus had just 2.5 million views last year. When the club posted a video last week announcing Sergio Busquets’ departure it generated 5.7 million views within 24 hours.

“It has not been an easy decision,” said Busquets, who joined the club, aged 12, in the season Barca TV was born. “But it’s time to say goodbye.” He might have been talking for both of them.

Barcelona told Off The Pitch in a statement:

'Last April 27 FC Barcelona communicated to TBSC Telefonica that will no longer extend the contract to operate Barça TV channel expiring on June 30. This painful decision is framed inside club’s viability plan that LaLiga has required to all teams participating in their competitions. FC Barcelona is currently reimagining the production and distribution of content for its TV and will communicate its decision on following dates.'

The sale of Manchester United is reported to have moved a huge step closer, with British billionaire Sir Jim Ratcliffe set to be named by the Glazer family as their preferred bidder, according to The Sun.

Six months on from the club first being put up for sale, and after a battle between two key candidates – Ratcliffe and Qatari former banker Sheikh Jassim Bin Hamad Al Thani – it is understood the Glazers are finally ready to sell.

The Raine Group, the New York-based merchant bank that has overseen the sale, is said to be nearing confirmation that the process will advance, with Ratcliffe's bid – which would see the Glazers remain at the club as minority shareholders – very much the frontrunner.

Although Sheikh Jassim's bid of £5 billion for 100 per cent control of the club was the highest bid received after three rounds of bidding, it is believed that Ratcliffe's offer for an initial stake of 50 per cent valued the club closer to the reported £6 billion valuation set by the Glazers.

Desire to remain at the club

Complications are said to have emerged throughout the bidding process, which has dragged on owing to Joel and Avram Glazer's desire to remain at the club.

Should Ratcliffe's bid be the one the Glazers' move forward with, it could open the door to other investors entering the process. Private equity funds Ares Management, Elliott Management and the Carlyle Group have all expressed interest in owning a stake in the club.

 

Benfica launch new €50 million capital increase

Benfica are targeting further additional financing after launching a capital increase of €50 million on the Euronext stock market.

The Portuguese giants have put into circulation 10 million shares at €5 per share with a fixed gross interest rate of 5.75 per cent per year.

Earlier this month, the club launched a new bond loan of up to €40 million under two offerings, both for up to 8 million bonds with a nominal value of €5 each. The first has a fixed interest rate of 5.75 per cent, and the second a gross fixed interest rate of 4 per cent.

Last May, Benfica raised €60 million from a bond issue with a nominal value of €5 per bond and an interest rate of 4.6 per cent per year.

€35 million loss

After suffering heavy losses during the Covid-19 pandemic, Benfica’s ordinary business returned to normality in the 2021/22 financial year. However, the drought in the transfer market led to a net loss of €35 million.

The club is projecting a return to profitability for the current 2022/23 financial year, aided by the sale of Enzo Fernández to Chelsea for €120 million. However, it closed the six months to the end of December with a loss of €13.3 million.

 

PSG minority stake targeted by US private equity firm Arctos

American private equity firm Arctos Sports Partners is interested in acquiring a minority stake in Paris Saint-Germain, according to a report from L'Équipe.

It is understood the Dallas-based firm is in the running along with two other candidates for a stake of between five and 15 per cent that would value the French champions at €4 billion.

It was reported that Arctos had sent representatives to attend PSG’s shock 1-3 home defeat to Lorient on 30th April. While the loss does not appear to have deterred the prospective investor, they are believed to be assessing the fact the club does not own its stadium.

Wide-ranging sports portfolio

Arctos has nearly €7 billion in assets and holds a wide-ranging sports investment portfolio, including stakes in Liverpool owner Fenway Sports Group (FSG) and the NBA teams Golden State Warriors and Sacramento Kings.

 

Agent groups ordered to pay €1.75 million after losing case over new FIFA rules and exam

Two groups of football agents have been ordered to pay €1.75 million in legal costs after losing a case in the Netherlands against FIFA’s new regulations for intermediaries, The Athletic reports.

The European Football Agents Association (EFFA) and Pro Agent were seeking to put an injunction on the new FIFA agent regulations and entry exam, which are due to come into effect from the start of October.

The EFFA is a European interest group of football agents whose members include intermediaries from Switzerland, Japan, Brazil and Argentina, while Pro Agent is a group of Netherlands-based football agents.

The two groups were in particular challenging FIFA’s service fee cap and the exam agents are now required to pass.

They argued that the rules are unlawful because the world governing body is not authorised to regulate their profession, as the agents are not members of FIFA and there is no public law basis for FIFA’s regulation.

They felt the cap on what they can earn from a transfer, which will be limited to six per cent under the new regulations, “violates national and European competition law”.

Mainz District Court decision

However, the case drew attention to a decision in the Mainz District Court in Germany last month, which referred a preliminary ruling on FIFA’s agent regulations to the European Court of Justice (ECJ) for consideration.

The decision in the Netherlands Central Court, as per the ruling, “is bound by what the highest European court is going to rule” and that “the decision must be awaited in order to prevent incorrect decisions”.

As a result of this, the EFFA and Pro Agent were ordered to pay the legal costs, totalling €1.75 million.

