American private equity firm Silver Lake has consolidated its position as the second-largest shareholder in City Football Group (CFG) after a further increase in its stake.

The Financial Times reports that the Silicon Valley-based firm now owns more than 18 per cent of CFG after buying additional shares from China Media Capital (CMC), whose stake is now close to zero.

Sheikh Mansour, the billionaire UAE royal who acquired Manchester City in 2008, also increased his stake as the controlling shareholder in the parent group through Abu Dhabi-based Newton Investment and Development.

CMC still owns 1 per cent of CFG and will continue to impart “important knowledge and expertise” to the board, the group said, adding that “CMC remains a valued CFG partner, particularly in China.”

Board seat relinquished

The transaction took place last week, with CMC selling 7.24 per cent in the group. Silver Lake bought half the shares, with Sheikh Mansour’s Newton vehicle acquiring the remainder.

The deal means CMC has relinquished its board seat at CFG, and media mogul Li Ruigang has stepped down. At one point CMC owned as much as around 13 per cent.

Silver Lake had increased its CFG stake to 14.5 per cent back in September by acquiring a separate block of shares from CMC.

 

TSG Hoffenheim losses rise to €42 million for 2021/22

TSG Hoffenheim have posted increased losses of €42 million for the 2021/22 financial year, up from €24 million the previous year.

While the Bundesliga club are yet to release the full accounts, it has revealed some of the details in its club magazine.

Total revenues fell to €117 million, down from €128 million, with a key factor the lack of European competition, after the team played in the Europa League in 2020/21.

The club said that broadcast income fell by €20 million on the previous year, while matchday revenues reached €7 million. Hoffenheim’s average attendance for the season of 11,929 was the second lowest in the German top-flight after Greuther Fürth’s 9,932.

Transfer market woes

Hoffenheim also blamed the impact of the Covid pandemic on the transfer market for the poor financial results, with CFO Frank Briel saying that a "significant revenue contribution to our operational architecture could not be realised.”

Hoffenheim made no major player purchases or sales in 2021/22. After attempting to sell defensive midfielder Florian Grillitsch, the Austrian moved to Ajax on a free transfer in the 2022 summer window.

No details of costs were revealed by Hoffenheim for 2021/22. Briel said the club is working hard to break even or earn a small profit in 2023/24 but did not comment on the forecast for the current 2022/23 financial year.

 

Paris Saint-Germain make €40 million offer to Paris to buy Parc des Princes stadium

Paris Saint-Germain have offered €40 million to the city of Paris to buy their home ground Parc des Princes as part of discussions about the potential future expansion of the stadium’s capacity.

Pierre Rabadan, the Paris deputy to the mayor for sports, told L’Équipe that PSG had expressed an interest in buying the stadium in order to carry out the works.

However, he also revealed that after the city authorities told PSG to make an offer, they deemed the €40 million figure the club proposed to be too low.

€200-350 million estimated worth

According to sources close to PSG owners Qatar Sports Investments, the Paris urban department has estimated the stadium to be worth €350 million, while another study has set the figure at €200 million.

PSG are believed to have tabled an offer way below those figures because they currently have a 30-year lease and also due to the €85 million they invested to renovate the stadium for Euro 2016.

American investment firm 777 Partners looks set to add Hertha Berlin to its portfolio of football investments after agreeing to acquire the shares held in the Bundesliga club by Lars Windhorst.

777 Partners and Windhorst’s company Tennor Holding have announced that an agreement has been reached, and they are now waiting for approval from both Hertha and the DFL before the sale can be finalised.

Kicker has reported that the required green light from Hertha is considered almost certain among club insiders.

Last month Windhorst offered Hertha the buyback of his shares following a major fallout with the club’s hierarchy.

Windhorst joined Hertha as a shareholder in the summer of 2019 and acquired a total of 64.7 per cent of the shares in the club’s professional department for €374 million.

Multiple deals

Last month 777 Partners acquired a stake in Australian A-League club Melbourne Victory. The agreement followed deals finalised over the past year for controlling stakes in Belgian Pro League club Standard de Liége, Brazilian Série B side Vasco da Gama, Italian Serie B club Genoa, and the French lower-tier outfit Red Star FC.

The firm also has a minority investment in Sevilla of LaLiga which it has been trying to expand into full ownership of the club.
 

Fiorentina post €46.8 million profit for 2021/22

Fiorentina have announced a profit of €46.8 million for the 2021/22 financial year after closing the previous year with a loss of €10.3 million.

The turnaround was driven in large part by a huge increase in capital gains from player sales, which reached €114 million, up from €10.2 million the previous year.

The biggest contributors were the sales to Juventus of Serbian striker Dušan Vlahović for €70 million and Italian winger Federico Chiesa for €40 million.

Total revenues

Fiorentina’s total revenues rose to €233.2 million, compared with €160.6 million in 2020/21. Broadcast income was €51.1 million, down from €74.4 million in 2020/21, while commercial revenues were €37.4 million, compared with €50.5 million in 2020/21.

The club noted that these income streams were boosted in 2020/21 by additional matches following postponements the previous year due to Covid.

This also impacted costs, which fell to €161.1 million, down from €171 million in 2020/21. Most of the expenses related to personnel costs, amounting to €80.9 million, of which €54.7 million was for the contractual compensation of players.
 

EU parliament calls on FIFA to help compensate families of dead migrant workers

The EU parliament has backed a resolution calling on FIFA to help compensate the families of migrant workers who died in Qatar during preparations for the World Cup.

Reuters reports that the resolution, which the parliament voted in favour of on Thursday, also calls on FIFA to compensate workers who have suffered rights abuses in the build-up to the tournament.

MEPs urged the Qatari authorities to conduct a full investigation into human rights abuses in the run-up to the competition.

LGBTQ+ community

The resolution also deplored reports of abuses of the LGBTQ+ community in Qatar and called on the country to decriminalise same-sex relations.

