In a hotel conference room a few streets away from the European Parliament in Brussels last month, a young English sports executive spoke powerfully about the future of European football.

The topic of the day was the European Super League and there were stakeholders from all over Europe in attendance, including the LaLiga president, Javier Tebas, broadcast executives, and club representatives.

Dressed in a black jumper and white sneakers, the official looked more like a tech executive than a football official when he took to the floor in what was a rare public-speaking appearance. Addressing the audience he made little effort to disguise his contempt for the clubs and officials that had plotted to tear apart European club competition as we know it.

One by one he dismantled the ideas put forward by the ESL and A22, the strategy company behind the project. He ridiculed their comparisons between European football and American franchise sports (“completely and utterly impossible” “not transplantable to Europe in any way, shape or form”), their “obsession with secrecy”, their lobbying efforts (“They've tried to add various bits that they've heard would be a good idea”) and predilection “to only talk to people who told them that everything they were doing was a good idea – because there's nothing there that makes any sense”.

“I think that we should be quite grateful for the fact that they have done it in such a naked way,” he concluded of the rebels. “It was such a terrible proposition in every regard.”

It was, in every way, a cool, cutting, evisceration of a project he palpably disliked.  But who was this young assassin?

Bloom’s man

The answer was neither a Premier League club executive, nor league official. It wasn’t a player or manager, nor anyone who had ever worked in any playing or coaching capacity. Indeed the speaker is almost entirely unknown in the country of his birth.

However, Alex Muzio has become a big name in Belgian football, transforming the fortunes of Royale Union Saint-Gilloise, the historic club he became chairman of four-and-a-half years ago.

Muzio had never worked in football when he ascended to his position at Union-SG at the improbably young age of 34. The club had just been bought by Brighton & Hove Albion’s owner, Tony Bloom, and Muzio had spent his career working for Bloom’s consultancy Starlizard.

Starlizard – described by the New York Times as “the firm many consider to be the largest betting syndicate in Britain” – has revolutionised the use of data analytics in sport to make Bloom rich. Bloom used that wealth to buy Brighton, the club he supports, in 2012, and transform them from a lower league side into arguably the most innovative team in English football, as well as an established EPL club.

Overseas club hunt

In 2016, when Brighton were still in the Championship (they were promoted in April 2017), Bloom began looking for a European club to buy to apply Starlizard’s methods to. The objective was to find a club in a country that was open to foreign investment and which could realistically lift a domestic title within a decade.

Various criteria were applied – including proximity to London – and Bloom eventually settled upon Belgium’s Union Saint-Gilloise. In many ways he lucked out: Brussels is just two hours by train from London; the club had an outgoing foreign owner, so the fanbase lacked a resistance to “selling out”; and it also wasn’t just any club – it was the third most successful team in Belgian football, with 11 league titles.

There were, however, a number of caveats. Union hadn’t been in the Belgian top flight for more than four decades. It had a small budget and was largely run by volunteers. It also possessed a relatively small ground  - Stade Joseph Marien, named after a former club president, has a capacity of 9,400. Its ambitions at the time centred on avoiding relegation to the third tier of Belgian football. They were a club looking down in fear, not looking forward.

But then everything changed in 2018.

Separate organisations

Muzio, who like Bloom is from Brighton, had become something of a protégé to Bloom, working his way up from what he later described as “the very bottom” of Starlizard over the course of 12 years to the time he was appointed chairman of Union SG in August 2018. Bloom described the younger man as a “a business associate and friend” who is “passionate about football [with] in-depth knowledge and understanding of the game.”

Bloom is majority shareholder but was – and remains – hands off. Muzio took a stake of around 10 per cent at the time of the takeover and has spoken repeatedly of the club’s independence. There is no multiclub ownership strategy, although much of the methodology at Brighton and Union is inevitably similar. It also undoubtedly gave Brighton an edge when they signed Union’s star striker Denis Undav in January 2022 amidst rival bids from Italy and Germany. The Japanese star Kaoru Mitoma made the reverse journey on loan last season. But as Muzio has pointed out, Brighton and Wigan have done more transfer business than Bloom’s two clubs since 2018.  “They’re very separately run organisations with very different goals,” he has said of Union and Brighton.

Moneyball fantasy

Undav is perhaps the perfect case study in Starlizard’s analytical edge. He was playing as an amateur in the German third tier and waking up at 4am to work as a machine operator in a factory when Union came calling in the summer of 2020 after, Muzio has said, “his numbers stuck out like a sore thumb”. The player – which  much bigger and better resourced clubs had long ignored - repaid that research many times over. Over the next two seasons he scored 43 league goals in 63 appearances before earning a £6 million move to the EPL. 

Other transfer business has seen a journeyman English defender – Ross Sykes – swap Accrington Stanley for the Belgian top flight, while the German 3.Liga, Norwegian, Danish and even Kazakh leagues have all been pilfered for talent. If this all seems unconventional, it may actually be as close as football gets to its Moneyball fantasy. 

Rapid ascent

Union had ended the 2017/18 season in the First Division B relegation playoffs. But in the first season under the new owners found themselves in the playoffs  and in 2021, after three years of steady progress, they were promoted to the top flight.

Then came a near miracle of Leicester City proportions: in their first season back in the Belgian top flight, the club – priced at 500-1 for the title – finished league runners up, having led the league most of the campaign. After a gap of 48 years outside the top flight Union SG had finished far ahead of Brussels rivals Anderlecht, who had surpassed Union’s historic records in its wilderness years.  

They were rewarded that summer by Anderlecht poaching their manager Felice Mazzu and champions Club Brugges taking one of their best players, Casper Nielsen. Not that it seems to have mattered this season. At the time of writing Union SG are second in the Jupiler Pro League, 14 points ahead of fourth placed Brugge and 24 points ahead of tenth placed Anderlecht.

Value system

However the roots of Union’s success goes beyond recruitment and there is an emphasis that goes far beyond spreadsheets.

"We have a value system here. It is not just made up,” the club’s director of football, Chris McLaughlin told Sky last year.  “We put a lot of work into it, myself, the chief executive and the president. We met with specialists who helped us formulate our way of thinking, what we were looking for.”

Does this all work off the pitch? It is probably too early to say, given the club’s rapid ascent and the period of transition it is experiencing. In the last season prior to the club’s takeover  the yearly wages stood at €3,4 million and the financial accounts don’t reveal the annual revenues. Step forward to last summer and the club earned €5 million from UEFA for the single Champions League qualifier it played against Rangers in August. Given the rewards of UEFA club competition and player trading, it seems that at some stage the investment and patience will pay off.

There are ambitions for a new stadium, although the local authorities have so far been resistant. But this is a club rooted firmly in its community and with strong societal ambitions. It has, for example, a wide-ranging sustainability programme that would put many far bigger clubs to shame.

Muzio speaking out against a revanchist Super League project in Brussels was very much in character and his powerful stance is in contrast to his better known and more powerful compatriots in similar roles in the EPL. Very few have ever put their heads above the parapet on the ESL and some remain complicit in it.

This inculcation of a club ethos built on progress, development, solidarity and strong local identity has rubbed off on fans too. “Tony and Alex installed a culture of professionalism,” Fabrizio Basano, who co-founded Union Bhoys, RUSG’s most prominent fan club, recently told a recent edition of The Blizzard. “It’s not just a question of money – our budget is very limited compared with other division one sides – but of having a serious project. The idea of development and progression is behind everything.”

