When 777 Partners was announced as the new owner of Standard, a surge of optimism spread to the Liège club and its components. The American majority shareholder was presented as an investment company with strong backbones, capable of buying, in more than a year and a half, four clubs in their entirety (Genoa, Melbourne, Red Star, in addition to Standard) and rise in the shareholding of others, in a majority way (Vasco de Gama, Hertha Berlin) or not (Seville).
Quickly, the multiclub policy was put forward as a long-term objective, and when the Americans concluded the deal with Bruno Venanzi, the former owner, they announced their ambition to put Standard back on the map of Belgian football. The medium-term policy was then put forward by Pierre Locht, the new general manager, with a major mission, in addition to the sporting aspect: to clean up the finances of a club whose losses were around 20 million €.
A year and a half later, questions are becoming more and more insistent about 777 Partners and its investment. An investigation by the Norwegian magazine Josimar has cast doubt on the manners of some shareholders and the summer transfer window, which will end in less than a week, leaves a bitter taste for supporters, but not only. The players and the staff are also asking questions… while waiting for reinforcements.
More than €27 million injected and a new intervention expected
It is necessary to evacuate a first element, essential, first: since the takeover, 777 Partners has injected 27,693,727 €, in the form of a capital increase, in four tranches. This contribution was mainly used to pay off debts, to pay part of the invoices of suppliers, to put the club in order for obtaining the license, in particular, through a reduction of capital by amortization of losses.
But there are still holes to plug (nearly a million debts to suppliers) and the next financial year will still show a loss of around ten or more surely around fifteen million € at least, and always negative equity, which is the crux of the problem. The regulations of the Pro League provide that by 2027, clubs will have to present positive equity capital, under penalty of sporting sanctions (withdrawal of points). However, at the last balance sheet, for the 2021-22 season, Standard’s equity was negative at €26,538,069.
A new capital increase should be scheduled in the coming weeks, and the hunt for savings continues at the same time. It thus appears that the American owners are contesting certain debts to be honored while the local management, with Pierre Locht and the new financial director Giacomo Angelini, is increasing certain prices and trying to reduce margins elsewhere.
Carl Hoefkens (right) with Fergal Harkin. ©Jbo
The price of boxes on the rise, suppliers “challenged”
The price of boxes, for example, has increased by just under 10%, but this could go up to a 25% increase in the event of qualification for the playoffs 1. As it did for subscriptions, the club has adjusted its prices due to inflation and supplier prices. But if the subscription campaign met expectations, with nearly 20,000 subscribers, some lodges did not find takers, a rarity in Sclessin, even if it is emphasized by management that this is not a subject of worry. Three boxes are still free, but some will be rented for a few matches, we are assured.
Always in this logic of economy, suppliers have also changed, in catering for example, where the company Gourmet Invent came on board. This company based in Nazareth, present in seven Pro League clubs, offers a less expensive service, therefore more interesting for the Liège club, whose logic is to “challenge” the suppliers so that they offer as much as before, to less.
This can create tensions, and drastic choices, too, like the dismissal of Benjamin Mignot, a former sales manager who was accused of not finding new sponsors. A departure, which must be added to that of Maxime Filot, former head of recruitment, which will have an impact on finances.
The Football Group, soon to be effective
These dismissals must indeed be supported by the accounts of a club whose payroll, in the past, exploded. It has decreased, and the departures of certain important salaries among the players (Cimirot in particular), may have helped, but it is still not enough. Efforts are always necessary, and it is also in this logic that we must read the way of proceeding of 777 Partners, which sometimes waits until the last minute to honor certain payments.
“It’s a very American way of proceeding,” said a source close to financial circles. If they know that there is no late interest to pay, or penalties, they will wait until the very last deadline to release the funds, while doing business elsewhere to recover the money. ”
At the beginning of the summer, the specialized agency Bloomberg had thus announced the hoped-for fundraising of up to €200 million, with other partners, and the support of the company Tifosy, to strengthen its bases and effectively create its division. soccer. By the end of the year, the realization of the Football Group will be, hope the American owners, effective – it is not yet, except through certain faces (Don Dransfield, the CEO, and Johannes Spors, the sports director). The idea is to promote more extensive and supervised exchanges, whether sporting, commercial or of another nature, in order, there too, to save money. Contacted, Tifosy officials did not wish to answer our questions.
Broken promises?
The American owner is also still looking to buy Premier League club Everton, a sign that he still wants to expand his web. According to the Daily Mail, the operation could be reversed due to the investigation published in Josimar. To be continued, therefore. And Standard in the middle of all this? The management of the transfer window raises questions and rumors of unfulfilled promises to Carl Hoefkens have been born in recent times.
Aron Donnum will join Toulouse and bring in €4.5 million for Les Rouches.
The discussions between the coach and the management, which depends on 777 Partners, with a view to the commitment of the former defender, obviously focused on the constitution of the core, so that it is in line with the ambition to join the top 6. But, we are assured on the management side, there was never any question of quantified promises. Could the Standard have hoped, however, to make some sales, to better invest then, then?
Some recent sales have been made, and the latest from Aron Donnum will bring in funds, to be reinjected in part in the coming week. But sporting time is pressing, and if 777 Partners wants its clubs to self-regulate, it will be time to move on to the second, starting with the reception of the RWDM. Under pain of being accountable, and not only financially…
2023-09-02 05:10:00
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