UEFA warning from Dursun Özbek: We could face penalties

The Extraordinary General Assembly Meeting, organized to request authorization regarding real estate projects and club assets at Galatasaray, is taking place at the Lütfi Kırdar International Convention and Exhibition Center, Anadolu Auditorium Hall.

The program began with the election of the council to manage the assembly. Subsequently, Galatasaray President Dursun Özbek took the stage to deliver his speech and explain in detail the projects for which he is seeking authorization. President Özbek first stated, “Our men's football team made us proud by winning the 100th-year Super Cup following the championship they won in the 100th year of our Republic. I send my thanks to everyone who contributed to these successes. We also became champions as we began the new century of the Republic. Next year, we will win our 25th championship and pin our 5th star to our chests. We have dreams. We have European championships we want to reach. Where there is Galatasaray, there is always success; we will work to continue this tradition. We will transfer the best players for our club under the most accurate conditions. Let no one have any concerns. Our goal is to protect Galatasaray's interests and ensure that not even 1 TL is wasted. Our women's football team won its first cup in the professional league that was established a short time ago. I believe this success will be the first step of great successes that will continue for years. I also wish them success in the matches they will play in the Champions League. There is a very important match this evening. Our national team will play against the Netherlands for the semi-finals. We see there how great the contribution made by Galatasaray is. Hopefully, we will win the match,” he said.

Congratulating the water polo team on their successes, Özbek also conveyed his best wishes to the 6 Galatasaray athletes who will compete in the 2024 Paris Olympics.

WE WANT TO EXIT THE BANKS ASSOCIATION AGREEMENT

Underlining that Galatasaray's exit from the Banks Association agreement is important for creating a strong financial structure, Dursun Özbek said, “During the election process, we tried to explain to you what we want to do in the coming period. Today, to reach this goal, we are asking for your authorization for one of the important stages. Our goal is to ensure that every member leaves here today without any question marks regarding the subject. Galatasaray belongs to all of us; we want to reach the good and the right together. With the authorizations we want to obtain, our main goal is to bring Galatasaray to a sustainable sporting success in every branch it competes in with a strong financial structure. For this, we want to exit the Banks Association agreement and create a strong financing structure for our club,” he said.

''THE ISLAND IS THE PROPERTY OF GALATASARAY''

Stating that the zoning plan and projects for Galatasaray Island are ready, President Özbek said, “Galatasaray Island has been a total of 6,500 square meters since 1957. Approximately 2,500 square meters of this belongs to the Galatasaray Sports Club, and the rest is the property of the National Real Estate. No zoning plan had been made since 1957, and making it legal had been neglected. Following the elections in 2022, we renovated a significant portion of the island so that it could serve you after we took office, and we opened it for your service. The board of directors undertook the financing of the work done itself. We brought the title deeds of the island to Galatasaray. Now we can say with pride; the island is the property of Galatasaray. We have also made our zoning plan. Our projects are ready. We will obtain the construction permit in a short time and start the construction of the 2nd phase remaining there. We have also designed the project for an event area of approximately 1,000 square meters and the areas that will serve it, and it is currently at the Bosphorus Zoning Directorate. We want to make the island a place that only serves Galatasaray general assembly members and their guests, and is 100 percent the property of Galatasaray. For this, your support is very important. The cost of the superstructure here is approximately 95 million TL. When we include the infrastructure, we have to spend a total of 125-126 million TL,” he explained.

THE BANKS ASSOCIATION PLACES A MORTGAGE

Explaining the details of the Florya project with slides, Özbek said, “The history of the Florya project goes back a long way. All the presidents who have come to date have thought that purchasing this land would be beneficial for Galatasaray. Therefore, as a result of the work of my friends and me, we brought the title deed of this 41-decare land to Galatasaray as our property. The land has a price of approximately 1 billion 85 million TL that needs to be paid. We took a loan from Ziraat Bank. Within the framework of the Galatasaray Sports Club's restructuring agreement, there is a borrowing ban. It cannot borrow in any way. A guarantee signature was requested, and I did not think for a second; by providing my personal guarantee, we brought the 41-decare Florya land to Galatasaray. Even though you have purchased a new land, the Banks Association consortium places a mortgage on every real estate Galatasaray acquires within the scope of the restructuring agreement. In this sense, the 14 billion TL mortgage placed on the land still continues. The fact that the land has become 63 decares has greatly increased the value of this place. Our main goal is to move from Florya to Kemerburgaz and develop a housing project of approximately 97,000 square meters on this land,” he said.

