Football's Magic Money Tree

[Chester Perry]

Last year Martin Samuel became one of the few journalists to interview Mike Ashley in recent years - that interview is posted back down this thread - what he has to say in his column in the Mail late last night re the takeover is very interesting

MARTIN SAMUEL COLUMN: Newcastle takeover is ringing the loudest of alarm bells as £300m sale looms large
Newcastle United owner Mike Ashley is reportedly close to selling the club
The Public Investment Fund of Saudi Arabia has estimated assets of £256bn
Despite both parties seemingly wanting to do a deal, a price is yet to be agreed

By Martin Samuel - Sport for the Daily Mail
Published: 22:30, 16 April 2020 | Updated: 23:42, 16 April 2020

There's a Tim Vine song about the importance of paying attention in case something is awry. He’s a comedian — it’s called Alarm Bells.

'When the rollercoaster’s fast, it makes you feel high / When the rollercoaster spins, the world whizzes by / When there’s blood on the seats.../ Alarm bells, alarm bells, alarm bells...’

The worry remains there is still time for the Newcastle takeover to shape up rather like that.

‘When the Saudis buy your club, it makes you feel rich / When the Reubens buy your club, it makes you feel swell / When they’re haggling for three years over the same amount of money it cost to buy Joelinton... / Alarm bells, alarm bells, alarm bells...’

Yet these are grim times, so let’s be optimistic for once. Let’s believe that all the delays, the convoluted structures, the partners, the brokers, the haggling over price, the timing of the deal now finally going through against a backdrop of global economic collapse, is all just the way business works in our modern world. Even so, doesn’t it seem the slightest bit strange?

The Public Investment Fund of Saudi Arabia has total estimated assets of £256billion. The difference between the £340m Mike Ashley wants for Newcastle and the £300m believed to be on offer, is 0.015 per cent of that wealth. And that is what has been holding this up?

The equivalent of £4.50 to a person earning £30,000 annually. Roughly the price of a pint of beer. Alarm bells, alarm bells.

There is a lot of information swirling around this takeover, all coming from one side, and usually one source. The seller has said nothing. All we know about Ashley and the consortiums raised by Amanda Staveley is that he does not trust them.

He branded previous negotiations a waste of time. He views Staveley as a self-publicist and considers some of their previous encounters opportunistic. It is unlikely those misgivings have changed, despite the blue chip nature of Newcastle’s other suitors.

While Staveley is involved, there will always be suspicions. Still, the bandwagon is rolling.

Thursday’s back pages included an interview with Faustino Asprilla, imploring the new owners to turn Newcastle into Manchester City, or Paris Saint-Germain. Yet the takeovers of those clubs, by groups from Abu Dhabi and Qatar, were never as torturous as this.

The news of City’s purchase broke in a flash one morning without warning. Even the club’s senior employees had no clue.

And much of Staveley’s reputation was built on her part in that takeover, although her perceived significance very much depends on who you ask.

Why would the PIF of Saudi Arabia need partners, is a commonly-asked question, too. Yet this isn’t entirely unusual.

It has minority stakes in Uber and Posco Engineering and Construction in South Korea and wider business arrangements with General Electric and the SoftBank Group. So being part of a consortium is not peculiar — but incessant delays are.

True, even the world’s richest men do not wish to be taken for mugs. Not everyone does business like Ashley, who eschewed due diligence when buying Newcastle, and uncovered some costly surprises when it was too late.

Yet if the consortium’s plans are to turn Newcastle into Manchester City, a lengthy stand-off over 11.7 per cent of the takeover price seems bizarre, given who is doing the buying. Surely they would just want to get on with it. That is why there remains a fear this is all an elaborate show.

Some interpret Ashley’s silence as confirmation a deal is nearing conclusion and he is doing nothing to jeopardise it, happy to get his £300m amid a huge economic downturn. That would make sense.

A more cynical interpretation is that Ashley is letting the deal proceed, placing no obstacles in its path, allowing the papers to be lodged with the Premier League until the moment he can look his suitors in the eye and tell them, ‘Right, show me the money’.

And if it is not there, if there is another hitch, another delay, a fresh round of conditions or negotiations, then it is on them, not him. He proves his point and is done: it really was another waste of his time.

Meanwhile, though, speculation continues around Newcastle as a future powerhouse.

The coronavirus crisis — and the inevitable lifting of red tape around owner investment that will follow — could leave the club in a hugely advantageous position. They will have money to invest when rivals are impoverished, maybe even destitute.