A number of MEPs were wearing the anti-hate OneLove armbands which seven European World Cup captains backed out from wearing following FIFA pressure.
 

Zara founder Amancio Ortega and Apple named as potential bidders for Manchester United

Zara founder Amancio Ortega and tech giant Apple have emerged as potential buyers of Manchester United following the announcement earlier this week that the club is up for sale.

According to the Manchester Evening News, Ortega – listed as the 19th-richest person in the world by Forbes – has informed senior executives of his interest in buying the Old Trafford club.

The Spanish billionaire businessman is the owner of the Inditex group which owns the Zara fashion chain. He has primarily invested into real estate in Madrid, Barcelona, London, Chicago, Miami and New York and has not ventured into the sporting world.

Apple is also understood to be ready to bid for United, with a report from the Daily Star claiming that the world's largest tech company may be interested in acquiring the club for £5.8 billion.

The California-based firm has never previously owned a major sports team, but the commercial opportunities provided by United are said to be a primary factor in its interest.

David Beckham open to talks

Meanwhile, The Financial Times has reported that David Beckham is open to holding talks with potential bidders for United. The report said that prospective buyers could seek to enlist the former Red Devils great to boost their chances of taking over the club.

Manchester United have announced that the club’s owners, the Glazer family, are open to selling the club.

In a statement, United said that the club’s board “is commencing a process to explore strategic alternatives for the club. The Board will consider all strategic alternatives, including new investment into the club, a sale, or other transactions involving the company.

“This will include an assessment of several initiatives to strengthen the club, including stadium and infrastructure redevelopment, and expansion of the club’s commercial operations on a global scale.”

United also revealed that the New York-based Raine Group, which oversaw the sale of Chelsea earlier this year, is acting as its exclusive financial advisor, and Latham & Watkins LLP as legal counsel.

It added that Rothschild and Co. is acting as exclusive financial advisor to the Glazer family shareholders.

Fan protests

The Glazers’ 17-year reign at Old Trafford has been dominated by fan protests and declining on-pitch performance. United have not won the Premier League title since 2013, and have sacked a succession of managers following the retirement of Sir Alex Ferguson in the same year.

 

M&A sources: A new Man Utd investor would want full control

M&A analysts has told Off The Pitch that they consider it unlikely that a major new investor to Manchester United would seek to acquire just a minority stake.

It follows United's longstanding owners, The Glazer family, telling the stock exchange that they were evaluating ”all options” when it comes to the future of the club, leading to speculation that United is for sale.

“It’s not impossible. We have seen smart investors identify an opportunity, take a minority position and a board seat, then slowly grow their ownership stake and level of control. Just 50 miles down the road we're seeing that at Leeds with the 49ers," says AJ Swoboda, Managing Director from Twenty First Group, a sports intelligence firm who advise both buy-side and sell-side on sports M&A-transactions

Despite the commercial and brand strength of Manchester United, they are a club that needs some real attention, strategy, and investment in key areas, believes Swoboda.

"A new investor would want to secure a majority position in order to drive the improvements needed to bring United back to where their supporters want them to be. This is quite an interesting contrast to the opportunity landscape for investors eyeing Liverpool"

“It's not surprising the Glazers would see this as a great time to come out and shop their shares – global football it is a hot market for investment that continues to grow and grow in activity," says Swoboda.

He points to the Chelsea takeover that opened the door for the next generation of major ownership changes at the top of the Premier League.

"With Liverpool in the market attracting investors, I would expect the Glazers would see this as a great opportunity to find a new owner willing to pay a premium for their shares,” says Swoboda.

 

Paris Saint-Germain weigh up Stade France purchase

Paris Saint-Germain are considering leaving the Parc des Princes, with the purchase of France’s national stadium – Stade France – among three options under consideration, reports Senior Correspondent James Corbett.

The development follows an impasse after four years of talks between PSG and the stadium’s owner, the City Council of Paris.

A person familiar with the situation told Off The Pitch that after what had been “really positive discussions” to buy the stadium and a commitment to increase its capacity from 48,000 to 60,000 in a €500 million refurbishment, but wasn’t prepared to do so without ownership of the stadium.

However, to buy the Parc de Princes the council had asked for what they termed “crazy” and “extortionate” money.

“Ultimately, the City Council is effectively forcing PSG to consider other options, which PSG is now starting to do,” said the source

70 million euros upgrade

As an alternative, PSG are considering buying the Stade France and are understood to have received encouragement from its owner, the French government. In addition it has identified two other potential sites where a source says it will build “a brand new state of the art stadium if need be.”

“My first option is we don’t move. But the city of Paris is pushing us to move,” Nasser Al-Khelaifi, president of PSG, said in an interview with Bloomberg.

“We’ve spent 70 million euros upgrading the Parc des Princes but it’s not our stadium.”

Earlier this week Off The Pitch revealed that the French giants’ owners, Qatar Sports Investment, had held talks with three potential investors over a minority stake in the group.

 

Danish FA ready to discuss withdrawal of all UEFA nations from FIFA after armband row

Danish FA (DBU) chairman Jesper Moller has revealed it is ready to discuss a blanket withdrawal from FIFA alongside other UEFA nations amid the ongoing row over the OneLove armbands.

Speaking at a press conference on Wednesday morning, Moller said that Denmark was considering leaving FIFA, and was willing to discuss this with all of UEFA’s 55 member states.

“It is not a decision that has been made now,” he said. “We have been clear about this for a long time. We have been discussing it in the Nordic region since August.

“I’ve thought it again. I imagine that there may be challenges if Denmark leaves on its own. But let us see if we cannot have a dialogue on things.”

On Monday, seven European sides planning to wear the OneLove armbands to protest against Qatar’s human rights record all backed down from the plan after being threatened with sporting sanctions by FIFA.