A company controlled by Manchester City owner Sheikh Mansour bin Zayed Al-Nahyan has committed $750 million to RedBird Capital Partners for its latest fund to invest into sports, The Liverpool Echo reports.

The American investment firm, which completed its takeover of AC Milan last September and has an 11 per cent stake in Liverpool owners Fenway Sports Group, has raised almost $2.5 billion for its fourth sports fund.

RedBird has raised $2.3 billion of its $2.5 billion goal so far, with $750 million of that figure having arrived from Abu Dhabi’s International Media Investments (IMI), a private firm controlled by Sheikh Mansour.

The fund, which is expected to surpass its $2.5 billion target, has raised $1.56 billion in capital commitments from other entities, although the extent of the IMI commitment has seen it renamed RedBird-IMI from its former moniker of RedBird IV.

Fresh investment into Liverpool

Meanwhile, The Liverpool Echo also reported that RedBird will not be participating in the search for fresh investment into Liverpool that FSG are currently conducting.

The process is expected to move to an advanced stage during the summer after potential investment partners were identified through an initial search led by Mike Gordon and facilitated by US banks Morgan Stanley and Goldman Sachs.

UEFA TV rights income forecast to rise 33 per cent to €4.8 billion from 2024/25

UEFA have forecast that the new Champions League format will help deliver a 33 per cent increase in broadcast income, from €3.6 billion a year to between €4.6 billion and €4.8 billion, across all European competitions from 2024/25.

According to The Times, there are concerns the increase in media rights income will further widen the financial gap with those clubs not in Europe’s elite competition.

However, UEFA has insisted that the money distributed to the Europa League, Europa Conference League and solidarity payments to those clubs not in European competition will continue to rise more sharply.

UEFA deputy general secretary Giorgio Marchetti said it would listen to the European Club Association and the European Leagues over the new financial distribution model.

Coefficient element

The controversial coefficient element to how the money is split looks set to remain, though the amount paid to the top clubs may be reduced.
Under the new Champions League format, the number of clubs in the competition will increase from 32 to 36, with 189 matches per season compared with the existing 125.

Brazilian Série A club Coritiba to be bought by private equity firm in $260 million deal

Brazilian top-flight club Coritiba is to be acquired by private equity firm Treecorp Partners in a deal valued at about 1.3 billion reais ($260 million), Reuters reports.

Under the agreement, which was finalised on Tuesday, the Brazilian firm Treecorp will own 90 per cent of the 113-year-old club, which is based in Curitiba in Brazil's southern state of Parana.

Of the enterprise value of 1.32 billion reais, 270 million reais will be used to pay off the club's debts, while 100 million reais will be spent on renovating its training centre and 450 million reais set aside for day-to-day operations.

Coritiba, who were promoted to the Brazilian Série A in 2021, added that 500 million reais will be used to modernise its stadium, known as Couto Pereira.

Outside investment

The takeover is the latest in a wave of recent investments in Brazilian clubs, following the approval of a law allowing teams to seek outside investment.

Last week, City Football Group (CFG) concluded a deal worth 1 billion reais to acquire 90 per cent of Esporte Clube Bahia, a club from the city of Salvador.

ECA CEO Charlie Marshall defends body’s role and questions “small” clubs claims

European Club Association CEO Charlie Marshall has hit back at accusations the organisation is hurting the game across the continent by supporting the interests of elite European clubs at the expense of others.

In a blog for The Guardian, Marshall wrote: “You can understand my surprise to find out that the ECA is apparently the “evil elite” killing football.

“I asked my colleagues on the ECA board from clubs such Legia Warsaw in Poland, Malmö in Sweden, Young Boys in Switzerland, FC Copenhagen in Denmark and FH Hafnarfjörður in Iceland whether they realised that we were to blame for everything from the Super League to West Ham fighting relegation. It was news to all of us.”

His comments follow the launch last month of the Union of European Clubs (UEC), which claims to offer a fresh point of view for the issues facing small and medium clubs.

Among those present at the launch were LaLiga president Javier Tebas,who said he was “fed up” of hearing claims that the ECA represents European clubs. “They represent elite European clubs … it represents the interests of 11 clubs,” he said.

Marshall wrote that Tebas, as well as Crystal Palace chairman Steve Parish, who was also present, “cast themselves as the champions of these “small” clubs.”

£160 million turnover for Palace

The ECA chief pointed out that Palace’s turnover, when they finished 12th in the Premier League last season, was just under £160 million – more than 12 times higher than the £13 million earned by Finnish champions HJK Helsinki.

“So it’s a bit rich to see clubs who already have more money than everyone else suddenly claim poverty and demand a bigger slice of the pie,” Marshall wrote.

“If they really believe in solidarity, maybe we can start a debate about how much the Premier League and LaLiga – whose 40 clubs make twice as much between them as all of UEFA’s competitions combined – should give to clubs in other countries from which these leagues take money through massive TV deals.”

330 voting members

Marshall added that by the end of this summer, the ECA – which is amending its statutes so that clubs from Europe’s top six leagues no longer hold the balance of power on its board and Exco– “will have 330 voting members from all 55 UEFA nations – from the very biggest to the very smallest.”

