Times Article - Football Financing

Is this a surprise? Definitely not what football's meant to be about but here we are

https://www.thetimes.com/article/d80f69af-9b3d-4e91-9207-58b0bfead84d?shareToken=5e46bd424116e8a0321c36cece10b9a4

Can you copy and paste? It's behind a rather expensive paywall and I'm sure many on here would like to read it.

Football clubs are vulnerable to criminals engaging in money laundering, fraud and bribery, according to a new government report which also raises concerns about agents who act for both a player and a club in a transfer deal.

In its latest National Risk Assessment of Money Laundering and Terrorist Financing report, the Treasury has dedicated a section to football clubs and agents, and cites dual representation as a potential area of criminal exploitation. Even in Fifa’s updated agent regulations, published in 2023, an agent can still act for a player and the buying club provided both parties have given their prior written consent.

As The Times reported last year, the UK Football Policing Unit (UKFPRU) is now assisting the National Crime Agency in Project Tachygenic, which was set up in conjunction with Interpol and Europol to examine the potential threat of international criminals in professional football. It is understood the investigation is also looking at potential match-fixing and bribery in the form of illicit payments. The UKFPU’s involvement extends to the use of its 142 dedicated football police officers who are assigned to clubs to gather intelligence and information.

Masked Blackburn Rovers fans standing near police officers after a soccer match.

The report says that football’s status as “an economic powerhouse could make it an attractive target for criminals”

The Treasury’s report heightens the importance of the operation, stating that “alongside money laundering, football has the potential to be abused for a range of other crimes including illegal betting, match fixing, fraud and bribery”.

It adds: “Football is an economic powerhouse, with Deloitte’s Annual Review of Football Finance estimating Premier League clubs had a turnover exceeding £6billion in the 2023-24 season. These factors make football and football clubs an enticing opportunity for legitimate owners and investors at all levels of the football pyramid.

“However, they could also make football an attractive target for criminals, kleptocrats and other malign actors seeking to launder their criminal funds or generate further illicit gains.

“Despite the commercial success at the very top of the game, there are a significant number of clubs that are financially distressed, in part due to the high level of financing needed to run a competitive football club. Such clubs are vulnerable to exploitation by criminals who may offer easy money in exchange for ongoing access that facilitates future criminal exploitation.”

The report also identifies the vulnerability of clubs that are part of a “complex offshore” ownership structure.

“Many clubs have complex offshore corporate structures involving overseas-based enablers and financial products, often in jurisdictions with limited regulatory oversight,” it adds. “Larger clubs with bigger revenues are at a greater risk of receiving the proceeds of corruption.

“Ownership structures using layered front and shell companies, often based overseas or in jurisdictions with low transparency, could obscure the ultimate beneficiaries of clubs and other major stakeholders, such as sponsorship arrangements.”

This, says the report, is also a concern further down the football pyramid, where “corrupt actors could use front companies to buy or invest in clubs”.

“Clubs could be used as a vehicle both to launder funds, as well as a final destination for criminal money to be invested. The laundering of suspected proceeds of crime could occur through different routes including player transfers, falsification of ticket sales, falsification of services provided or received by high risk commercial sectors, merchandise sales and club or player sponsorship deals and image rights.

“Player values in particular are difficult to objectively determine, which increases the risk of manipulation for money laundering.”

Regarding player intermediaries, the report states that “fees paid to agents, intermediaries and others involved in transactions could be a convenient route by which to launder money or pay bribes”.

“This risk is raised when agents represent both player and club during a transaction,” the report adds. “Due to its hidden nature the scale of criminality in football remains an intelligence gap and difficult to accurately estimate.”

13 hours ago, ODA said:

Regarding player intermediaries, the report states that “fees paid to agents, intermediaries and others involved in transactions could be a convenient route by which to launder money or pay bribes”.

Hmmmmmmmmmm...I wonder. Any ideas peeps ?