Minimum punishment

DBU also revealed that a yellow card was the “minimum” punishment that captain Simon Kjaer would have faced.

The DBU delegation outlined the “anger” this has caused, and stated that the DBU would not formally support the re-election of current FIFA president Gianni Infantino, who is standing unopposed.

“There are 211 countries in FIFA and I understand that the current president has statements of support from 207 countries. Denmark is not among those countries. And we’re not going to be either,” Moller said.

Sevilla are due to announce a loss of €24.82 million for the 2021/22 financial year, 40 per cent lower than the €41.37 million deficit suffered the previous year.

The accounts for 2021/22, which have been seen by 2Playbook, show that turnover improved by 9 per cent to €186.14 million, despite competition revenue, including UEFA payments, falling by 18 per cent to €58.1 million following the team’s exit from the Champions League at the group stage.

Income from members and subscribers reached €13.4 million, close to pre-Covid levels, while revenue from LaLiga broadcast rights rose by 7 per cent to €88.75 million.

Commercial income was 50 per cent higher, reaching a record high of €25.9 million after Naga became the club’s new front-of-shirt sponsor and Nike extended its kit deal.

Sevilla also benefited from the recovery in the transfer market, with income from player sales rising to €43 million, although that figure still does not represent a return to pre-Covid levels.

In terms of expenditure, the total wage bill was €192.88 million, another historic high, although amortisation costs fell by 13 per cent to €55.3 million.

€197 million turnover for 2022/23

For 2022/23 Sevilla are forecasting a turnover of around €197 million, while the total wage bill is due to be cut by 10 per cent to €173 million, as long as there are no major developments in the January transfer window.

The accounts for 2021/22 will be reviewed at the club’s AGM on 29th December.
 

DFB considers taking FIFA armband ban to CAS as controversy heightens

The DFB is contemplating legal action against FIFA to end its ban on wearing the LGBTQ+ One Love armbands during the Qatar World Cup as the controversy surrounding the issue continues to escalate.

German newspaper Bild has reported that the DFB wants to take its case to the Court of Arbitration for Sport (CAS), with the possibility being examined of an application for interim legal protection at the court’s ad hoc division.

DFB spokesman Steffen Simon told Bild: "FIFA has forbidden us a sign for diversity and human rights. It has combined this with massive threats of sporting sanctions, without specifying them. The DFB is examining whether FIFA's actions were lawful."

The threat of legal action came as supermarket chain REWE suspended its sponsorship of the German national team “with immediate effect” in response to FIFA’s banning of the armband.

And US secretary of state Antony Blinken criticised FIFA’s decision to threaten players at the World Cup with yellow cards if they made the gesture of support. Speaking alongside his Qatari counterpart in Doha, Blinken said it was “always concerning ... when we see any restrictions on freedom of expression. It’s especially so when the expression is for diversity and for inclusion.”

English and Welsh FAs not giving up

Meanwhile, the English and Welsh FAs have not given up on their plans to show a message of support for the LGBTQ+ community in Qatar – despite backing down in their dispute with FIFA over the One Love armband.

According to Sky Sports News, high-level discussions continued until a few hours before kick-off in England's opening game against Iran on Monday, before the FA admitted defeat and decided captain Harry Kane should not wear the heart-shaped logo with rainbow colours.

FIFA threatened "sporting sanctions" if Kane or any of the other seven European nations involved wore the armband.

Sky also understands that despite reports suggesting Kane might have been booked for wearing a non-FIFA armband, the sanction might have actually been much stronger – possibly a one-match ban.
 

DFL to bring negative equity restrictions in line with UEFA regulations

The DFL is to severely tighten its restrictions on negative equity for clubs after they were re-introduced following the Covid-19 pandemic, according to Kicker.

Under the DFL’s licensing procedure for Germany’s top two tiers, if a club has any negative equity it must be improved the following season. Otherwise, the club could be fined and, if their balance sheet continues to deteriorate for another season, face a possible points deduction.

After being paused during the pandemic, the requirements were brought back for the current 2022/23 season, based on clubs’ financial results during the previous year – 2021/22. The restrictions returned at a reduced rate, with the DFL stating that negative equity "must not deteriorate significantly.”

However, the rules are to be made far stricter from the 2024/25 season. Instead of a fine, there will be a points deduction at the beginning of the season, initially of one point and from 2025/26 up to three points.

The requirements are being brought in line with UEFA’s new regulations, which require clubs with negative equity to show a net equity position the following season that is either positive or has improved by at least 10 per cent since 31st December. Those who do not comply will no longer be admitted to UEFA club competition.

Fighting against penalties

Werder Bremen and 1st FC Nuremberg are currently fighting against penalties for non-compliance with the DFL’s negative equity regulations, with Bremen facing a fine of €2.5 million and Nuremberg €0.5 million.

Both clubs reported negative equity as at 31st December 2021, which deteriorated further in the 2022 calendar year. From 2024, points deductions at the beginning of the season will be mandatory in cases comparable to those currently facing Bremen and Nuremberg.
 

Cristiano Ronaldo leaves Manchester United

Manchester United have announced that Cristiano Ronaldo has left the club “by mutual agreement, with immediate effect.”

The decision follows a string of serious allegations made in an interview. Ronaldo made several claims against United including that the manager, Erik ten Hag, did not respect him and that executives did not believe his need for compassionate leave in the close season.

Banned from training ground

Ronaldo is with Portugal at the Qatar World Cup and The Guardian reports that in his absence United banned him from the training ground and explored potential legal action.

It is understood that the player has left United without a payoff and there are no restrictions on who he can play for next.
 

Borussia Dortmund CEO: Club remains in “crisis mode” despite halving of losses to €35 million

Borussia Dortmund CEO Hans-Joachim Watzke has said the club continues to face major challenges as it aims to fully recover from the impact of Covid-19.