Hertha Berlin have admitted they are in contact with the German Football League (DFL) amid media reports of financial problems and impending licensing difficulties following the club’s agreement with American investment firm 777 Partners.

In March, the Bundesliga club announced that the deal for 777 to acquire the 64.7 per cent of the shares in the club owned by controversial German financier Lars Windhorst had finally been completed.

However, the agreement is said to have been under close scrutiny over whether it violates the league’s 50+1 ownership rules.

German newspaper Süddeutsche Zeitung has reported that Hertha could be threatened with withdrawal of their Bundesliga licence and quoted a DFL source as saying that Hertha was "the worst case we've ever had" on the licensing issue.

It is understood that without the €100 million cash injection agreed by 777, the DFL's licence requirements, which are reportedly to be met by 30th June, cannot be adhered to by the club.

Therefore, if the deal with 777 is blocked due to objections related to the 50+1 rule, the club faces the prospect of seeing their right to play in the Bundesliga and Bundesliga 2 being withdrawn.

“In regular contact with the DFL”

In a response for comment from Süddeutsche Zeitung, Hertha said: "We are in regular contact with the DFL both with regard to the ongoing licensing process and with regard to the content of the partnership with our investor 777 Partners.

"Both topics must be discussed and clarified in compliance with all legal requirements – in particular the 50+1 rule – and in terms of content. However, we will not comment further on these ongoing trials and speculation in the media at the moment.”

 

Cardiff City to sue FC Nantes for ‘up to £200 million’ in damages over Emiliano Sala tragedy

Cardiff City have confirmed they are to sue FC Nantes for damages over the Emiliano Sala tragedy with immediate effect.

The move has come after the Swiss Federal Tribunal ruled that the Court of Arbitration for Sport (CAS) doesn’t have jurisdiction to deal with Cardiff’s claim for damages against the French club.

In a statement, Cardiff said: “This isn’t a surprise, and the Club has already prepared separate legal action against them which will be started straightaway as FC Nantes must be held responsible for the accident organised by their agent.

“This will be to recover what the Club paid for Emiliano and additional damages for further consequential losses.”

CAS had previously rejected Cardiff's appeal against FIFA's demand for the first instalment of the £15 million Sala transfer fee to be paid.

The Swiss judges have deemed the Sala matter and who should compensate Cardiff for events which unfolded must now be dealt with by the civil courts only.

Premier League relegation

According to the website Wales Online, the claim for damages could be for anything between £20 million and £200 million, with the former figure to cover the transfer fee and the rest to cover monies Cardiff felt they could have received had Sala helped keep them in the Premier League.

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

 

San Diego set to agree deal for MLS expansion team within weeks

San Diego is finally poised to get a Major League Soccer franchise and an official announcement could come within a few weeks, according to The San Diego Union-Tribune.

The newspaper understands that an investment group led by an Egyptian billionaire and the Sycuan tribe is close to presenting a formal bid for a San Diego expansion team to the MLS board.

San Diego State University (SDSU) athletic director John David Wicker said the two sides are “closer than we have been” to a lease agreement for 35,000-capacity Snapdragon Stadium from 2025.

It is also believed there are tentative terms with MLS for an expansion fee in the $500 million range, well past the record $325 million that Charlotte FC reportedly paid.

Multiple international games

“We’ve been having very good discussions,” Wicker said, noting that Snapdragon Stadium will host multiple international games over the coming months.

“Based on the soccer we’re having this summer, it shows that this venue is truly built for great soccer, and getting MLS is the last real piece of the puzzle. We’re excited to get to the finish line.”

Representatives of MLS, SDSU and the prospective ownership group are expected to meet in San Diego to finalise a stadium lease this week. The next step is putting the entire proposal in front of MLS owners via a virtual meeting, which is said to be viewed as a formality for approval.

EFL clubs have unanimously voted to accept a record €1.06 billionn deal with Sky Sports that will see more than 1,000 matches broadcast a season, but which keeps the Saturday blackout in place.

The five-year domestic deal, made up of guaranteed payments of £895m and £40m in marketing rights, will begin in 2024-25 and run to the end of the 2028-29 season.

It represents a 50 per cent increase on the league’s current deal with Sky which expires at the end of next season.

EFL had announced Sky as its preferred bidder in early April, following the issue of invitations to tender earlier in the year.

Landmark deal

EFL chief executive Trevor Birch said: “This is a landmark broadcast deal for EFL clubs, establishing the league as a premium partner with a world-renowned broadcaster in Sky Sports.

“The EFL is an iconic sports property and one of the biggest and best attended leagues in European football.

“This increased investment and coverage from Sky Sports will showcase much more of our compelling match action to fans, while delivering record rights values as we seek to make our clubs sustainable at all levels.”

Manchester United takeover: Sir Jim Ratcliffe's £5 billion bid includes clause to force out Glazers

Sir Jim Ratcliffe is proposing a deal that would force the Glazers’ exit after three years should he win the battle for control at Manchester United, according to Sky Sports.

The billionaire founder of Ineos is believed to have proposed an option in his £5 billion takeover bid that would allow the Glazers to retain a minority stake at Old Trafford.

Yet it is thought that a particular proposal includes a so-called “put and call” agreement which, if triggered, would pave the way for the complete exit of the Glazers as shareholders in 2026.

