777 Partners, Everton and the Murky World of Multi-Club Ownership in Football.

In recent weeks, Everton Football Club, based in Liverpool, England, is being taken over by an American investment firm called 777 Partners. 777 has a murky history and was at the center of a Washington Post article detailing its exploitative business practices that are not dissimilar to payday loans with extremely high-interest rates. 777 also has been buying up football clubs from around the world rapidly. The head of 777, Josh Wander, also has a colorful history; according to the Post article, in his student days, he was charged with drug trafficking after allegedly opening a package containing cocaine that the federal government was tracking. He pleaded no contest and avoided prison time but was sentenced to 14 years on probation, but surely that will be a black mark against the Premier League’s recently beefed up Owners and Directors Test has any teeth to it. One has to feel for longtime Everton supporters who have had to deal with their club struggling both on and off the pitch and could be taken over by a charlatan.

The backdrop to 777 & Everton is the growth of multi-club ownership in football, where one person, or usually an investment group, buys into several clubs worldwide. There are numerous examples, the most famous of which is the City Football Group (CFG), who owns Manchester City and clubs in Australia, the U.S., and elsewhere. According to an article in ESPN, one of the main benefits of owning several clubs is that if one club gets relegated, the financial impact won’t be as profound if the others in the network are performing strongly. Another reason that multi-club ownership is widespread is because it allows big clubs to loan out young players to smaller clubs within their network. However, there are also numerous downsides, and chief among them is a loss of identity and a corporatization of the football ecosystem, particularly in Europe. In my view, the multi-club models are bad for the future of sport because they whittle clubs down to investments and not what clubs should represent; they should represent civic pride and, most importantly, the values of their supporters.

SBF Colleague Admits Fraud.

Yesterday in the trial of Sam Bankman-Fried, Gary Wang, the co-founder of FTX, admitted that SBF had directed him to commit financial crimes. According to an article in The San Jose Mercury, Wang’s testimony will detail the acts of fraud both he and SBF committed while running FTX. Wang stated that he committed wire, securities, and commodities fraud at FTX while having a stake in Alameda Research, the hedge fund that SBF’s girlfriend ran. According to a report in US News, Wang is the first of a trio of former high-ranking executives that will testify against SBF. The trial continues.

Bankman-Fried’s Fraud Trial Gets Underway.

The trial of disgraced former FTX CEO Sam Bankman-Fried started today in New York City. SBF is accused of fraud and conspiracy to commit fraud. According to a report by CNN, prosecutors claim that SBF stole billions of dollars in customer deposits at FTX to cover enormous losses at Alameda Research, a crypto-driven hedge fund run by his then-girlfriend Caroline Ellison, who pleaded guilty to similar offenses in December of last year. Before its infamous collapse, FTX had developed a well-known reputation by featuring celebrity endorsers such as Tom Brady in Super Bowl commercials. According to an article in Politico, SBF’s trial could have significant ramifications on future legislation regarding the regulation of the industry. Michael Lewis will be smiling somewhere as his book on SBF comes out today; nothing beats a bit of free publicity.

Head of China Life Insurance Sentenced to Death on Corruption Charges.

The former Chairman of China’s most prominent life insurance firm Wang Bin today was sentenced to death with a two year reprieve after being found guilty on corruption charges. This is the latest conviction of a well-known figure in China’s financial services industry, as President Xi clamps down on corruption. According to a report from CNN, Mr. Wang had taken $44 million in bribes and had stashed $7 million away in a bank account in Hong Kong. It is unclear who could have bribed Mr. Wang; it could be anyone within the Chinese business community or someone from abroad. According to a report in the Independent, when Wang was arrested in 2022, China’s anti-corruption body stated he failed to institute policies within his company that would mitigate financial risks. Likely, this will not be the last time a prominent figure in the Chinese financial industry will be charged with corruption.

SBF in Prison After Allegations of Witness Tampering.

On Friday, Sam Bankman Fried, the disgraced former CEO of FTX, had his bail revoked by a federal Judge in New York. Bankman-Fried had been out on bail living at his parent’s house in Palo Alto, CA, under House arrest. According to an article in The New York Times, prosecutors allege that Bankman-Fried has tried to tamper with witnesses on two occasions and gave documents related to his case to media members. According to a report by NPR, SBF leaked private diary entries of his former girlfriend, Caroline Ellison, to the New York Times and participated in phone calls with the author Michael Lewis. The prosecution in SBF’s case felt that these actions could be an attempt to corrupt Ellison’s testimony at the upcoming trial. If this is true, SBF has some serious explaining to the judge.

