Clive Betts MP, chair of the Independent Football Commission who is calling for FA and FIFA investigations into Arsenal’s alleged payments to Belgian club Beveren, and warning that Arsenal could be relegated says: “if a club is seeking an unfair advantage because of the amount of money it has got – that is wrong.”
Err – he’s talking about a £1m loan – in a week when Chelsea have brought their close season spending to nearly £100m on fees and wages – currently more than £200m more than the other Premiership clubs, apart from Man U. This when the EU and UEFA said that football needs a wage cap to curb clubs like Chelsea.
Respected football writer Patrick Barclay calls it right when he said that clubs currently can get away with virtually anything under the name of legality, putting Arsenal’s alleged misdemeanour into perspective – and he called for a government investigation into corruption in football. He adds though that football will be shocked that it is Arsenal who had worked hard on portraying a squeaky clean image.
Newsnight reporter Liz McKean (would be interesting to see if she supports a club) alleges that Arsenal via a company called NV Goal pumped around £1m into Beveren in 2001.
It emerges that Arsenal agreed in August 2001 to make a £205,000 payment to Raoul de Waele under the form of an interest-free loan. The loan agreement stipulated the money would be used to incorporate a company called Goal, which would in turn set up another company to purchase Beveren. It was signed David Dein. “Goal will hold a majority of the share capital [of the second company, which would be] formed for the purpose of acquiring the assets, liabilities, contracts and undertaking of VZW KSK Beveren,” the agreement stated. Although there is no suggestion that Arsenal have acted illegally, the Fifa president Sepp Blatter has ordered the Football Association to investigate.
Crucially, there is, nothing in the loan agreement to indicate Arsenal acquiring any shares in Goal.
Besides Under Rule 3, Section U of the Premier League, English top-flight clubs are prohibited from owning shares in, or making loans to, or being involved in the management of, another Premiership club or a Football League club, but those regulations are not relevant to a club based outside England.
Although Uefa have rules which prevent any club owners from owning more than 50 per cent in another club playing in the same competition, there are no FA, Fifa or Uefa rules which stop one club or club official lending money to another club or their directors.
Blatter’s concern – also echoed by the EU-UEFA report on football is about too many foreigners from one country in another country’s club: “”[At] Beveren there are 11 players from Africa in the same team; in Dinamo Moscow the last season there were 10 players from Brazil or Portugal. These are deviations in football.”
In a statement put out by Arsenal: “Arsenal confirms that it has never owned, directly or indirectly, any shares in Beveren or had any power whatsoever to influence its management or administration. It did in 2001 provide funds of pounds 1,077,855 by way of loan to a member of a consortium who used the money to assist in stabilising the finances of Beveren.
“At no time has anyone at Arsenal been contacted by any regulatory or investigatory body with respect to its relationship with Beveren. Arsenal and all its staff have acted properly throughout, in accordance with all applicable rules and regulations, and in the best interests of Beveren, Arsenal and the broader footballing community.”
Beveren chairman Van Hoof claimed the majority of Beveren profits from sales of the Ivorian players were supposed to go to Jean Marc Guillou, who set up the academy in the Ivory Coast from where the players came and to Goal. In the first year of the company’s involvement, Van Hoof said profits would be shared 60% to Goal, 30% to Guillou and only 10% to Beveren. In the second year 30% going to the club and 40% to Goal.
A Uefa spokesman said they were powerless to act but that the recent independent review of European football would look to address the issues raised by the investigation. He added: “These are all issues which will need to be solved in the interests of the game because you can break no rule and no law but at the same time most fans would acknowledge that there is a problem here.”
David Mellor chair of the Football Task Force, and a Chelsea fan, surprisingly stood by Arsenal when interviewed by Newsnight, saying that international football rules discriminate against English clubs, and that football is big business, where clubs seek competitive advantage. He said the arrangement had been good for the Ivory Coast.
Arsenal undoubtedly have scored an own goal.
But the timing of this story is strange – on the day that David Dein seeks re-election to the FA board, and the day after Chelsea brought their close season spending to nearly £100m (fees and wages).
SELECTED COMMENTS
Ian Henry writes: Dear ANR Good comment about the Beveren story. You might also point out that, I believe, Abramovich owns directly or indirectly shares in other clubs, in Moscow and Brazil (where Tevez plays)… and doesn’t the finance company which owns a stake in Spurs also have stakes in various other clubs, including Rangers?
Paul writes: Couldn’t agree more about the hypocricy of calling a £1m loan ‘controlling’ while ignoring the £300m payments being made by Chelski. While I agree that Arsenal should avoid illegal activities surely they cannot allow Chelsea a free hand in dodgy dealings? Lets compare Chelsea’s CSKA and Corinthians (MSI) links with Arsenal’s links with Beveren. hhmmm no contest. If all Arsenal got out of the Beveren deal was Eboue for something like £1m compared with MSI buying Tevez for Chelsea, I mean Corinthians for a South American record fee.
Simon Baker writes: Seems to me David Dein and Arsenal are paying the price of upsetting Spurs and Chelsea. Spurs director of football Damien Comolli as Arsenal’s European scout in 2001 would have known about the relationship with Baveren. Seems Daniel Levy will have his revenge after all.