Sports
Chelsea are learning the hard way that co-owners rarely work in football
The night before Liverpool’s former owners faced the media for the first time at Anfield in February 2007, a meeting was held about the running order for business.
George Gillett, a junk bond millionaire, had initially been batted away from the club because he did not have deep enough pockets. To change his possibilities, he enlisted the help of Inner Circle Sports, an investment bank from New York City. Ultimately, the conversations sent him to Tom Hicks, someone he’d worked with before after they put money into a meat-packing company.
Hicks’ interest in Liverpool came relatively late, and because of this — according to one club official present at the time but who spoke to The Athletic on condition of anonymity to protect their current position — it was suggested that Gillett should field the earliest questions in the press conference. Hicks was having none of it. “I’ll go first,” he said. And he got his way.
It was an early indication that this marriage was never likely to last. Within a few months, the club was unofficially in the grip of a civil war, with the co-owners no longer on speaking terms.
Their reign staggered on for three agonising years before a High Court ruling led to another sale, this time to Fenway Sports Group (FSG), with the whole exercise just serving to underline how difficult it is to make co-ownership work in the high-stakes world of Premier League football.
All of which brings us to Chelsea, and the strife between co-owners Todd Boehly and Behdad Eghbali, of Clearlake Capital.
The London club’s fans may not appreciate the parallel, but they could do worse than look north if they wished to understand how and why things can go so wrong so quickly with joint owners.
In the Gillett role, you have Boehly. Both are American businessmen with pre-existing sporting interests (Gillett owned ice hockey’s Montreal Canadiens, Boehly part-owns baseball’s LA Dodgers) who were wealthy enough to control one of England’s biggest sporting institutions, but not quite rich enough to do that and fulfil those clubs’ vast ambitions.
The parallels don’t end there. Gillett only completed his takeover after other bidders failed. With Liverpool urgently needing money to fund a new stadium project, he returned with Hicks.
At Chelsea, it was only possible for Boehly to claim the club as his own because of money from Clearlake and Eghbali. And here, too, time was of the essence: the UK government had set a deadline of May 31, 2022 for Chelsea to be sold amid ongoing sanctions against the previous owner, Roman Abramovich, a Russian oligarch.
Since the takeover’s completion, Boehly has taken many of the headlines but Eghbali has played a big part in a lot of internal processes and decision-making. It was the same at Liverpool, where Hicks — despite being introduced to the club by Gillett — always tended to come first when their names were mentioned in tandem.
If anything, Liverpool’s ownership partners fell out even quicker than Chelsea’s. In Brian Reade’s book about the period, An Epic Swindle, he quotes an unnamed senior football executive and a Liverpool fan who met both owners individually.
“It was only two months into their joint ownership of the club but George was talking about his view versus his partner’s view. When I later had lunch with Tom and some of his American associates, I asked about the dynamics of their relationship. Tom shrugged and said, ‘You’d better ask him,’ pointing at a senior figure from Inner Circle Sports, who had brought the two together for the deal.”
From the beginning, there was a lack of understanding about who was really in charge at Liverpool. This stemmed from the fact each partner had an equal number of shares — a difference to Boehly and Clearlake, with the latter’s stake totalling 61.5 per cent and Boehly’s less than 13 per cent.
By December 2007, with further differences being exposed around whether to revamp Anfield or relocate from it — sound familiar, Chelsea fans? — Gillett had already started exploring an exit strategy, having realised he’d made a monumental mistake with his choice of partner.
The challenges of running a business in the meat industry were a little different to a football club the size of Liverpool: a responsibility that invites emotion, attention and criticism, with each factor testing a person’s ego. Those who dealt with Hicks — a brash Texan whose investment firm had initially made money in radio and soft drinks — suggest he had one as big as Mount Rushmore.
Personality clashes are often at the root of co-ownership implosions, although tensions are often strategic as much as personal.
Take Crystal Palace, probably the club whose current ownership issues most closely resemble Chelsea’s in the top flight.