The Bundesliga club ended the 2021/22 financial year with total revenues of €456.8 million and a loss of €35 million, although that is less than half the €72 million deficit suffered in 2020/21.

Speaking at the club’s AGM on Monday, Watzke said the pandemic has hit Dortmund hard financially. The club’s shares are currently valued at €3.5, compared with almost €10 in February 2020.

Referring to the club’s near-insolvency of 2004/05, Watzke said: "At that time we looked into the abyss. And that happened to me again three years ago. … We had to operate in crisis mode for three years.”

While he hopes that the pandemic “is now done", he warned that “the crisis mode continues because of the energy crisis and the Ukraine war."

The club also suffered last season from its Champions League exit at the group stage. Watzke noted that the pandemic has cost the club over €150 million on its balance sheet, but said that thanks to a capital increase it has no financial liabilities.

No dividends again

Due to the difficult financial situation, shareholders will once again not receive a dividend after the losses in 2021/22.

Dortmund’s CFO Thomas Tress said the club is expected to break even in the current 2022/23 financial year, with a return to profitability anticipated in 2023/24, after which “dividends should be paid again."

Three different investors are targeting a minority stake in PSG’s owners, Qatar Sports Investments (QSI) reports senior correspondent, James Corbett.

The three groups have held talks with QSI over the past six months, with two being described by sources as “particularly serious” about taking a stake of around ten per cent, with talks in an advanced stage.

Off The Pitch understands that QSI are seeking to bring in strategic partners with a stake worth between five and 15 per cent. The group has no plans to exit football after the current World Cup in Qatar.

“The focus is on the right kind of strategic partners, with an aim of unlocking the US market,” a source told this publication.

Building a greater US presence

PSG are seeking to build a greater US presence and to utilise its unique status as the only top flight team in the heart of one of Europe’s most iconic capitals.

The group is also keen to have strategic partners that will build its digital and Web3 presence.

QSI are also owners of Belgian club, Eupen, and last month took a stake in Portuguse club, SC Braga.

Off The Pitch understands that the group is actively seeking another club acquisition in 2023 as it seeks to grow a multiclub ownership model.

 

Sampdoria board seek €30 million capital increase

Sampdoria’s board have requested a capital increase of €30 million from the club’s majority shareholder Massimo Ferrero and have convened a shareholder meeting on 14 December to discuss the matter.

Calcio Finanza report that it is a tactic by the board to break a stalemate over the club’s ownership and to secure the club’s long term future, which is considered at risk. Sampdoria currently need to raise €30 million by 16 December to pay a tax bill and fulfil league licensing criteria.

If Ferrero turns down the request it could open up the club to new investors.

Expecting takeover in November

Qatari sheikh Faleh Khalid Al Thani has been expected to complete a turnover by the end of this month, according to Italian media, although the deal is seemingly contingent on the approval of a €40 million credit line from bankers Rothschild.

The search for new Sampdoria owners has been ongoing since Ferrero was arrested last December as part of an investigation into corporate crimes and bankruptcy. He has owned the club since 2014.

 

Three out of four Liga de Portugal euros earned by “Big Three”

Analysis by EY and Liga de Portugal shows that while the economy of Portugal’s top flight is nearing the billion mark for the first time, overall turnover of Liga de Portugal is overwhelmingly dominated by its big three clubs: Benfica, Porto and Sporting.

The analysis, as reported by 2Playbook, shows that aggregate business reached €913 million in 2021/22, but that 77 per cent earned by the top league is done so by the big three. Bridging the gap through the growth of the rest of the teams is a stated mission of the competition.

Return to health after Covid-19

Overall there is a return to health after the Covid-19 crisis, with top flight revenues of €867 million, which is up 13.1 per cent on the previous year and above 2018/19 – the last season before the pandemic.

The league claims an overall contribution of €617 million to Portugal’s GDP, equivelant to 0.29 per cent of the country’s wealth. It employs a total of 3595 people, of whom 1465 are players.

Liverpool chairman Tom Werner has revealed that Fenway Sports Group are exploring the possibility of selling the club.

It was reported earlier this month that the Liverpool owners were looking to end their 12-year ownership of the team through the selling off of their controlling stake.

Speaking to the Boston Globe, Werner confirmed they were looking into a possible sale, but stressed that there was “no urgency and no timeframe to do so”.

He added: “As far as I'm concerned, it's business as usual. One outcome could be our continued stewardship for quite a while.”

Sam Kennedy, president of the Red Sox baseball franchise and FSG partner, also commented, revealing that “there has been a lot of interest from numerous potential partners considering investment into the club.

“It is early days in terms of exploring possibilities for possible investment into Liverpool. Great companies grow by adding value to their business.”

“An ideal time”

Kennedy added: “One way to increase that value from time to time is to sell assets or add investors. Does that mean FSG is going to sell Liverpool? I do not know.

“It's [principal owner] John Henry's, Tom Werner's and Mike Gordon's job to responsibly run Fenway Sports Group and they felt this was an ideal time to explore possible opportunities for investment into the club.”

 

Atletico Madrid losses ease to €22.6 million for 2021/22

Atletico Madrid closed the 2021/22 financial year with a loss of €22.6 million, 79.7 per cent lower than the record €111.6 million deficit the club suffered in 2020/21.

The accounts, which have been seen by Goal, show that total revenues grew by 9.2 per cent to €444 million, with turnover rising by 11.2 per cent to €377 million and sports revenues up 30.6 per cent to €111 million.

Broadcast income fell by 9 per cent to €131 million, but sponsorship, advertising and retail revenues were up by 3.4 per cent to €91 million, with income from subscribers reaching €47 million.

As for costs, the total wage bill rose by 6.7 per cent to €222 million, with first team players accounting for €189 million, and non-registrable staff €8 million.

The club’s net debt as at 30th June 2022 was €591.1 million, 13.4 per cent higher than at the end of the previous year.

