Juventus' 15-point penalty for alleged false accounting in relation to capital gains has been reversed after an appeal from the club was heard by the Italian Olympic Committee, the country’s highest sporting court.

The Federal Court of Appeals of the Italian Football Federation (FIGC), which handed out the original punishment in January, must now re-evaluate the punishment and make a fresh judgement on the case.

That could happen within a month or drag on beyond the end of the season, so any fresh punishment would be for the 2023/24 season. The reversal of the original points deduction pushes Juventus up to third place in Serie A.

The bans from Italian football for former Juve president Andrea Agnelli, as well as former chief executive Maurizio Arrivabene, current sporting director Federico Cherubini and Tottenham Hotspur managing director of football Fabio Paratici, have not been revoked.

However, former vice-president Pavel Nedved and several other members of the board have been cleared and their bans reversed.

“Lack of clarity”

According to Italian media reports, the reversal of the points penalty had appeared increasingly likely following the three-hour hearing held on Wednesday afternoon.

The FIGC did not present any evidence at the appeal, so its place was taken by CONI prosecutor Ugo Taucer, who confessed the ruling “had a lack of clarity in the motivation that must be appreciated and evaluated by a new judgement.”

There was also confusion as to why the FIGC imposed a 15-point penalty when its own prosecutor Giuseppe Chinè only requested nine points at the hearing in January.

This was referenced in the Olympic Committee’s verdict, which demanded that the FIGC explain the “causal nature” of the 15-point deduction for actions that did not have direct influence on match results.

Juventus lawyers had argued that the verdict should be revoked and the entire case brought to a close, but it will be heard once again, with even more evidence involving other clubs likely to be presented this time.

 

Chelsea to slash £300 million wage bill and trim squad after Champions League exit

Chelsea are reportedly set to slash their £300 million wage bill next season and sell some of their star players following their exit from the Champions League to Real Madrid earlier this week.

The defeat means the club, who are currently 11th in the Premier League, now have no chance of qualifying for Europe’s elite competition next season.

According to The Daily Mail, the club's most recent signings, or those who have agreed new contracts, will see their earning power reduced by at least 30 per cent as a result.

Co-controlling owners Todd Boehly and Clearlake Capital are believed to have implemented an incentivised pay structure to player contracts linked to Champions League qualification following their takeover last May.

Wages for some players are now said to fluctuate depending on whether they are playing in the competition, marking a significant change from the ownership era of Roman Abramovich, who only rewarded players for winning trophies.

Chelsea have signed 12 senior players on permanent contracts since the Boehly-Clearlake takeover, while seven existing squad members have signed fresh terms since Abramovich’s departure, with the majority set to be impacted by Chelsea’s Champions League exit.

Race to sell players

Meanwhile, The Evening Standard has reported that Chelsea are in a race to trim their squad before 30th June, as they need to sell players to balance the books after spending more than £600 million in the last two transfer windows.

The club is understood to be planning a mass clear-out of their squad to ensure they continue to stay in line with Financial Fair Play (FFP) rules.

 

Sheffield United's EFL transfer embargo lifted 'with immediate effect'

Sheffield United's transfer ban imposed back in January has been lifted by the EFL.

In a statement, the club – who are second in the Championship and three points away from securing a return to the Premier League – announced they are no longer under the transfer embargo “with immediate effect”.

The South Yorkshire club were hit with the punishment during the last window, after they failed to keep up with transfer payments owed to two other clubs.

Proposed takeover

According to BBC Radio Sheffield, the removal of the embargo is not related to the proposed takeover of the club, but because of additional funds raised by their FA Cup run and renegotiated transfer deals.

The Blades face Manchester City in the FA Cup semi-finals on Saturday. A takeover by Nigerian businessman Dozy Mmobuosi remains incomplete.


 

Javier Tebas ‘not convinced’ by Joan Laporta’s Negreira explanation

LaLiga president Javier Tebas has said that FC Barcelona president Joan Laporta’s explanation of his club’s involvement in the Negreira case “was not convincing”.

Tebas and Laporta were speaking on Thursday at an extraordinary general assembly between LaLiga and its clubs, with Barça’s payments to the former Spanish referee Jose Maria Enriquez Negreira the dominant item on the agenda.

At a press conference earlier this week, Laporta presented the club's version of events over the payments, which were allegedly made to influence match results, and insisted it had done nothing illegal.

However, addressing the media after Thursday’s meeting, Tebas said: “[Laporta] said the same thing as in the press conference. It was the same, that the payments were for arbitration advice.

“Personally, I have already told him that I don’t think he was convincing with his explanations. I have been saying that for several days.”

He added: “It is incomprehensible that Barca was paying the vice-president of the referees for so many years. We have asked the investigating court to include Negreira’s son as a person under investigation.

“I don’t think Barcelona bought referees, but there are indications that the payments were intended to influence. The mere intention can be punishable conduct.”

In a statement published later on Thursday, Barcelona said: “Joan Laporta attended the LaLiga extraordinary assembly convened to discuss the so-called ‘Caso Negreira’ this morning.

“As a courtesy and out of respect for the professional clubs, the president provided the relevant explanations on this matter, and out of respect for the administration of justice, he stated that any clarifications and queries requested by LaLiga or the clubs after his explanations will be answered in court, where LaLiga has already presented.”

Corruption charges

Last month, the Spanish public prosecutor's office filed corruption charges against Barça, as well as former club presidents Sandro Rosell and Josep Maria Bartomeu, over allegations that Negreira received more than €7 million in payments from the club between 2001 and 2018 to influence match results.

Negreira, who was vice-president of the Spanish FA’s refereeing committee from 1993 to 2018, has denied ever favouring Barcelona in terms of refereeing decisions.


 

Dutch clubs to face betting sponsor ban from 2025

The Netherlands Government has announced new legislation which will ban the sponsorship of football clubs by gambling companies from 2025.

The new laws will limit the visibility of betting companies in the country and will come into force in July 2023, although for sporting events the legislation will be delayed until 2024 and sports teams will have a longer moratorium, until 2025.

Under the laws, all advertising for online gambling services is to be banned if it does not specifically target people who are legally allowed to gamble and are not at an increased risk of developing an addiction. The ban covers all radio and television commercials, as well as outdoor billboards.

In a statement, the Ministry of Justice and Security said: “After a transitional period, sponsorship for online games of chance, for example, for TV programmes or sports clubs, will also fall under the prohibition.”

Surge in advertising

Online gambling was officially legalised in the Netherlands in October 2021, leading to a huge surge in advertising for the services. The ministry said it was specifically concerned about the volume of “untargeted advertising.”

Five of the clubs that tried to form a European Super League two years ago are facing up to the reality of what they feared most – a life without Champions League football.

Liverpool, Tottenham, Juventus, Inter Milan and Chelsea, who with seven other teams tried to create a rebel international club competition that gave them permanent membership, all face the very real prospect of not qualifying for Europe’s premier international competition next season after encountering disappointing domestic seasons.

Analysis by Off The Pitch shows an increasing reliance of these teams on UEFA prize money. Collectively an average of 16.85 per cent of their revenues over the past five years came from UEFA prize money. For Ajax, who opposed the Super League but who may also miss out on the Champions League next year, the cost is even higher: 34.35 per cent of its revenues over the past five years have come from Champions League prize money.

However, the cost of non-qualification is likely to be much higher when ticketing, commercial, sponsorship and even indirect benefits are taken into consideration.

“For all clubs, Champions League equals a direct increase in revenue,” explains Federico Mari, a football consultant and advisor.

“However, the increase in revenue is also indirect! The Champions League is the stage of excellence in football. It has that charm that makes children dream and attracts even those who do not follow football assiduously. 

