FIFA is set to generate record revenues from the Qatar World Cup despite the controversies that have overshadowed the build up to the tournament, Bloomberg reports.

The financial news service understands that this year’s tournament is on course to top the $5.4 billion in revenue that FIFA earned from the 2018 World Cup in Russia.

The governing body has pre-sold broadcasting rights, about 240,000 hospitality packages and nearly three million tickets for the event.

A source told Bloomberg that FIFA is projected to exceed a revenue target of $6.4 billion for its 2019-22 cycle, most of which comes from the World Cup, with marketing sales for the cycle due to exceed a budgeted figure of about $1.8 billion.

The revenue lift comes despite concerns some fans and sponsors would boycott the event due to persistent reports of the mistreatment of migrant workers and LGBTQ+ people in the host country.

Contracts signed years ago

“What needs to be remembered is that so many of these contracts will have been signed years ago, when the scale of the human rights issues may not have been as well documented,” said Minal Modha, consumer research lead at Ampere Analysis.

“The real indicator will be the impact this tournament has on revenues going forward.”

Clubs qualifying for Europe must run a women’s team from 2024/25 under new UEFA rules

UEFA are set to introduce new rules that will require clubs to be running a women’s team in order for their men’s team to qualify for European competitions from 2024/25.

Giorgio Marchetti, UEFA’s deputy secretary general, told Danish TV channel TV3 Sport that the rules will apply to all three of its club competitions – the Champions League, Europa League and Europa Conference League.

"In order to get its licence approved by UEFA, the club must support women's football by implementing objectives and activities with the aim of further developing, professionalising and spreading interest," he said.

Assistance to a partner club

Marchetti said a club must have either their own women’s senior or youth team playing in an official competition, or alternatively provide assistance to a partner club in football for women and girls, or organise activities for them according to UEFA’s instructions.

Werder Bremen to push DFL to suspend negative equity restrictions

Werder Bremen are attempting to persuade the DFL to suspend its restrictions on negative equity for clubs once again after they were re-introduced following the Covid-19 pandemic, Kicker reports.

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 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, a key part of the rules remains, with the DFL still considering half-year balance sheets, stipulating that equity must not deteriorate in both half-years.

€6 million of equity

In the case of Werder Bremen, the club finished the 2021/22 financial year with overall equity of around €6 million but ended the second half of the year with negative equity.

According to Kicker, the club has now submitted a motion for the DFL general assembly taking place this Thursday to suspend the negative equity restrictions again.

Juventus are facing fresh accusations from prosecutors about the club’s accounting practices.

La Repubblica has reported that the new allegations centre around payments to agents representing minors (players under the age of 18). By law, agents cannot be paid a commission for transactions involving such players.

The prosecutors have accused Juventus of circumventing this rule by generating commissions through false invoices that suggested the fees were in relation to adult players.

While there was no trace of the payments in the official budgets, they were all reported on Excel spreadsheets found by investigators.

It was noted that to bring a young talent into the club a commission could be charged for as much as €200,000, which could not be cashed immediately. Those credits, which at January 2020 were worth in total €8.5 million, remained suspended “for a long time,” according to La Repubblica.

The agents involved are reported to include Davide Lippi, Gabriele Giuffrida, Antonio Rebesco, Giorgio Parretti and Silvio Pagliari. None of them are being investigated.

Previous allegations

The Turin Public Prosecutor's Office has previously alleged that Juventus understated its financial losses for 2018, 2019 and 2020.

Prosecutors have been looking into the values attributed to player transfers between clubs and whether salaries were sacrificed during the Covid-19 pandemic or simply deferred.

Juventus has consistently denied all the allegations. In a statement released last month the club said it “remains convinced” it has “acted in compliance with the laws and regulations governing the preparation of financial reports, in accordance with accounting principles and in line with the international practice in the football industry.”

Udinese’s prospective American investor named as 890 Fifth Avenue Partners

More details have emerged about the Italian Pozzo family’s plans to sell a significant stake in Serie A club Udinese.

Speculation about advanced talks with an American firm had emerged last month, and the company has now been named by the Italian newspaper Il Sole 24 Ore as the New York-based 890 Fifth Avenue Partners.

The firm specialises in investments across technology, media, sports and telecommunications, and last May it entered into a partnership with the American special purpose acquisition company (SPAC) Group Nine Acquisition Corp.

According to Il Sole 24 Ore, discussions have taken place over recent weeks about the financing of the operation, with a separate company to be created for the sale of the stake in Udinese.

The deal is also expected to include a minority share – likely around 10 per cent – in EFL Championship club Watford, also owned by the Pozzo family.

$200 million valuation

Udinese, who are currently eighth in the Italian top-flight, are valued at around $200 million but it is still unclear exactly how much equity would be sold.
Watford are fifth in the EFL Championship and any percentage sale would be based on a valuation of approximately £140 million, although that could rise to £200 million if they return to the Premier League next season.

New Italian government may allow clubs further delay to tax payments suspended during Covid

Italy’s new government may be prepared to ease the financial pressure on the country’s football clubs as they recover from the impact of the Covid-19 pandemic, Milano Finanza reports.

The governing coalition led by prime minister Giorgia Meloni, who took office last month, is considering giving clubs more time to pay taxes and social security contributions which had been suspended during the pandemic.

As of 30th June, the total amount due was around €500 million, but it is understood it may have risen to €800 million since then. As it stands, clubs are required to make their payments by 16th December.

A number of requests have been made to pay the arrears off in instalments after the due date, and the new minister of sport, Andrea Abodi, has indicated a willingness in principle to grant an extension – but only if it is accompanied by spending limits in the transfer market for those clubs.

Instalments over five years

Discussions are underway about the potential terms of a deal, which could involve a payment of 15 per cent of the total on December 16th followed by instalments over the next five years.