The option would either force the Glazers to sell their remaining shares or compel Ratcliffe to purchase them by specific dates in the future, sources said.

Initial offer on the table

It is understood that Ratcliffe’s initial offer, which would see Ineos buyout the Glazers’ 69 per cent shareholding in its entirety if accepted, also remains on the table.

Ratcliffe and his main rival for United, the Qatari banker Sheikh Jassim bin Hamad Al Thani - who wants to buy 100 per cent of the club in a debt free takeover which, if successful, would end the Glazers’ involvement - are waiting to discover if the owners will sell to either of them.
 

End of an era: Jean-Michel Aulas leaves Lyon

Jean-Michel Aulas has stepped down from the Lyon presidency after 36 years in charge of the club.

Monday morning, the OL Groupe - the club’s parent company - announced that majority shareholder John Textor will now take up the role of President and CEO, with Aulas himself being named honorary president.

The decision was taken during a board meeting held on May 5, with Textor beginning his term as president from that date. His position as CEO of OL Groupe is only temporary, until a permanent appointment can be made.

“All stakeholders are grateful to him for his commitment and leadership qualities that have enabled the club to become a European football powerhouse in both men's and women's football.

“The new CEO and the Board’s priority will be to strengthen Olympique Lyonnais' place on the world football stage, in line with the highest ambitions of its illustrious history,” a statement read.

Final board meeting

When Eagle Football acquired Lyon, John Textor had agreed upon a governance contract with Aulas, allowing the president to remain at the helm for three more years.

However, according to French media, tensions have steadily increased, with Eagle Football’s desire to transform the football department remaining unmet by Aulas.

Eagle Football’s primary and prioritized objective was to extensively restructure the sporting sector. This included the establishment of a well-equipped recruitment department, a move that Aulas reportedly did not endorse.

L’Equipe writes that the board meeting held on May 5 failed to make any significant progress, leading the Americans to reportedly decide to continue without Jean-Michel Aulas.

Aware that his time with Lyon was drawing to a close, Aulas, who has aspirations for the presidency of the future French Women’s League, and those close to him sensed that he was contemplating stepping aside to allow the Americans to take a more active role.

Belgian club to take legal action over City Football Group club Lommel SK

City Football Group’s Belgian club Lommel SK has been accused by rival of receiving “foreign subsidies” that distort competition and are contrary to European Union (EU) law.

In a statement published on their website, Royal Excelsior Virton said they were taking legal action against the Belgian football federation’s decision to give Lommel SK the professional license they need to compete in the second-tier next season.

Virton, who finished bottom of the division this season and face relegation to the country’s amateur third tier, added that they were willing to take the case all the way to the European Court of Justice, the Luxembourg-based court that oversees the application of EU law.

The basis for Virton’s legal action is that the EU has recently adopted a regulation against “foreign subsidies distorting the internal market”.

It was introduced in December to close a loophole in the common market’s rules against “state aid”, which is the use of public money to give a company or member state an unfair advantage over their rivals. EU states have always been prevented from doing this, but the new rule extends the prohibition to non-EU states.

No economic rationality

Virton claim Lommel SK have been “financially doped” by a cash injection of €16.8 million from their owner City Football Group, which is majority-owned by Sheikh Mansour, the vice president and deputy prime minister of the United Arab Emirates.

Virton say that without Abu Dhabi’s backing, which has no “economic rationality”, Lommel SK would not qualify for a license and would therefore be relegated to the third tier instead of them.

Benfica is walking on a different path compared to most other clubs looking to generate revenues abroad. While several clubs engage in commercial partnerships with brands around the world, the Portuguese club with roots in the Benfica area of Lisbon has put its chips on another part of the table.

Since 2006, S.L. Benfica – currently table leaders in Liga Portugal – have been exporting their know-how on the fundamentals of football. From the academy, which has produced two golden-boy winners in the past seven years in Renato Sanches and João Félix, the Portuguese club have become the world’s most profitable academy having sold players for almost €400 million.

The Benifica model

Under the name "Business 2 Football" (B2F), they have developed an alternative model offering what no other club in Europe is doing, focused on Benfica’s long-term player development methodology, served straight from Benfica Campus and not the commercial department. Programmes include coach education, team training camps, player development, technical partnerships and custom consultancy projects with federations and associations throughout the globe.

Benfica are also pursuing this strategy because they aim to deal with a fundamental factor challenging their business. The number of kids hence, football players, in Portugal is declining, and although they run 50 football schools all over Portugal, it is not enough to maintain the level of quality that they are constantly aiming for.

“Talent development is the very core of this club, and we need to make sure that our talent pool is big enough. Fewer and fewer kids play football in Portugal, and basically, we have adjusted our strategy to that,” says Bernardo Faria de Carvalho, global expansion officer at the club.

He explains that this idea occurred during the pandemic - more precisely, on a Zoom meeting with all club directors where Pedro Mil Homens, the head of Benfica Campus, expressed worry about the talent pool on home soil.

“We also need to respect the fact that our internal competition is rising. So, we decided that we had to develop talent, also outside Portugal,” says Faria de Carvalho.

Actually, Benfica have been a talent factory for less than two decades.