Asked about the fanbase at the Brussels event Muzio made clear that they stood at the heart of everything.

“It’s an extremely important part of everything we do,” he said. “Union inspires sustainability and community work that we spend a lot of time on. We think it's very important.”

And then amidst the complexities of life off the pitch, he hit upon an astonishingly simple truth: “A club is really nothing more than a group of supporters that want their local area to be proud.”

Tottenham Hotspur chairman Daniel Levy admitted the club have made mistakes in the transfer market and also took aim at some of the Premier League’s biggest spenders as the club announced its latest financial results.

Tottenham reported a loss of £50.1 million for the 2021/22 financial year, down from £83.8 million the previous year. Total revenue grew by 22.7 per cent to £440 million, driven largely by matchday income rising from £1.9 million to £106.1 million in the club’s first full season in its new stadium at capacity.

In his statement accompanying the results, Levy wrote: “We have felt, and continue to feel, the financial impact of supporting player purchases which have not worked out as planned. We have taken steps to improve this area of operations and we believe the recent transfer windows reflect this.”

He added: “We are competing in a league in which we have seen increased sovereign wealth ownership and consortia finance; and in a league where the spending power is now vested in the hands of a few who dominate and have the ability to distort the market.”

Commenting on UEFA’s new financial sustainability rules, Levy said “we welcome the changes to the governance of the game which will compel greater financial sustainability and financial fair play (FFP).”

Commercial income up 20.7 per cent

In 2021/22, Tottenham’s commercial revenue from sponsorship and merchandising grew by 20.7 per cent to £31.5 million as a result of new sponsors, stores being open and the start of new major events being hosted at the stadium throughout the year.

However, TV and media revenues were £144.2 million, down from £184.4 million due to a number of games from 2020/21 being played and accounted for in 2021/22 due to the delays caused by the Covid-19 pandemic.

UEFA prize money fell from £23.6 million to £10.2 million due to the team playing in the Europa Conference League in 2021/22, having played in the Europa League in 2020/21.

The club's operating expenses (before football trading) were £403.4 million, up 18.7 per cent from £339.8 million due to increased first-team costs and the return to full matchday operations.

The profit from operations, before depreciation, amortisation, player trading, interest and taxation increased to £112.3 million, up 15.7 per cent from £97.1 million.

UEFA report: Clubs on road to recovery from Covid but cost hikes causing losses

European clubs continued their recovery from the Covid-19 pandemic in the 2022 calendar year but worrying cost trends meant profitability remained elusive for many teams, according to a new report from UEFA.

The latest edition of the governing body’s European Club Footballing Landscape report estimated that the total revenue generated by top-tier clubs last year was more than €22 billion, with income from more than 140 early reporting clubs up by an average of 4.6 per cent.

However, UEFA’s calculations pointed to estimated losses across the continent’s top leagues of at least €1.9 billion. That figure follows the combined deficit of €7.8 billion suffered by top-tier clubs during the height of the pandemic in 2020 and 2021.

The report also highlighted some concerning signs around expenses. It found that compared to pre-pandemic levels, operating costs have increased by 11 per cent and finance costs have risen by 18 per cent.

Wages up 16 per cent

UEFA noted that clubs are being “impacted by wider economic trends,” but added: “more than anything though, it is the continued upwards trend in wages that threatens clubs' return to pre-pandemic profitability.”

In his introduction to the report, UEFA president Aleksander Ceferin writes: "Despite the unprecedented turmoil of recent years, wages have continued to grow, rising on average by 16 per cent compared to pre-pandemic standards.

“Top-division players' salaries, for example, have more than doubled during the past decade. And while this is not a negative trend per se, it is clear that many are compromising their economic sustainability in their reckless pursuit of success."

FC Barcelona issue bonds to finance €1.5 billion stadium revamp

FC Barcelona have issued a series of bonds to finance the renovation of the Camp Nou stadium, El Economista reports.

The Spanish newspaper understands that the club has issued three bonds, each worth €500 million, to be repaid through the income generated by the new venue, which is forecast to be €346 million per season. The due dates of the bonds are reported to be 2032, 2045 and 2052.

While the work on the stadium itself cannot exceed €900 million, the total cost of the project, including the Espai Barça sports innovation hub which will lie next to the stadium, is projected to be €1.5 billion.

The bonds issued by the club have received a BBB+ rating with a stable outlook by Kroll Bond Rating Agency (KBRA).

Speaking last week, FC Barcelona president Joan Laporta said: "Last Friday, Morningstar Sustainalytics, a bond certification company, certified the category of Green Bonds we will issue, which means that we expand our market of potential investors and the possibility of obtaining financing at a more adjusted price.”

Interest rate hikes

The last bond issue undertaken in relation to LaLiga was the one made by CVC Capital Partners to help finance its deal with the Spanish league. The interest rate for that arrangement closed at 7 per cent and given the hikes in interest rates since then the cost for Barcelona is expected to be higher.

The club has hired JP Morgan to search for investors and to secure lower rates. Among those interested in buying the debt are said to be the finance firms Apollo, Pricoa Private Capital and Voya Financial, and insurers MetLife, New York Life and Barings.

Pep Guardiola: Manchester City have “already been condemned” after Premier League charges

Pep Guardiola has said that Manchester City have “already been condemned” after the Premier League charged the club with 115 breaches of its financial rules following a four-year investigation, The Athletic reports.

The Premier League has referred City – who have won the English title six times in the last 11 years – to an independent commission over alleged rule breaches between 2009 and 2018. It has also accused the club of not cooperating with its investigation, which started in December 2018.

Guardiola said on Friday: “My first thought is that we have already been condemned. Since Monday it is like what happened with UEFA. The club proved that they were completely innocent, why should I think right now, with just charges of suggestions?”

City were in fact found guilty by UEFA of committing “serious breaches” of Financial Fair Play regulations between 2012 and 2016. However, the Court of Arbitration for Sport later overturned their two-year ban from European club competitions.

“You know exactly on what side I am”

Guardiola continued: “You have to understand that the 19 teams of the Premier League are accusing us without [any] opportunity to defend ourselves. You know exactly on what side I am.

“We are lucky we live in a society where everybody is innocent until proven guilty. We didn’t have this opportunity. [People say] we are already guilty. I think we have good lawyers but the Premier League – supported by 19 teams –are going to take good lawyers too.”

Amidst the headline grabbing stories that have defined Gianni Infantino’s FIFA presidency –controversial World Cups past and future, Club World Cup proposals, and dizzying financial growth – beneath the surface, remote from the newspaper back pages, a quiet revolution has taken place under his direction.

Over the past seven years the world governing body has been building a central identification system for players, match officials and other stakeholders, that for the first time brings a systematic way to keep track of all the game’s protagonists, wherever they are in the world.

The extent of the project – called FIFA Connect ID and which is part of a wider scheme to digitise FIFA’s Member Associations – is staggering.

32 million stakeholders now have FIFA Connect IDs, spread across 197 of its 211 member associations. 

The ID provides a central identification point that has implications for all manner of football related activities, from tracking transfers and ensuring that clubs get proper remittances, and simplifying administrative procedures to combating corruption.

But how does it work? What are the practical implications for the game? How do stakeholders benefit? And how did such a massive project slip beneath the radar?

Digital transformation

“The ambition of the program is really to build a digital ecosystem for football,” says Hans Thies, FIFA’s Member Associations Program Manager, and who is responsible for FIFA Connect.

“Focusing on FIFA's members in the first step, but longer term also for all kinds of companies and entities that work with federations.”