Another option is for clubs to make payments over the next three years but without a payment in December. However, the most controversial aspect remains the potential restrictions on clubs’ spending.

Commenting on the possible options, Abodi said: “We evaluate the best solution – the surplus of the transfer campaign is zero. First you sell and then you buy for those who ask for instalments at five years. Competition must be fair."

Leeds United’s American shareholders, the investment vehicle 49ers Enterprises, are targeting a full takeover of the club after securing the necessary funds, according to The Times.

The firm, which is connected to the San Francisco 49ers NFL franchise, own 44 per cent of Leeds and have an option to buy out the majority shareholder, Andrea Radrizzani, in January 2024.

US banking sources said that there have been moves in recent weeks to secure investment for a full takeover of the club and it is understood that is now in place.

While there could be a full takeover before January 2024 it is more likely that 49ers Enterprises will act at the end of this season, as the final sale price will be related to whether Leeds have retained their place in the Premier League.

Strong working relationship

It was also reported that there has been no element of a hostile takeover, as the 49ers, Radrizzani and the club executives have developed a strong working relationship.

Rangers earn record revenues of £86.8 million as losses ease

Rangers have reported reduced losses of £0.9 million for the 2021/22 financial year, down from the £24.1 deficit suffered the previous year.

The Scottish Premiership club earned record revenue of £86.8 million, compared with £47.7 million in 2020/21.

Much of the increase in income was driven by the return of spectators after the Covid-19 pandemic. Matchday revenue reached £41.9 million, up from £18.2 million the previous year.

Income from commercial partnerships and sponsorships was also higher, rising to £7.3 million from £4.7 million, with revenue from retail and other commercial activities reaching £9.9 million, up from £5.7 million.

Broadcast income fell slightly to £7.2 million from £7.7 million, while the club earned £17.3 million from UEFA prize money and solidarity payments after reaching the Europa League final, up from £11.2 million the previous year.

Record player sale

Rangers earned a player trading profit of £11.2 million following the record player sale of right-back Nathan Patterson to Everton.

The club posted an operating profit of £5.9 million, after suffering an operating loss of £21.8 million in 2020/21.

However, chairman Douglas Park noted that “a squad investment of £7.5 million in the year under review adds to the £16.8 million in the previous year and was supplemented further by £15 million since the year end, in the summer transfer window.”

He added: “Further to that, £10.6 million has been invested in the stadium, training ground and New Edmiston House [a museum, retail and events space] over the past two-year period.

“Due to this squad and infrastructure investment, the business incurred player amortisation and depreciation of £13.9 million. This contributed to the overall net loss for the year of £0.9 million.”

Newcastle United owners make fresh £70.4 million injection into club

Newcastle United’s owners have injected a further £70.4 million of equity into the club, and have pledged more investment moving forward.

The latest injection brings to over £450 million the investment made so far by the ownership group, which is led by Saudi Arabia’s Public Investment Fund and also includes PCP Capital Partners and RB Sports & Media.

A Newcastle statement read: “The capital injection follows a wide range of investments in the club that has seen an upgrade of training facilities, improvements to St. James’ Park and recruitment of a number of senior executives to build out the commercial operations of the club, as well as
investment in the playing squad.

“Further investment is expected which reflects the ownership group’s long-term commitments for Newcastle United.”

Long-term plan

Newcastle United CEO Darren Eales said: “We are at the beginning of a long-term plan that aims to build a club that can compete consistently at the highest levels of English and European football.

“We need to develop the whole business, as well as the playing squad, and we need to do so while adhering to the Financial Fair Play rules. This additional investment further enables us to continue implementing the business plan.”

Liverpool owner Fenway Sports Group open to bids of at least £3 billion to buy club

Liverpool’s owners Fenway Sports Group (FSG) are open to offers of more than £3 billion to acquire the club, according to The Times.

A statement from FSG earlier this week said that “under the right terms and conditions” it would “consider new shareholders”, adding that “FSG remains fully committed to the success of Liverpool, both on and off the pitch.”

It is understood that a sales brochure was circulated to potentially interested parties last month and the message being communicated is that the exercise is not limited to raising further investment, but could extend to selling the club in its entirety at the right price.

Sources have told The Times that FSG is inviting bidders, while parties who were involved in trying to buy Chelsea this year said it was their understanding that Liverpool were for sale.

“We are being guided that any offer has to be more than £3 billion,” said one senior figure from a consortium that tabled an offer for Chelsea.

Valued at £3.89 billion

Liverpool were valued at £3.89 billion by Forbes in May but that was before Roman Abramovich sold Chelsea to a consortium led by Todd Boehly and Clearlake Capital for £2.5 billion, with a guarantee of a further £1.75 billion investment in the club.

While offers are likely to come from the Far East and Middle East for a club who boast a global fan base of more than 100 million, another American owner is viewed as the most likely outcome.

Financial Times: Hertha Berlin reported Lars Windhorst’s bank to regulator

More revelations connected to Hertha Berlin investor Lars Windhorst have appeared in The Financial Times.

The newspaper has reported that a Vienna-based private bank that provided confirmations of wire transfers supposedly made by Windhorst was reported to Austria’s financial regulator after the money failed to turn up on time.

In July 2020, Windhorst agreed to pay €150 million to raise his stake in Hertha Berlin from 49.9 per cent to 66.6 per cent.

Sources told the FT that a senior banker at Euram Bank repeatedly told the Bundesliga club in October and November 2020 that an expected payment of €25 million from Windhorst’s personal account was imminent.

However, despite the bank’s repeated assurances, only €5 million was paid at the end of October; the remaining €20 million was transferred in mid-December.

Hertha were said to be so incensed by communications from an Euram banker about the delays that it raised a complaint with the bank’s top management and reported the conduct to Austria’s FMA financial regulator.

