The Political Economy of Football V2

Daniel Kretinsky is poised to become the largest shareholder at West Ham United amid the continuing uncertainty around David Sullivan’s future with the club.  As The Times reported last weekend, club insiders believe the Czech billionaire will respond to Sullivan’s resignation as co-chairman — a decision he took in advance of the publication of a joint investigation by The Times and the BBC into allegations of sexually exploitative and predatory behaviour when he was making his fortune in the adult industry — by increasing his control of the club, who were relegated from the Premier League last month. At present Kretinsky has a 27 per cent share, with Sullivan’s 38.8 per cent now under the scrutiny of the Independent Football Regulator (IFR) in the wake of the allegations.  Sullivan, 77, denies any wrongdoing but the IFR could yet force the British businessman to divest his shares if it now follows its preliminary inquiries by launching an investigation that concludes he...

Just when you think Wolverhampton Wanderers are going to be a normal football club, back come Gestifute and Jorge Mendes to remind everyone what they signed up for. The reaction of thousands of Wolves supporters to Rob Edwards suddenly being sacked — or indeed neutrals seeing the surprising news break late on Wednesday night or early on Thursday morning — will have been a collective: “What? Huh?” That will have been immediately followed by a click on Google to search “Cesar Peixoto”. He is considered one of the most promising coaches in Portuguese football. And he has inspired Gil Vicente to be able to compete with clubs boasting significantly larger budgets. However, his career history is checkered to say the least. He was sacked after short-term stints at Pacos de Ferreira and Moreirense, and his 15 months in charge at Gil Vicente is the longest he has lasted at any club. While guiding them to sixth in the Primeira Liga is a notable achievement, it’s not exactly unhea...

An independent commission ruled on Wednesday that Everton must pay Burnley £35.1m after their breach of the Premier League’s Profitability and Sustainability Rules (PSR) in 2021-22 was found to have given them a crucial sporting advantage. Everton stayed up and Burnley went down in that season but, four years, on there is now a big bill to settle. Everton, who said in a statement they were “surprised and angered” by the verdict, intend to fight on but the case is likely to have long-term implications. This all dates back to the 2021-22 season, when Everton were found to have breached PSR with an overspend of £19.5m. Everton finished that campaign in 16th position but, importantly in this case, Burnley ended up relegated in 18th. The final gap between the two clubs was four points. Burnley have always felt wronged, believing that Everton’s breach resulted in them enjoying an unfair sporting advantage. The claim has consistently been made, all the way back to May 2023 with the ...

Boyle Sports, a principal partner of West Ham and whose logo appeared on the front of their men’s and women’s team shirts last season, is the first of the club’s commercial partners to comment on the claims made about Sullivan in a joint investigation by the BBC and The Times. In a statement to  The Athletic , a Boyle Sports spokesperson said: “BOYLE Sports is extremely concerned at the serious nature of the allegations levelled against David Sullivan. “It is our understanding that the Independent Football Regulator is reviewing this matter urgently and we wholeheartedly support their efforts in doing so.” The BBC/Times investigation accused Sullivan, 77, of abusing his power while he was owner of the adult-themed Daily and Sunday Sport newspaper. The accusations, which date back to the 1980s, were by seven different women in their late teens or early twenties, who claim Sullivan preyed on them for sex in return for advancing their modelling careers. Sullivan has said that ...

David Sullivan could be forced to sell his stake in West Ham United by the football regulator, following allegations that he abused his power to prey on women for sex. The Independent Football Regulator (IFR) said it was in contact with the club after The Times and BBC  Panorama  revealed claims about Sullivan’s behaviour from seven women.   It said it was seeking “urgent information” from Sullivan after the 77-year-old was accused of sexually exploitative and predatory behaviour dating back to the 1980s. Sullivan categorically denies the claims. England’s new football regulator could make Sullivan sell his stake in West Ham, where he remains the largest shareholder with 38.8 per cent of the club, despite resigning as co-chair on Saturday. The IFR, introduced under last year’s Football Governance Act, is an independent watchdog and oversees its owners, directors and senior executives regime for clubs across the Premier League and English Football League. It h...

Florentino Pérez’s re-election on Sunday as president of football club Real Madrid revives what sounds like one of the world’s least enticing investment opportunities. Pérez aims to sell 5 per cent of the world’s richest club, through a new subsidiary, subject to a referendum of its 100,000 or so owner-members, or socios. His defeated challenger Enrique Riquelme had attacked that plan as a “privatisation”, as though Real Madrid is a public good as vital as, say, fresh water. But Pérez explained to the FT last week that the investment would be more like a sponsorship: “In other words, there are people who associate themselves with Real Madrid without expecting anything.” The 79-year-old, who first took the presidency in 2000 when the club was under financial strain, is a shrewd interpreter of what supporters want. Steven Mandis, an adviser to football governing body Fifa and author of two books on Real Madrid, told the Financial Times he has “never seen a management team so relentle...