Thies talks me through the wider FIFA Connect programme, where the world governing body serves as a kind of technology provider. FIFA, he says, has since 2015 created a kind of digital infrastructure for its member associations, in which it provides “fully configurable modules” that they can use as they see fit. The intention is to help FAs digitise their administrations and improve how they run the game.

“The configurability is a bit – if you can imagine it – like when you go and you buy a car,” he says. “You buy a Toyota and then you can choose the colour and maybe the seat, the steering wheel, and so on. But if you want to have the ignition on the left side, then you need to go somewhere else and buy a Porsche.

“That's not what we do, but we provide something that should fit to 90-95 percent of the requirements of our members. And we also continuously improve the solution based on the feedback that we get.”

Global football identity

A central tenet of the FIFA Connect offering is the aforementioned Connect ID service. Under this service FIFA generates a unique global football identity for all football stakeholders – including players, referees, coaches, officials, organisations and venues. In so doing it offers verified data of all registrations.

This is a dataset explains Thies that includes names, dates of birth, gender, clarification around spellings if the player’s name is not using the Latin alphabet, registration as an amateur or professional, and whether it is a football player or futsal player.  In essence it gives FIFA a centralised database that links the ID to these stakeholders’ movements through their career.

Benefits for all

The benefits are manifest in this.

For example, when a player transfers for a fee, as part of that there are “training compensation” payments available to clubs who developed a player at the start of their career. Very often these junior clubs will have no knowledge that their former player has moved on. Indeed the transfer system is notorious for being paper-centric (even EPL clubs still used fax machines until a few years ago) and these details could and did get lost.

“I can tell you the story of one of the members stations associations where everything was on paper,” says Thies.

“Every player in the country had to go to a central office, fill in a paper form. They would stamp it, put it in a file folder, and then if the player was transferred they had to go to the room and look by the last name. Was this player, registered or not? Now the players can submit the registration form from the comfort of their home.”

This sounds like a nightmare to administer on a national level, but impossible if it had an international dynamic.

Instead, the ID now provides a central identification point to log those transfers, and because the “training compensation” aspect of the transfer fee is now also administered by FIFA’s clearing house, the royalty is also paid out automatically. FIFA claim that its new clearing house – of which the ID is an integral part – will see an extra $400 million of hitherto missing payments filter down to clubs each season. Thies says that the FIFA Connect programme is “the cornerstone” of the clearing house.

There are other potential benefits as the ID effectively acts as a player passport. Trafficking of young players, age cheating, and cross border match fraud are all scourges of the modern game that a centralised ID system should offer challenges to.  

“Obviously we have to have in mind these benefits in terms of counteracting player trafficking and so on,” says Thies. “I think we have seen first cases where we were at least able to highlight in the Transfer Matching System if there was potentially fraud or something like this going on.

“But to really consistently get the full benefits in these areas, I think we need to go a bit forward. We need to have a consistent approach for a couple of years and a consistent database to get the full benefits in these areas.”

Commercial objectives

The creation of infrastructure on such a scale has, invariably, created commercial opportunities.

Jason Anderson, the COO of Inqaku, a South African insure-tech business that uses software to bring efficiency to amateur football and provides tailor-made insurance for football stakeholders, says that the FIFA Connect ID programme is an admirable initiative, but that incentives are currently misaligned. The onus is on MAs to roll out the service, whereas it is clubs that will reap potential rewards.

“FIFA's rules are pretty emphatic: all players over 12 have to be registered on their MA's electronic registration system and assigned a FIFA ID to play organised football,” he says.

“If your kid has the potential to sign a pro contract one day, it is in the interest of their club to ensure that they have a FIFA ID number and are registered each year.

“If they are not, it will be much more difficult for the club to claim training rewards under the new FIFA Clearing House rules.

He says that there is a big carrot for clubs to register their promising development players. One of the problems is that there aren't similar incentives for the MA.

“Where FIFA's rules provide plenty of carrots for clubs to comply, MAs only get sticks. For instance, if a club can prove that they have a valid training reward claim related to a former player but the MA has no electronic record of it, FIFA's rules state that the MA can be held liable for paying the rewards to the club or clubs.”

Anderson argues that the majority of MAs simply do not have the capacity or capability to register all players, while the vast majority of clubs are unaware of how the training rewards system works. To survive, most training clubs need to generate income on player registration and development now – not years later when a former player turns professional.

Inqaku’s proposed solution is the creation of what it terms an “ethical” trading platform, using Web3 technology, in which tokens are created around the registration IDs and traded.

Clubs would have the option to cede some or all of their future training rewards proceeds generated by players’ registrations, in exchange for compensation now. MAs earn a small share of revenue as well, aligning incentives.

“We realise there are many unaccounted-for complexities in the concept but with any asset, real or digital, that has a speculative value, commodification seems inevitable,” he says. 

Leap of faith

Is the global transfer market actually big enough to support futures trading on players? Last year there were 2843 international transfers with fees. From a pool of 32 million players, that’s just one in every 11,255 FIFA registered players.

But even if such an idea is never realised, FIFA is aware of the commercial possibilities its technology offers and encourages its users to seek those out.

“Developing the individual Member Associations from a financial perspective is definitely one of the goals of FIFA,” says Thies.

“Within the FIFA Connect Programme, the data stored in the systems we provide belongs to the Member Associations and their stakeholders, so in general they can decide what to do with it as long as they follow applicable law and regulations.

“We provide a payment gateway as part of the system, which allows them to directly collect license fees within the application, but also cross-sell other products that they can configure. For example, equipment, insurances, tickets, or other products. In addition, they can use the data to increase traffic on their websites. For all other applications, we provide an open API/ interface.”

Anderson tells me that he thinks every player over the age of 12 will have a FIFA Connect ID by the end of the decade. Thies talks in big numbers too – the 32 million registered players and coverage in 197 of FIFA’s 211 member associations.

Those that don’t generally have bigger issues to deal with than registering players, he tells me. Such as? “If you have war in a country or if you are under international sanctions, there's other priorities…”

How did such a massive project slip beneath the radar? It’s a question I put to FIFA’s Chief Member Associations Officer, Kenny Jean-Marie.

“FIFA Connect is a massive program impacting the whole world of football,” he tells me via email.

“Therefore, it was important to implement the program in the most thorough way, requiring a lot of training and education, but also technical groundwork in the beginning. This was done in the last years, and now we are on track with a great will and statistics are impressive.

Kenny Jean-Marie  says that The FIFA Connect program is also a key component for the FIFA Clearing House, which he thinks will be a game changer, not only for transparency but also and mainly for solidarity.

“The Clearing House has begun its operations last November and already we are seeing the changes and positive effects. We are now working hard to make sure our members can get the most out of the program by registering everyone down to the youth and regional levels in their countries,” he says.

European football leaders are facing the prospect of another major battle after plans for a new-look, open European Super League to challenge UEFA’s Champions League were revealed on Thursday.

Bernd Reichart, the CEO of A22 Sports Management, the company behind the Super League, outlined the new proposed competition in articles published across several European newspapers, including German outlet Die Welt.

Reichart said the revised concept is for a multi-division format featuring between 60 and 80 teams that would be based on sporting performance with no permanent members.

He added that clubs would be guaranteed a minimum of 14 matches a season and that they would not be required to leave their domestic competitions.
The German executive said that A22 has had detailed conversations with nearly 50 European clubs since last October, which have formed the basis of a document titled ‘Ten principles for a European football league'.