And there will be no moral dilemma around transfer spending after years of austerity. Newcastle buying big will not carry the stigma of a similar investment at, say, Manchester City.

Few will begrudge Newcastle an attempt to compete with the elite again, after so many years just about managing.

And yet, Saudi Arabian interests also own Sheffield United and their success has been due to the shrewd stewardship of Chris Wilder, not the lavishing of riches upon the club.

Sheffield United have furloughed staff during the shutdown — although the club has pledged to make up the remainder of salary. Even so, one would have imagined owners from the Gulf could have covered it.

So it is with Newcastle. They could be the next cab off the rank bound for the Premier League’s elite. Or they could be sold to a group who might balk at the money the reviled Ashley paid for Joelinton. Alarm bells, alarm bells, alarm bells...

[Chester Perry]

The pandemic induced financial crisis in the game has thrown up a new person of interest when it comes to wage cuts and deferrals - the sacked manager.

Remember all those posts on the cost of sacking a manager and the explanations of how usually rather than making a single payment clubs would just carry on paying the salary - well now at least one is being asked to take a pay cut, even though he is still out of work, No surprise it is Daniel Levy who is exploring this avenue - true Pochettino is a man who makes emotional ties with his clubs - but is this really the right thing to do after sacking him.

https://www.dailymail.co.uk/sport/sport ... alary.html

[Chester Perry]

The lawyers have moved in on the FA over the closing of seasons in the non-league pyramid - it was inevitable - just surprised it has taken this long

https://twitter.com/Ollie_Bayliss/statu ... 5838611456

and yet some Premier League clubs think Sponsorship and player contracts are their biggest problems if the season goes past the End of June

https://www.dailymail.co.uk/sport/footb ... eting.html

there are much bigger issues for all, over the next 18months. Anybody bar Rick Parry and a few benevolent owners really see football behind closed doors viable for any but the top 5 European leagues.

https://www.theguardian.com/football/20 ... rick-parry

Those Big 5 leagues are going to be called on to cover the cost of mothballing the game in lower leagues in their own countries at least.

[Chester Perry]

The pandemic induced financial crisis in the game has thrown up a new person of interest when it comes to wage cuts and deferrals - the sacked manager.

Remember all those posts on the cost of sacking a manager and the explanations of how usually rather than making a single payment clubs would just carry on paying the salary - well now at least one is being asked to take a pay cut, even though he is still out of work, No surprise it is Daniel Levy who is exploring this avenue - true Pochettino is a man who makes emotional ties with his clubs - but is this really the right thing to do after sacking him.

https://www.dailymail.co.uk/sport/sport ... alary.html

meanwhile Levy's Spurs are supposedly closing in on a £250m naming rights deal for the "Tax Avoidance" stadium (most appropriate if it is Amazon)

https://www.dailymail.co.uk/sport/footb ... ights.html

did this potential story contribute to the reversing of the furloughing decision

[Chester Perry]

A detailed look at the finances in the Championship and what it may mean post pandemic - from a new source - @UCFB’s Chris Winn analyses why
@SkyBetChamp clubs may be forced to “change and adapt’’ post-pandemic.

https://www.ucfb.ac.uk/news/ucfb-news-h ... mic-world/

Chris Winn, is a finance academic at University Campus of Football Business and former co-author the Deloitte Annual Review of Football Finance

[Chester Perry]

A detailed look at the finances in the Championship and what it may mean post pandemic - from a new source - @UCFB’s Chris Winn analyses why
@SkyBetChamp clubs may be forced to “change and adapt’’ post-pandemic.

https://www.ucfb.ac.uk/news/ucfb-news-h ... mic-world/

Chris Winn, is a finance academic at University Campus of Football Business and former co-author the Deloitte Annual Review of Football Finance

Which is why this salary cap story keeps bouncing around https://www.dailymail.co.uk/sport/sport ... mpact.html

this one from yesterday is London centric but proffers the same message https://www.standard.co.uk/sport/footba ... 15951.html

[Chester Perry]

Premier League clubs still committed to finishing the season after today's meeting

https://www.bbc.co.uk/sport/football/52326617

[Chester Perry]

Barney Ronay with another column - this time about the fact every org that has ever been a challenge to FIFA’s primacy is now massively weakened. This is Gianni’s world now...