“Playing in the Champions League, especially starting in the round of 16, draws attention to your club (more fans), your brand (more sponsors), and your players (better player-trading). Sponsors get excited.  Fans from other continents get used to your colours.

“Thus, UCL opens up possibilities that would otherwise be difficult to touch on, both from a sporting and a commercial point of view. All this is something too good to pass up.”

But how reliant are these clubs on UEFA club competition? What are the threats posed to these clubs that don’t qualify? What will it mean for their financial fair play compliance?

Chelsea – big spenders without a cause

It’s still not impossible for Frank Lampard – sacked as Everton boss in January, reappointed at Stamford Bridge earlier this month – to achieve what is known in the business as “a Billy McNeill”.

McNeill, like Lampard, captained his team to European Cup success as a player (with Celtic in 1967), but as a manager had, in 1987, the unwelcome distinction of managing two First Division clubs – Aston Villa and Man City – that were relegated in the same season. Chelsea have 39 points so should be okay, but then Lampard has 15 defeats in his last 18 matches as manager, so anything is possible.

Either way, this is a club that looks up and is counting the cost of likely missing out on European competition for only the second time in 25 years, and the Champions League for only the third time in two decades.

Last time Chelsea failed to make the Champions League (2018/19) total revenues actually increased slightly overall, but this was skewed by the fact that they went on to win the 2019 Europa League and had performed badly in the previous year’s Champions League and EPL. In 2016/17 they failed to make Europe at all, but despite this a new EPL broadcast deal saw revenues jump 10 per cent and the club record a profit.

2023/24 offers no such safety nets. The club earned £106 million Champions League prize money in 2020/21 and around £78 million last season. Matchday income is worth around £2.3 million per game. Commercial and sponsorship deals will be linked to European participation (although it’s worth noting that last time the club didn’t qualify for the Champions League this increased). In total, the club are looking at a revenue hit of £130-150 million.

Then there is the spending problem. Chelsea have invested big since Todd Bohely’s takeover last summer and have a net spend of £540 million. It has just recorded a loss of £121 million for 2021/22, which will almost certainly increase next year putting into question its financial fair play compliance. It also has too many players – a squad of 33 in a league that permits 25 personnel.

“For what it’s worth I think there will be maybe seven or eight sales, many of them natural and predictable, and that new faces will inevitably arrive,” says Chelsea’s official historian, Rick Glanvill. “Remember teenage Vasco da Gama prodigy Andriy Santos and Nkunku are already slated to join the squad.” 

Glanvill, however, points out that even after the past year’s splurges, even more heavy investment is needed to augment an underperforming squad. “To compete at our previous level the club probably need another top striker, an elite goalkeeper and a commanding midfielder,” he says.

Clearlake’s clever accounting

Can they afford this? The club’s owners clearly have plenty of cash, but as Kieron O’Connor, who writes as Swiss Ramble, pointed out in a recent blog post, “this is not monopoly money”.

O’Connor estimates that Chelsea have committed to around £1.5 billion in terms of transfer acquisitions in the past year alone when wages, agent fees and contract lengths are taken into account. The club are assisted in financial fair play compliance by the fact that many of their new signings are on very long-term contracts, so their cost is amortised over seven or eight years, and also that many of their sales are their own youth products or fully amortised on their books.  So, when buying Wesley Fofana for £75 million, because the cost is spread over seven years the annual amortisation is £10.7 million for FFP purposes. But in selling the fully amortised Kurt Zouma to West Ham for £30 million they get the full book value for that player.

In spending so heavily in January – more than the Bundesliga, Serie A, LaLiga and Ligue 1 combined –  Chelsea also benefited from having those amortisation costs halved for FFP purposes – for this season at least.

Still, O’Connor estimates that Chelsea’s cost base increased by £225 million based on the past year’s dealings. At a time when missed Champions League qualification may cost them £150 million in income, this is clearly not great. Short term they should remain compliant in terms of FFP, but they are likely storing up problems for the future – particularly if they fail to make the Champions League cut again. With key squad areas unaddressed that may be a distinct possibility.

Liverpool – the seven year itch

The reality of a first season in seven without Champions League football and on the back of a disappointing domestic campaign was laid bare last week when Liverpool’s press office briefed journalists that they were not going to try and sign Jude Bellingham, Borussia Dortmund’s precocious and brilliant teenage midfielder who is likely to command a record fee for a British player if he is sold this summer.

Champions League prize money – excluding matchday and commercial benefits – has been worth an average of £82 million per year – or 16.3 per cent of overall revenues – over the past five years for the club. There are still questions about whether Liverpool will even make the Europa League or Conference competitions, which would lessen this hit. Like Chelsea, in 2016/17 Liverpool failed to make Europe at all, but back then a new EPL broadcast deal saw revenues jump – in Liverpool’s case by 20 per cent – and the club record a profit. There will be no such fillip next year.

Qualification for one of the other UEFA competitions will allay some of the matchday hit, but there are other costs, some unquantifiable. Jurgen Klopp likening the pursuit of Bellingham to “a child asking for a Ferrari at Christmas” seemed to speak both of the financial and sporting realities now facing Liverpool.

“Clearly certain clubs are so strong commercially that they can afford to miss qualification and still strengthen the team,” says Mari. “That said, it is a big red flag for the sporting side and means that something is not working.” 

Tottenham – searching for the end of the rainbow

Tottenham made the Champions League this season for the first time since 2019/20, progressing to the round of 16. Their participation – worth an average of €75.5 million (£65.25 million) in prize money over the past five years – is likely to see the club turn a profit this year for the first time since the pandemic.

But failure to make the Champions League a year on year commitment will surely mean that Tottenham’s hopes of being part of the genuine European elite remain just aspirations. Although this is a club without a domestic title since 1961, their appearance in the 2019 Champions League final suggested that they may be on the precipice of that firmament. The reality is stark. In five seasons since that day in Madrid they may have made the Champions League just twice.

As it does for all clubs, non-qualification has bigger costs than lost prize money – worth around 16 per cent of Spurs’ revenue over the past five years in which they have qualified.

“There will undoubtedly be a knock-on effect in terms of commercial and sponsorship revenue for clubs not in the Champions League,” says Ben Peppi, a commercial expert, who is Head of Sport Services at JMW.

“From a revenue standpoint, as well as the prize money for finishing higher up in the Premier League, there are guaranteed payments that are received for taking part in the Champions League – participation, prize money, TV pool and the UEFA co-efficient.”

“Each victory and progression through each stage of the competition generates millions of pounds for teams taking part.” 

“All of that is just the prize money for progress in the competition, with television money and co-efficient money yet to be factored in.”

Italians on the edge

Juventus are one of European football’s aristocrats, but have been bailed by up to €700 million since 2019 by its owners, the Agnelli family. In November last year the club president Andrea Agnelli and vice-president Pavel Nedved along with the entire board of directors resigned after a police investigation opened into allegations of false accounting and market manipulation at the club. In December it announced a €239 million loss. In January a new board was approved to restore some stability to the club.  Barely a day has passed when the Bianconeri hasn’t been on the front or back pages of Italy’s newspapers.

In mid-April the club are in seventh place with eight games of the season left. They are nine points off a Champions League place. Non qualification for the first time since 2011 remains a real possibility.

Inter too have encountered huge off the pitch upheaval. In the past three years they have accumulated combined losses of €413 million, despite winning Serie A in 2021 and despite significant player sales. It remains by most reasonable estimates significantly beyond UEFA’s allowable FFP losses of €105 million, and will be in even more severe breach when 2019’s loss of “just” €51 million is wiped from its three year record to be replaced by this season, when the club hasn’t even been in receipt of payments from its main sponsor, Digitalbits.

The club is leveraged to the tune of €800 million in loans and bonds and although its Chinese owners Suning deny the club is for sale, speculation about their future commitment has raged for nearly three years.

