Transfer ban for capsizing Standard football club

First division club Standard is no longer allowed to make transfers due to unpaid bills. The club is in the dark now that its American owners are in the crosshairs of their creditors.

The reason is that the monthly inspection by the licensing committee showed that Standard has not paid its social security contributions, withholding tax and a transfer debt. These are amounts for March that should have been paid in April.

The Standard management states that it was sanctioned because the club was unable to provide all proof of payment within the specified period. ‘The club will work towards lifting the sanction in the coming days. We expect this to have no impact on the summer transfer window. It is also important to specify that this sanction does not call into question the license obtained for next season,” it said.

That’s a very disguised version of the truth. De Tijd learned that Standard is looking at the bottom of the fund. The club has large outstanding invoices with its suppliers. The players were told on Tuesday during a meeting with director of football Fergal Harkin that the club has no more money and they can no longer be paid. And it is unclear whether the American owner, the 777 Partners fund, will come up with money.

It is unclear whether the players are still willing to play the last three matches of the season. Standard is currently competing in play-off 2, in which they are still fighting for a European ticket, but nothing is at stake for Standard anymore.

The executive committee with CEO Pierre Locht held a meeting on Tuesday. ‘We have informed all managers about the situation and reported that we are in continuous contact with our shareholder. We expect more clarity in the coming days,” the management said.

The club recently received its professional football license for next season because owner 777 guaranteed to come up with the money to keep Standard above water. New information from the US casts serious doubts on the guarantee.

Because 777 owners Josh Wander and Steven Pasko are the subject of numerous lawsuits over unpaid debts. One of those creditors, the British lender Leadenhall, accuses 777 of fraud in a case before a judge in New York. “777 is a house of cards about to collapse,” Leadenhall’s lawyers say. Standard is also mentioned. “777 continued to load Standard’s balance sheet with debt even as it failed to pay players and staff and faced sanctions,” Leadenhall said.

The lender also refers to the other football clubs in 777’s portfolio, including Genoa and Hertha Berlin, and to the takeover of Everton, which is pending in the United Kingdom. ‘777 has given Everton a quarter of a billion dollars in loans. It continues to pump money into loss-making clubs even though it owes Leadenhall more than $600 million.”

The file on the approval of the Everton takeover has been stuck with British regulators for months. The situation seems to rule out a green light. An Everton fan group, which owns 5 percent of the club, is calling for the deal to be called off altogether. As the owner of a large portfolio of clubs, Wander was included last year on the board of ECA, the federation of the largest European clubs.

At Standard, lawsuits have been initiated against 777 by ex-owner Bruno Venanzi and by the company that owned the stadium. They are requesting a seizure of 777’s shares in the club and the stadium, because the Americans have not fulfilled their promises for a payment in installments since the takeover in 2022. The procedure can ultimately lead to a forced sale of the club or, in the ultimate case, bankruptcy.

The most logical scenario is a takeover. According to our information, potential buyers are sniffing around the club, also because 777 has a knife to its throat. Due to all events, it seems impossible that 777 will be able to obtain new credits. And what little cash flow flows from its businesses won’t be enough to pay off 777’s high debts.

The Standard company is barely worth anything anymore. The club is structurally loss-making and had a negative capital of 24 million euros at the end of last season. However, an acquirer will have to be prepared to take over the debts. Standard’s balance sheet shows 55 million euros in debt, although the question is whether this includes all loans and credits. This does not include the money needed to give the club an operational restart. Undoubtedly, discussions will also have to be held with the creditors circling around 777.

In another of 777’s businesses, budget aviation, a curator has already been appointed by the Australian company Bonza. A restart seems impossible now that the leasing companies are seeking to confiscate the aircraft that are on the ground.