Soccer Law and Business Journal

European Winter Transfer Window Activity Down

Although there was plenty of big spending by Manchester City, Tottenham, and Real Madrid, Europe's winter transfer window was less active this year, at least in terms of dollars spent, than in years past.  This is particularly true if you discount the new riches of Man City - whose new billionaire owners are not reliant on football revenues to fund their purchases, and who are so desperate to put their club on the world map through record signings they spent a winter-transfer-window record total to do it - overall spending in England was way down this year.  Factor in that Tottenham's spending consisted largely of re-purchasing Robbie Keane from Liverpool, for a fee estimated to be between 3-6 million pounds less than what they sold him for only this past summer -- and the figures drop off dramatically.

In Italy, total transfer fees paid in the winter transfer window were down an estimated 43% from last season. 

And in Germany, the entire Bundesliga shelled out less than what Real Madrid paid for Klaas-Jan Huntelaar. 

Kaka's Indifference To Humanitarian Concerns Scuttles Man City Transfer?

While it's not normally my style to write about transfers, the aftermath of Manchester City's failed £100 million-plus transfer offer for Kaka was too good to pass up.  ESPN Soccernet quotes Manchester City executive chairman Garry Cook as saying that

"We got to talk to Kaka's father. His father said he was very interested in the project and we talked about humanitarian potential factors but when we got into discussions those issues took a back seat and financial demands came to the fore."

Ah.  So a world record transfer bid was being lodged for "humanitarian reasons"?  Evidently.  Cook further accuses AC Milan of "bottling it" - as though somehow the Italian club mis-filed the paperwork, or suffered a late-breaking case of "seller's remorse."  However, it appears that Milan were willing to let Kaka leave -- even publicly declaring it in recent days -- given the staggering transfer fee and rumors of a possible £15 million annual salary.  Of course, Chairman Silvio Berlusconi was quick to paint himself as the savior stating that "[b]oth I and he (Kaka) have intervened," though how exactly Kaka "intervened" in his own transfer is unclear.  Kaka himself is saying the decision was his and his alone, and that would seem to be more believable. 

Barcelona Hit With €57.2 Million Cable Bill

Earlier this week, a Spanish court ruled that FC Barcelona must pay €57.2 million to Sogecable for breach of contract.  The sides differed over income Barca were to pay the media giants.  Barca claimed that the contract provided only that it hand over income from televised UEFA compeitions.  Sogecable contended that Barca were to hand over income from all televised competitions, even for sports such as basketball, for which the club also operates teams.

In exchange for these revenue payments, Barca received a flat fee from the company. 

Club President Joan Laporta was quick to point out that the decision will not hinder the club's operations, as several companies owe the club debts that essentially offset the verdict.  He also added that at this time, it does not appear that the club will appeal the ruling. 

J-League "Asian Berth" Rule to Expand Foreign Influence

Japan's J-League has long limited clubs to three foreign players in the first team squad.  But in an effort to expand the league's influence within the region, the J-league has added a fourth slot for foreigners, with the proviso that the player be from a fellow Asian nation.

The impact on rival leagues will be immediate, as top players playing in South Korea and Australia will be eligible for bigger paydays in Japan.  In addition, some clubs may want to look at bringing in players from India, Indonesia and Thailand, in order to create greater "brand awareness" in those rapidly expanding markets -- in much the same way that English clubs raced to sign Asian stars and land Asian sponsors a few years ago, to spread their brands across the continent. 

The rule change goes into effect in time for the upcoming 2009 season. 

Droylsden Lose FA Cup Ban Appeal

Blue Square North outfit Droylsden FC has been banned from further participation in this season's FA Cup following its unsuccessful appeal to the FA's Protest Sub-Committee.  The ban was imposed for Droylsden's having fielded an ineligible player -- Sean Newton -- in the previous round.  In that match, Droylsden defeated League Two side Chesterfield 2-1, with both goals having been scored by Newton, who was ineligible due to having picked up his 5th yellow card of the season.

Chesterfield will now advance in place of Droylsden, and will take on Ipswich Town in the next round.

Wenger Fears Effect of Webster Ruling

In a public statement that will come off as ironic to many, Arsenal boss Arsene Wenger has criticized the Webster ruling, concerned that the club might lose midfielder Cesc Fabregas, among others.