Juventus are more reliant on Champions League prize money (19.5 per cent proportion of revenues over the past five years V 14.87 per cent at Inter) but with both clubs already facing severe problems even with that income stream the loss will make a dire situation even worse.

Moreover, loss of revenues through non-qualification transcends prize money for Inter, Juve and all the other clubs on the brink.

“In terms of sponsorship revenue, there will be clauses in certain agreements that allow sponsors to reduce payments should a club not qualify for Europe,” says Peppi.

He points to a clause in Adidas’ contract with Manchester United that if the club fails to secure Champions League football in two consecutive years, the brand could reduce their payment by up to 30 per cent

“A club just becomes less attractive to new potential partners without playing on the continent's biggest stage,” he adds.  

“The Champions League is the most glamorous club competition in world football and sponsors want to take advantage of that. 

“Partnering with a club who takes part is far cheaper than partnering with the Champions League itself and is perhaps a more attractive prospective as participation allows team sponsors to activate certain commercial rights during the competition, for example hospitality.

“Clubs participating in the Champions League also widen and deepen their fan base internationally which is attractive to sponsors who can leverage this to reach various markets.”

Everton could be about to receive a much-needed financial boost, with a report from Sky Sports indicating that new investment in the club is now “imminent”.

The club’s owner Farhad Moshiri has previously ruled out a full sale, but has been looking for investors for some time, and it is understood he has finally found a party willing to put money into the club.

The source of the fresh investment was not revealed, but Sky claimed it will ensure Everton's move to their new £550 million stadium on Bramley-Moore dock will be fully funded.

Earlier this week, it was reported that American investment firm 777 Partners is still considering taking a minority stake in Everton, while New York-based group MSP Sports Capital is also said to be interested in a stake in the club.

The report also claimed that changes at the top of the club are to take place once the investment has gone through.

Relegation battle

The Merseyside club remain in a battle to avoid relegation from the Premier League, and are also facing the possibility of a points deduction after the Premier League charged the club with a breach of its profit and sustainability rules last month.

 

Manchester City submit plans to increase Etihad Stadium capacity to 60,000-plus

Manchester City have submitted a planning application to increase the capacity of the Etihad Stadium to more than 60,000, up from the current 53,500.

The official proposal, which has been put forward to Manchester City Council, would see the North Stand expanded with a larger upper tier. Above it there would be a sky bar with views overlooking the pitch, together with a stadium roof walk experience.

The plans also include a new club shop, museum and 400-bed hotel within the expanded stand, as well as a covered “City Square fan zone” with capacity for 3,000 supporters.

In a statement, City said their proposals represent over £300 million of investment into East Manchester “through a major construction project that would take up to three years to complete.”

The club said the plans are “for the development of a best-in-class fan experience and year-round entertainment and leisure destination at the Etihad Stadium.”

Consultation with fans

City added: “This follows the conclusion of the Club’s consultation held between Tuesday 28 February and Sunday 26 March, where fans and the local community were invited to share their feedback on concepts and designs.

“Having reviewed all of the feedback submitted via the consultation questionnaire, the Club is delighted to confirm that fans were in favour of the concepts and proposals presented.”


 

UEFA ready for Champions League final venue switch amid Turkey election fears

UEFA have contingency plans in place amid concerns that unrest over the Turkish election may cause the Champions League final to again be moved from Istanbul, The Independent reports.

The European governing body's stance is that the 2023 showpiece will take place in the Turkish city, but there are worries about the potential for political strife and the possibility of troops being on the ground shortly before the final.

The election is to take place on 14th May, a month before the 10th June showpiece match, with support for Recep Tayyip Erdoğan's autocratic presidential rule having broken down.

That has led to the likelihood of a close election, which political experts have warned could bring unrest on either side.

Lessons from recent years

In addition, it is understood that UEFA have taken lessons from the last few years, with all of the last three finals moved from their original venues at short notice.

It was twice switched from Istanbul due to Covid, with the 2020 event moved to Lisbon and the 2021 fixture to Porto. Then last season's final, due to take place in St Petersburg, was moved to Paris following Russia’s invasion of Ukraine.

 

Sampdoria face looming deadlines for €30 million tax and salary payments

Concerns are intensifying about the future of Sampdoria, with the club required to pay around €30 million in unpaid taxes and salaries over the next two months, Italian media have reported.

The club, who are rooted to the bottom of Serie A on just 16 points, face almost certain relegation to Serie B and have yet to find a new owner for the club who can resolve their grave financial difficulties.

Between now and 20th June – the deadline for registration for next season – Sampdoria must pay tax arrears suspended for the period of the Covid-19 pandemic, as well as player wages, which have fallen behind amid cash flow problems.

Two-point deduction

Back in February, Sampdoria faced the prospect of a two-point deduction for failing to make salary payments but the scenario was avoided as the squad agreed to temporarily forfeit one month’s pay so the board could cover the rest of the club’s costs and avoid any penalties.

However, Sampdoria would face a two-point deduction, carried over into next season, if they fell further behind with payments to players between now and the end of May.


 

AS Roma replace CEO Pietro Berardi with Lina Souloukou

AS Roma have sacked chief executive Pietro Berardi and replaced him with former Olympiacos CEO Lina Souloukou.

In a brief statement on Monday evening, the Serie A club said they had "terminated all relations" with Berardi "with immediate effect” but did not give a reason for his dismissal. The Italian had only been in the role for around 18 months.

Roma then announced the appointment of Souloukou as the new CEO and general manager on Tuesday. “Lina will take office immediately, after having completed the requisite formalities,” the club said.

Souloukou was CEO at Olympiacos from 2018 until June 2022. In 2019 she was appointed as a member of the European Club Association’s executive board, a position she still holds today.

Vision for club

Roma are facing a possible points deductions after coming under investigation by local prosecutors earlier this month for allegedly inflating player transfer values to falsify capital gains. The club has denied any wrongdoing.

Italian media reports have claimed that Berardi’s dismissal was not connected to the investigation. According to La Gazzetta dello Sport, the decision was taken due to a divergence over the vision for the future of the club between club president Dan Friedkin and Berardi.

The prospects of a takeover at Manchester United have been cast further into doubt after a report from ESPN claimed co-chairmen Joel and Avram Glazer are increasingly confident of securing outside investment that will enable them to remain as owners.

A source told ESPN that the two brothers favour the selling of a minority shareholding that will enable them to remain in charge at Old Trafford, with siblings and fellow directors Kevin, Bryan and Edward Glazer and Darcie Glazer Kassewitz offloading their stakes in the club.

The source added that Joel and Avram Glazer believe fresh investment could double the value of the club over the next decade, with the potential for organic growth over the coming years potentially making United worth at least £10 billion.

US investment funds

While Qatari banker Sheikh Jassim Bin Hamad Al Thani and British billionaire Sir Jim Ratcliffe have made bids for a full takeover, it is understood that a number of US investment funds, including Elliot, Ares, Sixth Street and The Carlyle Group, are interested in acquiring a minority stake.

With growth anticipated across broadcast revenue, streaming opportunities and a possible restructuring of the club game, there is said to be a view within the United hierarchy that the club can become much more valuable with the required investment on and off the pitch.

Joan Laporta denies FC Barcelona acted illegally over Negreira payments

FC Barcelona president Joan Laporta has insisted the club did nothing illegal over its payments to the former Spanish referee Jose Maria Enriquez Negreira.

Laporta presented the club's version of events over the payments, which were allegedly made to influence match results, at a press conference on Monday morning.

“I am utterly convinced that FC Barcelona never did anything with the intention or purpose of adulterating the competition in order to gain any kind of sporting advantage," he said.