Revenue of €376 million for 2022/23

For the current 2022/23 financial year, Atletico have budgeted for total income of €376 million, including €91 million from sports revenue, €48 million from subscribers, €110 million from advertising and commercial revenue and €126 million from broadcast income. The total amount spent on sports staff is forecast to be €209 million.

The club will earn €8.4 million per year over the next ten years from its stadium naming rights deal with real estate company Civitas. The deal has replaced the previous agreement with Chinese conglomerate Wanda, which ended on 30th June 2022.

 

World Cup: Widespread sponsor concerns revealed after alcohol banned from stadia

Multiple sponsors have raised concerns or issues with FIFA about their contracts at the Qatar World Cup, The Guardian has reported.

The revelations came after FIFA was forced to ban alcohol from stadiums by the Qatari authorities, a decision that has complicated the governing body’s $75 million sponsorship deal with the brewer of Budweiser, Anheuser-Busch InBev.

In a statement on Friday, with just two days to go before the opening match, FIFA confirmed that alcohol would not be sold inside or around the perimeter of the stadiums in Qatar.

“Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing sales points of beer from Qatar’s FIFA World Cup 2022 stadium perimeters,” it said.

The sale of alcohol is strictly controlled in Qatar, a conservative Muslim nation, but organisers had promised it would be available in match venues and fan zones – and would be reasonably priced.

However, alcohol is now only being made available at matches in hospitality boxes and in some fan zones after 7pm, where it will cost nearly £12 for 500ml of Budweiser.

Possible legal action

As speculation mounts about whether Anheuser-Busch InBev will take any legal action, one representative of another major sponsor, which wasn’t named, told The Guardian that many partners had felt “let down by FIFA in lots of ways”.

They also indicated there had been informal discussions about potential contractual breaches and reneging on deliverables.

“Everyone has a gripe in some way or form,” they added. “There is a lot of ‘regrouping’ going [on] to understand what the options are contractually speaking.”

 

DFB president: Opposition to Infantino’s re-election is due to issues in Qatar and silence over Iran

Bernd Neuendorf, president of the DFB, Germany’s FA, has said that its decision not to back the re-election of Gianni Infantino as FIFA president was a result of the governing body's handling of human rights issues at World Cup hosts Qatar and its failure to take a stand on Iran.

FIFA announced last week that Infantino was the sole contender for the presidential election due to take place at the 73rd FIFA Congress in Kigali, Rwanda, on 16th March 2023.

The DFB released a statement last Wednesday confirming its opposition to the move, and in a press conference on Friday Neuendorf gave further details about the reasons for its position.

He said the association had been “considerably irritated” by the letter from Infantino and other top FIFA officials earlier this month which urged participating teams at the World Cup to "focus on football" and not to get involved "in every ideological or political battle that exists".

Neuendorf said the DFB had also been annoyed at FIFA’s rejection of a request by the Danish FA to train at the World Cup in shirts with the words ‘human rights for all’ on them.

"Such a slogan is not a political decision you can choose to take,” Neuendorf said. “It is about human rights and they are universal and binding around the world.”

Ongoing protests in Iran

The DFB president pointed out that while FIFA was quick to ban the Danish request it remained silent amid ongoing protests in Iran.

Several Iranian sportsmen and women have used international competition to indicate their support for the protests that have rocked the country since the death of 22-year-old Mahsa Amini in the custody of the morality police in September.

"The very courageous women in Iran deserve our support," Neuendorf said. "The Iran team has made their statements which made it clear they distance themselves from the regime. That's a good signal. FIFA did not position itself. It positioned itself in the Denmark case but not Iran. Don't just ban the Denmark shirt. Take a position on Iran.”

 

John Textor’s Brazilian club Botafogo confirm delays to player bonus and commission payments

Brazilian Série A club Botafogo, owned by American businessman and prospective Olympique Lyon owner John Textor, have revealed that some payments due to players have been delayed over recent months.

The club, in which Textor acquired an 90 per cent stake in March, confirmed to Brazilian media that while all salary and image rights payments are up to date, it has experienced difficulties paying bonuses and commissions to some of the playing staff on time.

Commenting on the reasons for the payment delays, Botafogo management was quoted as saying “we are currently paying considerable unforeseen club debts.”

Lyon takeover

The takeover of Olympique Lyon by Textor’s Eagle Football group was delayed again last week but is close to being finalised following approval of the transaction from French football’s financial watchdog the DNCG.

Textor is aiming to create a global portfolio of clubs. As well as his majority shareholding in Botafogo, he has a 40 per cent stake in English Premier League club Crystal Palace and an 80 per cent stake in Belgian team RWD Molenbeek.

FIFA has announced that current president Gianni Infantino is the sole contender for the presidential election due to take place at the 73rd FIFA Congress in Kigali, Rwanda, on 16th March 2023.

In a statement, FIFA said its member associations have proposed that Infantino remains as president following the call for election issued by the FIFA Council on 30th March 2022. “No other candidature has been submitted,” it said.

Opposition to the move has already been expressed, however, with Germany’s FA, the DFB, stating that it will not be supporting the re-election of Infantino.

DFB decided not to put forward its own candidate but confirmed its opposition to Infantino. The association announced on Wednesday that the decision was made unanimously by the DFB Presidium.

“Clearer commitment”

Bernd Neuendorf, the DFB president, said the move was intended to express "that we would have liked FIFA to have a clearer commitment to human rights and greater commitment to humanitarian issues."

Earlier this month, Infantino and other top FIFA officials urged participating teams at the Qatar World Cup to "focus on football" and not to get involved "in every ideological or political battle that exists".
 

Real Madrid to open theme park in Dubai in 2023

Real Madrid have inked an agreement with Dubai Parks and Resorts for the launch of the first Real Madrid theme park in the Middle East.