The club argued that the behaviour raised “serious questions” about “proper business conduct”.

“Completely without merit”

A lawyer for Euram told the FT that Hertha’s complaint to the banking regulator was “completely without merit” and said that the club “even apologised to our client Euram Bank” in writing for the “potential irritation”. In the letter Hertha in January 2021 told Euram it regretted any “potential irritation”.

Windhorst last month announced that he wants to terminate his involvement with Hertha, following revelations in the FT that he allegedly hired corporate spies who set up an undercover operation to force out Werner Gegenbauer, the club president’s at the time.

AC Milan announce departure of CEO Ivan Gazidis

AC Milan CEO Ivan Gazidis is to leave his position on 5th December, the club have announced.

In a statement, Milan said that “Gazidis will remain fully operational in his role as CEO until his departure date and the club will make an announcement regarding his successor in due course.”

The San Siro club added that he “has led the club through a period of growth and modernisation both on and off the pitch.”

Diagnosed with throat cancer

Gazidis took over at Milan in December 2018, having previously spent almost ten years as CEO of Arsenal. Hewas diagnosed with throat cancer in 2021 and said at that time he would remain in his role at Milan while undergoing treatment.

American investment firm RedBird Capital completed its €1.2 billion takeover of AC Milan on 31st August.

England’s so-called ‘big six’ clubs have failed to halt a move by the Premier League to start discussions with the FA and EFL over a radical overhaul of financial distribution in English football, The Times reports.

The top-flight clubs voted by 14 to six on Tuesday to give the Premier League executive the mandate to start talks over the ‘New Deal for Football’ which would result in about £170 million more a year being given to the EFL and parachute payments being drastically cut.

If one more club had voted against the plan at the Premier League shareholders’ meeting, the move would have failed; the six clubs objected on the grounds that they wanted to know the formula for deciding how much each club would have to contribute before giving the mandate.

Premier League income

Sources told The Times that the six - Arsenal, Chelsea, Liverpool, Tottenham Hotspur and the two Manchester clubs – do not want those playing in Europe to have to contribute more, believing each club’s contribution should mirror their Premier League income.

That would mean if the EFL distribution cost the bottom club £10 million, the top club would pay £17 million. However, the small and medium-sized clubs want income from Europe, particularly the Champions League, to be part of the equation.

UEFA issues angry response to European Super League CEO comments after meeting in Nyon

A war of words has broken out between UEFA and A22, the company behind the European Super League, following a meeting involving both parties and senior figures from across the European game held on Tuesday.

Present at the meeting, which took place at UEFA’s headquarters in Nyon, Switzerland, were UEFA president Aleksander Ceferin and officials from Europe's top leagues as they met with A22’s new CEO Bernd Reichart and its founders Anas Laghrari and John Hahn.

European Club Association (ECA) chairman and Paris Saint-Germain president Nasser Al-Khelaifi also attended the meeting, along with the CEOs of several clubs and representatives from supporters' associations.

In a statement issued after the meeting, UEFA said: "In line with the unity of European football, UEFA and the participating football stakeholders once again unanimously rejected the rationale underpinning projects such as ESL during today's discussion."

In a long statement released by A22, Reichart referred to the case heard in July by the European Court of Justice, which is due to give a ruling on UEFA’s position as both a regulator and competition organiser in the coming months.

Reichart also said A22 has been contacted by "numerous clubs" and were in dialogue with them to discuss reforms, but he did not name the clubs involved.

“Not faceless bureaucrats”

A22’s statement brought a furious reaction from UEFA, with the governing body issuing a fresh statement later in the day saying that “UEFA is currently checking the recording [of the meeting] to see if [A22] are talking about the same meeting.”

UEFA took particular issue with a line from A22’s statement about who attended the discussions.

“The “other executives” they refer to were not faceless bureaucrats but senior stakeholders from across European football, players, clubs, leagues and fans; people who live and breathe the game every day. To fail to recognise that is disrespectful,” UEFA said.

The governing body added: “If there is a “takeaway” from today, it should be that the whole of European football opposes their greedy plan"

“A22 wanted dialogue so we gave them 2.5 hours of time from all of the game’s stakeholders and each one rejected their approach.

“They claim not to represent the three remaining clubs. They refuse to define what their alleged new approach is. They claim to want dialogue. But when presented with the chance, they have nothing to say.”

Southampton among English clubs looking to cash in on US interest in Premier League

Liverpool are far from alone in seeking to capitalise on the rapidly growing US interest in Premier League and EFL Championships clubs, according to The Daily Telegraph.

It was reported earlier this week that Fenway Sports Group is using Goldman Sachs and Morgan Stanley as brokers to sell Liverpool, indicating that they see the US market as the best place to seek reinvestment. 

And other clubs are also testing the market following the feeding frenzy around the £2.5 billion Chelsea sale, with glossy brochures on behalf of various different Premier League clubs said to be piling up on Wall Street desks. 

KKR Capital Markets, a broker which has seen the paperwork related to Liverpool, sent The Telegraph documents prepared on behalf of two other clubs, including Southampton. 

Rather than seeking a sell-off of shares, banks were instead invited to set a borrowing package for the south-coast club worth around £80 million against the club’s assets. 

“Ferocious interest”

Another leading US financial worker claimed he had been handed brochures for another two Premier League clubs and a leading Championship team over the past five months. 

“All club owners, whether new or old, now have one eye on the ferocious interest over here [in the US],” the banking insider said. “It is no surprise that Liverpool’s owners are looking at us, too.”
 

New Brazilian league in talks with UAE's Mubadala Capital over 20 per cent stake

The new Brazilian football league Libra is in talks to sell a 20 per cent stake to UAE's Mubadala Capital for around 5 billion reais ($971 million), according to Reuters.