He added that this claim is “categorically supported by the fact that the Tax Office, in a document addressed to the public prosecutor, has declared its inability to demonstrate that the payments … had anything at all to do with the choice of match officials.”

Laporta went on to say that “maintaining relations on technical and refereeing matters with companies that employ people with experience in the football industry, and a long history working with referees, is under no circumstances an illegal activity and less so a crime.”

He concluded: "Professional counselling is a common practice among all big football clubs and at Barça the practice is clear and transparent, with all the invoices broken down by items. There was never any intention to hide anything."

Corruption charges

Last month, the Spanish public prosecutor's office filed corruption charges against Barça, as well as former club presidents Sandro Rosell and Josep Maria Bartomeu, over allegations that Negreira received more than €7 million in payments from the club between 2001 and 2018 to influence match results.

Negreira, who was vice-president of the Spanish FA’s refereeing committee from 1993 to 2018, has denied ever favouring Barcelona in terms of refereeing decisions.

Todd Boehly ‘labelled Chelsea players embarrassing’ after Brighton defeat

Chelsea owner Todd Boehly laid into the club’s expensively-assembled squad after their 2-1 home defeat to Brighton on Saturday, according to a report from The Daily Telegraph.

The loss was the club’s third in a row since Frank Lampard was placed in caretaker charge until the end of the season and left them in 11th place in the Premier League, 35 points behind leaders Arsenal.

After the final whistle, a section of home fans made their feelings clear as they were seen shouting down to Boehly in the directors' box, and with the American also unhappy, it is understood he visited the dressing room to address the players along with co-owner Behdad Eghbali and Hansjorg Wyss.

According to The Telegraph, after waiting for Lampard to finish his post-match speech, Boehly told the team their performances had been “embarrassing” while also reminding them that he had spent £600 million to build a winning side and they had not lived up to expectations.

Real Madrid tie

The report also claimed that Boehly attempted to lift spirits by stressing that Chelsea have a huge match on Tuesday when they face Real Madrid in the second leg of their Champions League quarter-final tie.

With Chelsea 2-0 down from the first leg, it is understood that Boehly said the players must do all they can to produce an unlikely comeback to get the fans back on board.

777 Partners still exploring Everton stake despite club’s troubles

American investment firm 777 Partners is still considering taking a minority stake in Everton despite the uncertainty surrounding the club’s immediate future, The Athletic reports.

The Merseyside club remain in a battle to avoid relegation from the Premier League, and are outside the bottom three only on goal difference after Saturday’s 3-1 home defeat by Fulham.

The Toffees are also facing the possibility of a points deduction after the Premier League charged the club with a breach of its profit and sustainability rules last month.

Several of Everton’s rivals are pushing for any sanctions regarding the alleged overspending to be handed out before the end of this season, which could relegate the club for the first time since 1951.

However, it is understood that 777 Partners is maintaining a serious interest in investing despite the club’s troubles. The Miami-based firm is said to be in the early process of exploring the purchase of a minority stake but is taking into consideration which league Everton will be playing in next season and any potential punishment over the alleged FFP breaches.

New York-based group MSP Sports Capital is also said to be interested in a stake in the club.

Hertha Berlin deal

Last month, 777 completed a deal to acquire a majority stake in German club Hertha Berlin, who became the seventh football club to strike an investment deal with the US firm, joining Genoa in Italy, Vasco da Gama in Brazil, Standard Liège in Belgium, Red Star in France, Sevilla in Spain and Melbourne Victory in Australia.

Almost sixty years to the day last Saturday, a sparkling 4-1 victory over Fulham secured Everton the sixth of their nine league titles. Prior to the weekend’s encounter against the same opponents the two surviving players from that great team – Derek Temple and Tony Kay – were paraded in front of the Goodison crowd.

But Everton in 2023 are a very different proposition to the class of 2023 and the octogenarians were unable to lift them: the Blues tamely slipped to a 3-1 defeat, their sixteenth of the season.

Instead of titles, the spectre of relegation looms large at Goodison Park, where Everton have enjoyed top flight football for 69 consecutive years – only Arsenal have a longer unbroken top flight record. But in one of the closest relegation battles for years seven other clubs remain in the thick of it.

Other than the loss of prestige, because of the dependence of broadcasting revenues Premier League relegation poses a huge financial challenge to affected clubs – far more so than in other leagues and even taking into account the concept of parachute payments.

When Fulham were relegated from the EPL in 2018/19 their turnover dropped by 58 per cent the following season. VFB Stuttgart, who were relegated from the Bundesliga the same year, saw a 4.1 per cent drop in the same window.   

“I believe there is nothing worse than relegation, which equates to a loss of earnings, image, and prestige,” says Federico Mari, a football consultant and advisor.

“Not to mention a deterioration of the relationship with the most important thing for a club: the fans.”

But which Premier League clubs are most exposed to the financial impact of relegation? Whose budgets are most tied to EPL broadcast revenues? Which clubs have the least effective cost controls? Could relegation put into question the very viability of a relegated club?

Everton - how to fix

How do you solve a problem like Everton? That’s a question Off The Pitch have pondered for years and their problems seem to get bigger and bigger.

Already facing an independent commission for an alleged breach of the Premier League's financial fair play rules, at the end of last month the club announced more losses in a set of accounts that questioned the club’s ability to continue as a going concern in the event of relegation.

If the club plays next season in the Championship, the auditor’s report states: “A material uncertainty exists that may cast significant doubt over the group’s ability to continue as a going concern.”

The accounting notes add that the club remains “reliant” on its majority shareholder Farhad Moshiri, who provided a letter confirming his intention to keep bankrolling the club for a period of no less than a year – although it has no legally binding basis.

Moshiri, a billionaire with assets of £1.7 billion, has problems of his own. His friend and long-term business partner, Alisher Usmanov, a close ally of Vladimir Putin, is under UK and US government sanctions, following Russia’s invasion of Ukraine. Within days of the invasion, Moshiri publicly cut all ties with Usmanov, but the real impact on his business interests – many focussed on the former USSR – is unknown.

As if this wasn’t enough, last week the UK and US governments extended its sanctions to cover USM – previously a generous sponsor of Everton – Usmanov’s holding company (of which Moshiri was previously chairman)

Then there’s the new stadium on the banks of the River Mersey, a year away from completion and currently reliant on Moshiri’s financing to meet its £750 million construction cost – unless he can get a proposed minority investment deal from the US based MSP Capital.

This is all without taking into account the mess on the pitch, which has alleviated slightly since Sean Dyche took over as manager in January. Nevertheless, relegation for the first time since 1951 remains a distinct threat, as exemplified by Saturday’s insipid performance that left them clear of the bottom three on only goal difference.

“These are existential times,” admits John Blain, a former chairman of the Everton Shareholders Association. He says that despite losing £45 million in the 2021/22 season, in some ways Everton have started to turn the corner and the sales of players like Anthony Gordon and Moise Kean will improve this current year’s accounts.

“Relegation brings with it huge financial challenges which would derail potentially the little glimmer of light that we can see from a profitability and sustainability period, which comes from the worst financial year of the club’s history dropping off the scale [2018/19 when the club lost £111.8 million],” he says.

“I’m reluctant to use the terms like ‘fire sale’, but it seems inevitable that if the club does get relegated it will lose some of its better players,” he adds – pointing to the likes of Amadou Onana, who recently captained Belgium at the age of 21, and the longstanding England goalkeeper, Jordan Pickford.

“There are lots of costs within the organisation, in terms of media and marketing staff, that would probably result in significant job losses within the business as well.

“Relegation is not going to be great. I can understand why some people think it might be the end of the word because it forces you to clean the house. But I’m certainly not an advocate at all of almost wishing relegation because it will make us get our act together, because I think we can get our act together with some favourable weather conditions.

