The English football is set to experience significant regulatory changes, particularly concerning the sale of Premier League clubs’ stadiums. This initiative aims to preserve the financial integrity and sustainability of the clubs, avoiding abuses that could result from such transactions.
Strengthening the regulator’s powers
The British government plans to grant an independent regulator the power to prohibit the sale of stadiums to related companies or third parties. This measure is expected to be included in a bill on football governance, covering the top five divisions of men’s football in England. Thus, any club wishing to sell its sports venue will need to obtain the regulator’s approval.
This decision follows an attempt last June by the Premier League to close a loophole that allows clubs to make exceptional profits from the sale of their assets, thereby evading charges related to profitability and sustainability rules. However, this initiative did not receive sufficient support from the clubs.
Conditions for selling a stadium
Clubs wishing to sell their stadiums will have to prove that it serves their long-term interests. Surprisingly, the sale of stadiums to related companies is already prohibited by the EFL (English Football League), and the regulator will be granted similar powers in the Premier League.
Sources close to the Department for Culture, Media and Sport (DCMS) have indicated that these requests would be approved only if the club can demonstrate that they are beneficial for their future and have the support of their fans.
Preserving community assets
The government has clearly expressed its intention to protect clubs and their stadiums as community assets. This bill includes safeguarding measures against clubs seeking to relocate, in order to maintain a strong bond between the teams and their hometowns.
Recent examples of clubs that have sold their stadiums, such as Aston Villa, underscore the importance of instituting these restrictions. Villa Park was sold to a company controlled by their owners for £56.7 million, thus allowing the club to evade penalties for breaching financial fair play rules.
Ongoing discussions on funding
The bill being prepared by the DCMS may also include measures aimed at resolving tensions between the Premier League and the EFL concerning parachute payments. The significance of these decisions is heightened by the recent arbitration ruling regarding Manchester City’s legal challenges, which further complicates the possibility of a new financial agreement.
The next steps will be crucial, as the implementation of these new regulations could transform the financial dynamics within English football while safeguarding the interests of clubs and supporters.
Source : www.theguardian.com