In a statement released on Tuesday, the league confirmed that talks with the Abu Dhabi-based firm are taking place.

"After a competitive process managed by Banco BTG Pactual and Codajas Sports Kapital, an assembly of LIBRA (...) on November 7th approved exclusive negotiations with Mubadala Capital", the league said. 

Representatives of football clubs voted on the assembly. The value and stake size quoted by Reuters had previously been reported by Brazilian newspaper O Globo. 

New rules

Libra is seeking to take advantage of new rules aimed at attracting more foreign investment in Brazilian football. 

While the new league already has the support of some of the South American nation’s biggest clubs, including Corinthians, Flamengo and Palmeiras, it has faced opposition from some smaller teams worried that its model for income distribution will favour the biggest names. 
 

Sepp Blatter admits awarding World Cup to Qatar ‘was a mistake’

Former FIFA president Sepp Blatter has admitted the decision to award the World Cup to Qatar was a “mistake”, with the start of the tournament less than two weeks away.

Blatter was FIFA president in 2010 when its executive committee controversially voted to award the hosting rights for the 2018 World Cup to Russia, and the 2022 tournament to Qatar.

The Middle East country has faced criticism over its treatment of migrant workers and discriminative LGBT+ laws, and the need to move the tournament to November and December due to heat.

FIFA’s decision to stage the World Cup in Qatar has also been the subject of scepticism after several members of the executive committee who voted in 2010 were later convicted or indicted in criminal or ethics cases.

Banned from football

Blatter, who maintains he did not vote for Qatar, was cleared of fraud charges by a Swiss court in July following a £1.7 million payment to former UEFA president Michel Platini, but he remains banned from football because of the incident.

In his first interview since he was acquitted of the charges, Blatter told Swiss newspaper Tages-Anzeiger that he wanted to award the 2018 and 2022 World Cups to Russia and the USA as a “gesture of peace” only for the executive committee to vote in favour of Qatar.

“It’s too small a country,” he said. “Football and the World Cup are too big for that.”

Fenway Sports Group (FSG) has put Liverpool up for sale, according to The Athletic.

The website has reported that a full sales presentation for interested parties has been produced, and Goldman Sachs and Morgan Stanley have been retained to assist with the process.

It is unclear whether or not a deal will eventually be done, but FSG is inviting offers, the report claims. FSG has looked at opportunities in the past but decided against moving forward with them.

Expressions of interest

A statement from FSG reads: “There have been a number of recent changes of ownership and rumours of changes in ownership at EPL clubs and inevitably we are asked regularly about Fenway Sports Group’s ownership in Liverpool.

“FSG has frequently received expressions of interest from third parties seeking to become shareholders in Liverpool. FSG has said before that under the right terms and conditions we would consider new shareholders if it was in the best interests of Liverpool as a club.

“FSG remains fully committed to the success of Liverpool, both on and off the pitch.”

Manchester City announce record profits and revenue for 2021/22

Manchester City have reported record profits of £41.7 million for the 2021/22 financial year, up from £2.4 million the previous year, with total revenues reaching £613 million, also a historic high, up from £569.8 million in 2020/21.

The club, who have won four of the last five Premier League titles, noted that the increase in total revenue was driven by rises in commercial and matchday income, partially offset by a decrease in broadcast revenue owing to matches in the 2019/20 season being included in the 2020/21 financial year.

Matchday revenue was £54.5 million, up from £732,000. In 2021/22, all 27 home games were played in front of a full capacity crowd, while in the previous season 25 of the 26 home games were played behind closed doors due to Covid-19 restrictions.

Commercial income was £309.5 million, compared with £271.7 million the previous year, with the increase attributed to new sponsorship agreements and the return of concerts to the Etihad stadium following the pandemic.

Covid delay

Broadcast revenue was £249.1 million, down from £297.5 million. This was primarily due to City playing 13 fewer games across all competitions than in 2020/21, following the delay to the completion of the 2019/20 season due to Covid, and also as City were beaten in the Champions League at the semi-final stage in 2021/22, after reaching the final the previous season.

The club earned a profit on player sales of £67.7 million, down slightly from £68.5 million in 2020/21, bringing the club’s total profit from transfer activity over the last five years to more than £250 million.

Apple targets MLS deal for advertising expansion

Apple is building an advertising network for live television as part of its deal to stream Major League Soccer games next year, according to Bloomberg.

Sources have told the financial news service that Apple is holding discussions with advertising partners and MLS sponsors in advance of the launch next February about airing advertisements during football matches and related shows.

The tech giant recently struck a 10-year deal to air MLS games in a new subscription service, as well as on the Apple TV+ streaming platform. The company will also stream a portion of games for free to users of the Apple TV app.

Apple sees the revenue from advertising on MLS games, in addition to subscription fees, as key to generating money from the MLS deal. The contract has been estimated to cost $250 million per season, or $2.5 billion over the next decade.

All three tiers

Apple is planning to run advertising in all three tiers of the partnership: the dedicated package, paid TV+ subscriptions and the free TV app. The move represents an expansion of the company’s early live TV advertising, which is included in Major League Baseball games that already air on TV+.

Bloomberg noted that the move is also part of a more aggressive push by Apple into advertising. The company’s advertising unit generates about $4 billion in revenue annually, but is seeking to increase that to double-digit billions of dollars.

European Super League CEO claims “sharp financial control” would be applied to competing clubs

Bernd Reichart, the new CEO of A22, the company behind the European Super League, has claimed that financial fair play would be rigorously applied if the proposed breakaway league was set up as he shared further details of the plans to revive the project.

In an interview with the Spanish daily sports newspaper Diario AS, Reichart said: “In the Super League a sharp financial control will be applied, do not hesitate. It is one of the axes of our project.”