“We haven’t even been doing this on elite level for 20 years. When I started to work in the club in 2005, Sporting Lisbon and Ajax Amsterdam were probably the two leading academies in the world. We had youth teams but it was not a real priority for us. However the club decided to change that and we were able to catch up with the best and I think we can be proud of the level we are at today,” says the global expansion officer.

One of the best

Today – in his view – the club are among the very best globally to find and develop young footballers into superstars ready to compete at the highest possible level.

“I believe that we have a strong reputation globally in this area. So we are using this expertise to develop global technical partnerships, that aims to find and develop high potential talent.”

He explains that what they are doing now is building a global constellation of academies in geographies where talent can be found at a very low age, such as South America, Africa and, last but not least, the US.

“Portugal has 300,000 federated football players, in the US there are more than 25 million soccer players. The potential is enormous – both commercially but most importantly the talent pool is amazing”

The global expansion director is eager to see what they can achieve in the US market within the next ten years – but he is also convinced that the US is just going to be the start.

“We have a global mindset, so I don’t think that we are going to stop this expansion when we have established ourselves in the US. However, we need to get things done in the US and make sure that we have a solid structure that works. But we also feel that Africa, Brazil and the Middle East are very interesting areas with many talented footballers,” he says.

Faria de Carvalho explains that since Portuguese clubs are receiving a small portion of broadcasting revenues compared with the big leagues, they need to be extra creative and find new pillars of turnover.

“We have been doing this for a while, and we believe that it works. We have a lot of work to do, and I guess many other clubs will try to copy this, but we are proud to be first movers and we hope to announce a partnership with a top youth development MLS club in the near future,” he says.

Q: But if you are going to educate hundreds – or maybe thousands – of promising footballers from the US, isn’t there a risk that the pool is actually getting too big if you only have one first team – Benfica - that these talents could play for?

“This provides an opportunity for young talents to experience a world-class methodology like our academy players do. Of course, not every young footballer will become a Benfica player, but they will be better prepared to follow a career in soccer, having learned the Benfica methodology. If you have had an education from Benfica, then you have learned from the best. It is like sending your kid to Harvard.”

LaLiga has revealed that clubs in the top two divisions of Spanish football expect to post a combined profit for the current financial year as they recover from the effects of the Covid-19 pandemic.

In its latest annual Economic Report, the Spanish league said LaLiga Santander and LaLiga SmartBank clubs are forecast to post a combined net income of €27 million for 2022/23, with total revenue expected to reach €4.9 billion.

LaLiga reported that clubs in the top two divisions lost a combined €140.1 million in the 2021/22 financial year, significantly lower than the aggregate deficit of €898 million the previous year.

Total revenues in 2021/22 reached €4.8 billion, up 22 per cent on the €4 billion earned in 2020/21, and reaching once again the record figure achieved in 2019/20.

Matchday revenue in 2021/22 rose by as much as 123 per cent to €884.2 million as spectators returned following the easing of Covid restrictions, while broadcast income climbed to €1.7 billion.

Transfer market downturn

However, Spanish teams continued to suffer from the downturn in the global transfer market caused by Covid, with clubs earning a combined €402.4 million from player sales – the lowest figure in the last six years.

As for expenses, player salaries remained the largest item, amounting to a combined €2.3 billion and accounting for 47.7 per cent of clubs’ total costs. However, the overall wages to turnover ratio was 75.1 per cent, down from 81.2 per cent the previous year.

 

Manchester United takeover: Sheikh Jassim pledges £800 million to improve stadium and training ground

Qatari banker Sheikh Jassim bin Hamad Al-Thani has pledged £800 million toward improving club infrastructure if his bid to buy Manchester United is successful.

The move comes after third and final bids to buy the club were submitted last week. Sheikh Jassim and British billionaire Sir Jim Ratcliffe are still said to be leading the bidding process.

The Qatari is understood to be offering at least £5 billion for the club in addition to the infrastructure investments, which would be used to improve Old Trafford, training facilities and other aspects of the club’s operations.

He also promised to wipe out United’s debt, which stood at £535.7 million at the end of 2022.

Full takeover

While Sheikh Jassim is seeking a full takeover, Ratcliffe is believed to be bidding for a majority stake at a valuation higher than £5 billion.

Ratcliffe and his chemicals company Ineos is reported to be seeking to buy only the 69 per cent stake that belongs to the Glazers – and in one proposal is open to Joel and Avram Glazer retaining a stake if he still has full control of the club.

Ratcliffe’s proposal would leave room for private equity funds to join, with Ares Management, Elliott Management and the Carlyle Group having all expressed interest in owning a stake.

 

FC Barcelona asked to raise €250 million by LaLiga to comply with spending limits

LaLiga have told FC Barcelona they must generate additional revenue or make extra savings amounting to €250 million before the end of June if they want to press ahead with their transfer plans this summer.

Speaking at the presentation of the Spanish league’s latest annual Economic Report, president Javier Tebas and general manager Javier Gómez said that if Barça fail to meet the target, any difference will be deducted from their spending limit for next season.

Tebas said he believed Barcelona will sell players this summer for "important figures" in order to meet the requirements. Earlier this year, the LaLiga chief had indicated that Barça needed to raise an additional €200 million but that figure now appears to have been upped.