In the document, A22 claims there will be “a greater distribution of financial resources for the whole pyramid and financial sustainability rules that are rigorously applied” under their proposals.

Reichart wrote: “The foundations of European football are in danger of collapsing. It’s time for a change. It is the clubs that bear the entrepreneurial risk in football. But when important decisions are at stake, they are too often forced to sit idly by on the sidelines as the sporting and financial foundations crumble around them.”

Swiftly dismissed

The proposed competition was swiftly dismissed by the European Club Association (ECA) and the European Leagues, although last night UEFA was yet to comment.

In a statement, the ECA said it “notes the latest dispatch from A22's alternative reality.” It added: “In the real world, this rehashed idea has already been proposed, discussed and comprehensively rejected by all stakeholders in 2019.”

The European Leagues said it was “very surprised by today’s statement from A22 which refers to an open consultation process and its results.”

It continued: “The European Leagues … never met with A22 and were not consulted. The Leagues fully support the current European club football model … This model is far from being broken and does not need to be fixed.”

Meanwhile, in Spain, LaLiga president Javier Tebas tweeted: “The Super League is the wolf, who today disguises himself as a granny to try to fool European football. But HIS nose and HIS teeth are very big. Four divisions in Europe? Of course the first for them, as in the 2019 reform. Governed by the clubs? Of course only the big ones.”

 

Manchester United takeover: Five serious bidders emerge ahead of initial deadline

A group of five serious bidders have emerged as the battle to buy Manchester United heads for the next stage, The Daily Mail reports.

It was claimed earlier this week that a group of Qatari private investors are to launch an attempt at a full takeover of the club. It is now understood they are likely to face opposition from four rivals, ahead of next Friday’s ‘soft deadline’ for offers, with some bids already made.

Aside from Qatar, there is interest from the US, while Sir Jim Ratcliffe, Britain’s richest man and a lifelong United supporter, has announced his attention to bid.

The first stage of the process, which is soon to conclude, invited expressions of interest. Those who signed confidentiality agreements were then given access to what is called the ‘data room’ – where details of United’s financials are stored.

It is understood that multiple parties from Saudi Arabia, which do not include the owners of Newcastle United, have been given such access. Whether they will now go on to make a formal offer is unclear.

Twenty interested parties

The Glazer family are said to want more than £6 billion for the club, although they have not gone public with a price. They are also open to two separate forms of investment.

The first is in the shape of a standalone injection of cash in return for a stake in the club. The second is a more complex commercial partnership, in which expertise in areas such as media and retail would also be provided. It is understood that these areas have attracted more than 20 parties.

 

FIFA report: English clubs accounted for 57.3 per cent of international transfer spending in January

New analysis from FIFA has underlined the growing dominance of the Premier League in the global transfer market.

According to the governing body’s International Transfer Snapshot (January 2023), English clubs topped the table for spending on international transfer fees in January with a total outlay of US$898.6 million.

That figure represented 57.3 per cent of total spending last month globally and was followed at a considerable distance by France with US$131.9 million.

FIFA’s analysis showed that a total of 4,387 international transfers were completed in men’s football during the January window – an all-time high since the launch of the Transfer Matching System in 2010.

Clubs’ total spending on transfer fees also set a new record, reaching US$1.57 billion, some US$230 million more than the previous record January window back in 2018.

The number of transfers in men’s football increased by 14.4 per cent compared to the same period in 2022 (3,834), with the total value of transfer fees rising by 49.4 per cent compared to the amount spent in January 2022 (US$1.05 billion).

New records for women’s football

In the women’s game, the total number of international transfers also reached a new all-time high, with 341 transfers across borders, an increase of 30.2 per cent compared to January 2022.

A total of US$774,300 was spent on transfer fees in women’s football, again a new record. The list of incoming transfers was headed by Colombia with 35, while Sweden and the USA were both number one for outgoing transfers, each with 26.

 

Joan Laporta: FC Barcelona will reduce wage bill by €170 million in summer

FC Barcelona president Joan Laporta has revealed that the club plans to reduce its wage bill by €170 million this summer as it battles to comply with LaLiga’s spending rules.

The Barça chief outlined the plans at a press conference on Thursday, in which he complained about the cost control measures enforced by the Spanish league.

“We all know that LaLiga sets limits based on their accounts,” he said. “At FC Barcelona we inherited an exceeded salary limit. There was an excess of €300-350 million that made sports management difficult for us.”

Last summer, the Catalan giants sold off 25 per cent of their domestic broadcast rights over the next 25 years, bringing in €667 million, and two 24.5 per cent stakes in their Barça Studios subsidiary, which together generated a further €200 million.

These “economic levers”, as Laporta described them, meant the club could be active in the summer transfer window, when it spent more than €150 million on new players. However, it remained tight up against the salary limit again, which prevented them from registering new contracts in January.

“More restrictive rules”

“Since we came in we have bought for a value of €215 million and sold for €141 million,” Laporta said. “As we continue to exceed the salary limit, it causes LaLiga to apply more restrictive rules.”

He added: “We have managed to register players with a titanic effort, but LaLiga has changed the rules so that we cannot carry out this type of operation. It is a constant tug of war that complicates our planning process.”

 

Top sports lawyer: Case against Manchester City could take four years

The Premier League’s disciplinary case against Manchester City over alleged breaches of its financial rules is likely to take between two and four years to be completed, according to one of the UK’s leading sports lawyers.

Nick De Marco KC told The Times that the number of charges facing City and the length of time they cover make the case incredibly complex.

De Marco represented Mike Ashley in a lengthy legal case when he was trying to sell Newcastle United and he also defended Derby County and Sheffield Wednesday on financial fair play charges.

The lawyer noted that the Derby County and Sheffield Wednesday cases both involved two charges over about two years and took about a year and a half from charges to the end.

“I would not be surprised if these proceedings [involving City] took considerably longer given there are apparently 115 charges covering a period of 14 years,” he said.

Appeal to English courts unlikely

Stefan Borson, the chief executive and general counsel of Watchstone Group who previously worked with City as a financial adviser, has also worked on lengthy legal cases.

“I think it is unlikely that [City] will be able to appeal to the English courts due to the Premier League’s rules requiring its disputes to be dealt with by the [independent] commission and arbitration,” he said to The Times.

“The seriousness of these allegations is likely to mean that it will be a long time before the disciplinary process can be completed – I would not be at all surprised if it took in excess of two years.” He added: “Ultimately, I believe it will be very difficult for the Premier League to prove this scale of wrongdoing.”

A group of Qatari investors is set to make a bid to buy Manchester United in the coming days, The Daily Mail has reported.

Sources have told the newspaper that a group of private, high-wealth individuals based in the oil-rich state will make an offer for United ahead of the mid-February deadline set by the Glazers.

The group is said to be confident its bid will blow the competition out of the water and have set their sights on a club they view as “football’s crown jewels”.
United’s owners are understood to be seeking more than £6 billion for the club, and there is the prospect of another huge bill to either redevelop Old Trafford or knock down the venue and build a new state-of-the-art facility.

Such a project could cost more than £2 billion, but it is believed that would not be a problem for the Qatari group, which also intends to give manager Erik ten Hag a massive transfer budget to allow him to compete for signings with the world's richest clubs.

Knowledge from hosting World Cup

Insiders have disclosed that the group want to use the knowledge gained from hosting the World Cup and are seeking a new project. There is said to be no interest in taking a partial stake, with only a full takeover being discussed.