He added: “Football must control its expenses and live on the income it generates. Financial fair play is vital, haggling it or escaping its control is distorting the competition. For the rest, any support on this issue is welcome.”

Reichart will travel to Nyon, Switzerland this week to discuss plans to relaunch the European Super League with UEFA.

“I think we have to put the problems of football on the table,” he said. “Therefore, we will travel to Nyon for the purpose of talking about our disagreements, but with the will to confront ideas to move forward.”

CJEU ruling

Reichart was asked if there could be an agreement between UEFA and the Super League before the ruling from the Court of Justice of Luxembourg (CJEU) due to be delivered in December over UEFA’s monopoly as a regulator and competition organiser.

“We trust the courts of the European Union and we will abide by their ruling,” Reichart said. “The question of whether UEFA has a monopoly is on the table and, given its importance, needs to be clarified.”

The German media executive also confirmed that “the Super League will not be an exclusive or closed competition. There will be no permanent members. Beyond Real Madrid, Barcelona and Juventus there are many other clubs that have concerns and ideas to improve football in Europe.”

FIGC president calls for major changes to help Italian clubs avoid spiralling debts

Gabriele Gravina, president of the Italian Football Federation (FIGC), has declared that football in Italy requires major reform if clubs are to improve their finances and avoid accumulating further debt.

Speaking on the sidelines of the Sport Industry Talk held on Monday, organised by the Milan-based business school RCS Academy and national newspaper Corriere della Sera, Gravina said: "In our football there is an endemic criticality: debt. Not even the famous debt bill produced a solution.”

He continued: “There is a mismatch between revenues and costs. The world of football today has no assets, but lack of liquidity and finance. We need to reduce labour costs, but also invest in infrastructure, and the 2032 European Championship could help.”

Government support

Gravina welcomed the support Italy’s bid to host Euro 2032 has received from the country’s new government, and said that being awarded the tournament would act as a springboard for major investments in the country’s football stadia.

But he also stressed that “we must invest in young people and get to a reform of Italian football, especially at a cultural level.”

He added: “In the FIGC there is a very significant orientation in the enhancement of young people, starting with the under-15s. Whether the future will be rosy I do not know, but we must have confidence in this investment.”

Borussia Dortmund have reported a profit of €37.8 million for the first quarter of the 2022/23 financial year, up from €32.1 million for the same period in 2021/22.

The club’s preliminary results for the three months up to 30th September 2022 show that turnover for the period was €104.3 million, compared with €94.1 million in the first quarter of the previous year.
The increase in turnover was primarily driven by a near-tripling in matchday income from €3.3 million to €9.5 million following the easing of Covid restrictions.

Broadcast revenues were €45.7 million (€46.4 million in Q1 2021/22), commercial income was €33.4 million (€28.4 million), merchandising revenues were €8.1 million (€10.6 million), and conference, catering and miscellaneous income was €7.6 million (€5.4 million). Net revenues from player transfers amounted to €61.4 million (€59.5 million).

EBITDA rises to €72.7 million

Cost inflation was relatively benign, with personnel expenses increasing from €54.4 million to €57.8 million. EBITDA for the period was €72.7 million, up from €68.1 million.

Dortmund’s full Q1 2022/23 quarterly financial report will be released this Friday.

RB Leipzig CEO Oliver Mintzlaff leaves club to head up sports for Red Bull

RB Leipzig have announced that the club’s managing director and CEO Oliver Mintzlaff has resigned and will take up a position at the top of Red Bull following the death of the company’s founder Dietrich Mateschitz last month.

In a statement, Leipzig said Mintzlaff will leave the club with effect from 15th November and is to become Red Bull’s new CEO corporate projects & investments.

The former long-distance runner became the Leipzig CEO in 2014 and took up an additional role as head of global soccer at Red Bull in 2015. He will now be one of three new managing directors at the company and will be responsible for all of the group's sports activities.

Along with RB Leipzig, Red Bull owns the Austrian club FC Red Bull Salzburg as well as the New York Red Bulls of the MLS and two clubs in Brazil. It also owns a Formula 1 team and ice hockey clubs from Munich and Salzburg, and has an extreme sports division.

Commitment to Leipzig

Kicker reports that while Mintzlaff has played a key role in Leipzig’s growth and development over the past eight years, his departure is not necessarily bad news for the club as it means Red Bull’s commitment to Leipzig will be maintained following the passing of its founder.

Leipzig said that “until further notice, the management of RB Leipzig will be carried out by the managing directors Florian Hopp and Johann Plenge.”

The club had previously announced that Max Eberl will join as managing director sport in December “to complement the existing management”, and will be “responsible for the entire sporting area.”

Leipzig added: “Oliver Mintzlaff will remain responsibly associated with RB Leipzig and will be available to the club as a member of the supervisory board in the future.”

Leeds United face €21 million bill to pay RB Leipzig after losing CAS appeal

Leeds United have lost their appeal to the Court of Arbitration for Sport against FIFA’s ruling over French striker Jean-Kevin Augustin, leaving them with a €21 million bill to pay RB Leipzig.

The case related to Augustin’s six-month loan spell at Elland Road which ended on 30th June, 2020. Leeds had a ‘purchase obligation’ for the player should they achieve promotion to the Premier League.

The Yorkshire club were promoted from the EFL Championship, but did so after the usual end of season timings due to the delays caused by Covid, and Augustin returned to his parent club.

CAS sided with Leipzig in the case, which should lead to an opening instalment of €6.7 million for the striker.

In a statement, CAS said the panel that heard the case “held that the Purchase Obligation had been triggered at the end of the 2019-2020 season, even though the season had concluded later than expected due to the disruption caused by the outbreak of the COVID-19 pandemic.”

It added that the panel “confirmed the Challenged Decision in full, including the obligation of LUFC to pay to RB Leipzig the first instalment of the transfer fee, the two other instalments being not due yet, at the time of the FIFA procedure.”

