Revealed: the trick Barca are pulling to pay the fee for Cesc « Untold Arsenal: Arsenal News, supporting the club, the players and the manager
By Tony Attwood
Last year, as we all know, Barca effectively went bust and in June were unable to pay their players. This year, equally famously, they have said they are saving money by stopping colour photocopying.
So how can they spend £30m or more on Cesc?
The answer is that Barca will more than likely pay only a small amount of the transfer money themselves with the rest coming from an investment fund that is wholly owned outside the club. The investment fund will own Cesc’s “economic rights” while the club own Cesc’s “footballing rights” (ie his performance on the pitch).
There are a number of companies indulging in this type of operation – which is outlawed in the UK, but, I think, not in Spain. The one we particularly know about is QSI which is said (and I can’t confirm this) to be owned in part by Peter Kenyon who used to be at Man U and Chelsea. Perhaps Mr Kenyon is just an adviser, and not an owner – I wouldn’t like to be definitive on this one.
We don’t know about Mr Kenyon’s role because QSI is registered in one of my old haunts: the Channel Islands – Jersey to be precise. Companies in the islands don’t have to reveal anything much, even though they are in British Territories. Unlike most of the rest of the British Isles, the Channel Islands are outside the EU, and therefore not subject to EU financial regulation, so they can do pretty much as and what they like. And revealing the details of ownership is something they do without.
Now I want to make it quite clear that I am not saying for sure QSI will “own” Cesc, but it looks to me as if someone will, and I doubt very much that it is Barcelona, simply because their credit is not good enough either for Arsenal or their bankers.
Borrowing money to pay for deals is commonplace, and there are financial institutions set up for this, but football in general is now in such a bad state financially, that the rates of interest are astronomic and there are many teams who are simply being turned down. Which is part of the reason why the transfer market has stalled this summer.
Of course this ownership by a third party (I stress perfectly legal in Spain and therefore no allegations are being made here) raises issues. If Cesc were owned by Barcelona in full then there could be no doubt that he would always do his best. But with third party ownership going on, who knows? Let us say that ABC Inc own his “economic rights” and they also own the same rights of another player. The other player might be having a bad time of it, and his value might be slipping. ABC Inc might then order Barcelona not to play Cesc so that their other player gets a chance to shine. Or they might want Cesc on the pitch and then ask him to miss any chances he gets, so the other player’s team does better.
This situation comes on top of all the other problems facing poor young Cesc when he goes to Spain, for not only is the ownership of his rights likely to be odd (at least by British eyes) so will his playing experience. Or lack of it.
Because La Liga and the Segunda División players are planning to go on indefinite strike in a dispute over conditions of employment.
So, as if it is not enough to go to a club where the overwhelming majority of fans have actually voted for him not to play, Cesc is going to a club where the players are simply not going to play.
Luis Rubiales, the president of the footballers’ union said, “We are unanimous and firm in our decision to call a strike. The league will not start until a new agreement has been signed.”
And here’s the really interesting bit. I mean the really, really, really interesting bit.
The essence of the dispute is a demand by the trade union for a larger emergency fund to help players not being paid by clubs who are in financial administration. A bit of a link there with the opening comments, perhaps.
Mr Rubiales has said that the protective measures are common throughout Europe in other leagues, but not in Spain. “We don’t want more money, we want the clubs to honour the contracts they sign with their players. We don’t want palliative measures.” Commenting on the situation in other parts of Europe he said that elsewhere “if a club shows it can’t pay its players the club doesn’t compete. We have asked that players who are owed more than three months salary can break their contracts.”
Which explains why Spain is so keen on third party agreements. Cesc might decide to break his contract with Barcelona if he does not get paid, but if as I suspect, he does have a third party agreement, he won’t be able to break this. They will just move him on to another club.
Still, maybe if Cesc is still injured it won’t matter, since he can double up, being on strike and injured at the same time. And do some deals on his economic rights.
Time to stop this transfer madness