In 2010, Palace were brought out of administration by a group of wealthy local supporters led by Steve Parish. After an unexpected promotion to the Premier League in 2013 and a couple of seasons of struggle, the ownership model changed, with Parish seeking outside investment from America in the form of private equity tycoons Josh Harris and David Blitzer, who bought stakes in 2015, and John Textor, who purchased around 40 per cent of the club six years later. His stake has since crept up to 45 per cent.
Despite their vastly differing-sized stakes, Parish, Textor, Harris and Blitzer all have an equal voting share, which is a problem given the strategic differences between them.
Parish, who runs Palace day to day, wants to follow a long-term sustainable economic model, based around infrastructure improvements, while Textor is keen to attack the transfer market and take advantage of the other elements of his Eagle Football multi-club model (he also owns Ligue 1 club Olympique Lyon, Brazil’s Botafogo and Belgian side RWD Molenbeek). Blitzer and Harris seem happy, by and large, to retain the status quo.
It would be stretching it to claim Palace are in the grip of a Chelsea-style civil war, but the strategic impasse effectively means the club is stuck — hence why Textor is now trying to sell his Palace stake and buy Everton, which Farhad Moshiri has been trying to sell for a couple of years.
Officially, Moshiri has been the sole owner of Everton since 2016 when he displaced the late Bill Kenwright, who stayed on as chairman. Although Kenwright’s power was gone, he remained influential and a high-profile presence around the club, a point which created its own issues. His views did not always align with Moshiri, notably around decisions such as sacking manager Roberto Martinez in 2016 and around some transfers, and the result was barely-controlled chaos.
There was, perhaps, something similar at play with Newcastle United and the recent departures of Amanda Staveley and Mehrdad Ghodoussi — the couple who helped secure the club’s Saudi Arabian-backed takeover in 2021.
At that point, there was no sporting director or CEO at the club, so Staveley and Ghodoussi assumed responsibility for those areas until an executive team was eventually put in place, becoming the public faces of the club’s executive team. But their influence was belied by their 10 per cent ownership stake.
Ultimately, once those pre-existing vacancies had been filled, there was a sense of too many competing voices and, in that scenario, there was only ever going to be one winner.
Will the same thing happen at Manchester United? INEOS and the Glazer family have never worked together before. Sir Jim Ratcliffe has had much influence over the club since his investment but it will be interesting to see what sort of pressure he is subjected to internally if results on the pitch continue.
Co-ownership structures can be a success, but only — it would seem — when the partnerships are not flung together simply through circumstance. Wrexham’s duo of Ryan Reynolds and Rob McElhenney seem to have found a way to work in harmony, although if their project ever reaches the Premier League, with all the attendant scrutiny and financial demands, that partnership could come under renewed scrutiny.
Who knows where Chelsea will be by then? Either way, the chances of Boehly and Egbhali still being in partnership seem minimal.
(Top photos: Getty Images)
Sports
The container, the fence and the curious case of a £180,000 patch of land outside St James’ Park
First, a sizeable yellow metal office container appeared outside turnstiles 42 and 43 of the East Stand, partly blocking those two entry points into St James’ Park.
On the second weekend of August, as fears grew that the far-right riots that had broken out across the UK could soon reach Tyneside, almost 66,000 Newcastle United fans attended back-to-back pre-season friendlies against Girona and Brest.
For hundreds of fans sitting in that section of the East Stand, and the many thousands who walked along Leazes Terrace before and after both matches, the container provided an additional obstruction in an area that is already a pinch point on matchday, given how narrow Magpie Lane is, which leads down by the stadium, to the left of the metal box.
By the following weekend, when Newcastle hosted Southampton in their Premier League opener, the container had disappeared.
Nobody knew the purpose it had apparently served.
The situation became even more curious less than a fortnight later. In the week leading up to Newcastle’s home match against Tottenham Hotspur, a three-foot-high fence, leading nowhere in particular but apparently designating five car-parking spaces, appeared.
We have been made aware that there is the following fence/parking area being constructed in front of the East Stand by the owner of the land. pic.twitter.com/aHyDxKpJLu
— Newcastle United Supporters Trust (@nufctrust) August 29, 2024
The fence stretched about 8m alongside the perimeter of the East Stand, in almost precisely the spot where the container had previously stood, while at one end it jutted three metres out on to the road, parallel to other on-street parking spaces that are marked out by white-dashed lines.