Leeds “surprised and disappointed”

Leeds said in a statement that they “are surprised and disappointed by the Court of Arbitration for Sport’s decision, which not only contradicts the language and meaning of the contract but also the practices adopted in European football under FIFA regulations, due to the unique impact of the extensions to the season necessitated by Covid postponements.

“The club will now review carefully all of its legal options with a view to an immediate appeal. We will make no further comment at this time.”

Real Sociedad suffer €4.3 million loss despite record turnover

Real Sociedad have announced a loss of €4.3 million for the 2021/22 financial year despite achieving a record turnover of €138.7 million, which was up 25 per cent on the previous year and €2 million more than initially forecast.

The club pointed to a decline of €4 million in its LaLiga broadcast rights income as the key factor in the deficit for the year. The lower revenues came as a result of the 5 per cent drop in the amount LaLiga was able to hand out to clubs for TV rights in 2021/22.

The reduction was caused by factors related to the Covid pandemic, in particular the renegotiation of some international contracts and issues with LaLiga’s ‘horeca’ (hotels, restaurants, and cafes) channel.

Real Sociedad’s bottom line for 2021/22 was also affected by a rise in costs to €143 million. The club is yet to release any further details of its income or expenses for the year.

Record profit expected for 2022/23

For the 2023/23 financial year, Real Sociedad have budgeted for a turnover of €129 million and expenses of €128 million. However, it is expected to finish the year with a record profit following its transfer activity in the summer.

In August Real Sociedad sold Swedish striker Alexander Isak to Newcastle United for €70 million. The club’s biggest profit to date is the €30.5 million it earned in 2014/15 following the sale of Antoine Griezmann to Atlético de Madrid.

Napoli president Aurelio De Laurentiis is among a number of prominent figures in Italian football facing the possibility of a prison sentence following an investigation by the Naples Public Prosecutor's Office into alleged false invoicing.

Italian newspaper Il Mattino reports that the prosecutor has asked for a one-year prison sentence for De Laurentiis, as well as Atalanta president Antonio Percassi.

The prosecutor has also requested a sentence of 13 months for former AC Milan CEO Adriano Galliani, and two years and eight months for the agent Alessandro Moggi.

The accusation of false invoicing relates to the three-way relationship between a club, a player and his agent. The investigation has focused on cases where until the day before signing the contract, an agent managed the player’s interests, but when the contract was signed the agent took on the role of a consultant at the buying club.

The allegation is that this allowed the player to cut the salary costs being paid to his agent, and make the net effect of the arrangement fall on to the club’s balance sheets, for an operation considered fictitious.

Emanuele Calaiò transfer

In relation to De Laurentiis in particular, the judges deciding on the case will examine the transfer of Emanuele Calaiò, who was signed by Napoli from Siena in July 2013 in a deal worth around €1.25 million. Calaiò had previously spent three and a half years at Napoli before leaving for Siena in July 2008.

LaLiga president Javier Tebas says he has no interest in meeting with European Super League CEO

LaLiga president Javier Tebas has insisted he will not be meeting Bernd Reichart, the new CEO of A22, the company behind the European Super League.

Tebas was in Lisbon on Wednesday for Web Summit, where Reichart was also present. The LaLiga chief told the PA news agency: “I am not going to meet with him. I have not been asked to meet with him and I also have no interest in meeting with him.”

The Spaniard said he maintains his opposition to the European Super League project and accused A22 of trying to act “like lambs but they are in fact wolves”.

Tebas also said he was well aware of the proposed breakaway league’s plans, and believes the project, which now only has the backing of Real Madrid, Barcelona and Juventus, will look to introduce a tier system with promotion and relegation where a certain number of clubs would remain in an elite competition at the end of each season.

A similar proposal was recommended by the European Club Association and UEFA in 2019 but widely rejected.

“Sure, they will say this in a few weeks but we already know because discrete they are not,” Tebas said. “The same model, European football – including UEFA and ECA – have already discarded. I hope to waste very little time on this new model they are proposing.”

New name to be adopted

During a talk at Web Summit named ‘Football can do better: An open dialogue about the future of European club competition’, Reichart – who is due to meet UEFA for talks next week – revealed that a new name would be adopted for the next version of the Super League project.

He said: “It is very much alive, I am happy to say even if others insist on a different version of the story. We are back with the ambition of making club football better."

DFB admits it could face €46 million bill for unpaid taxes

Germany’s FA, the DFB, has revealed it could be forced to pay more than €46 million in unpaid taxes due to unresolved cases stretching back over the past eight years.

DFB treasurer Stephan Grunwald, together with Jan Olaf Leisner, a lawyer who specialises in tax law, gave an update on the cases during a virtual media conference on Wednesday.

The first case relates to DFB’s previously disclosed possible loss of non-profit status for the years 2014 and 2015. The DFB and its legal representatives are accused of having committed tax evasion in both those years in relation to incorrectly taxed income from perimeter advertising.

The DFB said it rejects these allegations. "Any income generated by the DFB through perimeter advertising and other business areas was correctly taxed," said Grunwald.

However, he explained that the association must assume that the non-profit status for the years 2014 and 2015 could be revoked, in which case tax arrears of €26 million would follow.

The second case relates to the assignment of the transfer of the name and logo rights of the DFB’s kit supplier Adidas to tax-free asset management and some related entertainment costs.

In a statement, the DFB said: “A clear mistake has recognised the recently staffed tax department of the DFB in the booking of the entertainment costs. The DFB informed the tax office about the facts immediately after the error was discovered and reported it itself.”

For this case, the DFB said it could face a tax bill of €16.8 million in relation to the "assignment of name and logo rights to Adidas for asset management", and €3.3 million to the "valuation of entertainment costs."