“If we’re a ship on the sea and it gets a bit choppy, but we can see calmer waters ahead.

“The danger is if we get through this storm into calmer waters, the people who need to be moved and the hard decisions that need to be made won’t be made because we’re in those calmer waters.

“If you weather a storm on the Atlantic it’s only so long before another one arrives.”

Leicester City - no existential questions

Last summer’s austerity has finally been made to bite at the King Power Stadium. The 2016 Champions are second bottom, having lost more games than any other club in the Premier League. Given their recent highs, make Leicester’s demise all the more shocking.

Last month Leicester announced losses of £93 million, but there are no existential questions posed about Leicester’s future, largely due to the commitment of its owners, the Srivaddhanaprabha family. In February they wrote off loans of £194 million made to the Foxes over the past decade.

There is a long-term vision too with heavy investments in infrastructure: a £100 million training ground opened in December 2020, and Leicester council last year approved an 8,000 capacity increase at the King Power.

What those losses may do is pose challenges to financial fair play criteria being met. Combined three-year losses now stand at £194 million, although that doesn’t allow for allowable deductions, such as Covid and infrastructure.

However Leicester has also been heavily reliant on sales of Riyad Mahrez (2018/19), Harry Maguire (2019/20), Ben Chilwell (2020/21) and Wesley Fofana (2022/23) to help offset losses from a crippling wage bill. That stream of talent is drying up, with one of its stars, Youri Tielemans, likely to leave on a free when his contract expires in June, and James Maddison entering the last year of his deal.

Earlier this season David Bevan, author of The Unbelievables: The Remarkable Rise of Leicester City and co-founder of the website, The Fosse Way, gave us an interesting view on what had happened in the East Midlands. At the time there was a stand-off between the then manager Brendan Rodgers and chairman Aiyawatt – “Khun Top” – Srivaddhanaprabha.

Bevan said then that the situation had “all the hallmarks of a difficult phase” and that Leicester’s “short-term financial landscape” had been defined by its recently completed training facility and a major stadium expansion, but that complaints about lack of spending didn’t wash “with 95 per cent of Leicester fans”.

“You can't halt ambition for the sake of buying a couple more players,” he said. In other words the long term perspective of the club’s owner was valued ahead of the short term hit of transfer activity. Whether possible relegation was factored into that long term view remains to be seen.

The best of the worst

Any club that is relegated from the EPL faces a massive upheaval, but the consequences for some teams – especially those that have failed to diversify its non-broadcast income streams and wages to turnover revenue – are more serious than others.

West Ham and Southampton (11 consecutive seasons each) are long established EPL forces, but the London club would appear to be better suited to life outside the top flight.

It has created stronger commercial and matchday revenue streams since its move to the former Olympic Stadium and has also benefited from European football in the past two seasons. Its domestic broadcast revenue streams are 64.7 per cent of turnover versus Southampton’s 76 per cent, but it also has a significantly lower wages to turnover ratio (53.7 per cent V 75.3 per cent).

Leeds should also be more resilient to a relegation and has far stronger alternative income streams (38.9 per cent non broadcast revenue) than comparable clubs and much better cost controls (64.16 per cent wages to turnover ratio).

But relegation could cost Leeds in other ways. 49ers Enterprises – the parent company of the San Francisco 49ers – have been expected to increase their existing shareholding in Leeds to assume majority control. Could that be jeopardised by relegation?

“Without a doubt, relegation is something that the mere thought of makes club executives and fans cringe,” says Mari.  “But when you talk to potential US investors you realize that they just cannot tolerate the existence of relegation.”

This will be an uneasy prospect for Bournemouth’s American owner, Bill Foley too. His club were in the EPL from 2015-19 before dropping down to the Championship for three seasons, are especially reliant on broadcast turnover. In its last two full EPL seasons this accounted for 88 per cent of turnover. Although it dropped to 80 per cent in the Championship last year, its tiny stadium, lack of brand recognition and relatively small fanbase mean it is more reliant on the EPL’s TV riches than other clubs.

Then there are cost controls, which are best exemplified by wages to turnover ratios. Bournemouth’s averages 93.72 per cent over the past five years, which includes three in the Championship. Southampton’s wages to turnover ratio last season by comparison was 75.3 per cent, Wolves 72.5 per cent, with leeds and West Ham significantly below

Nottingham Forest’s was a wild 197.3 per cent for 2021/22, when the club gained promotion via the play offs. It has bet even bigger on staying in the EPL, signing 24 players permanently since last summer, meaning those cost controls are unlikely to have improved much, even with the riches of the EPL added to their turnover.

If Forest does go down it will have parachute payments worth around £45 million and it will possibly factor in coming straight back up. But as Mari points out, “The Championship is a very complicated league, and even if those who relegate receive more funds than those already in the championship, immediate promotion is never guaranteed.”

The Manchester United takeover saga has taken a fresh twist, with reports over the weekend indicating the Glazer family is now seriously considering selling a minority stake to US private equity giant Carlyle Group.

The Washington-based firm is understood to be in talks with the Old Trafford club and is ready to make a significant investment, according to The Independent.

Discussions about a potential sale of United are poised to enter their final stages with Carlyle and US hedge fund Elliott Management now seen as the favourites to acquire a minority stake from the Glazers, should the American family opt for this route.

Qatari banker Sheikh Jassim Bin Hamad Al Thani and British billionaire Sir Jim Ratcliffe have both tabled offers for a full takeover across two rounds of bidding, with a third round of bids due at the end of this month.

The Independent has been told that investment firms Sixth Street and Ares have also shown an interest in the club.

Prospect of Glazers remaining

Despite the long-held suspicion that discussions over a minority investment have been a tactic to drive up the price for a full sale, it is understood the idea of the Glazers remaining is being given more credence now than it was even a few weeks ago.

There has also been internal debate within the Glazer family, with Joel and Avram Glazer believed to be keen to stay at Old Trafford and extend the family’s ownership, which began in 2005.

Real Madrid post €44 million profit for H1 2022/23

Real Madrid have reported a profit of €44 million for the first half of the 2022/23 financial year, ended 31st December 2022, after finishing €1.5 million in the black in the corresponding six month period the previous year.

The result was driven by an increase in turnover of 16 per cent, from €358.7 million in the first half of 2021/22 to €400 million in the first six months of 2022/23, as well as player trading in the summer 2022 transfer window.

Commercial revenues, which represent 40 per cent of the club’s turnover, rose by €23.8 million, while membership income reached €60.5 million, up from €38.6 million – a rise of 56.7 per cent.

As for competition revenue, the Spanish giants earned €76.4 million from UEFA for its results in the Champions League, along with €17.3 million from LaLiga and €11.3 million for friendly matches.

Meanwhile, income from player sales lifted by €23 million (40 per cent) compared with the summer window in 2021. The most notable departures were Casemiro to Manchester United, Isco to Sevilla and Gareth Bale to Los Angeles FC.

Wage bill reaches €217.1 million

Madrid’s operating expenses amounted to €357.3 million, up from €327.9 million in the first half of 2021/22 – a rise of €29.4 million (9 per cent). The club’s wage bill reached €217.1 million, accounting for 60.7 per cent of its overall costs, with the total number of employees climbing to 1,023, up from 878 at the end of June 2022.

Paris Saint-Germain set to table interest in buying Stade de France

Paris Saint-Germain are ready to formally declare their interest in purchasing the Stade de France amid the ongoing dispute over the ownership of their current home, the Parc des Princes.

The current lease to the Stade de France, held by Vinci-Bouygues, runs out in 2025 and the French government has already requested declarations of interest in either renting the stadium or buying it altogether.

According to L'Equipe, PSG intend to table their interest in acquiring the venue and will present a dossier confirming their desire to buy the stadium on 27th April.