One potential stumbling block is Qatar Sports Investments’ ownership of Paris Saint-Germain. One entity cannot own two clubs in the same competition and United and PSG could meet in Europe.

However, the group preparing a bid for United is said to be confident there will be no issues presented by the nation's ownership of PSG and the area is being examined by experts acting on behalf of those involved.

The bid for United would come from separate, individual Qatari investors and the money will be in the shape of an individual fund rather than a sovereign wealth fund.

Manchester United shares climbed by more than 17 per cent after the planned bid from the Qatari group was revealed on Tuesday.

Saudi Arabia ‘proposed secret plan to buy the World Cup’

Fresh revelations have emerged about Saudi Arabia’s role in the planned joint bid to host the 2030 World Cup with Greece and Egypt.

According to a report from the politics outlet Politico, Saudi Arabia offered to pay for new sports stadiums in Greece and Egypt if they agreed to team up with the Gulf state on the joint bid. In exchange, the Saudis would get to stage three-quarters of all the matches.

A senior official familiar with the matter said the offer was discussed last summer in a private conversation between Mohammed bin Salman, the de facto ruler of Saudi Arabia, and Greek Prime Minister Kyriakos Mitsotakis.

A second senior official said that Saudi Arabia is prepared to “fully underwrite the costs” of hosting for Greece and Egypt, but that 75 per cent of the 48-team tournament itself would be held in the Gulf state.

Main rivals

It is not clear whether the offer was taken up, but the three countries are now working on a joint proposal to host the 2030 tournament. The Saudis’ main rivals are a joint Spain, Portugal and Ukraine bid from Europe, and a South American bid from Argentina, Uruguay, Paraguay and Chile.

When it comes to the voting on the bids by FIFA’s 211 member associations, it is believed that if African countries, attracted by Egypt’s presence and Saudi investment around Africa, rally behind the bid, and Asian nations do the same, while Greece attracts some European votes, the Saudi-led proposal will stand a strong chance of winning.

South African tourist board set to abandon Tottenham Hotspur sponsorship deal

South Africa's tourist board looks set to drop its proposed £42.5 million sponsorship deal with Tottenham Hotspur after the planned agreement sparked public uproar amid regular power blackouts and water shortages in the country.

It was reported last week that the Premier League club was ready to sign a three-year contract with the African country. However, on Tuesday parliament’s tourism committee called for the deal to be stopped immediately.

South Africa's Parliament tourism committee chairperson Thandi Mahambehlala said: “This deal, it ends here, today, now. Because there is everything wrong about the deal itself. There must be an investigation on this matter with immediate effect.”

The comments came after tourism minister Lindiwe Sisulu told the committee she had no knowledge of the proposed deal.

Tottenham and chairman Daniel Levy are yet to comment on the sponsorship proposal.

Conditional approval

Themba Khumalo, South African Tourism's acting CEO, confirmed last Thursday the deal had been given conditional approval. However, news of the deal, which has reportedly been in the works for six years, sparked widespread controversy.

Critics said the amount could be better utilised in a country battling daily power blackouts, water shortages and significant unemployment, and many within the South African sports community felt the sizeable amount would be better spent locally.

Manchester City have turned to one of the UK’s leading lawyers after they were charged by the Premier League with breaching 115 different financial regulations following a four-year investigation. 

The club said on Monday they were “surprised” by the charges and declared they had “irrefutable evidence” they had done nothing wrong.

An independent disciplinary commission will now rule on the charges in a private hearing. It has the power to strip titles, deduct points, issue fines and potentially expel City from the Premier League should the club be found guilty.

Industry publication The Lawyer has reported that City have now hired Lord Pannick KC of Blackstone Chambers to defend the club against the charges. He is widely believed to be one of the best barristers of his generation.

Pannick’s recent work includes advising former UK prime minister Boris Johnson in relation to the ‘Partygate’ inquiry and acting against the UK Government in the Supreme Court case over the prorogation of Parliament.

The Lawyer understands that Pannick typically charges around £5,000 an hour, but has been known to request up to £10,000. If he were paid at the top end of that scale, come the trial when he is working full-time Pannick could be paid £80,000 a day.

No obligation for EFL to accept City

Meanwhile, according to The Telegraph, the English Football League (EFL) would have no obligation to accept Manchester City as a member if the club was expelled from the Premier League over the alleged breaches of financial rules.

Clubs have to apply to become EFL members upon relegation from the Premier League at the end of the season, with the three promoted clubs from the Championship becoming shareholders in the top-flight.

The EFL, which governs the Championship, League One and League Two, would not automatically have to accept a club should they be expelled from the Premier League as only 72 clubs are permitted to be members.

 

Ex-UEFA chief investigator: Premier League has stronger case against Man City than UEFA did

Yves Leterme, UEFA’s former chief investigator, has said he believes the Premier League has a stronger case against Manchester City than the European governing body did three years ago.

UEFA suspended City from European competition in 2020 for allegedly breaching Financial Fair Play rules, before the Court of Arbitration for Sport (CAS) overturned the ban.
 
City have been charged by the Premier League with breaching 115 different regulations over 14 seasons from 2009/10 to the current 2022/23 campaign and could face a points deduction or even expulsion from the league if found guilty. 

The charges brought by the Premier League do not fall under CAS' jurisdiction, with an independent commission instead deciding on a suitable sanction for City should they be proven. City therefore cannot appeal to CAS.

“Scope of the complaint is broader”

Upon learning that City were not able to appeal, Leterme told the Belgian website Sporza: “That would make this case stronger. And then there is another element: the scope of the complaint is now broader than that at UEFA, both in time and in substance.

“Especially because the Premier League does not have to adhere to the same strict limitation periods as we do. We encountered a period of five years, which meant that we could not use important elements.”

 

Premier League clubs ‘want Man City kicked out’ if guilty of financial breaches

Many Premier League clubs want Manchester City to be expelled from the division if they are found guilty of breaking financial rules, Sky Sports News reports.

City – who have won the Premier League six times in the last 11 years – said on Monday they were "surprised" to have been charged by the Premier League with more than 100 alleged breaches of financial regulations following a four-year investigation.

The Premier League's most severe punishment in the circumstances would be to expel City, and according to Sky there is a feeling that taking away City's titles retrospectively would be meaningless and cause confusion, while a fine is also not likely to have much of an effect.

Pressing hardest 

The clubs who had been pressing hardest for action until Monday were some other members of the so-called 'big six' – which includes Manchester United, Liverpool, Arsenal, Chelsea and Tottenham Hotspur.

An independent disciplinary commission will now rule on the charges in a private hearing and it is understood that Premier League clubs do not want to get involved in the process.

 

Pep Guardiola ‘expected to have already left Man City’ before any sanctions hit

Manchester City staff expect Pep Guardiola to have already left the club before any possible sanctions for alleged breaches of financial rules take effect, according to a report from The Athletic. 

The charges against City made by the Premier League relate to financial information regarding revenue, details of manager and player remuneration, UEFA regulations, profitability and sustainability and co-operation with Premier League investigations. 

An independent disciplinary commission will now deal with the charges in private before any sanctions are handed out. 

According to The Athletic, figures behind the scenes at City expect Guardiola to have left his role as manager before any resolution is found.

“If you lie to me I will be out”

Speaking in May 2022, Guardiola vowed: “If I defend the people and the club it’s because I work with them. When I asked about suspicions or if our people have done something, then I say to them, ‘tell me’.