“Not threatened with insolvency”

When added to the €26 million for the non-profit status case the DFB said “these three issues necessitate the creation of provisions amounting to more than €46 million.”

However, Grunwald stressed that "the DFB is not threatened with insolvency. The association has liquid assets in the three-digit million range.”

He also noted that tax arrears of €22 million from 2017 could be refunded to the DFB. "Unfortunately, we had to file a lawsuit with the Hessian Finance Court of Kassel regarding the 2017 withdrawal of the non-profit status for the year 2006," Grunwald said.

The DFB was accused of having wrongly claimed a payment of €6.7 million to FIFA as an operating expense. The amount was used to hold a World Cup opening gala in 2005.

"This has not yet been proven and we see no evidence for the allegations,” Grunwald said. “Therefore, we are still convinced that we were wrongly deprived of our charitable status for the year 2006.”

The new face of the European Super League, Bernd Reichart, will meet UEFA next week to discuss plans to relaunch the competition with European football's governing body.

Reichart, the new CEO of A22, the company which represents Super League teams, revealed the planned meeting while speaking on the podcast of Real Madrid's German midfielder Toni Kroos.

"I will be in Nyon next week to discuss this with UEFA,” Reichart said. “This is what I also understand by dialogue, that you listen to the other side and have confrontational conversations, because we certainly cannot agree on everything.”

He added that the start of talks with UEFA should be a "good sign for clubs that are currently still moving away or even fear sanctions" if they participate in the Super League dialogue.

UEFA confirmation

UEFA also confirmed the planned meeting. In a statement issued to the media it said: "We can confirm that Mr. Reichart requested a meeting with UEFA in writing, and UEFA will accede to his request next week as we are always open to constructive dialogue.

“We cannot share more details about the meeting as the letter did not reveal the issues he would like to discuss.”

Red Bull clubs face uncertain future after death of company’s founder

RB Leipzig and the other football clubs owned by Red Bull face an uncertain future following the death of Dietrich Mateschitz, the founder of the energy drinks business, on October 22nd, The Athletic reports.

Employees at RB Leipzig have been told that Red Bull will continue to sponsor the club’s shirt and stadium naming rights at a cost of €40 million a year.
The Bundesliga club has also had other financial assistance from the company in the past, including loans worth nearly €200 million, mostly to help Leipzig buy players.

According to The Athletic, whether Leipzig will continue to benefit from such financial backing, as well as the synergies of the RB football group, with its vertically-integrated farming of talented players, will depend on who will be in charge next at Red Bull.

Groomed as successor

In recent years, Mateschitz’s son Mark, 29, had been groomed as his successor, but he will need the acquiescence of the Yoovidhya family, who own 51 per cent of the company. And it is not clear whether they will share Dietrich Mateschitz’s enthusiasm for football, as well as Formula 1, skiing and various extreme sports.

Along with RB Leipzig, Red Bull also owns the Austrian club FC Red Bull Salzburg as well as the New York Red Bulls of the MLS and two clubs in Brazil.

Qatar minister rejects creation of compensation fund for World Cup migrant workers

Qatar's labour minister has said the country will not finance compensation funds for migrant workers who have worked on construction sites during preparation for the World Cup.

Ali Ben Samikh Al-Marri told AFP on Wednesday that he opposed the creation of a compensation fund for foreign workers.

NGOs including Amnesty International have called for the setting up of such a fund, and for FIFA to match the prize money for the World Cup by donating $440 million to compensate victims of migrant worker abuses in Qatar.

The federations of several teams competing at the tournament, including Germany, Holland and the USA, have joined the calls.

However, the labour minister said: “Every death is a tragedy but there are no criteria for establishing this fund. Where are the victims? Do you have the names?"

Fund set up in 2018

Al-Marri also noted that a fund had already been set up in 2018 for workers who did not receive their salary and that applications dating back more than 10 years were still being taken into account by the country.

Birmingham City could be charged with breaching EFL rules after receiving funding from prospective buyers Paul Richardson and Maxi Lopez without the league’s approval, according to The Daily Mail.

It is understood that Richardson and Lopez have been helping Birmingham with their running costs for some time, and this has led the EFL to investigate whether they are acting as directors of the club, which would constitute a breach of their regulations and lead to disciplinary charges.

Richardson confirmed to The Daily Mail that he is providing Birmingham with funding as part of his agreement to buy the club, but it is unclear whether or not he has received approval from the EFL to do so.

The local businessman has been in talks with Birmingham's owners since last summer as part of a consortium also featuring former Barcelona striker Lopez, and claimed in July that a takeover was three weeks away.

“All within the regulations”

“We have an agreement to buy the club and this [funding] is part of that arrangement,” Richardson said. “The funding is important. We can't manage the club, but have a say on what is spent and what is not spent. It's all within the regulations.”

Under EFL rules clubs are permitted to receive funding or loans from external sources, but a third party cannot act as a Relevant Person – which in effect means making key decisions or exercising powers normally associated with a club director – without gaining prior approval.

Mainz 05 earn €3.3 million profit after post-Covid recovery in 2021/22

Mainz 05 have reported a profit of €3.3 million for the 2021/22 financial year, the first time they have finished in the black since the onset of the Covid pandemic.

The Bundesliga club suffered losses of €10.2 million in 2020/21 and €2.2 million in 2019/20.

Turnover climbed to €115.1 million in 2021/22, up from €96.32 million in 2020/21. Broadcast income reached €53.6 million, while commercial revenues were €19.1 million. The club earned €16.1 million from player sales.

Personnel expenses totalled around €52 million, of which €38.5 million was for player wages. Equity increased from €37.2 million to €40.5 million. With total assets of €67.9 million, the equity ratio was 59.6 per cent, up from 50.7 per cent the previous year.

