The Archive

Manchester United are about to be floated on Singapore’s stock exchange. Ashley Shaw explores the motives behind the move.

Having suffered jibes that they are the “Pride of Singapore” for several years now, the news that Manchester United are to be floated on that country’s stock exchange would seem to be entirely appropriate. Mystery surrounds the precise sums involved in the supposed IPO (initial public offering) and the move seems to have baffled the financial press. Some are asking whether having won four titles out of five and reached three Champion League finals in five years, the Glazers believe the club have reached a peak. There are also suggestions that they have been tipped the wink about Sir Alex Ferguson’s imminent departure. But it may simply be that they are once again looking to milk more from the United cash cow.

Of particular interest to supporters is the final destination of these funds. This summer Liverpool and Manchester City spent fortunes in the transfer market, with City in particular seemingly able to lure United’s transfer targets with huge salaries. So fans are entitled to wonder if some of this money will be used to strengthen a squad now containing young, promising but as yet unproven talent.

The initial answer would appear to be no and that the windfall could be used to pay down a portion of the £400 million debt that costs the club £45m a year to finance. Then there is the question of the £250m “acquired” from as yet unknown sources to pay off the high-interest PIK (payment in kind) notes last year and the ailing nature of the Floridians’ other businesses, which has led some to suggest that the funds may be earmarked for “personal profits”.

Optimists may point to this being the beginning of a long exit strategy for the owners and, of course, any flotation weakens the Glazers’ hold on to the club to a degree. Learning from the failures of United’s last period of public ownership, fan groups are already talking up the possibility of buying a stake, even if the £2 billion valuation of the club may make that prohibitive. At the very least, any flotation would also lead to higher standards of transparency and the prospect of holding some sharper Glazer practices to account.

It is clear, however, that supporters have had an impact on the way the Glazers run the club. There’s little doubt that the “green and gold” campaign affected their strategies – prior to the protests they seemed hell-bent on double-digit ticket-price rises and taking profits as and when they saw fit.

Ever since the furore surrounding the 
bond prospectus, the Glazers seem more interested in placating fans, whether by freezing prices or being seen to act in a more 
conciliatory fashion.And while they have steered clear of selling stadium-naming rights, they have sought to sell advertising and/or corporate space on just about every other asset the club owns. It remains to be seen whether this constitutes good business or financial desperation.

The restraints on the manager remain. The club have slashed the players’ salary bill by £10m. Research by Andersred (andersred.blogspot.com) claims that the departures of Wes Brown, John O’Shea, Gary Neville, Edwin van der Sar, Paul Scholes and Owen Hargreaves, and their replacement by Phil Jones, David de Gea and Ashley Young, means a net saving of £205,000 a week. In an era when Manchester City, in particular, are intent on buying success by offering eye-watering salaries, United’s stance should be lauded. But the fear remains that a lack of quality in the squad will tell over the course of the season.

Despite almost identical, emphatic starts to the season, the contrast between the local rivals could not be greater. City look like a club in a desperate hurry, with pressure beginning to be exerted from the top and UEFA’s Financial Fair Play rules forgotten in the rush for trophies. United would normally sit this season out; they are team clearly in transition with a new goalkeeper, defence and midfield to accommodate, and it remains to be seen if their free-scoring start is illusory.

Nevertheless, the fact that the manager continues to deliver, regardless of the considerable financial obstacles put in his way, remains one of the more remarkable stories in recent football history.

From WSC 296 October 2011

It hasn’t always been easy for Shamrock Robers but a famous European win has boosted the League of Ireland, writes Steve Bradley 

UEFA’s competitions are often derided as pandering to the needs of big clubs. While there is some truth in this, it ignores the fact that both the Champions League and Europa League group stages have featured entrants from most European nations. Those countries yet to feature are largely a roll-call of small islands, principalities and sparsely populated mini-states – with one notable exception. The Republic of Ireland has a population of 4.5 million people, a respectable international team and a history of talented players – yet it has made little impact on international club football to date.

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Steve Menary explores the growing number of transfer fees that remain undisclosed and the reasons behind it

Debate over the size of transfer fees is part of football, but an increasingly endangered part. Players now – certainly at lower levels – are increasingly sold for “undisclosed” amounts. Clubs, players and agents are within their rights to withhold the relevant figures but this trend is also short-changing fans.

AFC Bournemouth reputedly received £1 million from selling striker Danny Ings to Burnley recently, but the fee – like that of six other players sold over the past year – was undisclosed. Estimates suggest debt-free Bournemouth will eventually earn £3m but manager Lee Bradbury is bringing in free transfers and loans.

With club accounts repeatedly delayed, Cherries fans are split. Chairman Eddie Mitchell is either praised for righting a debt-laden ship or decried as an asset-stripper. The situation works in reverse too. Driven by an ambitious chairman, a club splashes out untold sums on players for undisclosed fees, then the chairman disappears as the club collapses. Those left picking up the pieces are often the fans, who – if transfer fees had been disclosed – could have queried their club’s spending much earlier.

Transfer fees are lodged with the FA and available in club accounts but the figures quoted are often an amalgamation, and few lower-league clubs voluntarily make any financial details available anyway. FIFA-licensed agent Faizal Khan explains: “To aid cash flow, it may be a transfer fee of £20m is paid in instalments over three years with a player in exchange and other benefits. The £20m deal may only be £7m in cash today and be made up of instalments, player bonuses, a high-profile pre-season friendly and lump sums after the player makes international caps to, in time, all add up to £20m.

“To not rock the boat, it is sometimes best not to disclose everything. If the selling club publishes that they sold a player for £20m yesterday and do not spend near £20m in that transfer window on replenishing the squad, some fans will go beserk.”