Of the proposal from the French club, and any others put forward, 70 per cent of the assessment will be based on whether it has the financial capacity to acquire the venue, with the remaining 30 per cent based on its ability to manage and maintain it. The stadium was valued at €647 million in 2021.

It is expected that requests to buy the ground will be presented by a number of global companies, but PSG will be the only club to join the running. The French giants are said to be confident they can offer what is needed to buy the stadium, although their preference remains to acquire the Parc des Princes.

€500 million expansion

PSG currently lease their current home from Paris city officials. The Ligue 1 champions have spent €85 million on improving facilities and increasing capacity, and want to fund a €500 million expansion, but have told Paris mayor Anne Hidalgo they will not do so unless they are also allowed to buy the stadium outright.

Hidalgo has publicly rejected PSG's offer, prompting the club to turn their attention to the Stade de France, which is the current home of the French national team.

Southampton owner Sport Republic makes fresh £15 million injection

Southampton’s owner, the London-based investment firm Sport Republic, has injected a further £15 million into the club following a share issue, The Athletic reports.

The agreement means lead investor Dragan Solak has now put £63 million into the relegation-threatened club over the past seven months.

The Serbian-born businessman has made the latest investment to aid general running costs and highlight his continued commitment to the club.

Solak previously injected £48 million last September, a move which diluted the shares of minority stakeholder Katharina Liebherr and reduced her previous stake of 20 per cent.

Liebherr was not involved in the latest round of investment and her share in the St Mary’s club has now been further reduced.

Controlling stake

Sport Republic completed its takeover of Southampton last January, buying Gao Jisheng’s controlling 80 per cent stake in the club in a deal understood to be worth £100 million.

Premier League clubs have agreed to ban gambling sponsors on the front of their shirts from the start of the 2026/27 season.

In a statement, the league noted that it was the first UK sports league to take such a measure, and said it was taken “voluntarily in order to reduce gambling advertising.”

It added: “The announcement follows an extensive consultation involving the League, its clubs and the Department for Culture, Media and Sport as part of the Government’s ongoing review of current gambling legislation.

“The Premier League is also working with other sports on the development of a new code for responsible gambling sponsorship.”

Eight Premier League clubs – Bournemouth, Brentford, Everton, Fulham, Leeds, Newcastle, Southampton and West Ham – have gambling companies as shirt-front sponsors, with the value of those deals estimated at £60 million a year.

Criticism from campaigners

It will still be possible to advertise gambling brands in other areas, including on shirt sleeves and pitchside hoardings, which has brought criticism from campaigners.

In comments reported by The Guardian, James Grimes, a recovering gambling addict who set up the Big Step, a campaign group that aims to convince football clubs to cut ties with gambling sponsors, said: “Today’s announcement is a significant acceptance of the harm caused by gambling sponsorship.

“No gambling ads are seen more than those on Premier League shirts, worn by billions around the world. But just moving logos to a different part of the kit while allowing pitchside advertising and league sponsorship to continue is totally incoherent.”

He added: “Without government action on all forms of gambling ads in football, at every level, online casinos will exploit any voluntary measures and continue to market their products through our national sport.

“Although this outcome isn’t perfect, it’s a huge step. Just over three years ago, there were nearly 30 clubs in the top two divisions with a gambling advert on the front of their shirt – with today’s announcement, we are getting closer to when that will be zero.”

 

Leeds United owner Andrea Radrizzani ‘considers Inter Milan bid’

Further speculation about a potential takeover of Inter Milan has emerged, with a report from Bloomberg claiming that Leeds United owner Andrea Radrizzani is considering a bid.

Radrizzani’s Aser Ventures, which has a majority stake in Leeds, is said to be among the investors mulling an offer for the Italian club, although there are still a few hurdles before an offer can materialise.

Firstly, a takeover would be contingent on Radrizzani selling Aser’s stake in Leeds to the investors behind American football franchise San Francisco 49ers at the end of this season. They currently own a 44 per cent stake in the Premier League club.

It is understood that deal is conditional on Leeds staying in the Premier League as a minimum. The club are only two points clear of the relegation zone and were beaten 5-1 at home by Crystal Palace on Sunday.

Milan-born Radrizzani is a sports rights entrepreneur who sits on the board of streaming platform DAZN.

Financial advisor

It was reported earlier this week that InvestCorp is set to appoint a major global bank as a financial advisor as its interest in acquiring Inter Milan gathers momentum.

The Bahrain-based fund has been linked with a move to buy Inter since November and is now said to be attempting to form a consortium capable of acquiring the club from current owners Suning.

 

Salernitana president calls for action after Serie A clubs spend record €205.7m on agent fees in 2021/22

Salernitana president Danilo Iervolino has called for tighter controls on football agents in Italy after new figures showed a record amount was spent on agent fees by Serie A clubs last year.

In a report released earlier this week, the Italian Football Federation (FIGC) revealed that Italian top-flight clubs spent €205.7 million on payments to agents in the 2021/22 financial year, up 18 per cent on the €173.8 million spent in 2020/21. The previous record was €193.3 million in 2015/16.

The analysis also found that 7 per cent of Serie A clubs' net revenues were spent on agent fees last year, with the same proportion having applied since 2015, compared with 5 per cent for English Premier League clubs since 2016.

Commenting on the figures, Iervolino said: "Too much money comes out of the football system, sometimes unjustifiably.”

The Salernitana owner stressed that “I do not like to generalise and I consider the activity of agents necessary when it is carried out in a professional manner, when the player is accompanied during his career and when there is a healthy mediation with the clubs.”

“Clear sign of a drift”

However, assessing the influence of agents in Italian football, he added: "They have too much for me with their choices and their behaviour. Now FIFA is dealing with the issue, but in the past, the clubs should have rejected certain requests.

“Not those of serious professionals, because it is not correct to lump everyone together, but those of others do. The latest report of the FIGC is the clear sign of a drift, the demonstration that there is an imbalance in the football industry. We are in a jungle: we hope that the new FIFA rules will help and be implemented as soon as possible by the FIGC."

 

Lyon deny report of women’s team takeover by US businesswoman

Lyon have denied media reports that American businesswoman Michele Kang is to acquire a majority stake in the French club’s women’s team.

An article published on Wednesday by L’Equipe claimed that Kang, who is majority owner of NWSL side Washington Spirit, had agreed to acquire a 52 per cent stake in Lyon’s women’s team and had pledged to cover their annual deficit of €12 million.

It was reported that Kang, who is the owner and CEO of health information technology company Cognosante, had reached an agreement several weeks ago with Lyon owner John Textor through his company Eagle Football.

However, Lyon swiftly denied the report, and said that no agreement has been made with any parties over a proposed takeover.

In a statement released on Wednesday evening, the club said: “Olympique Lyonnais would like to deny the inaccurate information published by the newspaper L’Équipe on a possible transfer of its women’s team that would have been announced last Monday to the players by Vincent Ponsot (deputy director general at OL Group).

“The situation described in this article in a passage deleted from the version published at 5:52pm, unverified, is factually and formally impossible since our players were in the national team and Vincent Ponsot travelling abroad in recent days.

“Moreover, if a desire to create a global platform dedicated exclusively to women’s football has always been a reality for OL Group and Jean-Michel Aulas, the description given by L’Équipe is deeply distorted. No agreement has been ratified, and even less in the terms described by the newspaper.”

Plans to sell NWSL club OL Reign

The club did confirm, however, that plans are in place to sell NWSL club OL Reign and that the American investment bank Raine Group has been hired to handle the sale.

“OL Group announces that it has given a mandate to sell its NWSL franchise to the investment bank of the Raine group,” the statement added.

