Rob Cox: If FIFA were a country it would be Russia 2 Jun 2015 The soccer federation run by Sepp Blatter and the Russian one headed by Vladimir Putin operate as baroque patronage systems, their bosses doling out favors from the center. Power derives from keeping constituents both fragmented and well heeled.
Banks could get stuck in FIFA penalty area 29 May 2015 Over 20 lenders are mentioned in the U.S. Department of Justice’s 164-page soccer rap sheet. Even if FIFA officials are found guilty, banks may be blameless. But UBS’s recent experience suggests any sniff of wrongdoing could change how U.S. regulators view past misdemeanours.
The FIFA big boss guide to executive survival 28 May 2015 Soccer’s supremo Sepp Blatter may win a fifth four-year presidency at the scandal-wracked governing body. Even if he fails, his tenacity is remarkable. It owes much to FIFA’s financial success, but also cumbersome governance and tin ears. Those help all boardroom Machiavellis.
To fix FIFA, start with the sponsors 28 May 2015 U.S. prosecutors allege that shadowy marketing agencies diverted cash from the likes of Toyota, Santander and probably Nike to corrupt soccer officials. Big bucks are at stake. FIFA’s revenue from 2011 to 2014 was $5.7 bln. In future, contractual transparency will be paramount.
FIFA cover-up almost a dare for U.S. enforcers 27 May 2015 In November, the Zurich-based World Cup organizer whitewashed an internal investigation, according to the former U.S. attorney who conducted it. Swiss authorities were alerted, but FIFA largely dismissed corruption allegations. No wonder American prosecutors have gone in hard.
U.S. well placed to blow whistle on soccer excess 27 May 2015 Americans already act as the globe’s legal enforcer and financial regulator. Now a federal prosecutor is filling soccer’s refereeing void with a direct tackle on its long-running corruption allegations. FIFA, the sport’s governing body, faces a long overdue reformation.
Adidas misses chance of radical fresh start 26 Mar 2015 The underperforming German company unveiled a new plan designed to push growth and profitability. The goals are ambitious, but the steps incremental. Adidas is shunning drastic measures such as selling its struggling brands. Investors have good reasons to remain unimpressed.
Sky’s insecurity helps Premier League net $8 bln 10 Feb 2015 The pay-TV giant is spending 83 pct more than its last deal to retain most of England’s top-flight soccer. Sky can make the sums add up. But runner-up BT is a real threat. And Sky can’t afford to test what losing its football dominance would mean. The big winners are the clubs.
Spanish soccer scores by signing Chinese tycoon 22 Jan 2015 Wang Jianlin is the first mainland mogul to buy into a top European club, pumping 45 mln euros into Atletico de Madrid. It’s a high-value transfer for the indebted Spanish champions. For teams seeking cash and access to new fans, a Chinese billionaire strengthens the line-up.
TPG should let investors off the Li Ning treadmill 17 Dec 2014 The U.S. buyout firm is backing a $219 million capital raising by the Chinese sports brand it has failed to revive in almost three years. The cash will help. But if TPG really wanted to show confidence, it would team up with the company’s founder and take Li Ning private.
Adidas can’t afford to be sentimental about Reebok 20 Oct 2014 The German sports group is reportedly set to receive a $2.2 bln offer for the unit. Having overpaid for Reebok in 2006, Adidas has since turned it round and may be loath to sell. But Reebok has little strategic use. Fiduciary duty demands a cold appraisal of its financial value.
A creative NFL would lean in to Sheryl Sandberg 8 Oct 2014 Furors over domestic violence and concussion risks have made U.S. football and boss Roger Goodell vulnerable. An unconventional idea for a replacement is Facebook’s No. 2. Sandberg would bring the female presence the league needs. She, too, might have something to gain.
Sports Direct and Debenhams could make a good team 3 Oct 2014 Mike Ashley’s upstart retailer has bought a 4.6 pct stake in its struggling UK rival, taking its interest to 11 pct. Ashley has a reputation for teasing the market, and this could be just a blocking stake. But don’t bet against a full-blown Debenhams takeover. It makes sense.
Adidas buyback secures injury time for management 1 Oct 2014 The world’s second-largest sportswear maker is handing back 1.5 bln euros to shareholders. They may welcome a tighter balance sheet. But the move doesn’t address Adidas’ core profitability challenges. Management is still disappointingly short on ideas where it matters.
NFL only understands hits where they really hurt 18 Sep 2014 The U.S. football league has thrown its weight around to grow into a $10 bln entertainment colossus. Victims of the sport’s violence get trampled until the likes of Anheuser and Nike play offense. Corporate America may be all that keeps the NFL from going the way of boxing.
Ballmer’s exit value is now Nadella’s to preserve 20 Aug 2014 Microsoft’s market capitalization grew by over $100 bln from the day about a year ago the longtime CEO said he would resign to Tuesday, when he left the board. With his predecessor fading from the picture, maintaining the momentum is now firmly in new boss Satya Nadella’s hands.
German soccer glory was predictable – with luck 13 Jul 2014 Brazil’s World Cup was first-rate entertainment, thanks to many surprising results. In finance, as in sport, forecasting is a dangerous game. But it is where the greatest value lies. The key is to draw conclusions from pertinent facts. Luck helps, too.
If only Argentine economy matched soccer success 13 Jul 2014 The nation’s strong World Cup showing reflects astute management of its big fan base and valuable on-field talent. That contrasts with a 100-year record of wasting its human and natural resources. Avoiding policy own-goals could one day make Argentina an economic champion, too.
Evonik in $400 mln soccer deal it doesn’t need 30 Jun 2014 The German specialty chemicals company is buying a 9 percent stake in a first-tier soccer team, emulating Adidas, Audi, Allianz and Bayern Munich. But Evonik’s products don’t reach end users. The potential benefits of its deal with Borussia Dortmund are hazy at best.
Numbers show Germany will beat Brazil to World Cup 27 Jun 2014 The football-mad host nation has cruised into the knock-out stages of soccer’s jamboree. Some fancied rivals have gone home early. But a Breakingviews calculator – based on hard numbers like transfer value, population and public engagement – suggests Germany will lift the trophy.