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New snags hit Newcastle deal

New snags have hit the Newcastle United takeover deal over the issue of relegation. Prospective purchaser Amanda Staveley is not satisfied with the prospect of a rebate if the club is relegated. She would prefer to pay a lower price for the club now and then top it up in May if Newcastle stay up.Newcastle are now just one point above the relegation zone and PCP Partners have calculated that they have a 65 per cent chance of going down.Unless a deal is reached soon it may not be concluded until after the end of the January transfer window. This would mean that much needed investment in new players would not take place and might be the last straw for manager Rafael Benitez. He has not been slow to express his concern: Transfer budget uncertainty It might not even be completed until February when the results of the last Premier League broadcasting auction are known. However, negotiations are still going on and there is always the chance of a sudden breakthrough. Staveley and her …
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The importance of ownership

The supporters trusts at Blackburn Rovers and Charlton Athletic have issued a joint statement ahead of the meeting of the two clubs at Ewood Park tomorrow on 'the importance of ownership'. They argue that their clubs have suffered from incompetence, arrogance, instability and absence, adversely affecting supporter morale: Ownership Charlton's ownership is Belgian and the Trust has produced an interesting analysis of the differences between British and Belgian culture, suggesting that they are more different than is assumed. I am not sure that I agree with the argument that there is a relative absence of hierarchy in Britain and we tend to see everyone a equal, but it is an interesting piece: Culture clash

Newcastle deal closer

A deal to sell Newcastle United now looks closer after Amanda Staveley made an improved offer of £300m: Takeover It might not be possible to get all the formalities completed until February and Newcastle urgently need quality signings in the January transfer window to boost a side that still looks like a Championship team. However, it might be possible to make an arrangement whereby purchasers PCP Capital Partners paid for any signings. A sum of £30m is being talked about.Ashley bought Newcastle a decade ago and has invested around £260m in the club. He had hoped to sell for nearer £400m and turned down Staveley’s opening £250m offer. The Sports Direct owner has not yet accepted the improved bid but it is understood he is minded to do so. Newcastle's recent poor form appears to have concentrated his mind.The identity of Staveley’s backers remains opaque but the 44-year-old is believed to have secured funding from the Middle East – quite possibly Saudi Arabia – and China.As par…

Financial success for Real Madrid

Real Madrid continue to match success on the pitch with financial success off it, the one clearly contributing to the other, but it also requires good financial and commercial management. The financial results for 2016/17 show that revenue rose nine per cent to reach a record high of €675m: Financial results. Revenue for 2017/18 is estimated to be €690m.Revenues are once again higher than rivals Barcelona by €25m. They are three times as high as those of Atletico Madrid, the next nearest challenger. Manchester United displaced Real Madrid from the top of the Deloitte Money League in 2015/16, but Real Madrid could regain the top spot in 2016/17, depending on the exchange rates used.In that season the club won La Liga, the Champions League, the Club WC and the European Super Cup. The club regards these trophies as among the greatest sporting achievements in its history. They are regarded as the team to beat in this year's Champions League competition.Since 2000 revenue has g…

AC Milan likely to face FFP sanctions

AC Milan look likely to face financial fair play sanctions after they failed to convince Uefa that they had a multi-year plan to balance the books. Uefa were not convinced by any of the arguments put forward by the Serie A club: AC Milan The club is likely to be banned from Uefa competitions in 2018/19. They may also be looking for a new owner with Li Yonghong due to make a €50m interest payment on the money he borrowed to buy the club next October.AC Milan had been confident of avoiding financial fair play penalties: Misplaced confidence

How far can globalisation go in football?

This is the question that is posed in an in depth analysis of City Football Club, the multi-club operation based around Manchester City: Globalisation The group already has clubs in Australia, Japan, Spain, Uruguay, the UK and the US. Clubs may be added in China and India.It claims to be 'the first truly global football organisation'. However, the benefits in terms of developing players appear to be marginal. It is difficult to see the operation as constituting a powerful brand. The allegiances of fans are to their own individual clubs and they probably do not give the international operation much thought.There aren't many imitators, suggesting that Shiekh Manosur's wealth and the desire to create 'soft power' for the Emirates are special factors. The only comparable operation is that of Red Bull which is primarily a means to promote their energy drinks. Barcelona chose not to go down the route of having international sister clubs.Not mentioned here is the…