By the evening of August 31, on the eve of the Spurs match, the peculiar fence had been removed and was not present on the day of the game. In the days that followed, some of the fence then appeared back in that spot, but rather than erected, the sections were piled on top of one another.
Once more, before Newcastle’s next home match — against Manchester City last Saturday — the wooden posts were nowhere to be seen.
As of Tuesday evening, when Newcastle welcomed AFC Wimbledon in the Carabao Cup third round, Leazes Terrace was back to being unobstructed.
Theoretically, however, further obstacles could yet appear in that same awkward spot in the future.
The land is not owned by Newcastle United, or even Newcastle City Council. Instead, as notices placed by the club above turnstiles 42 and 43 outline — and which remain in place — the plot “is owned and controlled by St James Terrace Land Ltd, Company No. 15599599”.
While public safety on matchday was cited by the Newcastle United Supporters Trust (NUST) and Newcastle United as a key concern arriving from these perplexing episodes, for the club this is also one of myriad factors that makes the potential expansion and redevelopment of St James’ Park extremely complicated.
The Grade-1 listed buildings on Leazes Terrace and the Grade-2 listed buildings on the adjoining St James Terrace already make extending the East Stand problematic.
Yet, even if Newcastle United’s stadium feasibility study — which began a year ago and the results from which Darren Eales, the CEO, claimed were “imminent” as far back as July — outlines a potential workaround to those delicate issues, the club would still need to acquire this strange island of land. And, given the price the present owner paid for the plot, Newcastle may need to fork out an eye-watering sum to do so.
Located directly adjacent to the East Stand, the strip is shaped like two triangles pointing inwards towards one another (as shown below in red, but not including the green section), and begins outside turnstiles 42 and 43 on Leazes Terrace and stretches about 8m-10m down Magpie Lane, along the side of No 4 St James Terrace.
The current owners acquired the plot on April 5 this year, as the club’s feasibility study was still ongoing.
St James Terrace Land Ltd was only incorporated as a company on March 28 but then, eight days later, according to Land Registry records entitled “Land lying to the south-west of 4 St James’ Terrace”, it paid £180,000 ($239,000 at present exchange rates) to buy the land.
Robbie Kalbraier is the sole director of the company. Although Mr Kalbraier’s correspondence address for St James Terrace Land Ltd is Great Portland Street in London, he is an active director of seven other companies — ranging from construction to flat rental and advertising firms — some of which are registered in Jesmond, Newcastle.
The Athletic, having failed to reach Mr Kalbraier or his companies via email or phone, visited Tyneside Developments Ltd, his company that has headquarters at Blue House. An iconic 19th-century building, which has exposed red bricks on the outside of the ground floor and a white-and-blue checked facade on the outer first floor, it belongs to the Freemen of Newcastle and is situated just off a busy roundabout in the middle of Newcastle’s famous Town Moor.
Mr Kalbraier acknowledged receipt of The Athletic’s questions — which included queries on how he came to own the land on Leazes Terrace, why he had been placing obstacles on it, whether he will continue to do so going forward, and if he had spoken directly with Newcastle United regarding this — but he politely declined to answer them.
There has been contact between the club and the landowner, although the rationale behind why those obstructions were placed there and whether more will be positioned there in the future remains unclear.
Newcastle United said: “The landowner is not associated with or affiliated to the club in any way whatsoever.
“In the interests of continuing to provide uninterrupted access for our fans and others using St James’ Park, particularly on matchdays, we have offered alternative nearby sites to the landowner for the safe storage of their items and will continue to seek to engage in constructive dialogue with the landowner on this matter. We will monitor the situation and will work closely with our partners to find a sensible way forward.”
The NUST described the actions of St James Terrace Land Ltd as “disgraceful” and “openly petty”.
“We strongly urge the landowner to remove the current structure (fence) and to stop putting structures in place which could compromise the safety of our supporters on matchday,” NUST said in a statement last month. “Naturally, we are concerned about the serious health and safety concerns that the structure poses, given the impact this would have on queues when accessing and departing the East Stand.