“I said to them ‘if you lie to me, the day after I’m not here, I will be out and you will not be my friend any more.’ But I look at them and believe them 100 per cent from day one. So I defend the club because of that.”

The Catalan's previous comments have raised questions about whether a guilty verdict would end his time in charge at the Etihad Stadium.

Guardiola has won 11 trophies, including four Premier League titles, across six years with City and last November signed an extension to his contract with the club up to 2025.

 

European Super League CEO: “We work tirelessly to make proposals that solve football's current problems”

Bernd Reichart, the CEO of A22 Sports Management, has insisted that the European Super League project is still alive and that clubs across the continent want new solutions to the challenges the game is facing.

In an extensive interview with L’Equipe, the German executive said: “Is the Super League still relevant? Sure. We work tirelessly to make proposals that solve football's current problems: the competitive imbalance and financial instability that many clubs suffer from.

He added: “No club sees solutions in the future because it sees that its league is losing attractiveness and economic power – and is also in competition with the Premier League. 

“For many clubs the solution is to play more European matches and with greater regularity. But the current system, like the future format of the Champions League, is not suitable.”

UEFA’s dual role

Reichart also commented on the role of UEFA as both regulator and competition organiser, which was the subject of a hearing at the European Court of Justice (ECJ) last year, with the ECJ expected to give its ruling in the coming months.

“UEFA is resistant to any change and external ideas because it lives very well,” Reichart said. “It controls an activity in which it has no competition, costs or business risks and where it has significant influence, including at the political level. 

“So any other initiative and other competition does not please it. It has been clinging to its monopoly since 1955."

Manchester City are facing the prospect of a points deduction or possible relegation after the Premier League charged the club with more than 100 alleged breaches of financial regulations following a four-year investigation.

In an unprecedented step, the English top-flight announced on its website that City – who have won the Premier League title four times in the last five seasons – have been charged with breaching 115 different regulations over 14 seasons from 2009/10 to the current 2022/23 campaign.

Numerous charges over financial reporting relate to nine seasons from 2009/10 to 2017/18. The club have also been charged with not co-operating with an investigation and handing over documents as required over five seasons from 2018/19 to 2022/23.

The investigation into City is believed to have focused on two main areas: sponsorship deals in which the money was suspected of coming from the club’s owners, and an apparently secret shadow contract for their former manager Roberto Mancini.

Charges include not providing full details of Mancini’s pay, as required, over the four seasons he was manager at the club from 2009 to 2013, and also not providing full details of players’ remuneration over six seasons from 2010/11 to 2015/16.

Football Leaks documents

Many of the allegations were initiated by the Football Leaks cache of documents obtained by the Portuguese computer hacker Rui Pinto, and published by the German investigative site Der Spiegel.

In a statement, the Premier League said: “In accordance with Premier League Rule W.82.1, the Premier League confirms that it has today referred a number of alleged breaches of the Premier League Rules by Manchester City Football Club to a Commission.”

An independent disciplinary commission will now deal with the charges in private. There will not be an option for City to appeal against any sanctions to the Court of Arbitration for Sport (CAS), which overturned a Champions League ban imposed by UEFA in 2020.

If the charges are proved it could lead to a string of sanctions, including a points deduction, with the ultimate punishment being expulsion from the Premier League.

City “surprised” by charges

In a statement, City said they were “surprised” by the charges, “particularly given the extensive engagement and vast amount of detailed materials that the EPL has been provided with.”

The club added that it “welcomes the review of this matter by an independent Commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position. As such we look forward to this matter being put to rest once and for all.”

City are understood to have been unhappy they were not given prior notice of the charges but are said to be confident of clearing their name.

Senior figures at the club are also suspicious about the timing of the announcement as they believe the statement was issued as a white paper on football governance was due to be published this week, although that has since been pushed back to later this month.s month.

UK government postpones football regulator announcement by two weeks

The UK government has pushed back its announcement of a new regulator for football by two weeks, The Athletic reports.

The plan was for the announcement to take place this Wednesday along with the publication of a white paper on football governance. However, it has now been pencilled in for release on 21st February.

Prime minister Rishi Sunak was scheduled to appear at the press conference at EFL League Two club AFC Wimbledon this week, and has also written an op-ed piece for a newspaper.

The article is to set out the legislation that will create a new regulator for the game with responsibility for vetting prospective new owners, ensuring clubs are up to date with their payments and preventing anyone from forming closed leagues such as the mooted European Super League.

Lead news bulletins

While the white paper has been ready for a few weeks, it is understood that Number 10 is keen to release it on a clear day when it will lead the news bulletins.

Former sports minister Tracey Crouch was commissioned to lead a fan-led review of football’s governance following the ill-fated European Super League launch in April 2021. Her review, which also looked at the bankruptcies of Bury and Macclesfield, was published in November 2021.

 

Sixth Street set to join race for stake in Bundesliga media rights business

American investor Sixth Street is among the firms preparing a multibillion-euro bid for a share of the Bundesliga’s broadcast rights, The Financial Times reports.

Sources said that San Francisco-based Sixth Street is in preliminary talks about a potential deal for a minority stake in the German league’s new media rights business. It is understood the DFL is due to discuss the media rights sale at a meeting on 9th February.

A similar sales process stalled late last year after eight private equity firms, including Advent, Blackstone, CVC and KKR, were previously in discussions with the league.

The list of those in the running has since dropped to five, according to the FT, although Sixth Street is hoping to join them as talks resume.

€18 billion rights value

The Bundesliga had been discussing the creation of an entity that would control its media and commercial rights, valuing them at up to €18 billion. The league could then raise as much as €4.5 billion by selling a 25 per cent stake to external investors.

Sixth Street last year bought 25 per cent of FC Barcelona’s domestic broadcast rights for the next 25 yearsand also has a strategic partnership with Real Madrid.

RedBird exploring option to increase stake in Fenway Sports Group

American investment firm RedBird Capital Partners is considering upping its stake in Liverpool owner Fenway Sports Group, according to The Daily Mail.

It is understood that preliminary talks between RedBird – which completed a takeover of AC Milan last year – and FSG have taken place.

The group paid £533 million for an 11 per cent stake in FSG in 2021, giving it an indirect stake in the Anfield club. RedBird is now said to be actively exploring whether to increase its investment in a move that could earn FSG £1 billion and allow them to retain ownership of Liverpool.

A source close to the firm said: “There is a growing feeling that FSG are not interested in selling Liverpool, and are increasingly drawn to the idea of selling another minority stakeholding. A further 20 per cent sale of FSG could generate £1 billion.

“FSG are also watching the sale of Manchester United with interest. If United sells for £7 billion, then the market value of Liverpool could rise significantly.”

RedBird has distanced itself from owning the club outright. However, it is understood it may be receptive to increasing its stake with John Henry's company, having bought AC Milan and also a majority shareholding in Ligue 1 club Toulouse.

QIA talks

FSG has also held preliminary talks with other interested parties including the Qatar Investment Authority. It is understood QIA would prefer to buy a controlling stake in Liverpool, while FSG has signalled its preference for the sale of a minority share initially.

That Man City were engaged in a longrunning legal battle with the Premier League was at once the worst and best kept secret in English football.

In July 2021, following an error on the British judiciary website, it emerged that City and the EPL had been involved in a secret court battle that at the time had spanned more than two years.

Off The Pitch led reporting on the case, publishing documents showing lawyers acting for the Premier League accusing Manchester City of delaying an investigation into its financial affairs.  

