Islamic finance makes its way onto the football pitch (By IFN)

Friday 12^th October 2012

UK: From news of GFH Capital’s planned takeover of Leeds United Football Club (LUFC) to Muslim footballers taking a stand against sponsorship by Riba-related companies, Islamic finance has, of late, been cast in the spotlight of the “beautiful game”. It has been speculated that Demba Ba, Papiss Cisse, Cheick Tiote and Hatem Ben Arfa, all Muslim players for Newcastle United Football Club (NUFC), could choose not to don their side’s kit which is set to be fitted with the logo of the club’s new sponsor, short-term money lender, Wonga. The sponsorship deal is seen to potentially put off the side’s Muslim players who may not want to be associated with non-Shariah compliant practices. The possible boycott would not be the first time Muslim players have spoken up for their religion – In 2006, Frédéric Kanouté, a Muslim who was playing for Spanish team Sevilla Fútbol Club at the time, refused to wear his team’s shirt as it displayed the logo of a gambling website. NUFC’s sponsorship deal has also been slammed for promoting easy credit at allegedly exorbitant interest rates, especially as Newcastle has shown to have the highest personal insolvency rate in the UK, at 35.2% for every 10,000 adults, according to data from R3, a trade body for insolvency professionals. Meanwhile, in the latest development of the GFH Capital-LUFC deal, the two parties have issued a joint statement clarifying certain points of the transaction; noting that the investment firm has been in talks for the transaction with Ken Bates, the football club’s owner and chairman, since June this year; and not with the Leeds United Supporters Trust. Salem Patel, a director and the chief investment officer at GFH Capital, also said that: “Both GFH Capital and the current owners of LUFC are working hard to ensure a swift conclusion to this deal as possible,” adding that the firm will be engaging with LUFC supporter groups and their members as soon as it is able. All parties are currently restricted by a confidentiality clause from providing too many details on the transaction. GFH Capital has also brushed off speculation that it will have trouble funding its potential takeover of LUFC due to its parent, Gulf Finance House’s financial woes following the 2008 financial crisis.