https://www.theguardian.com/football/20 ... are_btn_tw

[Chester Perry]

No one should be surprised if after this shutdown, contracts that include wage cuts during lockdown are the new normal.

https://www.dailymail.co.uk/sport/footb ... racts.html

The players have been quick to berate clubs for financial mis-management (usually to meet their wage and transfer costs) but when they bring in sensible controls they should not expect to get off scot-free

[Chester Perry]

Brighton warn that they will feel significant financial strain if the Premier League season does not finish

https://www.independent.co.uk/sport/foo ... 71981.html

Is it me or have Burnley and Brighton been the best at fronting up to the media during the pandemic induced pause - you see them both constantly providing senior figures to respond to media requests

Another club doing well on the public perception front is Man United - more from it's actions than access but still playing the game and public mood well - this being the latest example - Simple, effective and will live long in the memory - a commercial partner's dream

https://twitter.com/premierleague/statu ... 3974487041

[Chester Perry]

An article from LawinSport.com looking at the key issues for football clubs using the governments furloughing scheme. Late in posting from me but if this carries on for a few months, most clubs (including ours) will probably end up using it

COVID-19: key points for football clubs on the UK Government’s job retention scheme
Published 03 April 2020 By: Oliver Hunt, James Hill, Alex Brooks

What is the Job Retention Scheme (JRS)?
A temporary scheme (starting from 1 March 2020 and running for at least 3 months) to support all UK employers affected by Covid-19. Any club can claim a grant from HMRC to cover up to 80% of an employee’s salary (not bonuses or commission) who is not working but being kept on the payroll (being “furloughed”), up to a maximum of £2,500 (gross) per month (plus employer’s NI and the minimum automatic enrolment employer pension contributions on top of this). The current Government guidance is available here[1]. The online service for making claims is not available yet but is expected to be live by the end of April 2020.

Which employees are covered by the JRS?
All on any type of contract, including full-time employees, part-time employees, employees on agency contracts and employees on flexible or zero-hour contracts who have been on PAYE payroll since 28 February 2020 and who are designated as being furloughed for at least 3 weeks continuously.

How does the JRS work for employers (as things stand prior to full details being published)?
(i) Decide which employees to designate as furloughed employees and notify them of the intended change

(ii) Consider whether to consult (where a number of staff are to be furloughed).

(iii) Agree the change (as most employment contracts (including standard form player contracts) will not permit an employer to reduce an employee’s pay without agreement). An employee can refuse to be furloughed. Confirm in writing.

(iv) Furloughed employees must not carry out work while they are furloughed, except volunteer work or training.

(v) Continue paying employees via payroll (at the lower rate of pay if applicable) and apply to HMRC for the JRS grants to reimburse these payments. Top up a furloughed employee’s salary if relevant (not obliged to do so).

(vi) JRS intended to operate until 30 June 2020 (but may be extended by the Government).

What are the key issues of note for football clubs?
(i) The JRS can be backdated to when the employees in question stopped working (e.g. 13 March 2020 when The FA, Premier League, EFL and Barclays FA Women’s Super League and FA Women’s Championship collectively agreed to postpone the professional game), but no further back than 1 March 2020.

(ii) A club is entitled to furlough some or all staff. Therefore, you can furlough non-essential non-playing staff, whilst retaining playing staff, coaching staff and essential non-playing staff.

(iii) Whilst no related advice has been issued by The FA, Premier League or EFL, given that the agreement to being furloughed will amount to a variation of a player’s contract, this would seemingly give rise to an obligation for the club to file this variation with The FA and the relevant league (subject to any confirmation to the contrary).

(iv) Furloughed employees are not permitted to carry out any further work for their employer while they are furloughed. Therefore, should you choose to furlough playing staff, we would recommend that you make it clear that the club expects, but does not require, them to comply with club issued training plans, nutrition plans, etc., so that you do not fall foul of this requirement. The same principle applies to work carried out by any coaching or key operational staff that are furloughed.

(v) To the extent that you have any staff on zero hours contracts (such as matchday staff), subject to the precise terms of their contracts, you can simply not offer those employees shifts rather than needing to furlough them (albeit you can furlough them if you so wish).

(vi) Should you choose to lay off staff or make any redundancies, you should ensure that proper dismissal and/or redundancy procedures are followed to reduce the risk of unfair dismissal (or other) claims arising.

(vii)Consider consultation with PFA (although it is unlikely that an agreement with a union would negate the need to agree changes with each union member).