Last month it was reported that Barcelona were urgently preparing plans to balance their books in the hope they could be active in the summer transfer window in line with LaLiga’s financial controls.

Lionel Messi future

The developments have come amid speculation that the Catalan giants may attempt to bring Lionel Messi back to the club, with the Argentine World Cup winner expected to leave Paris Saint-Germain in the summer.

Extra income and cost savings would also be needed for Barcelona to register some current players, including the 18-year-old Spanish midfielder Gavi and 24-year-old Uruguayan centre-back Ronald Araújo, whose contract agreements have been blocked by LaLiga.

City Football Group buys Brazilian side EC Bahia

Manchester City’s owners — City Football Group — have completed their acquisition of Esporte Clube Bahia, a Brazilian top-flight side. 

Bahia are the 13th club to join the international conglomerate which includes clubs such as New York City FC, Melbourne City FC, and, most recently, Palermo.

The deal for 90 per cent of Bahia’s shares is valued at R$1billion. Bahia represents CFG’s second largest investment into buying a football club, after Premier League champions Manchester City. 

Bahia’s elected club administration will own the remaining 10 per cent of shares. They will also have full rights over club heritage items, such as Bahia’s club colours and the club emblem. 

Ferran Soriano, CFG’s chief executive, addressed Bahia fans: “Thank you for trusting in us to take care of your club. We have already started to work together. Bahia and City’s teams will start to work together for the next season and all the projects are set to come.”

Everton were funded by the oligarch Alisher Usmanov while he was barred from entering the UK, according to an investigation by The Guardian.

The Uzbekistan-born Russian billionaire was told in a letter from the Home Office in September 2021 that his presence in the UK was “not deemed conducive to the public good”.

That ban came six months before the businessman was sanctioned in the wake of Russia’s invasion of Ukraine – after which Everton cut ties to USM Holdings and other companies connected to or owned by Usmanov.

The Guardian claims that the existence of the tycoon’s travel ban was known by Everton’s board – but not publicly until now.

At the time of the letter Usmanov’s 26-year-old nephew, Sarvar Ismailov, was serving on the Everton board and the club had active sponsorship deals with Usmanov’s companies.

Manager interviews

In January, The Guardian reported that a series of football managers had raised questions over Everton’s ownership following claims they were interviewed for the top job in the presence of Usmanov.

Usmanov – as well as his long-term business associate and current Everton owner, Farhad Moshiri – have always denied that the Russian tycoon secretly owned the club.

Moshiri’s spokesperson has previously said: “Mr Usmanov has never interviewed or been present during an interview.”

FC Barcelona director of football Mateu Alemany set to move to Aston Villa

Aston Villa are in advanced talks to bring FC Barcelona’s director of football Mateu Alemany to the club, The Times reports.

In a statement, Barça confirmed that Alemany will end his time at the club, despite having a contract until 2024, to begin a “new professional project”.

It is understood that Villa have offered far improved terms than the LaLiga side, while the lure of working with the Premier League club’s manager Unai Emery is also believed to have played a part.

Alemany also has close links with Emery’s personal assistant Damia Vidagany, as the pair worked together at Valencia.

Integral part of transfers

The news of Alemany’s departure came as a surprise in Spain as he has been a key member of the rebuild under president Joan Laporta and an integral part of all of Barcelona’s transfers in the past two years.

Barcelona said that Alemany, who has been at the club since 2021, will leave the Spanish giants on 1st July, although they added that as part of a gentleman’s agreement he will oversee Barcelona’s transfers this summer.

Milan mayor admits “it’s time to accelerate” new stadium project

Milan mayor Giuseppe Sala has conceded that AC Milan and Inter Milan are justified in asking for clarifications and expecting an acceleration in the project to build a new shared stadium.

Back in 2019, the two clubs formally announced their plans to construct a new state-of-the-art home next to the existing San Siro, which is close to being 100 years-old.

However, the two clubs have experienced numerous delays due to the various layers of approval needed, sparking widespread speculation that both teams were now exploring options for building their own separate venues outside the city limits.

Italian media have reported that Sala has now responded to the Milan and Inter management after they submitted a joint note asking for various reassurances.

“In mid-April, following the conclusion of the Public Debate, we asked Milan and Inter for an update of the economic and financial plan relating to the new stadium project,” Sala said.

“Today we received a joint note from the teams in which they request: to extend the deadlines for the revision of the project dossier; and to clarify any constraints on the existing stadium and on the rumoured hypothesis of a city referendum.”

“Transparency and in compliance”

The mayor added: “And I can only fully understand their reasons. … I offered them my support to organise a meeting shortly with the Superintendency and one with the Board of Trustees. In recent years, the Council has taken all the necessary steps, with transparency and in compliance with the rules. I think it’s time to accelerate.”

KKR drops out of bidding for stake in Bundesliga media rights business

American private equity firm KKR has dropped out of the bidding process for a stake in the Bundesliga's media rights business, according to a report from Bloomberg.

Sources said the offer from the New York-based company was deemed too low. It had previously been reported that CVC Capital Partners, Blackstone, EQT and Advent International are among the firms bidding for a 12.5 per cent stake in a unit that will manage the domestic and international broadcasting rights for Germany’s top two divisions.

