From today's Grauniad on FIFA's inquiry into Arsenal and Belgium team Beveren.
Arsenal are the subject of a Fifa inquiry after a money-laundering investigation in Belgium threw up evidence of an unusual financial relationship between the Champions League finalists and their feeder club Beveren.
According to a report by the BBC's Newsnight last night, opaque investments made in Beveren in 2001 drew the attention of Christian Du Four, the investigating magistrate in the Flemish region of Dendermonde. Fearing that the funds - initially a one-off payment of £1m - were being drawn from mafia sources, Du Four began to investigate their provenance.
"A company with no name wanted to invest £1m in the club," said Du Four. "We thought it rather bizarre."
It became clear in the course of his fiscal probe that Arsenal, rather than criminal elements, were the source of the investments. The Premiership club had agreed in August 2001 to make a £205,000 payment to a certain Raoul de Waele in the form of an interest-free loan. The loan agreement, a copy of which is in Newsnight's possession, stipulated that the money would be used to incorporate a company called Goal, which would in turn set up another company to purchase Beveren. It was signed by Arsenal's vice-chairman David Dein.
"Goal will hold a majority of the share capital [of the second company, which would be] formed for the purpose of acquiring the assets, liabilities, contracts and undertaking of VZW KSK Beveren," the agreement stated. Although there is no suggestion that Arsenal have acted illegally, the Fifa president Sepp Blatter has ordered the Football Association to investigate. "Let Arsenal give to the FA, to [its chairman Geoff] Thompson and his crew a report and then he shall report it later to Fifa," Blatter said yesterday.
Arsenal insisted yesterday that it did not own shares in Beveren and had no influence over the running of the club. "Arsenal confirms that it has never owned, directly or indirectly, any shares in Beveren or had any power whatsoever to influence its management or administration," said the club in a statement. "It did in 2001 provide funds of £1,077,855 by way of loan to a member of a consortium who used the money to assist in stabilising the finances of Beveren.
"At no time has anyone at Arsenal been contacted by any regulatory or investigatory body with respect to its relationship with Beveren. Arsenal and all its staff have acted properly throughout, in accordance with all applicable rules and regulations, and in the best interests of Beveren, Arsenal and the broader footballing community."
Arsenal have certainly profited from their relationship with Beveren. They bought Emmanuel Eboué from the Belgian club in 2005 for an undisclosed sum and the Ivory Coast international, one of a number of players from that country recruited by Beveren, has become a trusted figure in the Arsenal defence.
According a statement allegedly made to Du Four, Beveren's chairman Frans van Hoof claims that Arsenal is Goal's main shareholder. There is, however, nothing in the loan agreement to indicate Arsenal acquiring any shares in Goal.
Blatter is also concerned about the number of Ivorian players who represented Beveren after the investments were made. Under the guidance of the former France international Jean-Marc Guillou, who was well known to Arsène Wenger since he had acted as his assistant manager during a spell at Cannes, Beveren recruited players from the Ivory Coast. Guillou had set up an academy for young players in the Ivorian capital of Abidjan.
Blatter is now seeking to ensure such practices are not possible in future. "[At] Beveren there are 11 players from Africa in the same team; in Dinamo Moscow the last season there were 10 players from Brazil or Portugal," he said. "These are deviations in football."