What should we do if we want to furlough employees?
You should write to the employees in question, setting out the basis upon which you are seeking to furlough them and requesting their agreement in writing to being furloughed.

[Chester Perry]

These figures look quite different from the last set that were published early in the season and are probably wrong now given the state of the global economy along with stock market and currency fluctuations. The purported wealth of Premier League club owners/major shareholders in League table form

https://www.dailymail.co.uk/sport/footb ... -spot.html

[Chester Perry]

An excellent and detailed piece from theesk.com looking at a future of reduced revenue and then applying it to Everton's cash flows and operations for the current season's accounts. Plenty for Burnley fans to chew on and also to be thankful for, I know the writer of the article is a little envious of our financial situation from an exchange I have had with him.

https://theesk.org/2020/04/19/business-as-usual/

none of this appears to account for any costs around the Bramley Moore Dock development incurred this year and is subject to the Premier League accepting that £30m naming rights option fee which is currently under investigation.

[Chester Perry]

A couple of Webinars presenting academic research papers and going into detail of the Economic Impacts of the pandemic on football - Academic and quite long but should be interesting for some

The first looks at "Demand and Decision Making in the COVID-19 Pandemic: A Case Study of European Football",

https://www.youtube.com/watch?v=HSRkNI0G3dg

The second is by Prof Stefan Szymanski of the University of Michigan presenting "Covid-19 and football club insolvency". comes with a recommendation deom @SwissRamble

https://www.youtube.com/watch?v=viPqe93rW2c

[Chester Perry]

finally it is here - @SwissRamble with his usual in depth analysis - this time on Burnley's 2018/19 Financial accounts

https://twitter.com/SwissRamble/status/ ... 3679089665

The highest of praise comes at the end - "Arguably, they are the best run club in the Premier League, not only surviving (and being competitive) despite the financial challenges, but also maintaining a sustainable business model with no debt."

[Chester Perry]

Another one of those legal advisory articles - this time, Analysis: FIFA's Guidelines In Reaction To COVID-19

https://fcbusiness.co.uk/news/analysis- ... -covid-19/

[Chester Perry]

this tale has been bouncing around for a few weeks now but will not go away - from the Times

Clubs that defer wages may have spending restrictions imposed
Paul Joyce, Northern Football Correspondent
Monday April 20 2020, 12.00am, The Times

Clubs who are deferring wages in the coronavirus crisis could face spending restrictions until players are paid the money they are owed.

Talks have already taken place at EFL board level after the Professional Footballers’ Association raised the matter. There is a groundswell of feeling that clubs who have chosen to delay paying players’ salaries during the health crisis should not be allowed to add to their wage bill until squad members have been reimbursed.

Furthermore, any money accrued from outgoing transfers should be used, in the first instance, to pay those players who have agreed to go without.
The development could have significant repercussions at Premier League level. Southampton’s players have agreed to give up 10 per cent of their salaries for April, May and June, with the money not due to be repaid until October, while West Ham United’s squad have deferred between 10 and 30 per cent of their wages.

Watford are set to become the third top-flight club to agree wage deferrals with their first-team squad. The club’s senior management and executives are also expected to agree to deferrals and have told players that they do not intend to furlough staff. Watford made a £16 million profit last season and had a wage bill of £84 million.

The question of whether they should be allowed to add to their wage bill in the meantime has also been discussed by top-flight clubs.

Discussions in the Football League are rooted in fiscal responsibility, and whether a rule change takes the form of a transfer embargo or sets certain restrictions remains to be seen. For example, a player leaving a club could not be replaced by someone who earns more than him.

A number of Sky Bet Championship clubs, including Wigan Athletic and Swansea City, and League One and Two sides have said they are deferring wages, while others have furloughed staff, as they seek to deal with the repercussions of the global pandemic. That has left other sides, who are committing to paying wages in full, insisting they should be not disadvantaged.

The move does not apply to clubs who have agreed wage cuts with their players. Any rule change has to be voted through by the clubs but The Times understands that the proposal is not seen as a controversial one, but rather rooted in common sense.

There is a realisation among the clubs that they need to do the right thing in such an unprecedented situation and further conversations are planned.

In the Premier League, Tottenham Hotspur have continued talks with their squad about a 10 per cent cut to wages while Arsenal believe that they have reached a deal with their players to reduce wages by 12.5 per cent over the next year. Chelsea’s players have agreed to a 10 per cent decrease.

