An enhanced owners’ and directors’ test, one of the central components of a proposed independent regulator for football, would not have prevented the Saudi-led takeover of Newcastle and would not block a Qatari buyout of Manchester United, the British government has confirmed.
The extent of a regulator’s reach was one of the main concerns raised by the Premier League over a white paper loudly welcomed by the majority of stakeholders. In the case of state ownership of clubs or takeovers by individuals from countries with questionable human rights records, a regulator will stay well away from these contentious issues, however.
Under plans confirmed by the British government and due to become legislation “as soon as parliamentary time allows”, a regulator would operate in the first five divisions of the men’s game. It would grant clubs a licence to play based on clearing four thresholds: appropriate resources; fit and proper custodians; fan interests; and approved competitions.
The second of these criteria would mean current owners’ and directors’ tests applied by the Premier League and EFL are replaced with a unified test that would include new considerations such as the identification of the ultimate beneficial owner and whether that owner is a “politically exposed person”. The move is intended to bring greater transparency to the often murky world of football ownership. But it would require the intervention of government to prevent a sale on the basis of state ownership or a country’s human rights.
“We recognise we have had significant international investment from all over the world in English football, but what we’re trying to do is get down to who is the original owner, and they have to pass the fit and proper person’s test,” the British sports minister, Stuart Andrew, said.
“The state side of things is obviously a matter for the foreign office – we’re not talking about foreign policy here. As far as we’re concerned, the really important thing is that those individuals are [tested] in the way that other individuals will be by other regulators – in the financial world for example. They have to pass those fit and proper tests but we also have to know where their sources of funding are coming from.”
The Premier League has privately expressed concerns that the regulator could “grow arms and legs” by acquiring new powers and responsibilities over time. The white paper confirmed that the Premier League would have to cover most of the costs of the regulator, with levies taken from clubs across the five divisions weighted by income. This means the Premier League big six will cover 50 per cent of the regulator’s running costs.
The co-owner of West Ham, David Sullivan, said the regulator would have “a huge staff that football will have to pay for. It will be a total waste of money. I bet it grows in size and cost every year.” But other voices inside the top flight welcomed the white paper and the certainty that greater regulation would bring for owners and investors.
“The white paper is some of the most detailed thinking on regulation in sport that’s ever been done,” said one senior executive at a Premier League club speaking on condition of anonymity. “It’s certainly more sophisticated than anything the Premier League has ever achieved. Contrary to the scare stories we were given, it looks like a very focused body. It can only strengthen the prospects of English football as a business.” – Guardian