In a statement, Madrid said the theme park is due to be inaugurated in the fourth quarter of 2023, and will feature a number of Real Madrid-related attractions, such as a museum, amusement rides and games of footballing skill, as well as outlets selling club memorabilia.

Interactive experiences

“This innovative new experience will allow families and all football and sports fans, regardless of age, to immerse themselves in the culture of the world's greatest football club,” Real Madrid said.

“Visitors will be given the opportunity to engage in interactive experiences, including a variety of unique games and attractions.”
 

Olympique Lyon takeover by John Textor delayed again but completion expected in coming days

The takeover of Olympique Lyon by American businessman John Textor has been postponed again but is expected to be completed in the next few days, according to French media.

The sale was due to be finalised on Thursday this week following two successive postponements on 30th September and 21st October. However, it is set to go ahead after approval of the transaction by French football’s financial watchdog the DNCG.

L'Equipe has reported that Lyon are still waiting for a written agreement from the Premier League as Textor is also the single largest shareholder in Crystal Palace.

“Approval in a day or two”

A source close to the deal told L'Equipe: "From a purely technical point of view, all the elements for the closure of the file are ready. Everything should be sorted out this weekend, as we expect the Premier League to approve in a day or two.

“They were very responsive, as it could have taken much longer. Optimism therefore remains on all floors, even if it will probably take a few more days before seeing Jean-Michel Aulas' club pass under the American flag.”
 

Ex-FIFA vice president Jack Warner loses appeal against extradition to the US

A London court has ruled that former FIFA vice-president Jack Warner can be extradited from his homeland of Trinidad to the United States to face corruption charges.

Reuters reports that Warner's lawyers argued his extradition was unlawful. However, London's Privy Council, the highest court of appeal for many Commonwealth countries, unanimously dismissed his appeal.

Suspicion and rumours have surrounded the 2010 votes by FIFA's executive to hand the 2018 World Cup to Russia and the 2022 tournament to Qatar.
In 2020 a US Department of Justice indictment said bribes were paid to football officials to secure their votes for hosting rights.

The DOJ alleged that Warner, who was FIFA vice-president at the time, was paid $5 million through various shell companies to vote for Russia to host the 2018 World Cup.

His role as president of CONCACAF is said to have given him enormous influence as a powerbroker for former FIFA president Sepp Blatter.

Suspended by FIFA

A former member of the FIFA executive committee and former CONCACAF president, Warner was suspended by FIFA in 2011 and in 2015, charged with wire fraud, racketeering and money-laundering by the US.

FIFA banned him from all football-related activity for life in 2015. Warner has always denied any wrongdoing.

The sale of Sampdoria to Qatari sheikh Faleh Khalid Al Thani is expected to be complete by the end of this month, according to Italian media.

Talks involving Al Thani and the other relevant parties are understood to have progressed over recent weeks, and the sheikh has now announced his intention to complete the takeover quickly, pending the remaining formalities with the banks involved in the transaction.

Among the lenders is the Geneva-based bank Rothschild, which is preparing to provide Al Thani with a line of credit and make available the €40 million needed to complete the acquisition of the Genoese club.

The sale should then be finalised by the end of November, according to the conditions indicated by the Geneva lawyer Gregoire Mangeat, who looks after the interests of the sheikh.

Vialli to be president

Club legend Gianluca Vialli is due to be appointed the Sampdoria president once the deal has gone through.

The search for new owners of Sampdoria has been ongoing since former president Massimo Ferrero resigned last December following his arrest by the Italian law enforcement agency Guardia di Finanza as part of an investigation into corporate crimes and bankruptcy. Ferrero had owned the club since 2014.

 

Joan Laporta: FC Barcelona won’t sign new players in January due to LaLiga controls

FC Barcelona president Joan Laporta has ruled out signing players in the January transfer window due to LaLiga's spending limits.

The club spent around €150 million on new players in the summer, including Polish striker Robert Lewandowski from Bayern Munich, and sold future media rights income and stakes in its Barça Studios production house to help meet LaLiga’s spending controls and register its new signings.

Speaking to Spanish news agency EFE, Laporta claimed that Barça’s accounts are “healthy” again, with the club budgeting for a profit of €274 million and operating income of €1.26 billion for the 2022/23 financial year.

“We had to make some levers, which were economic operations that saved the club from ruin, and now the club is in economic recovery,” Laporta said.
“But despite that, according to the rules of financial fair play of the Spanish league, we cannot sign [players].”

“More flexible”

Laporta added: “We and some other LaLiga clubs are also trying to convince LaLiga to be more flexible, and allow us other types of interpretations that can make Barcelona even stronger.”

He acknowledged that the club must continue to generate more income and reduce costs, but insisted that financial fair play “should be harmonised” in all European leagues because of “inequalities”.

“It is more flexible in the Premier League than in Spain and it doesn't make much sense to me,” he said.

 

VfL Bochum post €5.8 million profit for 2021/22

VfL Bochum have reported a profit of €5.8 million for the 2021/22 financial year, after suffering a loss of €5.1 million the previous year.

The club, who returned to the Bundesliga last season after finishing top of Bundesliga 2 in 2020/21, announced the results at its AGM. The profit helped VfL finish the year with positive equity of €400,000.

Total income was €65.7 million, with broadcast revenues reaching €34.3 million following the club’s promotion and its run to the quarter-finals of the DFB Cup.

Commercial income was €17 million, while revenue from merchandising sales amounted to €3.5 million.

Total costs were €59.9 million, with personnel expenses reaching €24.9 million. This was higher than anticipated due to player bonuses for avoiding relegation and the DFB Cup run.

Record transfer income for 2022/23

At Tuesday’s AGM, managing director Ilja Kaenzig said it has forecast a further increase in revenues to €82.4 million for 2022/23, driven largely by record transfer income already secured of €16.4 million. Player sales generated just €750,000 in 2021/22.