In addition, as pointed out by sporting director Christian Heidel, "Mainz 05 is one of the very, very few professional clubs completely debt-free. Mainz 05 does not have a single euro of bank liabilities.”

Supervisory board changes

Mainz 05 also gave an update on changes to the supervisory board following the dismissal of Jan Lehmann as the club’s chief commercial officer and chief financial officer back in August. Mainz had sited “different and sometimes incompatible views” with Lehmann about the future direction of the club.

Since Lehmann’s departure, the finance department has been run by CEO Stefan Hofmann, and he will continue to manage it for the time being. Dr. Volker Baas, chairman of the supervisory board, said an additional position on the board encompassing marketing and communication is also to be filled in the future, but "without time pressure.”

Lehmann’s responsibilities for both the commercial and financial aspects of the club had "proven to be meaningless" and "does not occur with most first division clubs," Baas said.
 

Tottenham Hotspur urged to drop AIA as sponsor over its support for Hong Kong security law

A group of UK politicians have called on Tottenham Hotspur to cut ties with their main sponsor AIA, accusing the club of “collaborating with supporters of human rights abuses in Hong Kong.”

Chinese company AIA Group has publicly supported the national security law in Hong Kong, which has cracked down on freedom of expression.

AIA, the largest life insurer in Asia, issued a public statement in 2020 in support of the law despite international condemnation.

The British government oppose the law and a parliamentary group have written to Tottenham chairman Daniel Levy and called for the club to end its partnership with AIA.

“Lending legitimacy”

In the letter, which has been seen by The Evening Standard, the politicians claim that by continuing to support the national security law, AIA is “lending legitimacy to China’s illegal establishment of a brutal, totalitarian regime in Hong Kong”.

The group — which includes Lord Alton of Liverpool, Baroness Bennett of Manor Castle and Lord Shinkwin — have called the law “overreaching and draconian”, and described Tottenham’s sponsorship with AIA a “stain” on the club’s reputation.

The Evening Standard said Tottenham declined to comment when it contacted the club.

Newcastle United director Amanda Staveley allegedly gave the media a “false picture” of the financial health of Newcastle United under Mike Ashley, putting her in breach of a £10 million loan deal with the club’s former owner, the High Court has been told.

Ashley is bringing a claim against Staveley, alleging she broke the terms of the agreement that required her not to “admonish” him or “diminish” his reputation over the management of Newcastle in public or to journalists.

Staveley, who is opposing the legal challenge alongside her husband Mehrdad Ghodoussi, the guarantor of the loan, denies making any breach, including allegations she passed information directly or indirectly to a Sunday Times journalist.

Costs and expenses

The takeover of Newcastle by Saudi Arabia’s Public Investment Fund completed in October last year was brokered by Staveley, with her firm PCP Capital Partners taking a 10 per cent stake in the club.

The loan secured by Staveley with Ashley at the time was to pay for costs and expenses incurred by her and her subsidiaries in relation to the buyout, the court was told.

Italian club licenses for 2023/24 approved earlier to help teams plan finances

The Italian Football Federation (FIGC) has already approved the licenses to be used for professional clubs for the 2023/24 season under a new system designed to help teams plan further ahead as they recover from the Covid pandemic.

In a statement, FIGC said “the new regulatory framework provides for a strengthening of the system of interim controls and a gradual increase in the values of the control indicators, and has as its objective the economic and financial recovery of Italian professional football.”

FIGC has confirmed the liquidity index levels, which are used to control spending by clubs, for the next three seasons.

For 2023/24, the index is set at 0.6 for Serie A and 0.7 for Serie B and C. For 2024/25 it will be 0.7 for all leagues and for 2025/26 it will be 0.8 for all leagues.

The index measures the ratio between a club’s assets and short-term liabilities. An index of 0.6, for instance, means that assets have to cover at least 60 per cent of expenses for a club to sign new players.

The index was lowered from 0.8 to 0.6 for all leagues for the 2021/22 season due to the impact of Covid, and has remained on 0.6 for the current 2022/23 campaign.

“In line with UEFA rules”

FIGC said the new system is “aimed at rationalising and harmonising the federal legislation on controls on professional football clubs, in line with UEFA rules.”

Speaking at a press conference held on Monday to outline the changes, FIGC president Gabriele Gravina added: "Today a previous record of mine was beaten. In 2018 the licenses were approved in December, then due to various internal tensions we went further.

“This year we had set ourselves the goal of closing by October in order to guarantee clubs better planning. They are innovative licenses, which aim to give security to the system under three principles: solvency, stability and cost containment.”

West Brom in talks with MSD over £25 million loan for January signings

West Bromwich Albion are in talks with American private equity firm MSD Holdings about borrowing up to £25 million to spend on new players in the January transfer window, according to The Daily Mail.

The club currently sit bottom of the EFL Championship table and want to provide funds to new manager Carlos Corberan, whose first game in charge was Saturday’s home defeat to Sheffield United.

West Brom’s discussions with MSD Holdings are understood to be based on borrowing between £15 million and £25 million repayable at an interest rate of around 10 per cent.

MSD has been used to provide added capital over recent years by a number of clubs, including Southampton, Burnley, Sunderland and Derby County.

Losses of £23 million over last two years

The attempt to secure the loan comes amid uncertainty over West Brom’s finances. The club have recorded combined losses of around £23 million over the last two years and were three months late in publishing last year’s accounts.

Owner Guochuan Lai has attracted strong criticism from fans about the secrecy surrounding West Brom’s complex financial arrangements.

Lai borrowed £4.9 million from the club last year and used its shares to secure another £2 million loan. He is also liable for another £3.7 million loan taken out by the club’s previous owner Jeremy Peace.

West Brom CEO Ron Gourlay has said he believes the money owed to the club by Lai will be received by the end of December as has been previously promised.