“The area of the ground right by where this has been constructed is a very busy area on matchdays and putting obstacles in the way of supporters could have dangerous consequences and result in significant overcrowding.”
The club did contact Newcastle City Council, which began an investigation while the container and then the fence were in place, but that ceased once the obstacles were removed.
A council spokesperson said: “We are aware a fence was erected, however that is no longer there. This is a matter between the landowner and the club. The council will only become involved if a risk to public safety arises or work requiring statutory permission is proposed.”
While Northumbria Police were made aware of the situation, the force has not been involved or begun an investigation as it is considered a civil matter.
Regardless, just how did a private company came to own this pocket of land immediately behind the East Stand?
Four of Mr Kalbraier’s companies comprise Tyneside Group Limited, which specialises in the redevelopment, management and rental of properties in Newcastle.
One of those companies, St James’ Central Investments Limited, lists on its website that: “Early in 2014, an opportunity arose to purchase 1, 2, 3 St James Terrace and 17 St James’ Street”. Those properties were redeveloped and, collectively, according to the company, “sold for £2.05million” ($2.72m at present exchange rates), although it does not specify when those sales happened.
According to Land Registry documents, separately, on March 4, 2016, No 4 St James Terrace was bought for £300,000 by St James Partners Limited. Their sole director is Kashif Mumtaz, a businessman and Newcastle supporter who also owns Nos 1 to 3 on the same street — previously redeveloped by Mr Kalbraier’s St James’ Central Investments Ltd — meaning he possesses the entire block.
A week after No 4 was purchased, on March 11, 2016, the strip that St James Terrace Land Ltd now owns was separated from the title for No 4 St James’ Terrace, as was the land immediately behind that property (as shown on the map above in green). The property’s description was then altered with the Land Registry to reflect the change, which is why it is now “land lying to the south-west of 4 St James Terrace”.
The Athletic attempted to contact Mr Mumtaz to confirm these details, but received no response.
For now, Leazes Terrace is back to normal. But St James Terrace Land Ltd can continue to use the plot how it sees fit — and theoretically could place further obstacles on it in the future.
Although the site has (temporarily) been used to house a metal office and a fence apparently demarcating parking spots, it is not a prime storage position, while the parking spaces cannot be used on matchday when the road is closed.
Its significance and value to St James Terrace Land Ltd is unclear. But if Newcastle United ever want to expand the East Stand, they will need to acquire that small strip of land.
When it comes to redeveloping St James’ Park, it seems nothing is ever straightforward.
(Top photos: Newcastle United Supporters’ Trust, Chris Waugh/The Athletic)
Sports
NFLPA to announce new program limiting locker room interviews after some players were seen 'naked on camera'
The dynamics between the media and NFL players will look different in the near future after Cincinnati Bengals center Ted Karras confirmed Thursday that the NFLPA plans to enact a program stopping members of the media from conducting interviews inside the team locker room.
Karras, an NFLPA player rep, spoke to the media this week about the new program that is aimed at protecting the “sanctity of the locker room” after he said that there were several instances this season where players were seen “naked on camera.”
“As you’ve heard from a couple of teams now and the NFLPA is going to come out with a statement – In an effort to protect the sanctity of the locker room and the comfort of the players, each team is going to figure out a program to where we conduct our interviews outside of the locker room,” Karras said.
“Now, this doesn’t bar you from the locker room – we can’t do that, but what we want to do is get cameras off guys in private moments in our locker rooms.”
Karras explained the basics of the program, and added that it was not meant as “an indictment” against members of the media. Teams or players are not required to follow the new program.
“This is what our membership feels is best for the players.”
Karras said the idea had been brought about during the COVID-19 pandemic, but interest in implementing a new program was brought on by incidents where players were filmed in the nude while in the locker room.
BUCCANEERS’ VITA VEA CELEBRATES SACK WITH SNIPER CRAWL AMID NFL CRACKDOWN ON ‘VIOLENT’ GESTURES
“This has been a topic of discussion since COVID with the COVID protocol, when no one was in the locker room. It’s been brought up several times since then, and now we figure it’s the time to do it,” he said.