The Sad State of Captain Tom’s Legacy.

In 2020, at the beginning of COVID, a 99-year-old British World War II veteran Captain Tom Moore captured the hearts of a nation by walking laps in his back garden. In a time of deep uncertainty and fear about an ever-growing pandemic, Captain Tom gave everyone hope. He raised £38 million for National Health Service (NHS) charities and was knighted for his efforts. However, since then, much of the initial goodwill has receded as the charity sent up by his daughter, Hannah Ingram-Moore, has been embroiled in scandal.

A few weeks ago, the Guardian reported that the charity in question called the Captain Tom Fund, has stopped receiving money from donations after it emerged that a building attached to Ingram-Moore’s house, purported to be office space, was denied retrospective planning permission (an essential step in the UK for any new construction). It emerged that the building was not an office but a recreational space, including a swimming pool and changing rooms. Subsequently, Central Bedfordshire Council, which rules on planning issues, ordered the building to be torn down. This is on top of questions being asked about the charity’s governance and where the donations were ending up. Captain Tom lifted many people’s spirits, and seeing his legacy being sullied by family members is profoundly sad.

Where in the World is Jho Low?

Recently, numerous reports have surfaced regarding the whereabouts of the fugitive Malaysian financier Jho Low. Low is involved in the infamous 1MDB scandal, which involved Low stealing billions of dollars from a now dormant Malaysian government fund. According to a report by Reuters, Low was spotted in Macau hiding out from the international authorities aiming to bring him to justice. Macau, a haven for gambling, increases the possibility that Low was frittering away his ill-gotten gains at the baccarat tables. Yesterday it was reported by al-Jazeera that a close associate of Jho Low named Kee Kok Thiam died of a “sudden massive stroke” shortly after the Malaysian Anti-Corruption Commission (MACC) confirmed that Thiam was the one who confirmed Low’s whereabouts. The big question is, was Thiam’s death of natural causes, or did Low play a role in Thiam’s untimely demise?

Lebanon Still Plagued by Corruption Issues.

Recently, the Lebanese central bank head has been summoned back to the country for questioning. According to a report by AP News, Riad Salameh is facing many financial crimes, including, but limited to, illicit enrichment and money laundering of $330 million. Salameh is facing possible investigations in Germany, Luxembourg, France, and Lebanon. A report by the Washington Post suggests that Lebanon may not send Salameh over to French authorities despite France issuing an Interpol warrant for Salameh’s arrest. The legal wrangling over Salameh appears to be unresolved for some time.

Along with Salameh’s travails, Lebanon has been “grey listed” by the Financial Action Task Force (FATF). FATF will closely monitor Lebanon’s efforts to combat money laundering and other financial crimes. According to a report by Reuters, Lebanon scored as only partially compliant in enacting money laundering laws and transparency regarding shell companies. This is another blow to an economy already suffering from high inflation post-COVID-19. Lebanon has much to do if it wants to make progress in eradicating corruption.

Ukrainian Chief Supreme Court Justice Dismissed After Bribery Scandal.

Earlier this week, the chief justice of the Ukrainian supreme court was fired due to being caught up in a bribery scandal. Ukraine is in the process of cracking down on political corruption. According to a report from Reuters, while it is not immediately clear who was arrested, the current chief justice is Vsevolod Kniaziev. According to an article in The Guardian, the bribe may have been paid by a company called The Finance & Credit Group, owned by a well-known businessman called Konstiantyn Zhivago, to influence the court. If you are Kniaziev, seeing pictures of stacks of cash lined up on your living room sofa, surely that can’t be a good sign.

Odesa Mayor Arrested on Corruption Charges.

Last Thursday, the mayor of Odesa, Hennadii Trukhanov, was arrested in connection with an ongoing corruption investigation. Recently, Ukraine has been in the process of cracking down on governmental misconduct. According to Radio Free Europe Trukhanov is alleged to have embezzled roughly 2.5 million dollars from Odesa’s budget through a scheme involving the purchase of a disused factory. On Friday, according to Yahoo News Trukhabov was released on bail. While it is an encouraging sign that high-ranking government officials are being investigated over corruption allegations, Ukraine still has much to achieve, or they are serious about cracking down on governmental wrongdoing.