Footnotes #5: City on trial, a defiant PSG and more to spend in La Liga

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Here is my starting XI this week:

City on trial, definitely (1), power struggle at Chelsea (2), Man United in the red, again (3), more to spend in Spain (4), Valencia: Goldman Sachs comes to the rescue (5), PSG defies French league decision (6), TV rights had no impact on Ligue 1 elections (7), worst deal in two decades (8), a Belgium challenge (9), different outcomes for Benfica and Sporting (10), Shakhtar: Planning your team in wartime (11).

1. City on trial, definitely

Did the owners of Manchester City put money into the club that was supposed to be sponsorship money, thus circumventing the financial fair play rules? And did Manchester City conceal details of salaries at the club?

The case against City was opened in February 2023, over 115 possible irregularities, and dates back to the 2009-10 season. And now, a year and a half later, the first hearing is taking place this Monday.

The Premier League accuses the club of failing to provide accurate financial information. It also says Manchester City did not comply with UEFA Financial Fair Play regulations between 2013-14 and 2017-18 and Premier League Financial Fair Play regulations between 2015-16 and 2017-18. Manchester City denies all charges.

This process should take about two months, and the courts should make a final decision by the end of the season. Manchester City could lose points or drop to lower divisions if found guilty. It is not a farfetched hypothesis, as we can listen on Talksport.

When asked about this situation on Friday, Guardiola answered he was ?looking forward to the decision?.

?I'm happy it starts on Monday, and I know there will be more rumours about the sentences that come up and we're going to see?, the manager said.

Guardiola's side did not seem to be bothered by the financial row on Saturday.?However, it was the first game of the season that they won by a single goal, a 2-1 victory over Brentford thanks to two goals from Halland, one of which came from a perfect pass from Ederson. The last time they won by a single goal at the Etihad was in February, also against Brentford.

Meanwhile, here is a moment to forget all the troubles. Manchester City's manager and some of his players recreated an Oasis cover from the Definitely Maybe album to celebrate three decades since its release and their new kit for this season.

2. Power struggle at Chelsea

Last week, some stories emerged on Bloomberg and Daily Telegraph about a ?civil war? between the owners of Chelsea.?

Todd Boehly wants greater control over the London club by increasing his 38.5 per cent stake, but Clearlake Capital, led by Behdad Eghbali, which owns 61.5 per cent, refuses to sell.

For Chelsea fans, this is the last thing they want to hear as the nightmare unfolds at Stamford Bridge, but Matt Hughes, who gives us the details of the dispute in FootBiz, concludes that ?a quick resolution to this saga is unlikely?.

3. Man United in the red, again

It is the fifth consecutive year of losses for Manchester United, who last made a profit in 2019. Despite record revenues (￡661.8 million or €783.9 million at current exchange rates), they lost ￡113.2 million (€134.1 million) in 2023/24 due to massive investment in players - although the fans are still waiting for results on the pitch.

United's accounts could come under scrutiny from the Premier League after a pre-tax loss of ￡130.7m (€154.8m). Under the Profitability and Sustainability Regulations (PSR), clubs are allowed a cumulative loss of ￡105m (€124.4m) over three years, but United had ￡312.9m (€370.5m) in that period.?

However, Manchester United says it complies with the rules, according to The Independent.

Premier League rules, like UEFA's, allow clubs to deduct expenditure on infrastructure, youth development and women's football, for example, and last year's figure is still part of a cycle that includes pandemic-related losses for the 2021-22 season.

4. More to spend in Spain

Spanish clubs will be able to spend €2.8 billion on wages in 2024/25, two per cent more than last season.

Real Madrid is increasingly isolated in this table after the profits they have accumulated in recent years, including during the pandemic. They can spend an additional €261 million, bringing the total to €754.9 million - a whopping 77 per cent difference compared to what Barcelona can spend on wages and more than double that of Atletico de Madrid (who increased the limit by 5 per cent to over €300 million).

Unlike in previous years, Barcelona have seen their limit increase by 58 per cent this year to 426 million euros, putting them back in second place.

Check the list of all Spanish clubs here (English). Read The Athletic or 2playbook (Spanish) for more details.

5. Valencia: Goldman Sachs comes to the rescue

Valencia hired Goldman Sachs to raise €120 million, which will be used to refinance the debt to CaixaBank and Peter Lim, the club's majority shareholder, and to finish the new stadium, according to Spanish newspaper El Confidencial (Spanish).

6. PSG defies French league decision?

Kylian Mbappe had demanded compensation from PSG, which the French Football League ordered the Parisian club to pay last week. However, the club has refused to pay and promises to take the case to another court.

At stake are 55 million euros in wages and bonuses that Mbappe claims, but PSG guarantees that the France international waived that money about a year ago, in August 2023.

7. TV rights had no impact on Ligue 1 elections

Much criticised for unfulfilled TV rights promises, French league president Vincent Labrune got re-elected for another four-year term on Tuesday, 10 September. He won an overwhelming majority with 85.67 per cent of the vote.

The French league had hoped to earn up to €1 billion a year from the sale of broadcasting rights for this new cycle but ended up with just €500 million in a deal with DAZN and BeIN Sports.

That, however, was not enough for rival Cyril Linette.

8. Worst deal in two decades

We knew the French deal was short. But Football Benchmark put it in a different light last week: never in the previous 20 years have French clubs received so little money for broadcasting rights.

9. A Belgium challenge

Yes, it is a difficult time to renew TV rights, but that is what the Belgian Pro League will be looking for as of next month.

10. Different outcomes for Benfica and Sporting

Benfica lost €31.4 million last season due to a drop in operating income. Having failed to progress beyond the Champions League group stage (after reaching the quarter-finals the previous season), Benfica did not make enough money by selling players despite the transfer of Gon?alo Ramos to PSG.

These figures do not include the selling of Jo?o Neves, Marcos Leonardo and David Neres, whose revenue will fill the operational gap for the 2024/25 season.

Excluding player transactions, operating income totalled 179 million euros (-8.6% compared to the previous year).?Transfers contributed 58.4 million euros, a decrease of 8.3%. And operating expenses excluding players totalled 207.3 million euros, an increase of 0.5%.

On the other hand, Sporting, the defending Portuguese Champions, recorded their fourth positive year out of five, with a €12.1 million profit last season, which compares to €25.1 million in 2022/23.

Turnover grew 11.1 per cent to €246.7 million, a new record, despite a 26.7 per cent reduction in European prizes. Transfers contributed €143.5 million, with Manuel Ugarte (to PSG) and Pedro Porro (to Tottenham) leading the way.

11. Planning your team in wartime

Porto hosted the Thing Football Summit for three days, with many interesting talks. One of the highlights came from the CEO of Shakhtar Donetsk, who gave us an insight into the difficulties of running a club in a country at war.

In negotiations, ?70% of the time is trying to convince the player and his family to live in Ukraine?, as he wants to ?give them safety?.