That creates pressure on managers and owners, but the most thick-skinned of the latter simply carry on regardless, particularly in the lower divisions where there is less focus. “Figures are reported in mainstream media and you get that figure from people close to the deal, like the buying or selling club or the agent,” says Nick Harris, chief sports news correspondent at the Mail on Sunday and editor of sportingintelligence.com. “Sometimes those figures are accurate, sometimes that are very wide of the mark. Premier League clubs will be scrutinised as more journalists are asking questions, but in the second or third division, if the local papers don’t have the will or the power and the owners don’t want people to know, there’s not a lot you can do.”

Since October 2010, clubs transferring players internationally must lodge details – including fees – with FIFA’s Transfer Matching System, which was used for 2,451 international transfers in the first transfer window of 2011. The combined transfer value of those deals was $320m (£197m) and FIFA estimate more than 4,000 clubs use a system that is bound by Swiss data protection laws and confidential.

With FIFA mired in allegations of corruption and the debacle of the failed England 2018 World Cup bid, there is an urgent need for more transparency in football. The Football Supporters’ Federation (FSF) recently launched a campaign to make the game subject to the Freedom of Information Act. This, however, would only apply to governing bodies rather than clubs. “We haven’t got a policy on disclosing transfer fees, but it’s something most fans would want to see,” says Michael Brunskill, FSF director of communication.

The FA and Football League do not have policies on disclosure of transfer fees, while Premier League spokesman Dan Johnson says: “It’s down to individual clubs and some feel it is commercially sensitive so choose not to. Also, it’s sometimes a case that what the buying and the selling club wish to present are slightly different variations – adding in or not taking account of various clauses such as appearance, international or success payment triggers in the contract.”

Even the most blinkered fan must appreciate that disclosing how much money has been paid out or received during a transfer window is not conducive to good business. If a player is attracting interest from a club flush with cash from a big sale of its own, a bigger fee will be demanded.

In the longer term, annual disclosure of money spent during a season would at least give fans greater clarity on what is happening to their club and some of their money.

From WSC 296 October 2011

Footballers appearing on Desert Island Discs is a fairly rare occurance. Paul Brown examines what the lucky few chose

WSC is not alone celebrating a big anniversary this year. Desert Island Discs, the enduring radio fixture in which celebrity castaways get to choose eight favourite records, plus a book and a luxury item, is building up to its 70th birthday.

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Dermot Corrigan reviews a new film and its focus on young footballers chasing success and fortune in Europe

It is said that football can provide a route out of poverty, with FIFA often claiming that the game’s commercial revenues can “trickle down”. Soka Afrika, a new feature-length documentary which follows two young African players as they try to make it in European football, sets out to show another side to this story.

The film’s two subjects are well chosen. Ndomo Julien Sabo was playing youth football in Cameroon when a French agent persuaded his parents to mortgage the family home to “invest” in their son’s future. Brought to Paris, he trained in a clandestine network of camps around the city’s outskirts, playing trial games against other young imports.

When he got injured the agent disappeared, leaving 16-year-old Sabo completely alone and cold and hungry. He befriended fellow Africans sleeping rough and avoiding the police, and eventually managed to get back to Cameroon, but his parents were not overly happy to see him returning penniless. In Yaoundé he recovers his confidence and form, and returns to Europe better prepared for a professional career.

Ndomo’s story is cut with that of Kermit Erasmus, who was spotted by Feyenoord playing youth football in South Africa. This move went much more smoothly – at only 18 he is playing first-team games for satellite club Excelsior, showing off his fancy mobile phone to a former school-mate in a Port Elizabeth township and playing a football game on his big-screen TV in his nice apartment in Holland. He’s a cocky enough character but still likeable. We see him scoring three goals at the 2009 Under-20 World Cup in Egypt, but also struggling to make the step up with his club and the national senior team.

The film is stylishly put together by director Suridh Hassan and producers Simon Laub and Sam Potter, looking more like a relatively big-budget current affairs feature documentary than a typical fly-on-the-wall football film.

There are funky colourful credits and titles, an African drum-heavy soundtrack and edgy camerawork digitally filtered to bring out the greenness of Yaoundé and the greyness of Europe. The film-makers got great access, with the camera in the South African dressing room for pre-game team talks, on the touchline with openly unscrupulous agents at games in Cameroon and even with Sepp Blatter making a patronising contribution to a “Football for Hope” conference in South Africa.

The real star of the film is Jean-Claude Mbvoumin, a former Cameroon international who played club football in the 1990s in France before founding Paris-based NGO Culture Foot Solidaire. Mbvoumin describes the way promising young African players are brought to Europe as “child trafficking” and helps join the dots to make the film’s case.

Clubs and agents in both Europe and Africa, national football federations and under-age coaches, FIFA, even players and their families are all complicit in the system. Everyone involved knows the unwritten rules of the game. There is no surprise when Sabo is dropped from the Cameroon Under-20 squad as he cannot afford to pay the required bribe. “Corruption is everywhere,” Mbvoumin says. “I can’t say one country is more corrupt than others.” It would be better for everyone if African players stayed at home until they were ready – both in a footballing and personal sense – for the move to Europe he reckons.

Football for everyone in Soka Afrika is a means to get rich (or get by), not a goal in itself. Both Erasmus and Sabo really believe in the “rags to riches” possibilities. The film concentrates more on their concerns about making a living and building a career than training methods or tactics or trophies. We see a modern business structure feeding on the hopes of the resource and information poor. A few thrive and are successful, but many of those who make the big bucks are not the most deserving. The context could be any similar industry – perhaps fashion or music – where large numbers of talented young people with dreams are chewed up and spat out by the system.

Soka Afrika is produced by Masnomis and was screened in London during the Kicking & Screening Soccer Film Festival on September 23-29. For more information see sokaafrika.com

From WSC 296 October 201