Blatter demand an explanation
By Boris Mellor
June 1 2006
Sepp Blatter has demanded an explanation of what has gone on between Arsenal and Beveren. Arsenal admit they have made payments of up to a million pounds to the club.
Fifa has demanded an investigation into whether Arsenal have broken regulations which could leave the club exposed to serious penalties - even expulsion from the Champions League.
BBC reports claim they have learnt that a police investigation in Belgium alleges that Arsenal made secret payments of £1m to Beveren football club.
Arsenal have denied making any financial input into the Belgium club, but the BBC say they have been shown documents by the investigating magistrates, including one signed by David Dein on behalf of Arsenal Football Club PLC. (If it’s a secret and illegal deal would Dein be stupid enough to sign a document that could be left hanging around for the police to find beggars belief.)
In 2001 a mystery payment of one million pounds to an obscure Belgian football club triggered off a money-laundering investigation. That club was Beveren and they refused to say where the cash had come from. Christian du Four, the Investigating Magistrate told Newsnight, "A company with no name wanted to invest a million pounds in the club. We thought it rather bizarre." At the same time the team dispensed with most of its Belgian players and replaced them with unknowns from an academy in Ivory Coast, West Africa.
At first Belgian police suspected mafia involvement. Instead after an investigation they told the BBC they had found Arsenal's secret hand behind the money.
Arsenal had an agreement with Beveren that in return for technical support and provision of loan players drawn from the Highbury fringes and youth ranks, Arsenal had first shout on the Ivorian talent that Guillou brought to the club, includingYaya Toure. Guillou made a sudden acrimonious departure earlier this past season. Eboué was the first Beveren player to make the move to Arsenal.
According to Mr Du Four "Jean Marc Guillou who is the manager of Beveren has very close contacts with Arsene Wenger the coach of Arsenal and that is why they went ahead with the contract." He then highlighted one contract signed by Arsenal Vice-Chairman David Dein. The contract allegedly shows Dein agreeing to advance 12 million Belgian francs (£200,000) on behalf of Arsenal Football Club in an interest free loan to an associate of his called Raoul de Waele. It is claimed the loan was to establish a company called Goal, which would take over control of Beveren. The loan and other money advanced by Arsenal would be repaid out of Goal's share of transfer profits. Du Four states that in all Arsenal put in £1m.
An unidentified director of Beveren has told Newsnight that in return for the £1m de Waele was given 50% control of Beveren and Guillou was given another 30%. If Arsenal secretly controlled another club, especially one such as Beveren who they bought Emmanuel Eboue from, they could be in breach of FIFA rules and could be heavily fined or even thrown out of the Champions League.
Arsenal deny they controlled the club at any time, but admit putting money into it. Fifa will investigate.
Beveren were recently relegated to the third division and are under investigation for match fixing. This could be a case of a drowning man trying to blame someone else for his plight.
Stop Press
Arsenal statement:
1 June, 2006
Arsenal Football Club is aware that BBC Newsnight is carrying a story this evening purporting to describe Arsenal's relationship with Belgian football club, Beveren.
Arsenal does not normally make public its agreements with third parties. However, Arsenal can confirm that it has had a technical relationship with Beveren since 2001. This relationship has a number of benefits to both clubs such as providing a platform to share coaching methods and techniques as well as facilitating the option of players being loaned between the clubs. For example, during the course of the relationship, Arsenal players David Grondin, Liam Chilvers, John Halls and Graham Stack all spent successful loan periods at Beveren as did Emmanuel Eboue, who played in a number of trial matches with Arsenal whilst contracted to Beveren. Such was the latter player's success, Arsenal subsequently signed Eboue on a permanent basis.
In addition, 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. It did in 2001 provide funds of 1,570,703 Euros by way of loan to a member of the consortium 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. 
Newsnight will cover the story tonight at 10:30pm.