However, other than an acknowledgement by the EPL that they were investigating allegations made about City after a huge investigatory piece published in Der Spiegel in November 2018 the precise scope of the investigation and what the club and the league were at legal odds over remained a tightly guarded secret.

Proceedings were mostly conducted in a closed court and neither City nor the EPL would ever comment on the matter, nor even acknowledge the litigation.

Then, on Monday morning, four years and three months after the EPL first launched an investigation into the Der Spiegel allegations, the EPL – entirely out of the blue – published a charge sheet of no fewer than 101 alleged rule breaches by City.

It is, by some distance, the biggest disciplinary case ever conducted against a single club in English football history.

But what does this mean? What are the implications for City and for the EPL? Will the EPL succeed where UEFA failed – after City successfully challenged a Champions League ban in 2020 – and make these charges stick?

Off The Pitch has consulted with several key stakeholders to provide an explainer on what has happened – and what may follow.

What are the main charges that City face?

City face more 100 charges that extend back nearly 14 years. On Monday the EPL issued a statement detailing the alleged breaches in relation to their handbook in each appropriate year, but gave no further detail.

The timescales would suggest that they corelate with allegations made about the club that exist in the public domain. For example, charges 2a seem to relate to longstanding allegations that former manager, Roberto Mancini, had his pay secretly topped up by UAE companies.

Why do they matter?

In the period in question City have dominated English football on and off the pitch, winning the EPL title six times and becoming the club with the highest turnover in world football. We are in uncharted territory here, but the three-person panel appointed to hear the charges has power to impose “unlimited” sanctions. These could include retrospective points deductions and financial punishments. In short, the recent history of the EPL could be rewritten. 

There is another important factor at play. Within the next few weeks the British government is set to publish a White Paper on an independent football regulator.

“The Premier League may feel it has to now show its teeth with the threat of an Independent Regulator looming,” says Stephen Taylor Heath, Head of Sports Law at JMW Solicitors.  

How does the disciplinary process proceed from here?

The chairman of the EPL’s Judicial Panel, Murray Rosen KC, has been appointed to select a three-person commission drawn from the EPL’s 15-person disciplinary panel to hear the charges. 

The Premier League has a policy of not publishing details of any of its standing committees, including the independent disciplinary panel, and didn’t respond to our request for details of who sits on this body.

The Premier League has a policy of not publishing details of any of its standing committees, including the independent disciplinary panel, and didn’t respond to our request for details of who sits on this body.

However, some legal practises, when their employees are appointed to the body, do so. We also know that one member of the panel must be a financial expert. This means that David Stern – the only forensic accountant on the panel – is almost certainly one of the three picks.

Other potential members include Nicholas Randall KC and Kwadjo Adjepong. Rosen may also appoint himself, but may choose not to do so.

The hearings will be conducted in private and no timescale has been given for publication of the panel’s verdict, although legal experts suggest it should take a matter of months.

Can City appeal the verdict?

“The decision will be a thorough one as it would be relevant to any appeal,” says Taylor Heath. “A party can appeal the first commission’ findings.” 

“Under regulation w79 the appeal decision is final unless a party takes it to arbitration. If it goes to arbitration the rules in section X apply, which states in Regulation X37 that the arbitrator’s award (decision) is final. That regulation does leave open the possibility of challenging the arbitrator’s award in court pursuant to the arbitration act on the grounds the tribunal lacked ‘substantive jurisdiction’, grounds of serious irregularity , on a point of law etc.”

City took its two year UEFA suspension to CAS in 2020 and won – why can’t it do the same now?

City won a partial victory at CAS in July 2020. It had its European ban overturned, but still had to pay €30 million in fines.

“There is no direct right of appeal to CAS from the arbitrator’s decision but there is always a faint possibility Manchester City may refuse to engage in the process and go to CAS for a ruling the EPL is acting outside its powers or the procedure was not fair. CAS would then have to decide whether they had jurisdiction,” says Taylor Heath. 

Part of City’s success in the UEFA case was playing the clock down. UEFA had a statute of limitations; the EPL doesn’t.

“There were limitations under UEFA’s rules as to how far they go back,” adds Taylor Heath. “It is not a statute of limitations point but rather a question of how far back the Premier League believes they can legitimately present evidence to the commission.”  

Have City’s delaying tactics worked against them?

More than 30 of the charges relate to City’s alleged lack of cooperation with the EPL over its investigations. There have been frequent and longrunning complaints across the industry about City’s alleged conduct on compliance issues.

UEFA, for example, had challenges with alleged non-compliance and the club’s use of lawyers to drag matters out. This is seemingly a tactic employed by the club. In one memorable leaked email the club’s legal counsel Simon Cliff wrote that City’s chairman, Khaldoon al-Mubarak, had told Gianni Infantino, then UEFA’s general secretary, that he “would rather spend 30 million on the 50 best lawyers in the world to sue [UEFA] for the next 10 years” than pay fines.

The judiciary have also previously criticised lack of progress in disciplinary proceedings against the club. The Court of Appeal judge Lord Justice Males said in July 2021 that it was “a matter of legitimate public concern” that so little progress had been made in the disciplinary process against City.

City’s longrunning filibustering of the EPL’s case seems to have come back to haunt the club.   

“The final charge seems to express frustration by the Premier League with the engagement by Manchester City, hence the charges under regulation B15 which requires the club to cooperate in good faith in answering queries and providing documents,” adds Taylor Heath.  

How harsh could the penalties be?

As mentioned earlier, this really is unchartered territory. Anything could happen from a slap on the wrist, to relegation and stripping of titles - as happened to Juventus in the noughties after the Calciopoli scandal – even to expulsion.

“You don’t come with a list of over 100 breaches if your goal is a slap on the wrist,” one source told us.

“Thespectrum of sanctions are set out in Regulation W51 and range from fines to expulsion and a deduction of points scored under regulation W51.4.2,” says Taylor Heath. “This means any form of sanction could be retrospective.”

How high are the stakes for the EPL?

Incredibly high. Taking on your most successful and richest club, which is also backed by a nation state, is no small undertaking.

The EPL’s administration is accountable to all its 20 clubs but unfortunately for City it looks as if there is little love lost between them and the EPL’s other 19 shareholders – who don’t like the distorting effect City’s wealthy owners have had on the EPL’s economy, among plenty of other complaints about the club.

One source told us that the other clubs will be “out for blood” if they think City got off lightly.

Last year the EPL chairman Gary Hoffmann was forced out by clubs after failing to stop the Saudi takeover of Newcastle. It’s not inconceivable that there will be similar collateral damage if City prevail.

What do City say?

City seemed to be the only party in English football who were “surprised” that they are being held to account and spoke of their “extensive engagement with the league” – which seems to run counter to what our sources tell us, or what others have put on the record.

In a statement they said: “Manchester City FC is surprised by the issuing of these alleged breaches of the Premier League rules, particularly given the extensive engagement and vast amount of detailed materials that the EPL has been provided with. The club welcomes the review of this matter by an independent commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position. As such we look forward to this matter being put to rest once and for all.”

Formal takeover bids for Manchester United are due to be submitted in the next week or so, the Mail on Sunday reports.

The sale is expected to attract initial offers of at least £4 billion and is said to have brought considerable interest from potential buyers in the US, the Middle East and Asia.

However, the early front-runner in the race to buy United is British billionaire and boyhood fan Jim Ratcliffe, owner of the Ineos chemicals conglomerate, after he confirmed his interest last month.