[dsr]

It certainly makes sense that clubs who can't afford to pay their current staff shouldn't be allowed to appoint new staff.

[Chester Perry]

It certainly makes sense that clubs who can't afford to pay their current staff shouldn't be allowed to appoint new staff.

I suspect it is part of the reason for clubs not/reversing furloughing, and why many clubs are only looking at small deferrals - they can pay up as soon as the commitment to start the new season is made with consequent TV instalment payments.

[Chester Perry]

One of the most noticeable impacts of the Pandemic is the plethora of new articles, webinars and discussions from academics and professionals around the game that are not players or coaches, there is huge diversity in thought and quality out there - and more than many of us can find time to consume, I am taking the opportunity to find some new voices (even I get bored with referring to the same sources all the time though some like @SwissRamble and Simon Chadwick are recognised as the leading lights in their field

Today I am going to look at Football Business Academy - they have produced a series of youtube discussions around the impact of the Pandemic with another to start later to day

the first How COVID-19 is directly impacting Football across Europe" - had been posted before
https://www.youtube.com/watch?v=olPf6RAVrr0

the 2nd "Football in a Time of Crisis" https://www.youtube.com/watch?v=bPeamhIepwg

the 3rd Covid-19: Impact on Player Contracts and Next Transfer Windows https://www.youtube.com/watch?v=wiL2sfU-A0w

the 4th "The Impact of COVID-19 on Media & Broadcasting in Football" https://www.youtube.com/watch?v=_bwsGra2Ymc

The 5th "The Impact of COVID-19 on Football's Commercial Landscape" starts at around 3pm today
https://www.youtube.com/watch?v=kXeiDUdqVLs

[Chester Perry]

It is a strange (somewhat trivialising) title "The Mailman Post COVID-19 Playbook" but with serious intent as it presents "opportunities for global sport to explore when engaging the Chinese market." If China is really to be the bellweather for the global market all businesses are going to want to take a share of their market irrespective of populist opinion in some areas

Outline https://www.soccerex.com/insight/articl ... 9-playbook

Full report https://380c1e7a-3488-40d2-83c6-698e99b ... 5f28a0.pdf

[Chester Perry]

How football clubs across Europe are supporting their communities during the pandemic

https://www.sportbusiness.com/2020/04/v ... -lockdown/

[Chester Perry]

A more general sports journal, with some articles that we can relate to football - the April edition of "Sports Business Review" is now available online

https://d1k14t0yx9btx2.cloudfront.net/u ... -OPT-1.pdf

[Chester Perry]

There have been a number of posts and threads on this board talking about the economic benefit of Football tourism but it has it's problems not least that of racism, the menace that has been rising again in recent years especially in it's blatant openness. The new chair of Kick it Out has been speaking about a problem he has both faced and witnessed

https://www.bbc.co.uk/sport/football/52117355

[Chester Perry]

For the first time a senior UK Government minister has warned football that it will not be played in front of fans anytime soon - no surprise that it is Nicola Sturgeon - she seems to make all her announcements before the Government comes out with something similar, scheduling her briefings before theirs - she must love winding them up

https://www.bbc.co.uk/sport/football/52355228

[Chester Perry]

Remember that special week of reports last year on the issue of mental health in the game - a new survey by FIFAPRO the global players union has found that the rates of depression are growing in their members as worries of safety both medical and economic double down on it's members - it is likely to be reflective of society as whole at this time

https://www.theguardian.com/football/20 ... oronavirus

[Chester Perry]

The one thing that this thread has taught me is that whatever the situation someone will find a way of making money from and/or protecting their interests in the game. News coming in that a group of financiers have come together to help provide a £1bln fund for English football (Premier League), the financiers were brought together by interested parties including agents.

https://www.espn.com/soccer/english-pre ... -in-crisis

there is a warning though, as the chaps @Vysyble have said - Rescue funds usually come with a high price and some very stringent conditions.