FLORYA PROJECT

Stating that they think the revenue-sharing model is more suitable for Galatasaray for the Florya project, Özbek said, “We had discussed how the Florya project would be developed at the first authorization general assembly. Two alternatives emerged. In the first model, we were thinking of doing the project with the club's own resources. In the second model, there was also the option of doing this project in the form of revenue sharing, where a project partner covers all costs. In the first model, the feasibility study we had prepared by the Industrial Development Bank of Turkey (TSKB) in May 2022 predicted a profit of approximately 370 million dollars by selling at 5,000 dollars per square meter. We stated then, we said that the most profitable way is to do this project with our own resources. However, developments from May 2022 to today have brought us closer to the second model. There has been a rise in the interest we pay to the Banks Association, a quite large change. It went from 15 percent to 51 percent. Currently, we have started to pay 35 million dollars in interest per year. If we consider that we are in the restructuring agreement, that we have a borrowing ban, Galatasaray's current financial structure, and where economic conditions in Turkey have come from and to, you can see that it is not possible for this to be done by Galatasaray. The authorization we want from you is not an authorization to put Galatasaray at risk. Looking at today, the profit to be made in the new report of Florya will be 434 million dollars,” he expressed.

Stating that they want an advance in the revenue-sharing model, Özbek continued his words as follows:

“In the revenue-sharing model, we proposed that an advance payment be made to Galatasaray in the tender specifications we prepared. First of all, our Banks Association debt of around 2.3 billion TL must be closed. The mortgage on the land must be lifted so that the sale of the production to be made here is possible. When we pay this money, we get out of the mortgages on not only Florya but all real estate.

''UEFA IS HOVERING OVER US''

Stating that they are in a negative equity position and that there is a possibility of receiving a penalty from UEFA, President Özbek said, “UEFA is constantly hovering over us. We are currently in a negative equity position. They are telling us to fix this. If we cannot, we will most likely face a penalty. The way to fix this is through the advance we will receive in the revenue-sharing model. We come from such a culture that we are people of a generation that has never accepted captivity or being under shackles. As a Galatasaray fan, I want to get out of these shackles,” he said.

NEXT TARGET: ASLANTEPE PROJECT

Speaking about the Aslantepe Valley project, Dursun Özbek said, “The Aslantepe Valley Project is the largest and most important project after Florya. This is the heart of Istanbul. The usufruct right of this place was given to us. There is something we need to do. Our zoning plan is ready. We will have our 10,000-capacity basketball court, and halls that will serve volleyball and other branches. The cost of this place is approximately 5 billion TL. It is possible to market the naming rights of the sports halls,” he said.

Stating that Florya is the engine project for Galatasaray, Özbek noted, “Florya is Galatasaray's engine project. With the return of Florya, Galatasaray's facility construction will be completed. This is included in the authorization we want. Galatasaray must complete its facility construction in this period,” he said.

Explaining what the expected income will be after all of Galatasaray's projects, President Özbek said, “The consolidated net cash flow to come from all projects is 18.6 billion TL, and after the payment of the 2.3 billion TL to the Banks Association, the fund to be created is expected to be 16.3 billion TL,” he stated.

''IF WE GET THESE AUTHORIZATIONS TODAY...''

Finally, emphasizing unity and integrity in the community, Galatasaray President Dursun Özbek said, “We have rivals, we have enemies who cannot stand, who are jealous of Galatasaray's successes and developments. We are fighting all of them. We are not shying away from any of these fights. You have already seen that they could not bend our wrists. The only war that will destroy us would be the war inside. Let us get through this process by supporting each other without wearing each other out. I ask you not to withhold your support from us on the road to the 25th championship leading to the 5th star. I think that if we get these authorizations today, we will sign a completely different future for Galatasaray,” he said.

Following President Özbek's speech, he stepped down from the podium, applauded by the members. Afterward, the Extraordinary General Assembly was adjourned.