"We are aiming for a turnover of more than €100 million in the future,” Kaenzig added. “This is the only way we can close the gap on the Bundesliga's competitors.”

At the AGM it was also confirmed that Hans-Peter Villis will remain the VfL chairman following the election of the club’s executive committee.

 

New York City FC reach $780 million deal to build new stadium

New York City Football Club have reached an agreement with local officials to build the city’s first professional football stadium, The New York Times reports.

NYCFC will pay around $780 million to build the venue, which will be located in Willets Point, Queens, and the 25,000-seat stadium is expected to be on city land by 2027.

The MLS club, which is part of the City Football Group, will pay for the entire construction of the stadium. New York City owns the land on which the arena will be built, and will lease it to the club and to a development team.

Over the course of the 49-year lease, NYCFC will ultimately pay rent of up to $4 million a year to lease the land for the stadium. The club will have the option of a 25-year extension.

Sports and entertainment destination

The new stadium will be built across the street from Citi Field, the home of the New York Mets baseball team, and the project promises to transform a former industrial zone into a sports and entertainment destination site, also comprising the USTA Billie Jean King National Tennis Center, which hosts the US Open.

NYCFC’s search for a permanent home began in 2012, three years before the team played its first game.

Former sports minister Tracey Crouch has called on the UK Government to act on the recommendations of the fan-led review she chaired, The Independent reports.

The review was published last November, with the introduction of an independent regulator underpinned by statutory powers central to the proposed reforms.

The Government endorsed the recommendations in April, but subsequent changes in Conservative Party leadership have led to questions about the Government’s appetite to push ahead.

A new report by Crouch – The Fan Led Review: One Year On – published on Tuesday calls for the recommendations to be urgently implemented.

“In the past 12 months we have seen stark examples of the ongoing problems in the game, such as those at Derby County that threatened its existence,” Crouch said.

“Yet a minority of loud, self-interested voices continue to block meaningful reform, to the detriment of the game.”

“The time for reform is now”

Crouch added: “The support for reform from fan groups, many football officials and club owners, has been incredibly encouraging and gives me hope that the Government will utilise cross-party support to deliver the change that football needs. The time for reform is now.”

The Government said it remains committed to setting out its detailed response to the fan-led review and that it will publish a White Paper in due course.
 

Union Berlin earn record profits and revenues for 2021/22

FC Union Berlin have posted record profits of €12.7 million for the 2021/22 financial year after suffering a loss of €11.4 million in 2020/21, with revenues also reaching a historic high of €122.1 million, up from €73 million the previous year.

In the 2021/22 season, Union Berlin finished in fifth place in the Bundesliga, reached the DFB Cup semi-finals, and qualified for the group stage of the Europa Conference League.

The financial results were announced at Union Berlin’s AGM held on Monday evening, together with a forecast of around €157 million in turnover for 2022/23. The club is expecting for the first time in the club's history to finish the year with a positive equity, of €4.17 million.

The Union Berlin management said the club plans to continue increasing its investment in the playing squad as its finances improve. It spent €43 million in the transfer market in the 2022 summer window, almost €10 million more than in the summer of 2021.

Stadium expansion

At the meeting, more details about the plans to expand the club’s stadium, which had been postponed due to the Covid-19 pandemic, were also revealed. Total capacity will be increased from 22,012 to around 37,500, with 29,000 standing places and 8,500 seats.

Construction is scheduled to begin in the summer of 2024 at the earliest, and home matches will be played at Berlin’s Olympic Stadium in the 2024/25 season while the work is carried out.

The club is also building a new training facility covering around 3,500 square meters across the club’s two training grounds. Construction of that will begin in the spring of 2023.
 

LaLiga losses ease to €6 million for 2021/22 as sponsorship revenue climbs by 26.4 per cent

LaLiga has reported a loss of €6 million for the 2021/22 financial year, down from the deficit of €16.2 million suffered the previous year, as the league began to recover from the Covid-19 pandemic.

Total revenues lifted by 1.2 per cent to €1.94 billion. Media rights income was stable, falling by 0.4 per cent to €1.78 billion, with domestic rights accounting for €1.08 billion, 0.9 per cent less than in 2020/21.

Sponsorship and licensing revenues climbed by 26.4 per cent to €131.7 million following agreements with a number of NFT firms. The Spanish market contributed €39.6 million to sponsorship and licensing income, a fall of 10.4 per cent.

During the 2021/22 season LaLiga distributed €1.66 billion to the league’s 42 clubs, 2.4 per cent less than in 2020/21. Expenditure on personnel was €47.5 million, 17 per cent more.

Long-term debt rises due to CVC deal

The accounts also highlighted the Spanish league’s increased debts following the agreement with private equity firm CVC Capital Partners.

LaLiga closed the year with liabilities of €1.25 billion, compared with €234 million at the end of the previous year. Long-term debt was €847 million, up from €55 at the end of 2020/21.
 

Real Betis target record revenues of €156 million and return to profit in 2022/23

Real Betis have forecast record revenues of €156 million for the 2022/23 financial year and are targeting a return to profit following the Covid-19 pandemic.

The club’s budget for the current year shows it is projecting broadcast income of €74 million, up around 12 per cent on 2021/22. This increase has been driven by the club’s progress on the pitch. Last season Betis finished in fifth place in LaLiga and won the Copa del Rey trophy.

The club is projecting commercial revenues of €23.8 million, which would be almost double the previous year’s figure. As well as a push to promote its brand overseas, a key factor is the switch from Kappa to Hummel as the club’s kit supplier from the start of the 2022/23 season.

Income from members and prize money is forecast to reach €46.3 million. The club’s membership climbed above 60,000 in the summer following last season’s success and all 50,373 season tickets have been sold.