[claretblue]

not sure if this is the appropriate thread for this information!

mind blowing figures!

https://www.thesun.co.uk/sport/football ... -revealed/

[Chester Perry]

not sure if this is the appropriate thread for this information!

mind blowing figures!

https://www.thesun.co.uk/sport/football ... -revealed/

It is relevant it has appeared on here in various forms over the years - I posted it from a different source yesterday afternoon

It is important to remember that the wealth listed does not mean monies that are to be released to a club, though some like Chelsea, Manchester city. Fulham, QPR, Bournemouth, Brighton and latterly Everton and Aston Villa have benefitted from an owner's largesse though not many can match the value and return of City and Chelsea

[Chester Perry]

I am still catching up on Podcasts - Here the Ornstein and Chapman Podcast discusses the Future of Football: The EFL and its fight for survival

https://podcasts.google.com/?feed=aHR0c ... ICxAE&ep=6

EDIT - that was an excellent discussion (though no conclusion really) much better than the one they did on the Premier League previoulsly

[Chester Perry]

I will follow that with this from Football today looking at the current ructions at Barcelona

https://www.footballtodaypodcast.com/po ... -boardroom

Fascinating stuff - but Sid Lowe talks so fast he gives me a headache

[Chester Perry]

Another tale of madness from the EFL under it's Previous Leadership - you have to feel for Dave Baldwin, the mess he has walked into seems to get bigger and bigger.

https://www.dailymail.co.uk/sport/sport ... -deal.html

No surprise as to where the nefarious dealing came from in the Championship

As for the ECB - they are not having a good time of it either

[Chester Perry]

The divisions apparent in that Ornstein and Chapman Podcast I posted earlier are starting to poor out now following Fleetwood Owner Andy Pilley's appearance tonight on 5Live - @AndyhHolt is not a happy chappy

https://twitter.com/AndyhHolt/status/12 ... 2878898183

[Chester Perry]

Earlier today John Nicholson issued a plea to Newcastle fans not to fall into the trap Man City fans have which is to effectively defend everything about their owners sim[;y because they love their clubs - it is probably a forlorn plea

https://www.football365.com/news/newcas ... -nicholson

still it might not happen now given the way the oil price has gone - it went below $1 a barrel today.

Still Mike Ashley is smiling one way or another - He has taken a £17m non refundable deposit on the sale (I said he was the ultimate barrow boy)

https://www.dailymail.co.uk/sport/footb ... fails.html

[Chester Perry]

KPMG's Football Benchmark looks at the growing presence of OTT in the distribution of Football content and the purchase of distribution rights

https://footballbenchmark.com/library/w ... g_industry

[Chester Perry]

With that Newcastle sale price being a reported £300m it represents a 12% reduction in asking price to reflect current market conditions - later this week we are expecting the latest University of Liverpool Management School‘s Centre for Sports Business Premier League club valuations report - It will be interesting to see where it values them and indeed all clubs in the current context (though that is not part of the Markham methodology)

I should also point out that with the financial accounts for both Newcastle and Crystal Palace from last season still not available that will be even more difficult.

a reminder of last years report that upset many and surprised even more

https://news.liverpool.ac.uk/2019/05/03 ... able-club/

[Chester Perry]

The divisions apparent in that Ornstein and Chapman Podcast I posted earlier are starting to poor out now following Fleetwood Owner Andy Pilley's appearance tonight on 5Live - @AndyhHolt is not a happy chappy

https://twitter.com/AndyhHolt/status/12 ... 2878898183

@AndyhHolt had more to say this morning

https://twitter.com/AndyhHolt/status/12 ... 7465709568

It is not a wrong or right view, it is the right view for his club and those with a different one including Darragh MacAnthony and Andy Pilley will agree with that. They all want to get to roughly the same structure but some do not want it to be at the cost of this season because they have already overspent with the dream of promotion.

[Chester Perry]

Sports organisations across Europe come together with a positioning paper calling for funding equal to other business sectors

https://www.euoffice.eurolympic.org/fil ... vision.pdf

[Chester Perry]

Interesting article in The Middle East Eye on the proposed takeover at Newcastle - the opening paragraph is a scathing attack on the Premier Leagues Owners and Directors Test

English football rules won't stop Saudi Arabia's Newcastle United bid
Proposed takeover would give Saudi investment fund headed by Mohammed bin Salman an 80 percent stake in club
By Ian Cobain
Published date: 20 April 2020 16:41 UTC | Last update: 17 hours 28 min ago

A Saudi takeover of a leading English football club looks set to go ahead because Premier League rules prohibit minor criminal offenders from ownership, but do not require any scrutiny of those accused of being war criminals, human rights abusers or murderers.

The takeover of Newcastle United FC is being planned by a consortium largely financed by the Public Investment Fund of Saudi Arabia.

