The Political Economy of Football V2

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...

Nearly seven years ago, Silver Lake, a technology-focused investor, committed primary equity amounting to an approximate 10 per cent interest in City Football Group, the owner of Manchester City and other clubs worldwide. This involved partnering as a minority investor with Sheikh Mansour bin Zayed al-Nahyan of Abu Dhabi as the majority owner, investing in growth and backing a world-class manager and executive team. Over time, Silver Lake increased its stake to approximately 18 per cent. Substantial investment in top players has been central to the strategy. But cash alone is not sufficient to win prestigious trophies every year, let alone build an enduring culture or clear team identity. Manager Pep Guardiola, who left City in May after 10 successful years at the helm, repeatedly praised the stability, expertise and trust of the ownership as vital elements of the magic formula. A Financial Times contributor argues that we should consider the private equity investment in Chelsea in...

Over the past decade American financing has reshaped global football in its image, with billions of dollars of investment, a fast-growing domestic audience and a generation of new players. While US owners of European football teams have faced protests from fans for years, friction is rising. Some fear the sport is losing its way in pursuit of profit and that outside money is distorting the game’s balance of power. And yet the arrival of professional investors has so far done little to fix the game’s parlous finances. Americans now own 117 European clubs, according to data from CIES Sports Intelligence, including more than half the teams in the English Premier League, more than a third of Italy’s Serie A and over a quarter of Ligue 1 in France.  The effects are being felt both on and off the pitch. Clubs are increasingly run with commercial success front of mind, aping the US sports model, where team ownership has proved lucrative. This has led to a push to tighten football’s fi...