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SBD Global/August 21, 2013/FinancePrint All
Spanish tax authorities will this year collect as much in taxes from Cristiano Ronaldo, Lionel Messi and Neymar as they would receive from 15,723 workers each earning €22,000 ($29,535), according to LIBERTAD DIGITAL. After a "historic tax increase approved by Spain's Popular Party in '12," the percentage owed to the government by those in the highest tax bracket, which includes people making more than €300,000 ($402,750), increased by seven points. The "majority of La Liga players have more than half their salaries taken by the tax authorities." In fact, "in the region of Catalonia, 56% is taken, while in Madrid the figure is 52%." Of the €36M ($48.3M) that Messi makes, he loses €20M ($26.9M) in taxes, while the tax authorities take €8.9M ($12M) of Neymar's €16M ($21.5M) annual salary (LIBERTAD DIGITAL, 8/20).
UEFA Champions League runner-up Borussia Dortmund "will unveil a new revenue record for the last fiscal year," according to the SID. The club will reportedly present a record revenue of more than €250M ($336M) at its financial results news conference on Thursday. Dortmund "is also expected to announce a record profit." During the previous season, when the club won the Bundesliga title and the German Cup, Borussia Dortmund had a revenue of €215.2M and a profit of €34.3M. Last year, stockholders of the publicly traded club "received for the first time a dividend payment of six cents per share" (SID, 8/19).
On the day that Scottish Premiership Heart of Midlothian fan group Foundation of Hearts revealed further details of its bid to buy the club, Chair Ian Murray stressed that "remaining at Tynecastle stadium is key to a proposal that is financed by a group of currently anonymous Edinburgh businessmen," according to Alan Pattullo of the SCOTSMAN. Murray "has vouched for their standing within the business community while confirming they are Hearts supporters." These business people "will provide the vast majority of the capital" required for the to-be-proposed Creditors’ Voluntary Agreement, which club administrators BDO "need to secure in order to sell Hearts as a going concern to the supporters." The proposal involves two companies -- Bidco and Fanco -- "entering into a binding contract in order to conduct the transaction with BDO and then with each other." As well as "ensuring the club’s assets are placed in the hands of the supporters," this ownership model "keeps the football club and the stadium together." Murray said, "That’s the model we went with because none of the other models would have allowed that to happen. The long term future is to stay at Tynecastle" (SCOTSMAN, 8/20).
CVA NEEDED: In Edinburgh, Barry Anderson reported "everything hinges" on the Foundation agreeing to a CVA with UAB. It is understood to want £5M ($7.8M) for a CVA and "have threatened to liquidate," whilst the Foundation’s current offer is less than £3M ($4.7M). Should a CVA be agreed, Bidco "would have control of hearts, which would then be sold on to the Foundation." Following the announcement of the Foundation as preferred bidder, "a crucial period of negotiation begins with the Lithuanians over a CVA." More than 6,700 fans "have pledged monthly money to the Foundation and will be given a say in the running of Hearts if the supporters’ group gain control." Any money used from the unnamed financers involved in BIDCO "will be paid back over a period of years, depending on funding from pledges." Interest "will be minimal and contractual agreements prevents the money being used to back any other bid." The investors "do not wish to be named right now in case the Foundation’s bid fails and they are fingered for not coming across with enough money." Their names "will be revealed if and when a CVA is agreed" (EDINBURGH NEWS, 8/20).
MAKING A PLEDGE: The BBC reported Murray said that they "had already received 6,700 pledges," worth between £10 ($15) and £500 ($783) per month, from supporters. FoH said that "those contributing will have an immediate influence in the running of the club should the deal go through," with the full transition of ownership "predicted to take between three and five years" (BBC, 8/19).
National Rugby League Cronulla coach Shane Flanagan "has denied he inappropriately used funds from a separate bank account run outside of the club's books," according to Michael Carayannis of THE AGE. Flanagan is "alleged to have operated a bank account against the wishes of the club's former board." Flanagan said that the account, called High Performance Unit, "was opened last year to help fund a new gym for the squad and to re-floor the older gym for the club's junior representative teams." Flanagan said that the account "was closed" (THE AGE, 8/21).