“Olympique Lyonnais is happy and proud to have been able to build the new foundations of OL Reign, to have contributed to its sporting success (shield winner and semi-finalist of the NWSL 2022), but also to have repatriated the team in Seattle with its fans and community, as OL Group committed to when it was acquired in 2019.”

 

Thomas Zilliacus pulls out of Manchester United takeover bid and questions process

Finnish businessman Thomas Zilliacus has said he will not be participating in the third round of bidding to become the next owner of Manchester United.

Zilliacus has also criticised the Glazer family and the Raine Group, the New York-based investment bank chosen by the Glazers to oversee the sale of the club, for hosting what he believes has been a poor bidding process.

In a statement released on Wednesday, Zilliacus said: “My original bid was for a specific sum plus a premium to be negotiated with the sellers.

“Raine Group wrote to me saying they would contact me to agree on the next steps. That contact has not materialised. I have not been given access to the data room and have not received the crucial information that has been provided to other bidders.

“I will therefore not participate in a possible third bidding round as it is impossible to put in a proper bid without the information that has been given to other bidders.”

Amount sought by Glazers

Zilliacus went on to question the amount the Glazers are seeking for a sale of United.

“Reports say that the Glazer family wants £6 billion for the club,” he said. “Based on the information I have that is above what the club is worth. While my consortium is able to pay that sum, we will not make a bid that makes no financial sense.”

He added: “It seems that the Glazer family only is interested in maximising the money they can take off the table for themselves without much concern for Manchester United.

“I wish the next owners, be it Sir Jim Ratcliffe or Sheik Jassim, who I believe both have a true passion for United, the best of luck with the club.”

An independent regulator for English football could be installed for the start of the 2024/25 season, with a shadow regulator potentially in place for the start of next season, according to The Independent.

The newspaper has been told that work has already started on the bill, which would need to be completed before the delayed King’s speech, setting out a new programme of legislation in the autumn.
The Department of Culture, Media and Sport is said to be determined to press on with the regulator amid mounting political tension within the game.

Premier League chief executive Richard Masters was accused of trying “to kick a new football regulator into the long grass” in a parliamentary committee last month.

Government and political circles

While Masters insisted the league has “done nothing but engage with the process”, the stance of the elite competition is understood to have aggravated many within government and political circles.

There is nevertheless a view that the Premier League might concede that it is better to get the regulator in place quicker as a prospective Labour government would bring in more robust regulation. This is one reason why the current government also wants to put it in place before the next general election.

InvestCorp to appoint financial advisor as Inter Milan interest hots up

InvestCorp is set to appoint a major global bank as a financial advisor as its interest in acquiring Inter Milan gathers momentum, Italian business newspaper Il Sole 24 Ore reports.

The Bahrain-based fund has been linked with a move to buy Inter since November and is now said to be attempting to form a consortium capable of acquiring the club from current owners Suning.

InvestCorp is understood to be aiming to raise $654 million in capital for a potential takeover bid and is now taking the next steps, which include appointing a financial advisor for the process.

It has previously been reported that the looming due date of Inter’s loan with American investment fund Oaktree Capital could push Suning to sell, and the debt position of the club is believed to be a major factor in InvestCorp arriving at a target of €500-600 million in equity for its offer to Suning.

€415 million bond

Inter launched a €415 million bond last January and took out a €275 million loan from Oaktree in May 2021 to inject operating liquidity into the club amid post-pandemic financial issues.

With the interest rates, the Inter owners must pay a total of €350 million to Oaktree in the next 13 months, and if they fail to do so then control of the club would pass to the American fund, as the club was put up as collateral.

Former prospective Birmingham City owners admit EFL regulations breaches

British businessman Paul Richardson, ex-Charlton Athletic chief executive Matt Southall and former Argentine footballer Maxi Lopez have all been handed a suspension by the EFL after admitting breaching regulations with their involvement in Birmingham City last year.

In a statement, the EFL said: “Following a thorough investigation, the three individuals have accepted that they had acquired control of the club without going through the appropriate sign-off procedure with the EFL.

“In addition, Mr Southall also accepted a charge of misconduct after admitting to signing a false declaration regarding his role as a Relevant Person under EFL Regulations.”

Southall is now prohibited from being a relevant person for six months, three months of which are to be suspended until the end of the 2023/24 season. Richardson and Lopez are banned from being a relevant person for two months and one month respectively, which are to be suspended until the end of the 2023/24 season.

The league added that all three individuals are also liable for £45,000 of the associated costs with the investigation.

Peterborough deducted three points over CEO appointment

Meanwhile, League One club Peterborough United have received a three-point deduction to be suspended until 31st December 2023 and have been fined £50,000 following the appointment of David Paton as the club’s CEO last January.

In a statement, the EFL said: “The Club failed to declare Mr Paton as a Relevant Person as per the requirements of the Regulations and allowed him to act in a role that brought him under the definition of a Relevant Person without receiving written authority from the EFL.

“In addition, the Club allowed Mr Paton to act as a Relevant Person despite him being subject to a Disqualifying Condition.
“Mr Paton has also been banned from being a Relevant Person for a period of two years effective from 19 May 2022 for acting within the definition of a Relevant Person without receiving written authority from the EFL.”

Wrexham co-owner Ryan Reynolds questions National League-EFL promotion rules

Wrexham co-owner Ryan Reynolds has described the fact that only one club is automatically promoted from the National League into the EFL League Two as “insane” after his team edged closer to a return to the Football League for the first time since relegation in 2008.

The Hollywood actor was at the Racecourse Ground alongside co-owner Rob McElhenney to watch Wrexham’s dramatic 3-2 win over promotion rivals Notts County on Easter Monday.

The win leaves Wrexham top of the National League on 103 points with a game in hand over Notts County, who are in second place on 100 points. Woking, in third place, have 76 points. The teams finishing second to seventh will compete for the other promotion spot via the play-offs.

“Celebrating together”

Speaking to BT Sport after the game, Reynolds said: “It’s just insane to me in this league that only one goes up automatically.

“If it were different – and I think it should be – both of these clubs would be celebrating together right now because what they’ve done is not only created drama unlike anything you’d ever see in a damn movie, but something that I think people will be talking about for ages.

“The fact that this much attention has come upon the National League in this way is incredibly special and immensely worthy of the talents of not only Wrexham, but Notts County as well.”

In an ordinary year for Tony Bloom, few 4 minute 6 second sequences would bring the Brighton & Hove Albion owner more joy or cash than that which passed on 15 March.

It was the Cheltenham Festival, the first great event on the British horseracing calendar, and his gelding Energumene was up for the Queen Mother Champion Chase, a race he had won last year. Favouring the heavy ground, the nine-year-old horse was favourite going into the race, but few could have foretold what followed: this was less a race than a procession led by Bloom’s horse, in the end by ten lengths.

The victory yielded Bloom a £225,000 prize and a small pewter trophy, presented to him by the Queen Consort, Camilla. But the owner had more at stake. He later revealed he had placed two bets totalling £600,000, winning him another £830,000. It was one of the biggest bets ever placed at Cheltenham.

More than a million from four minutes of racing? Not a bad day’s work.

This is no ordinary year in the life of Bloom and this was no normal day. He said after the race that he was going to celebrate with a glass of champagne, before heading off to the Amex Stadium for the evening’s fixture between Brighton and their hated rivals Crystal Palace.

Bloom’s sporting asset won that too, thanks to Solly March’s 15th minute goal. It lifted the club to sixth, level on points with Liverpool with a game in hand, and with European football suddenly in their reach.

It raised the question: could Bloom’s biggest gamble yet – the £360 million he has reputedly sunk into Brighton over the past 15 years – be about to pay the ultimate dividend: Champions League football and the potential £100 million pay day that it promised?

