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Who owns what? The extent of foreign investment in Australian football

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Australia’s ‘A-league’ has grown considerably in recent years, yet still lurks in the shadows of the AFL and NRL – unable to attract the sponsorship and audience of the country’s major sporting codes.

Despite this, the A-league has attracted a swathe of foreign investors who view the league as a small, burgeoning market, ripe for foreign investment and growth.

But exactly how deep these investments run throughout the league remains unclear.

A recent investigation by the ABC’s Four Corners revealed that almost half of the clubs in the A-league are owned by foreign investors – each with a peculiar backstory.

The program exposed the foreign entities funding Melbourne City, Sydney FC, Brisbane Roar, as well as the unknown Dutch consortium backing Adelaide United.

Last seasons premiers Melbourne City (formerly Melbourne Heart) were famously snapped up in 2014 by the City Football Group, (CFG) the sports investment company headed by Sheikh Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s royal family.

Manchester City chairman Khaldoon Al Mubarak (left) pictured with owner Sheikh Mansour bin Zayed Al Nahyan (centre) and vice-chairman Simon Pearce (right)

CFG own a majority stake in a range of clubs around the world – its flagship team Manchester City is a footballing giant on the English and European stage.

Manchester City chairman Khaldoon Al Mubarak and vice-chairman Simon Pearce, aside from their football interests, are both senior advisers to the Abu Dhabi government.

Al Mubarak also serves as an adviser to the Crown Prince and de facto ruler of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, who is deputy supreme commander of the nation’s military. 

‘Sportswashing’ accusations levelled at foreign investors

The United Arab Emirates have long been criticised by humanitarian organisations for human rights abuses, as well as the ‘soft power’ strategy employed by the government to portray the country as a progressive nation.

Amnesty International has called for urgent action in the A-league, accusing the City Football Group and its owners of ‘sportswashing’: using the positive publicity garnered by the success of their clubs to rehabilitate their nation’s image.

Melbourne City is one of several CFG clubs, including Manchester City, that are being used to promote next month’s World Expo in Dubai.

The Bakrie Group seized control of the Brisbane Roar in 2011.

Brisbane owners linked to match-fixing scandal

Brisbane Roar is fully owned by an Indonesian conglomerate known as the Bakrie Group, who have extensive mining, banking and agriculture interests.

Their purchase of the Roar in 2011 marked the first time an A-league club would be fully owned by a foreign entity.

The head of the Bakrie family is Aburizal Bakrie, an Indonesian politician and former chairman of the infamous Golkar political party, widely known for its history of corruption.

The Bakrie Group own Brisbane Roar through an Indonesian holding company, Pelita Jaya Cronus.

A director at the company and former acting chairman of the Indonesian soccer association, Joko Driyono, was charged in 2019 for interfering with evidence in a police investigation into match-fixing in Indonesian football.

Joko Driyono is a director at Pelita Jaya Cronus, the holding company of the Brisbane Roar.

Driyono served an 18 month prison sentence and has since been released, resuming his position on the board of directors at Pelita Jaya Cronus.

It is uncertain as to whether competition regulator Football Australia is aware of how closely connected Driyono is with Brisbane Roar, or if they are aware of his connection to the club at all.

Exactly how much money foreign investors have injected into the A-league isn’t publicly available

Football Australia relinquished control over the A-league last year, handing commercial control back to the clubs.

The wealthy business owners and global consortiums with controlling interest in clubs were given direct say in how the competition and their teams would be financed.

There are currently no figures which track investments into teams, and A-league clubs operate as private companies who aren’t required to disclose financial statements.

This leaves an obscure and often complex paper trail which poses a significant challenge to transparency and accountability in Australian football.

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Money

Boeing CEO to depart with lucrative exit package despite chaos

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Boeing CEO Dave Calhoun is set to step down from his position at the end of the year, walking away with a substantial payout despite challenges faced during his tenure.

Here are the key points:

  • Massive Payout: Despite Boeing’s stock price plummeting by 43% since Calhoun took over as CEO in 2020, he is poised to receive a $24 million payment upon his departure.

  • Additional Compensation: Calhoun holds options that could potentially earn him an additional $45.5 million if his successor manages to boost Boeing’s share price by 37%.

  • Comparative Compensation: Calhoun’s compensation during his tenure exceeds that of CEOs in similar industries, despite Boeing’s stock underperforming in comparison.

Boeing CEO Dave Calhoun’s impending departure at the end of the year has sparked controversy as he stands to walk away with a substantial payout, despite the company’s tumultuous journey under his leadership.

READ MORE: Boeing CEO to step down

Despite inheriting a company reeling from the aftermath of two deadly 737 Max crashes, Calhoun’s tenure has been marred by further setbacks, including the recent Alaska Airlines door blowout incident that further tarnished Boeing’s reputation.

Boeing offers CEO $5.3 million incentive to stay through recovery …

With Boeing’s stock price plummeting by 43% during Calhoun’s time at the helm, questions arise about the correlation between executive compensation and company performance, especially in the face of such significant challenges.

‘Raised eyebrows’

Calhoun’s lucrative exit package, valued at $24 million, has raised eyebrows among shareholders and industry observers alike.

Additionally, the potential for Calhoun to earn an additional $45.5 million based on the future performance of Boeing’s shares has intensified scrutiny over executive compensation practices.

This sizable payout contrasts starkly with Boeing’s stock performance, which has significantly underperformed compared to both industry peers and broader market indices, highlighting the dissonance between executive rewards and shareholder value creation.

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Money

It’s been a record year for CEO compensation

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In 2023, Broadcom’s CEO Hock Tan was granted a stock award worth $161 million, propelling him into the realm of highest-paid CEOs.

However, as the company’s share price surged, the value of Tan’s award skyrocketed to approximately $1.3 billion, outpacing even the shareholders’ annual returns.

Tan’s compensation reflects a broader trend among top executives in the tech sector, where awards of restricted stock and stock options surged in value alongside company share prices.

Notably, CEOs like Charles Robbins of Cisco Systems and Shantanu Narayen of Adobe also saw substantial increases in their compensation, doubling in some cases.

The disclosure of such equity growth in executive compensation is a new requirement by the Securities and Exchange Commission (SEC), providing shareholders with insights into the changing value of executives’ awards throughout the year.

CEO pay is on the rise.

New heights

Overall, CEO pay at major S&P 500 companies reached new heights in 2023, rebounding from slower growth in the previous year. The median pay for these CEOs rose to $15.6 million, up from $14.1 million in 2022, reflecting a surge in equity awards.

Broadcom clarified that Tan’s stock award is designed to span five years, with no plans for additional equity grants or cash bonuses during that period.

Tan’s compensation, which amounts to approximately $33 million annually over five years, is contingent upon his continued tenure and specific share price targets.

While the initial valuation of Tan’s restricted shares stood at $160.5 million, the surge in Broadcom’s share price prompted the company to reassess the likelihood of meeting vesting conditions.

This reassessment suggests that Tan may not receive all the shares initially granted.

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Money

Market forecast: weather whirlwinds influencing investments

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Prime conditions for commodity investments arise from global weather shifts, geological tensions, and rising interest rates.

With global weather patterns causing disruptions in traditional supply chains, coupled with geopolitical tensions over natural resource access, and the anticipation of higher interest rates impacting financial markets, the conditions for commodity investments have reached exceptional levels.

Amidst this backdrop, Farrer Capital has emerged as a standout player, leveraging its unique ‘blue ocean’ approach to capitalize on price dislocations and scarce competition in the market.

Mark Wyld from MW Wealth joins the show to share his insights on the inclement weather impacting the market.

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