With the fund chaired by Crown Prince Mohammed bin Salman, the bid has been condemned by human rights organisations, who describe it as a “sportswashing” operation to launder the Saudi government’s reputation.

However, the consortium is reported to be confident that the Premier League’s rules will not prove to be any obstacle to its £310 million purchase of the club.

Those rules prohibit anyone from becoming an owner or director of a Premier League club if they have been convicted of a crime involving dishonesty; if they have a conviction for football hooliganism; for ticket touting, or scalping; or for “dishonestly receiving a [television] programme broadcast from within the UK with intent to avoid payment”.

However, the rules do not prevent serious criminals or human rights abusers from becoming owners or directors of English football clubs.
Since bin Salman led a coalition that intervened in Yemen’s civil war in March 2015, Saudi forces have been accused by a United Nations human rights panel of committing war crimes – as have all other parties to the conflict.

Saudi forces have bombed schools, mosques, hospitals and markets, according to the United Nations and human rights groups.

Bin Salman became de facto ruler of the kingdom two years later, since when serious human rights abuses have continued unabated.

Muslim scholars have been executed, women’s rights activists have been detained and allegedly tortured and freedom of expression, association and belief continue to be denied.

The crown prince has also been accused of being directly responsible for the murder of Saudi journalist Jamal Khashoggi, a columnist with the Washington Post and Middle East Eye.

Khashoggi was killed inside the Saudi consulate in Istanbul in October 2018. Turkish eavesdropping devices established that his body was then dismembered, but his remains have never been found.

Bin Salman has accepted responsibility for the murder, saying it happened “on my watch”. He has denied ordering it. However, the CIA has concluded that he was to blame, while the United Nations special rapporteur on extrajudicial killings says he should be investigated for the crime.

Newcastle United is one of England’s oldest and best-supported football clubs. It has won the top-flight league on four occasions, and the FA Cup six times.

Many fans appear to be supportive of the takeover, believing that the current owner, Mike Ashley, a retail tycoon, has not given the club sufficient support.

The local newspaper has even suggested that the takeover could “reignite the soul of the club and lead to a new rush of optimism”.
At least a handful are concerned by the move, however.

The consortium is reported to have been put together by British businesswoman Amanda Staveley, who helped to orchestrate the purchase of Manchester City Football Club by Sheikh Mansour bin Zayed al-Nahyan of Abu Dhabi in 2008.

The takeover would be one of several investments that the Saudi Public Investment Fund is reported to be making after the value of its assets was hit by the coronavirus crisis.

The Premier League told Middle East Eye that it would not disclose whether it was considering the consortium’s bid under its owners’ and directors’ test.

However, the league did not dispute that its test allowed people alleged to have been involved in war crimes, human rights abuses and murder to take over English football clubs, while barring people convicted of minor offences.

'Blatant whitewash'
Felix Jakens, Amnesty International’s UK head of campaigns, said the takeover was a blatant act of “sportswashing”.

“We need to see it for what it is: Saudi Arabia attempting to use the glamour and prestige of Premier League football as a PR tool to distract from the country’s abysmal human rights record,” he said.

“Under the Crown Prince Mohammad bin Salman, Saudi human rights defenders have been subjected to a brutal crackdown, with numerous peaceful activists jailed - including Loujain al-Hathloul and other brave women’s rights campaigners.

“There’s been a blatant whitewash over Jamal Khashoggi’s grisly murder, and the Saudi-led military coalition in Yemen has a disgraceful record of launching indiscriminate attacks on homes and hospitals.

“All businesses need to safeguard against any possible complicity in human rights violations, and football is no different.

“Whether or not this deal goes ahead, we’d call on Newcastle United staff and fans to familiarise themselves with the dire human rights situation in Saudi Arabia and be prepared to speak out about it.”

The Saudi Public Investment Fund will own an 80 percent stake in the club if the deal goes ahead, according to UK media reports. Yasir al-Rumayyan, an ally of bin Salman and chairman of Saudi oil giant Aramco, is said to have been lined up to be the club’s chairman.

Staveley will also control a stake in the club, along with Reuben Brothers, a company controlled by British billionaires Simon and David Reuben. It's been reported that David’s son Jamie is also likely to be appointed to the board.

A spokesman for Reuben Brothers declined to comment on Amnesty’s criticisms on the grounds that the deal was not yet completed.

Staveley’s Dubai-based company PCP Capital Partners could not be contacted.