The investors were asked to bid for 20 to 30 years of media rights. The German Football League (DFL) last week said it will cut down the number of suitors in the next stage.

Opposition from fans and clubs

The DFL abandoned an earlier process to attract private equity investment after opposition from fans and clubs. The earlier plan weighed selling as much as 20 per cent of the media unit, then valued at about €18 billion.

KKR owns a major stake in German media group Axel Springer, which publishes the country’s biggest tabloid, Bild Zeitung, and streams highlights of football matches.

The Bayern hierarchy might feel the renewal of the sponsorship deal with Qatar Airways to be a positive event that could divert the focus away from the poor sporting results “The Bavarians” – the nickname for Bayern Munich – are currently facing.

However, not all stakeholders in Bayern Munich share that view – despite the very lucrative nature of the shirt-sleeve deal which is currently providing the German champions in the region of €20 million each year.

It should be noted that the renewal of the deal has not been made public yet, and either Bayern Munich or Qatar Airways might decide to terminate the agreement. But it would be a very big surprise if the partnership, which started back in 2017, were not renewed at least by the time the new season kicks off.

“We are Bayern! You are not!"

One Bayern Munich fan who would be disappointed to see his club continue the cooperation with the Qatari state-owned airline is the 30-year old lawyer Michael Ott, who has been a supporter since he saw Oliver Kahn in the World Cup in 2002 – back when he was Bayern Munich’s goalkeeper.

Today Kahn is the CEO at Bayern Munich, but Ott is less enthusiastic about him than back then.

“I actually think that the leaders of Bayern Munich are doing a very good job in most areas. But I am still surprised – and also quite disappointed – that they might continue to promote an airline company from a country violating so many basic human rights. I just don’t get that,” he says on the phone from Strassbourg in France, where he is currently working.

If Ott’s name rings a bell, it is probably from a few years ago when he was one of Bayern Munich’s most vocal fans during a tumultuous shareholders meeting in the autumn of 2021.

In brief, that particular AGM one Thursday night in late November 2021 stood out as one of the few such meetings where shouting broke out.

Furious fans shouted: “We are Bayern! You are not! – We are the fans that you don’t want”, in the direction of club President Herbert Hainer, Kahn and other members of the presidium.

You don’t see that very often at shareholder meetings  – and especially not in Bavaria, a conservative bastion in Germany. However, other ill-tempered discussions have occurred at Bayern Munich shareholder meetings, but this one was by far the most extreme.

But some fans felt they were being ignored by the leadership of the club when they tried to launch a public debate about why a club as wealthy as Bayern Munich would have to strike a deal with an airline company, owned by a state that didn’t have the best reputation in terms of human rights. But the board of directors at Bayern Munich refused to get into a public debate about their sponsorship strategy and why they thought continuing the Qatar Airways sponsorship was a good solution, and the AGM subsequently ended in scenes never before seen at the club.

Ott was a leading figure behind the protests - not orchestrating the shouting and heated atmosphere, but trying to have a debate before, at and after the AGM with the Bayern Munich executives.

The AGM was called off, leaving many fans frustrated that no one from the executive team had commented on the controversial sponsorship deal. But afterwards, things started to happen.

Ott had a phone call from Hainer, and they agreed to meet in Nuremberg for a conversation.

“We had an open exchange about our point of views. He was friendly, but we agreed to disagree on almost every single topic. It was OK, since it was all in a positive spirit, but I told him that it was important for me, and many other fans that we could have an open discussion about these matters, and I encouraged him and the club to help organize an event, where we could discuss these topics.”

Hainer and the club were sceptical about having a public event, but they agreed to meet Ott and some other fan representatives, and had a few meetings after the sit-down in Nuremberg. Those were confidential meetings and nothing said behind those closed doors could be passed on to others.

The parties went into further discussions about when to draw the line as a club on partnering with a company – or a state-owned company - with very different values, and it was clear that despite taking the time to really listen to each other, they had very different opinions on the topic they were debating.

“Sometimes the discussions were rather heated, but always respectful,” says Ott.

A debate on the club's terms

Eventually Bayern Munich agreed to have a public debate about the Qatar Airways sponsorship, which took place on the 4th of July, where Kahn argued that “sports can change a lot,” but didn’t give any examples about how the dialogue that the German club had with the Qatari authorities might leading to any changes.

“Of course, it doesn’t happen overnight,” said Hainer, who also participated in the debate with fans.

“But democracy in Germany didn’t occur overnight. It was also a development process.”

Apart from fan representatives and executives from Bayern Munich, officials from the Qatar World Cup organisers, former German Minister of Foreign Affairs Sigmar Gabriel, the Qatari ambassador and a few NGOs also participated in the event.

Ott says he was disappointed with the framing of the event, and the mix of people participating, because he felt that those protective of the Qatar Airways sponsorship were too dominant on the panel.  Also, Bayern Munich chose which NGOs they wanted to be part of the debate, and didn’t pick the ones Ott and others had suggested.

“It was how it was. We also had the impression that the moderator wasn’t really neutral. But at least it took place, which I think was very important and a big achievement.”