The irony, of course, is that Wenger himself is often cited in any discussion of the sport's top talent poachers.  Fabregas, in particular, was signed out of Barcelona's youth system at 16 -- taking advantage of a Spanish law that prevented clubs from signing players to professional contracts until they turn 18.  Wenger likewise plucked Fran Merida from the Barcelona youth team at 16. 

Keegan to Sue Newcastle For Constructive Termination

The Daily Mirror and The Independent are reporting that former manager Kevin Keegan has filed a claim against Newcastle and owner Mike Ashley, seeking as much as £8million from his former club.

Keegan had been 8 months into a three year, £60,000- a-week contract, before leaving the club in September.  The club maintains that he left voluntarily and is therefore not entitled to compensation.  Keegan maintains that the club made misrepresentations regarding his role in the club's transfer policies, effectively undermining his position.

The case is scheduled to be heard by a three-member Premier League tribunal.

Will Nike Push Cristiano Ronaldo to Inter?

Today's latest wild rumor, reported from numerous sources, is that Nike may be involved in machinations to push Manchester United star Cristiano Ronaldo to sign with Inter Milan, as soon as next summer. 

Reports from goal.com, Il Corriere Del Sport, soccerlens, yahoo! and other outlets suggest that Nike, which sponsors Inter, wants to pair Ronaldo with Zlatan Ibrahimovic, who already has his own a Nike deal.  Reportedly, both Nike and Inter's main sponsor, Pirelli, are preparing to set aside funds to help acquire the player.

Of course, considering that Ronaldo is already playing for Nike-sponsored Manchester United last summer fended off bids reported to be as high as €90 million from Real Madrid (sponsored by Adidas), it is questionable whether the move will make financial sense for Nike -- even if Manchester United could be persuaded to sell. 

And with Man Utd already ahead of Inter in terms of shirt sales and global popularity, the only way such a move even starts to make sense for Nike is to ensure that Ronaldo stays with a Nike-sponsored club, such as Inter or Barcelona, instead of moving to a club sponsored by a rival, as it appeared he might last summer.

Chelsea Mikel Settlement Figure Disclosed

Chelsea have agreed a settlement of just £100,000 from Norwegian side Lyn Oslo over the John Obi Mikel transfer.  According to the Daily Mail, Chelsea may still pursue additional amounts against Lyn former chief Morgen Andersen, who was convicted of forgery in connection with falsifying Mikel's registration papers. 

It is unlikely, however, that Chelsea will seek to recoup any of the £12 million it paid Manchester United in exchange for United's agreeing to drop its claim of having signed the then-teenager.

Valencia Deny Bankruptcy Rumors

Officials have gone public to deny rumors surrounding a possible bankruptcy at Valencia.  According to Sporting Life, General Director Javier Gomez today flatly denied that the club has filed for bankruptcy protection.

Beyond that, however, he could do no better than to hint at plans to increase the club's "economic viability" and that they were working to create "economic stability."

But as Four Four Two has chronicled, Valencia will still have massive debts to pay, even when they are finally able to obtain a suitable price for the Mestalla.  As construction costs continue to mount at the Nou Mestalla, the credit crisis has left Valencia without a firm offer for the purchase of its current stadium -- a sale that was to have gone a long way toward funding the new one. 

After being snubbed by local bankers at Bancaja ("We are at the maximum level of risk allowed for any client”), Valencia President Vicente Soriano could only complain that "It’s hard that a Valencianan institution has turned its back on the club."  Of course, if by "turned its back" he means "refusing to  extend an additional 100 million Euros of credit to a club whose debts are reported to stand at 150 million Euros, owe 50 million more at the end of the month, and need another 200 million Euros beyond that to complete the Nou Mestalla" then yes, the bank has indeed turned its back on its neighbors.

Valencia's saving grace might appear in the January transfer window.  Nouveau riche Manchester City is desperate for a world class signing, and have reportedly had a shocking £129 million bid for Real Madrid keeper Iker Casillas shot down -- by the player himself.  Should the wandering eyes of Abu Dhabi United Group (owners of Man City) look Valencia's way, a clearout involving the likes of David Villa, Joaquin or one or two others, just might get the club out of desperate straits