Protecting the competition’s integrity is a crucial part of the athletic world, know the Premier League ownership rules and structure
In a sports environment, if there isn’t a fair competition, the sporting action is overshadowed. As a result, it is thought that if two football teams compete in the same tournament and are controlled by the same person or company, the competition’s integrity may be compromised.
Premier League Football Club Ownership Rules And Structure: UEFA Rules vs Football Association Premier League Rules
The owners or directors of a football club are barred from influencing the administration of another team under the regulations of the FA Premier League and UEFA (the European Governing Body of Football). The two sets of regulations, however, have certain discrepancies.
The rules of the FA Premier League
An owner of a football club or a director of a football club must comply with the ‘fit and proper test’ and sign a statement confirming they do so, according to FA Premier League rules. All directors and people with more than a 30% stake must pass the fit and proper test.
Anyone with more than this ownership in an FA Premier League football club would be ineligible to buy another team since they would fall beyond the scope of the fit and proper test.
UEFA regulations
The UEFA ‘Integrity of UEFA Club Competitions: Club Independence’ regulation was established in 1998 and went into force for the 2000/01 season. This rule says that no two or more clubs playing in a UEFA club tournament may be controlled or managed by the same company or person, either directly or indirectly.
Having an interest in a different football team is characterised as:
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a majority of the voting powers of the shareholders in another UEFA club tournament
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the power to select or dismiss a majority of the directors of another UEFA club in the same tournament
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a majority of the voting powers of the owners of another team in the same UEFA club tournament (due to a shareholders’ agreement).
ENIC, an investment firm with shares in six European football teams, filed a complaint with the European Commission in 2000, alleging that the law distorts competition by prohibiting and restricting investment in European clubs. The Commission, on the other hand, dismissed ENIC’s argument, claiming that the regulation is supported by the need to ensure competition integrity.
What potential conflicts exist between the two sets of rules?
Following the initial adoption of the UEFA regulations, the Court of Arbitration for Sport (CAS) declared that any ownership of 50.1 percent or more might be considered a violation of the rules. The PL regulations define control as having a stake of 30% or more, however the UEFA rules allow for a person to own 100% of one team and 49% of another participating in the same tournament.
Following the CAS judgement, UEFA added a new provision to its Integrity Rule prohibiting a corporation or person from owning a club if it has the power to have ‘decisive influence’ over the decision-making of another club in the same UEFA club tournament. It was believed that this would allay concerns that a firm or individual may have a 100 percent stake in one team and a big but minority stake in another club in the same UEFA tournament, allowing them to have decisive influence.
Is it possible for a football club owner to have stakes in other sports teams?
So long as there is no conflict of interest, a potential football club owner will be permitted to possess or have a controlling stake in other businesses or athletic clubs. For example, the Glazer family once controlled 100% of Manchester United FC while also owning an NFL club in the United States. This is permissible because there is no obvious conflict of interest between the two.
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