“I think what brought it to light was a couple guys naked on camera this year. I know that’s happened a few times throughout the history of the league. But this will not affect game day, I don’t think. We’re gonna come up with a good solution to make the week as smooth as possible, get everyone the time they need and, again, protect the sanctity of the locker room.”
The program is aimed at stopping locker room interviews during the week but not on game day. Karras said that while players are free to do what they want, he asked that members of the media “respect” the new process of interviewing players.
“This is not an excuse to avoid the media,” he added. “We are contractually obligated to be available one time a week for questions . . . so, that will not be an issue.”
Follow Fox News Digital’s sports coverage on X, and subscribe to the Fox News Sports Huddle newsletter.
Sports
Seven horses die at Los Alamitos amid a viral disease confined to one barn
Six horses at Los Alamitos were euthanized on Wednesday and Thursday after an outbreak of equine infectious anemia (EIA) in the barn of trainer Heath Taylor. A seventh was euthanized on Sept. 24.
EIA is an incurable disease that usually results in euthanasia. Horses with EIA have that virus mostly for the rest of their life, meaning an interminable quarantine or euthanasia.
All of the afflicted were quarter horses.
The first horse to have the condition detected was Bullet Train V, an Oklahoma bred, on Sept. 24. The 2-year-old colt was winless in two starts, neither at Los Alamitos, having finished third in a trial for the All American Futurity in Albuquerque.
Upon notification, the horse was euthanized and nine horses run by Taylor were put in quarantine. The California Department of Food and Agriculture (CDFA), as is standard, was put in charge of the situation and subsequent investigation. EIA is not confined to the U.S.; it is a problem worldwide.
The three remaining horses who were quarantined have tested negative for disease. They will remain quarantined and be re-tested in two months.
EIA is caused by insects, usually flies.
Other horses who were euthanized were:
- Opt In, a 3-year-old gelding, who won once in eight starts, which was an All American Futurity trial last year. His last race was a seventh in an allowance race at Los Alamitos on Sept. 15.
- El Vencedor V, a 2-year-old gelding, won three of four including a win in an Al American Futurity trial. He never ran at Los Alamitos.
- Amore for a Reason, a 3-year-old filly, won three of eight including a seventh in the All American Oaks final, for 2-year-old fillies.
- Goodtyme, a 3-year-old gelding, who won three of nine races. His last race was a fourth in an All-American Futurity trial, in which he finished fourth.
- Other Assaultt, a 2-year-old colt, was winless in four starts.
- The Marksman V, a 3-year-old gelding, who was four for 10 lifetime and three-for-four this year. His last race was Sept. 2 with a fourth in the All American Derby in Albuquerque.
According to records from the California Horse Racing Board and supplemented by The Times, Taylor has had six deaths since 2000. He also had a sudden death during training.
Los Alamitos runs a year-round quarter horse and thoroughbred meeting that is partly made up of lower level thoroughbred horses. So far, the track has had eight racing or training deaths because of musculo-skeletal and one sudden death during training. The Times accounting of horse deaths do not generally account for diseases or non-racing injuries.
In 2019, Taylor was restored to good standing in Louisiana after a 2012 drug violation for the drug Dermorphin, a pain killer, known as frog juice because its origin was from secretions of South American tree frogs. Taylor served three years and nine months before being reinstated.
Racing at Los Alamitos is conducted every Friday and Saturday.
-
Technology2 days ago
Charter will offer Peacock for free with some cable subscriptions next year
-
World1 day ago
Ukrainian stronghold Vuhledar falls to Russian offensive after two years of bombardment
-
News1 week ago
Video: Where Trump and Harris Stand on Democracy
-
World2 days ago
WikiLeaks’ Julian Assange says he pleaded ‘guilty to journalism’ in order to be freed
-
Technology22 hours ago
Beware of fraudsters posing as government officials trying to steal your cash
-
Business1 week ago
Visa, Google, JetBlue: A Guide to a New Era of Antitrust Action
-
Education1 week ago
Video: Los Angeles Bus Hijacked at Gunpoint
-
Politics1 week ago
FLASHBACK: VP Harris pushed for illegal immigrant to practice law in California over Obama admin's objections