Wage bill up, amortisation down

As for expenses, the club’s wage bill is projected to rise to €93.3 million, 12 per cent higher than in 2021/22. However, amortisation costs are due to fall by 15 per cent to €24.6 million after a reduction in transfer spending in the summer window.

Olympique Lyon have announced that revenues for the first quarter of 2022/23 reached €101 million, a 30 per cent increase year-on-year, although this includes the first payment from the LFP’s project with CVC Capital Partners.

The club received its first instalment of €16.5 million from the CVC deal in August. This will be followed by another €23.5 million in July 2023 and €50 million during the 2023/24 season.

For Q1 2022/23, revenues were also boosted by an increase in income from player sales of 6 per cent to €43.9 million, and growth in revenue from ordinary business of 11 per cent.

Trion Reid, an analyst at investment bank Berenberg, noted that excluding the CVC payment, total Q1 revenues grew by 8.4 per cent, driven largely by strong growth in Ligue 1 ticketing revenue, up 72 per cent to €10.1 million.

This “mainly reflected the record high attendance at the match against Paris Saint-Germain in September, and strong growth in events and brand-related revenue, both the result of the Ramstein and Rolling Stones concerts held in July,” he said.

“Growth in these areas offset the decline in media and marketing rights (down 33 per cent year-on-year), which was the result of a lack of European football this season.”

Ongoing growth

Reid added: “Whilst the Q1 performance is encouraging, concerts will only take place again from late-spring onwards, and the next instalment from the CVC deal won’t be received until next summer.

“However, the lack of European football will continue to weigh on the performance throughout the year. On the other hand, the ongoing growth in sponsoring and advertising revenue (up 5 per cent year-on-year) and player trading income (up 6 per cent year-on-year) was encouraging.”

The takeover of Olympique Lyon by American businessman John Textor is due to be completed this Thursday after several delays.

 

Hertha Berlin suffer €79.8 million loss for 2021/22

Hertha Berlin have reported a loss of €79.8 million for the 2021/22 financial year.

The club earned total revenues of €146.6 million, with broadcast income of €54.6 million, commercial revenues of €28.9 million, and income from player sales of €46.8 million the three largest items.

However, expenses totalled €226.3 million, with personnel costs of €97.7 million, and depreciation and amortisation costs of €64.6 million.

“Challenging situation”

Commenting on the results at a meeting of Hertha’s members on Sunday, commercial director Thomas E. Herrich admitted that the club faces a stiff challenge in returning to profitability.

"The result illustrates the challenging situation for us as a club,” he said. “We have to consolidate extensively economically – this can only be done together. We have to reduce costs and live a sharpened cost awareness.”

Herrich noted that the club was able to reduce liabilities in 2021/22 from €99.6 million to €80.8 million.

"We have to tighten our belts and we are on a clear course,” he concluded.

 

Valencia CF to use accordion to address €46.1 million loss for 2021/22

Valencia CF are planning an accordion operation to address losses of €46.1 million suffered in the 2021/22 financial year, Spanish media have reported.

The club’s owner Peter Lim will carry out the accordion through Meriton to absorb part of the losses and raise the club’s share capital through the capitalisation of debt.

Valencia have said that the operation is due to be approved at the next ordinary general meeting of the club’s shareholders on 12th December.

The deficit for 2021/22 is the biggest loss the LaLiga club has suffered under Lim’s ownership. Since he took over Valencia in 2014, the club has only earned a profit once, in 2018/19.

Transfer income halved

A key factor in the 2021/22 losses was a fall in income from player sales by almost half compared with the previous year, to €22.5 million.

However, regular turnover improved slightly, rising by €1 million to €109.7 million. Matchday income recovered to €11.2 million, similar to pre-pandemic figures, although broadcast revenues fell by 15 per cent to €70.8 million.

Commercial income rose by 8 per cent to €20.9 million, although advertising revenues fell by €0.5 million, to €16.1 million. Income from merchandise sales doubled to €4.7 million.

As for expenses, without major additions to the squad coming in and several player contracts ending amortisation costs fell by 19 per cent to €41.4 million. The wage bill stabilised at €83.4 million.

For 2022/23, Valencia are forecasting a loss of €9.7 million and total revenues of €109.8 million.

 

Report: RFEF president planned to pay Piqué €24 million for Spanish Super Cup deal

An investigation into the controversial awarding to Saudi Arabia of the right to host the Spanish Super Cup has alleged that Spanish Football Federation (RFEF) president Luis Rubiales arranged for former FC Barcelona defender Gerard Piqué's company Kosmos to be paid €24 million for his role in securing the agreement.

Spain’s General Intervention of the State Administration (IGAE) has prepared a report for the Anti-Corruption Prosecutor's Office on the case, which has been seen by El Mundo.

The report has concluded that the RFEF and the Saudi Arabian sports marketing firm SELA tried to cover up the multi-million euro commissions agreed with Piqué as part of the deal.

The report backs up allegations published by El Confidencial in April claiming that Pique and RFEF president Luis Rubiales colluded to pressure authorities in Saudi Arabia to host the Super Cup.

“Absolutely false”

According to the IGAE report seen by El Mundo, a contract was signed by the RFEF and SELA, which is the commercial operator of Saudi Arabia’s General Sports Authority, for the right to host the Super Cup for six years from 2020, as well as exclusive broadcast rights for the Middle East, Asia and North Africa.

The RFEF has denied the allegations set out in the IGAE report that have appeared in El Mundo. “It is absolutely false,” the federation said in a statement.

The RFEF claimed that the newspaper’s report is a new exercise of “manipulation” by El Mundo with the “sole objective of confusing public opinion and discrediting the RFEF and its president”. It also stressed that the “author of the report issues a personal opinion without the slightest legal justification and without any evidence”.

The RFEF added: “It is absolutely false that the RFEF and its president had prepared a plan to pay commissions to the company Kosmos by the public company of the Kingdom of Saudi Arabia on the occasion of the Super Cup”.