Brighton boy

The 51-year-old Bloom has long been one of Britain’s most successful gamblers, accumulating a personal fortune that is widely considered to be north of £1 billion. There are the horses and the poker playing – he has tournament career earnings of $4 million. But it is his second career, as a club owner of Brighton and Belgium’s Royale Union Saint Gilloise (RUSG), which has started to attract most plaudits.

In this gestation he has emerged as one of the shrewdest moguls in football. But how did he get there? How far will he go? What will it mean for Brighton to compete among European football’s elite?

Betting, like Brighton (his family have a near unbroken presence on the board going back to the 1970s), it may be said is in the blood. Interviewed by the former England cricket captain Mike Atherton in his 2006 book, “Gambling”, he said that he inherited his love of gambling from his grandfather Harry Bloom, a wealthy car dealer and Brighton director, who owned greyhounds: “He was a small-time gambler and probably a loser, as 99% of people are, but he loved it, and the losing never became out of control.”  As a 15-year-old schoolboy, Bloom went on to tell Atherton, he used a fake ID to get into betting shops. It was an awakening, he remembered. “Early on I was a hopeless gambler really,” he said. “I liked to think that I understood the form and had a strategy but I was just guessing really.”

First millions

Underlying that interest was a fierce intellect and formidable analytical skills – the word “genius” often crops up when discussing Bloom with those who have encountered him. At A Level he studied Maths, Further Maths, Economics and Statistics. At Manchester University he took a degree in Maths. All the while he was still betting on sports.

In the early 1990s he worked at the accountancy firm Ernst & Young after graduating, then in the City as an options trader – which he left after just six months to become a professional gambler.

His talent attracted the interest of the bookmaker Victor Chandler, which approached him in the late-1990s to set up its international betting operation at a time when deregulation and the growth of the internet were making bookies global forces. Here, and in subsequent enterprises setting up online bookmakers, he made his first millions, also introducing him to the lucrative Asian betting markets.

How quickly and how rich he has become is at once a fiercely guarded secret and widely speculated upon in the media. What is now known is that he was the secret benefactor of Brighton – at the time thought to be the DJ Norman Cook – through its noughties-era nomadic period, when the club resided at a converted athletics stadium at Withdean, having previously played two seasons at Gillingham, a 75 mile drive away.

He stepped out of the shadows in 2009 when Brighton needed to raise nearly £100 million for its new stadium at Withdean. Bloom by then was spoken of as “the power behind chairman Dick Knight's throne” and had the capital to buy the club outright. Rather than loan the money or come in as a partner, Bloom took over in a bloodless coup that forced out the longstanding chairman. Knight, who had saved Brighton from liquidation in 1997 and has hero status among the club’s supporters, was made an honorary president and had a bar named after him when the stadium was built.

Lizard’s lair

In 2006 Bloom founded Starlizard, which has become a global leader in specialist online sports betting advice. The company takes the name from Bloom, who is known as the lizard “because ice-cold blood allegedly flows through his veins,” as one article about him put it. The company, which is based in Camden in North London, has an army of analysts, statisticians and researchers providing in-depth team data and analysis to predict the outcomes of matches, bet execution and data.

What actually goes on in Starlizard’s HQ remains shrouded in secrecy. A 2014 investigation by the journalist turned sports governance consultant Ed Hawkins describes it as a sort of Willy Wonka’s factory for the sports data industry. ‘“They have so many people working for them, they do their analysis on a team-by-team basis,”’ an insider told Hawkins. “They record every stat you can imagine and have a lot of programmers working out what price they should be betting on. They’ll be betting at least six figures on every bet.”

Amidst the secrecy and NDAs, Bloom attracts and demands fierce loyalty among his staff. The brightest are rewarded: RUSG’s president and minority shareholder, Alex Muzio, is a protégé who rose through the Starlizard ranks [add link: https://offthepitch.com/a/profile-how-young-english-chairman-revolutionised-belgiums-most-historic-club]. Past allies who have fallen out with him are ostracised. Brentford owner Matthew Benham was a colleague at a previous venture – Premier Bet – and fell out spectacularly with Bloom almost two decades ago and the pair have never reconciled. When Brighton visit the West London club, Bloom even eschews the directors box and sits in the away end. 

Bloom has been described as his own biggest client, with Starlizard’s analysis informing his own betting syndicate, but for a price the data is also available to other clients – the minimum buy in is reputed to be £2 million – with his football clubs utilising its data.

From 2016 these included Belgium’s Royale Union Saint-Gilloise, which has been transformed from a club whose ambitions centred on avoiding relegation to the third tier of Belgian football to Jupiler League title challengers.

Brighton were in League One at the time of Bloom’s 2009 takeover and the encyclopaedic knowledge Starlizard has access to – along with Bloom’s wealth – undoubtedly gave them an edge during their ascent.  “Tony is a hugely mathematical and analytical type of person, so clearly he looks at numbers as a means of gaining confidence in decision-making,” Paul Barber, Brighton’s chief executive, said in a 2017 New York Times interview, adding that his team had its own data and scouts apart from Star Lizard.

Gradual approach

Unlike his Belgian team there was, however, no meteoric rise for Brighton. Progress has been built on solid foundations and a gradual approach. Brighton reached the Championship in 2011, two years after Bloom’s takeover, and the Premier League six years later. All the while Brighton traded players to help balance the books: Ben White, Dan Burn, Yves Bissouma, Marc Cucurella and Leandro Trossard have all been sold at huge profit, while outstanding new players, such as Moises Caicedo, Kaoru Mitoma and Alexis MacAllister, have replaced them, often bought at fractions of the price.

In the first four seasons in the top flight Brighton finished 15th, 17th (avoiding relegation by just 2 points), 15th and 16th. Then last season came the breakthrough, when Brighton finished ninth. They were rewarded by having Spurs buy Bissouma and Chelsea sign Cucurella who then, when the new season started, also poached the manager Graham Potter and his coaching team.

Brighton nevertheless seemed unshaken: in Potter’s place came Roberto De Zerbi, a hitherto unknown in England. He has since led Brighton to the verge of Europe, while Potter has been fired by Chelsea, with the club in midtable.

“We have a succession plan in place for probably 20 jobs in the club, including the head coach and senior positions,” Barber told the FT Business of Football summit last month. “You're never going to have a perfect plan. But I think you've got to be thinking about it all the time.”

Europe beckons

How far can Brighton go? Since Bloom’s glorious day last month, Champions League football is no longer in the club’s own hands, something that wasn’t helped by last Saturday’s defeat in a “6 pointer” at arch-rivals Spurs. That game was defined by poor refereeing decisions, for which the club received an apology, but – of course – no points. In a fortnight they face Manchester United in the FA Cup semi-final; 40 years ago next month they faced the same club in the same competition in their only major final. Making it past United would be a significant breakthrough on its own merits. If Brighton win and Man City prevail in the weekend’s other semi final, Brighton will make the Europa League by default.

Europe – for the first time in its history – therefore seems a good possibility and for a club like Brighton the influx of European competition money would be significant. Its 2022 turnover was £174.5 million: a good Europa League run is worth up to £25 million; a good Champions League run three or even four times as much. European money has already transformed RUSG: pre- takeover it income from “activities” is listed at less than €1 million; last summer and the club earned €5 million from UEFA for the single Champions League qualifier it played against Rangers.

These are exciting times for Brighton, but the owner is likely to remain grounded. His interviews are rare, but they always sparkle with insight. Speaking to The Times in 2011 he described how poker informed his business strategy: “Poker gives you a good grounding in lots of things, including reading situations and reading people and making tough decisions. Those skills can be used in business and certainly in running a football club.” Will Bloom get carried away by Brighton’s success? Even if he is a diehard fan, it seems as if the poker face will ultimately prevail.