Q: Couldn’t you argue that Herbert Hainer was spot-on saying that if you want to change something then you need to respect that it takes time – just as when you work as a government trying to improve human rights in another country?

“That’s probably true, but you have to question the approach by which Bayern is pretending to try to change things. I honestly think it is hypocritical. When you talk to NGOs, they are very clear saying that the only thing that really changes things is public pressure. And you must bear in mind that Bayern Munich have never publicly criticised the conditions in Qatar. Instead they are actively helping to build up a positive, immaculate image of Qatar. That’s counterproductive. So I don’t believe it has significant positive influence if you share your concerns solely in private meetings.”

Q: But didn’t Bayern Munich exactly do that – criticise Qatar publicly - when they presented the Allianz Arena in rainbow colours – sending a clear message to the Qatari state and others?

“This was a good and important sign - even if, of course, it made no specific reference to Qatar. So that’s not pressuring Qatar. Nevertheless, the club has already done similar actions and I appreciate that. But what kind of message are we sending to our children when, at the same time, we are promoting organisations that stand for the exact opposite of these messages? We send the signal that basic human rights are only important for us up to a certain price. ‘If you pay enough then we will close our eyes’ – that is the message from the club. Actually I think it is a tragedy. We teach young people that money comes above everything,” says Ott.

He doesn’t think his views are radical. The young lawyer thinks cultural exchange is important and that it could be OK to do business with a company closely related to a country like Qatar - as long as you make sure human rights are respected and share your disagreements and concerns publicly. And you also need to make sure that you don’t end up promoting such a country.

“If you agree on a sponsorship deal like the one Bayern had with Qatar Airways, then you very directly help them to succeed in sports-washing. That is actually the very definition of sports-washing that you help someone to remove focus from something problematic through sports.”

Discussions over the sale of Manchester United are now expected to continue into the summer, and possibly next season, after it was reported that Sir Jim Ratcliffe is demanding he be given full control of transfers if his bid is accepted.

The British billionaire and Qatari banker Sheikh Jassim bin Hamad Al Thani are said to be still leading the bidding process after third and final bids were submitted last week.

Ratcliffe's bid, in its current form, would see the Glazer brothers, Joel and Avram, remain stakeholders in the club, and those close to the process have indicated the prospect may prove to be the preferred option.

Recruitment reins

According to The Daily Telegraph, Ratcliffe's bid for the club includes a demand he be handed the recruitment reins the moment his bid to buy the club is given the green light.

Both parties are believed to have made requests for influence the moment their respective bid is accepted, with Sheikh Jassim said to want even further oversight over the club.

It is understood that such requests are unlikely to be granted, with the Glazers likely to hold onto control until the dotted line is signed and the ink is dry, but are an indication that the process is now not expected to be concluded by the next transfer window, as originally hoped.

 

Infantino threatens European TV blackout for Women’s World Cup

FIFA president Gianni Infantino has threatened a TV blackout of this summer’s Women’s World Cup in Europe’s ‘big five’ countries unless broadcasters increase their offers for the rights.

The BBC and ITV, who are in talks about sharing the UK rights for the tournament, are, according to The Times, believed to have offered about £9 million, while broadcasters in Italy, Spain, Germany and France are said to have offered even less.

Speaking at a World Trade Organisation meeting in Geneva, Infantino said: “Whereas broadcasters pay US$100-200 million for the men’s FIFA World Cup, they offer only US$1-10 million for the FIFA Women's World Cup.

“This is a slap in the face of all the great FIFA Women’s World Cup players and indeed of all women worldwide.

“To be very clear, it is our moral and legal obligation not to undersell the Women’s World Cup. Therefore, should the offers continue not to be fair, we will be forced not to broadcast the FIFA Women’s World Cup into the ‘big five’ European countries.”

Separate deals

The Women’s World Cup now has separate broadcast and sponsorship deals, rather than being bundled with the men’s competition. This year’s tournament is being played in Australia and New Zealand in July and August.

While acknowledging they were not prime time for broadcasters, Infantino noted the kick-off times of 9am or 10am in Europe were “quite reasonable” for viewers. “It doesn’t make any economic sense because the viewing figures are there,” he said.

 

Tebas calls on UEFA to drop guarantee of four Champions League spots for top four leagues

LaLiga president Javier Tebas has called on UEFA to stop guaranteeing four Champions League places to Europe’s top leagues from 2024/25 when the competition expands under a new format.

Europe’s top four ranked leagues have had four automatic spots in the Champions League group stage since the 2018/19 season and the system is set to remain in place as the number of teams competing in the competition increases from 32 to 36 from 2024/25.

In an interview with Dutch newspaper AD, Tebas said: "There is a new Champions League format in 2024, but we should start working on another type of model that is closer to the origins of a European tournament of national champions, with champions from every corner of Europe.”

He added: “I represent LaLiga, but a fourth Spanish club is not an improvement for the Champions League. I was against four Spanish teams that went to the Champions League from the start, like four teams from the Premier League, Bundesliga and Serie A, at the expense of teams from lower leagues.”

Financial gap

Tebas also argued that having too many teams in the Champions League from the same country widens the financial gap between clubs in their domestic league.

"Clubs that play in European competitions earn so much that it creates a very big gap with the rest of the clubs in their own country,” he said.