US investment bank Raine is running the sale on behalf of current owners the Glazer family, who announced in November that they wanted to “explore strategic alternatives” for United “including new investment into the club, a sale, or other transactions”.

Share price hike

United’s share price has shot up since the announcement with the club now valued at $3.67 billion on the New York stock market.

A buyer would normally expect to pay around 25 per cent more than that for full ownership and control, implying a £4 billion price tag. Analysts have said that in United’s case the recent share price rise means this premium is already included but higher bids are still likely.

Sheffield United given £10 million-plus cash injection by prospective new owner

Nigerian technology billionaire Dozy Mmobuosi, whose planned takeover of Sheffield United is close to completion, has provided a significant cash injection to stave off the threat of administration at the EFL Championship club, according to The Daily Mail.

Mmobuosi, whose company Tingo mobile was last year valued at $7.6 billion, is hopeful of completing a £90 million takeover of the Blades from current owner Prince Abdullah in the coming weeks. The proposed buyout is pending EFL approval.

The Mail understands that given the club’s perilous financial position, Mmobuosi has committed to providing funds ahead of the takeover as the team strives for promotion back to the Premier League. United are currently in the second automatic promotion spot in the Championship, ten points clear of third-placed Middlesbrough.

The funds are believed to be in excess of £10 million, to be paid in instalments, and would cover running costs, including player wages, and remaining on top of routine bills.

Previous transfers

It is also thought the cash would make sure the club keeps up with payments for previous transfers – including to Genk for Sander Berge and Liverpool for Rhian Brewster. Defaulting on transfer payments contributed to the EFL handing down a transfer embargo.

Sheffield United’s financial situation has proven a major issue at the club all season with a very real fear of administration, which would incur a 12-point deduction.

Chelsea and Benfica chiefs 'came close to physical confrontation' in Enzo Fernandez talks

Senior figures from Chelsea and Benfica almost had a physical confrontation over the future of Enzo Fernandez prior to his move to the West London club, Portuguese media have reported.

The 22-year-old Argentine midfielder signed for Chelsea on deadline day last month for a British record fee of €121 million.

Talks over the proposed move had dragged on for much of January and Portuguese publication Record has claimed there was heavy tension between the two camps when they met to speak about Fernandez.

According to the report, Benfica president Rui Costa flew to London after Chelsea expressed their interest, with talks taking place on 3rd January in a meeting also involving Chelsea owner Todd Boehly and Portuguese agent Jorge Mendes.

Bitter dispute

It is claimed that things then came to a head, with reports that chiefs from both clubs were close to a physical confrontation in a bitter dispute.

Costa is said to have left the room in fury after Chelsea dropped their original proposal of £107 million to £80 million with players to be offered in return before eventually agreeing to the record fee. Chelsea have denied the reports about the physical confrontation.

Premier League and EFL redistribution talks continue with no deal in sight

The Premier League and EFL remain locked in talks over financial redistribution ahead of this week’s publication of the UK government’s white paper on an independent regulator for football.

According to The Daily Mail, discussions between the two competitions are still ongoing, with offers and counter-offers made and received but no deal reached.

It is understood the Premier League will not agree to the 25 per cent share of pooled broadcast revenue being sought by the EFL. Currently, the top-flight distributes £1.6 billion to the ‘wider game’ across each three-year broadcast cycle, equating to around 16 per cent.

The EFL is also seeking merit-based payments across all four divisions and the abolition of parachute payments to clubs relegated from the Premier League.

Other elements aside from finance, such as the future of the calendar and global visa entry, have formed part of the discussions and are also said to be a source of contention.

Labour calls for renewed focus

Meanwhile, the opposition Labour party has called for a renewed focus on securing a financial settlement between the two parties after leaked proposals suggested the task could end up being settled by a regulator.

In comments reported by The Guardian, the shadow secretary of state for digital, culture, media and sport, Lucy Powell, said deferring a solution could be disastrous and has criticised the government for not moving more quickly.

“The football white paper is long overdue,” she said. “Even if it comes soon, we won’t see a regulator with any teeth or statutory backing until at least the 2024/25 season. With over half of EFL clubs already insolvent, how many more could go bust or face the brink before then?”

Juventus could face another heavy points deduction over alleged false accounting by the club, according to a report from Corriere dello Sport.

The Turin club was deducted 15 points last month after being found guilty of inflating player transfer values to falsify their capital gains following the reopening of a trial into the use of the practice by Juventus and other Italian clubs.

Il Corriere dello Sport has claimed that Juve could also be hit with an additional 20-point deduction in around a month’s time over the separate case involving alleged secret player payments agreed during the early stages of the Covid-19 pandemic.

The Italian Football Federation (FIGC) prosecutor Giuseppe Chiné is said to be examining the alleged agreements, as well as opaque "partnerships" with other clubs and Juventus’ relations with agents. The club has consistently denied any wrongdoing.

Players request talks

Meanwhile, Corriere della Sera has reported that Juventus players have requested crisis talks with the club's new directors due to concerns over the team's current state.

Juventus sit 13th in the Serie A table, just 10 points above the relegation zone, following the 15-point deduction handed out in January and after losing at home to newly-promoted Monza on Sunday.

It is understood players would like to meet the new board to receive reassurances over the club's future, with several also concerned about their contractual situations.

 

Sheffield United takeover by Nigerian billionaire close to completion 

The Nigerian technology billionaire Dozy Mmobuosi is close to completing a £90 million takeover of EFL Championship club Sheffield United, The Times reports.

Mmobuosi, whose company Tingo mobile was last year valued at $7.6 billion, will be subject to the EFL’s Owners’ and Directors’ Test, but so far no problems have arisen.

United look well-placed for promotion to the Premier League this season and currently sit in second place in the Championship, 12 points clear of third-placed Middlesbrough.

However, the club have run into financial difficulties over recent weeks, leading to a transfer embargo that, unless they secure promotion, prevents them from buying a player for the next 18 months.

Payment to Liverpool 

The ban has been imposed by the EFL because of issues around certain transfer deals, including a failure to make at least one recent payment to Liverpool for Rhian Brewster, who moved to Bramall Lane in October 2020 for £23.5 million.

Last year American businessman Henry Mauriss was close to buying Sheffield United, only for that deal to collapse because of his failure to meet the strict EFL criteria. Mauriss had also previously failed in a bid to buy Newcastle United from Mike Ashley.

 

Sampdoria at risk of points penalty as player wage deadline looms 

Sampdoria could be hit with a points deduction unless majority shareholder the Ferrero family invests more money into the club, according to a report from La Gazzetta dello Sport.

On 16th February, Sampdoria, along with all Italian clubs, will be required to pay the salaries of their players and it is understood that the money required is not available to the board of directors at present.

As things stand, the club has to find €11 million in the next two weeks in an attempt to pay the salaries of those working for the club in the fourth quarter.

On Wednesday, the Ferrero family held a sixth and final call with club members to discuss the financial plight of the Genoa-based outfit.

It was made clear on the call that if the Ferrero family does not carry out the planned and necessary recapitalisation of between €35 and €50 million to secure the club’s future until the end of the season, a points penalty is likely to be imposed. 

Settlement procedure 

It is understood that Sampdoria, led by club president Marco Lanna, are now discussing the idea of a negotiated crisis settlement procedure, intended for use by companies in a temporary state of crisis.

The procedure has never been used by a football club before, meaning that the Italian Football Federation (FIGC) would have to be called in to understand whether it was a valid move to take.