2.5 million euros to be made available for Maltese clubs

By Ray Abdilla

A revolving loan of 2.5 million euros is to be made available by an international finance firm to selected premier league clubs as from next season.

Damian Iwueke the MFA/FIFA Licence Players Agent and his partner and legal adviser Leslie Cuschieri told MaltaToday that they have brokered a deal with an international finance firm which has agreed to provide 2.5 million euros to local clubs as a form of sponsorship.

They said that the loan, which will be organised as a 'pool of fund', will enable participating premier league clubs to carry out their activities without too many financial constraints on a yearly basis.

Mr Iwueke and Dr Cuschieri, who were reluctant to divulge the name of the firm at this time, said that the company is already working with a number of clubs in England, Italy, Slovenia, Bulgaria and some rich Arab countries.

But they confirmed that the firm is actually involved in the transfer negotiations of Sliema's Murphy Akanji to Bolton Wanderers. According to them, Sliema will receive a direct cash payment from the firm on behalf of Bolton Wanderers should the player's transfer materialise. Apart from Bolton, other clients of the firm in England include Liverpool, Everton and Dundee United in Scotland. In Italy, Genoa, Brescia, Cosenza and L'Aquila are clients of the firm while Maribor FC in Slovenia recently signed up with them.

According to Mr Iwueke and Dr Cuschieri, the firm's transactions in Malta as from next season will include the financing of the transfer of players from a selling club to a buying club or vice versa locally and internationally.

And the financing of deferred payments due from sponsors to clubs, up to the contract period agreed between clubs and sponsors.

He added that the financing of deferred payments due to clubs from television rights and other type of advertising will also be included alongside the funding and sponsoring of the building of sports infrastructures such as ground development or indeed, the construction of new football stadiums and facilities.

In all the above, the firm will provide a credit insurance for the financing bank against a default by the borrowing clubs.

Mr Iwueke and Dr Cuschieri believe that clubs must start immediately to think of how to become professional outfits. "If clubs plan ahead and balance their books they will then be able to buy the best players and give them good salaries, while also becoming competitive locally and internationally," they said. "It is no use for a president to continue to provide money for salaries and bonuses of players every year, and then, when he leaves, the club finds itself in difficulty.

"A president should also help his club to become a business venture for his own benefit as well as the club's consolidated future."

They added that the firm will help clubs manage the fund they will receive as well as advise them on their expenditure.

The firm’s general services include corporate and project financing, management consultancy, tax management, sports financing and business development.

Referring to the firm’s sports services, the two men said that in big countries, clients of the firm receive a substantial amount of the loan directly. But because of the small budgets of Maltese clubs, the 2.5 million euros will be organised as a 'pool of funds' from which those clubs selected will receive funds from time to time.

They said the loan scheme is expected to work in the same way that the housing loan which families in Malta enjoy from local banks operates. "A club does not have to be very rich to benefit from the firm’s sponsorship although sensible expenditure and balancing of one;s books is necessary," they said. "The onus is now on Maltese clubs to decide to take up this offer."

Mr Iwueke and Dr Cuschieri said that they will soon begin to contact the clubs that have been selected - on the advice of the firm - in order to arrange meetings in Malta. This is to enable the managing director of the firm to meet and explain to the presidents in detail how the revolving loan scheme will work.