On the eve of the Tehran derby, which will be held on Friday afternoon, Persepolis and Esteghlal are at risk of losing their professional licenses and may be excluded from the AFC Champions League next season. The latest warning from the Asian Football Confederation to the Football Federation of Iran regarding the privatization process has reached Tehran. The hasty reaction of the Ministry of Sports and Youth and the Privatization Organization to the announcement of the sale of 51% of the shares of these two clubs in the Tehran Stock Exchange. The joint government ownership of these two clubs has even endangered their participation in the Iranian Pro League. It is possible that the AFC will not be satisfied with just removing these two teams from the AFC Champions League by putting an end to the charade.
Earlier, the sale of 10% of the shares of Esteghlal and Persepolis led to losses for the fans who had purchased shares in these two teams. Both clubs used the proceeds from the sale of shares for everyday expenses, rather than for infrastructure development. Even more bizarre is the fact that Esteghlal and Persepolis used part of the income from the sale of shares as collateral to obtain loans from banks, and now they want to use the remaining deposits from the bank to pay off their debts, so that no trace of the effects of the 10% share sale remains.
However, the sale of 51% of the shares of these two clubs will likely not find a genuine private sector buyer, and in many cases, individuals or entities affiliated with the government and benefiting from corruption and embezzlement opportunities are involved in such transactions. The announcement of the two government agencies is an invitation to the beneficiaries of corruption and embezzlement, not an action to sell shares and privatize.
The base value of Persepolis club shares available for sale is 21,161,047,086.900 rials, equivalent to 5,362,657,650 shares in block form (51%), at the board price of the Farabourse “on the day of offering equal to the final price of the previous day of offering” plus 110%, provided that it is not less than 3,946 rials. The base value of Esteghlal club shares available for sale is 18,502,721,613,000 rials, equivalent to 5,503,486,500 shares in block form (51%), at the board price of the Farabourse “on the day of offering equal to the final price of the previous day of offering” plus 110%, provided that it is not less than 3,362 rials.
Based on this valuation, which is based on an unknown basis, the managerial block (51%) of Persepolis and Esteghlal is worth about 42 and 37 million dollars, respectively; a baseless value for two clubs with accumulated debts and negligible income, against staggering and increasing expenses.
Esteghlal and Persepolis, deprived of television broadcasting rights and discouraged from obtaining this right due to the monopoly of the Islamic Republic’s radio and television, and under the supervision and guidance of the imposed government managers, are loss-making and indebted clubs. These two clubs, which, given the number of their fans, could be among the richest clubs in Asia, deliberately remain indebted and in need of assistance. Their economic development is not possible with the prevailing management methods. A hypothetical private buyer must also operate under government supervision and interference and their security considerations.
Following the loss incurred from the sale of 10% of their shares, Esteghlal and Persepolis have now proceeded to sell 51% of their shares.
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It seems that a buyer will not be found for this 51% stake, and this will only be a show put on to justify the government’s joint ownership of these two clubs to the Asian Football Confederation. The presence of Esteghlal and Persepolis with joint government ownership in one league is a historical violation in Iranian football, which AFC has, perhaps due to the traditional rivalry and social importance of these two clubs and the tradition of club ownership in the Middle East, always treated as a special case. However, this charade cannot be eternal. The process of privatizing Esteghlal and Persepolis may continue, like a deceptive show, with these announcements, or by replacing individuals and entities affiliated with the government with private ownership, but the administrative structure of professional sports in the Islamic Republic will never open even a door for private club ownership. Years ago, private buyers like Hossein Hedayati or Ali Ansari were found for Persepolis and Esteghlal, and again, if a buyer is found for 51% of the shares of these two clubs, it will still be from the same pool.
Private club ownership in Iran has multiplied like a major lie over the past decade. Clubs like Sepahan, Foolad, Zob Ahan, Saipa, Paykan, and other industrial teams claim their independence and privatization to the Asian Football Confederation. This is also a fake document that AFC surprisingly accepts, and this acceptance has also been normalized.
The last private club owners in Iranian football were Hossein Hedayati in Steel Azin, Babak Zanjani in Rah Ahan, and Amir Mansour Aria in Damash, who were famous for embezzlement and money laundering, even though their record has been broken by the revelation of the embezzlement of Chay Dabesh.