Newcastle United FC did not respond to requests for a comment.
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It is one of a slew of such articles @MiguelDelaney has one in the Independent that looks at the wider issue and citing the examples under the ownership of 2 other Middle Eastern States - PSG and Man City

One of the key features of the Owners and Directors Test is that it's criteria are not publicly known, it gets away with it because the Premier League is an Ultra Elite Private Members Club, yet one that operates in and gets it's revenues from the public domain. Is it right that this dichotomy still exists?

https://www.independent.co.uk/sport/foo ... 68236.html

[Chester Perry]

Sections of the media are having a field day with the revelation that Mesut Ozil has not agreed a pay cut at Arsenal while the majority of his teammates have - in this podcast his agent talks about the issues that players are facing players ***WARNING*** this is not Ozil specific

https://theathletic.com/podcast/163-ste ... episode=15

[Chester Perry]

today's Ornstein and Chapman Podcast looks at among other things that Newcastle takeover - there is a lot of strong debate points made to counter those articles I posted earlier from George Caulkin

https://podcasts.google.com/?feed=aHR0c ... Q&hl=en-GB

The podcast also includes an interesting section on bonus agreements/discussions at Watford - about 34 mins in - not a happy camp

[Chester Perry]

Following populist outcry over it's meetings to work it's way through the pandemic Melissa Reddy in the Independent on why the Premier League is and should be planning it's way through the Pandemic - it's a business

https://www.independent.co.uk/sport/foo ... 75856.html

[Chester Perry]

Barcelona are reported to being ready to repeat their shirt sponsor trick - with that they first had UNICEF on the front of their shirt before announcing a mega deal for a shirt sponsor - now they intend selling naming rights for the Camp Nou to raise monies for CoranaVirus fight. , but will follow for the club that is in a financial and organisational mess

https://www.dailymail.co.uk/sport/footb ... virus.html

[Chester Perry]

The different Spanish football authorities have come together with a plan with apparent exit velocity from the Pandemic (there is a global audience to woo and pull away from the Premier League)

https://www.sportbusiness.com/news/span ... asterplan/

The cynic in me says that the bid for the 2030 World Cup shows that Barcelona and Real Madrid have found a way of getting state funding for those hugely expensive stadium redevelopment projects they have been trying to get off the ground for some time.

Of course there is a problem with world cup bids (witness the fall out of Russia 2018 and Qatar 2022), my bet is on these guys

https://twitter.com/Prof_Chadwick/statu ... 9895542784

[Chester Perry]

Is this a step towards sanity? - League 1 and 2 clubs agree to open their books to the PFA's accountants to show the levelof financial distress they are under - you cannot ask people to give up something without being frank, open and honest

https://www.theguardian.com/football/20 ... as-request

[Chester Perry]

Meanwhile in Holland a Government announcement on mass gatherings effectively ended their season

https://www.bbc.co.uk/sport/football/52376543

you can see a raft of similar pronouncements coming across Europe (though maybe not Spain given their plans announced today)

[Chester Perry]

Rhyl football club becomes the first club to wind up as a result of the Pandemic's impact

https://www.rhylfc.co.uk/news/rhyl-fc-b ... procedures

a decision directly linked to not owning their own ground

[Paul Waine]

Rhyl football club becomes the first club to wind up as a result of the Pandemic's impact

https://www.rhylfc.co.uk/news/rhyl-fc-b ... procedures

a decision directly linked to not owning their own ground

My Dad was offered a job in Rhyl when I was maybe 10 years old and hadn't started going on t'Turf. He decided not to take it, so I never became a Rhyl fan. Of course, Accrington Stanley had already folded by back then …. and I became a Burnley fan.

UTC

[Chester Perry]

Meanwhile in Holland a Government announcement on mass gatherings effectively ended their season

https://www.bbc.co.uk/sport/football/52376543

you can see a raft of similar pronouncements coming across Europe (though maybe not Spain given their plans announced today)

Well this is a Stark contrast in approach from Sweden - but then there whole approach as a nation has been different - something about a high level of trust and co-operation between state and the people (conformity?) - Swedish Leagues to restart in front of fans in mid June

https://www.theguardian.com/football/20 ... are_btn_tw

[Chester Perry]

Update on Rui Pinto, John of Football Leaks notoriety, his lawyers are seeking to end his house arrest so that he will technically be a free man when his trial commences

https://www.theguardian.com/football/20 ... on-be-free