Current UEFA rules prohibit a club owner from controlling more than one club in European competitions at the same time. The UEFA President is now putting this requirement up for debate.
Simultaneous ownership by several clubs has a paragraph in UEFA’s European Cup regulations. It says there: “No person or entity may have control or influence over more than one participating club”which is based on example “the majority of the voting rights of the shareholders” relates.
This rule is now up for debate at the highest level. “We need to talk about these rules”said UEFA President Aleksander Ceferin. “Because there is more and more interest in owning several clubs at the same time. We shouldn’t just say ‘no’ to such investments.”
Manchester United – UEFA could face awkward questions
Ceferin made the comments in an interview with former footballer Gary Neville on The Overlap YouTube channel. Neville used to play for Manchester United – a club that could play a pivotal role in the debate launched by the UEFA President. Because the two well-known favored bids for a possible takeover of the club come from the environment of Qatar’s ruling family, which already owns Paris Saint-Germain through Qatar’s sovereign wealth fund, and from the British billionaire Jim Ratcliffe, who already owns OGC Nice with his company Ineos .
UEFA cannot prevent a takeover of Manchester United, the Premier League clarifies that. For the new season, however, UEFA could be faced with the uncomfortable question of whether, for example, Paris Saint-Germain or Manchester United should be refused participation in the Champions League. Ceferin may want to clarify this question in advance.
Expert: UEFA wants to comply with the wishes of investors
“UEFA noted last year that 180 clubs worldwide were in multiple holdings”says the English journalist Steve Menary in an interview with the sports show. “But I found 256 alone, and I’m sure there are many more hiding behind shell companies.”
Menary is an expert on multiple ownership among football clubs. In his view, UEFA is not taking the problem seriously. “Rather than enacting any form of meaningful regulation to prevent smaller league clubs from becoming farm teams, Ceferin seems to be waving the issue through – now that multiple ownership has become big, particularly in Europe. It strikes me as a very weak reaction, just to do what the big clubs and investors want.”
Manchester City’s Erling Haaland vs. Willi Orban from RasenBallsport Leipzig
“Multi-club ownership” as a major trend in the football business
Owning multiple football clubs has become a trend. The phenomenon is called “multi-club ownership” in the football business community. Entire networks have emerged, three of the best known:
- City Football Group: Controlled by Abu Dhabi’s ruling family, the company is best known for owning Manchester City in the Premier League. But the group also owns other clubs in whole or in part: New York City FC (USA), Melbourne City FC (Australia) and Yokohama Marinos (Japan) are examples from far away abroad. But the group is also active in Europe: Lommel SK (Belgium), FC Girona (Spain), ES Troyes (France) and FC Palermo (Italy) belong to it in whole or in part.
- RedBull: The company, known for its energy drink, owns Red Bull Bragantino (Brazil), the New York Red Bulls (USA) and the Austrian first division club Red Bull Salzburg with the Austrian second division club FC Liefering as a farm team. In addition, Red Bull is a 99 percent shareholder in the German Bundesliga club RasenBallsport Leipzig.
- 777 Partners: Vasco da Gama (Brazil), Melbourne Victory (Australia), Red Star Paris (France), FC Genoa (Italy) and Standard Liège (Belgium) are wholly or partially owned by the investment firm. She also holds shares in FC Sevilla (Spain) and, since Lars Windhorst’s departure, 64.7 percent of the shares in Hertha BSC.
Hertha President Kay Bernstein (left) together with “777 Partners” CEO Joshua Wander (middle) and Hertha Managing Director Thomas Herrich
UEFA recently warned against multiple participations
It was UEFA itself that recently warned of this trend in a financial report. He may be a significant threat to the integrity of European club competitions such as the Champions League, UEFA wrote. “There is a growing risk of two clubs with the same owner or investor on the pitch facing each other.”
In the case of Red Bull, UEFA decided in 2017 that clubs Red Bull Salzburg and RasenBallsport (RB) Leipzig could both take part in UEFA competitions. Both clubs would have “significant changes” made in the management and structure so that the regulations are met, it was said by UEFA at the time.
Red Bull vs. RasenBallsport in Europa League 2018
DFL introduced the restriction in 2015, but it only applies nationally
The German Football League (DFL) set limits for the Bundesliga in 2015 after the Volkswagen Group became owner or shareholder of several clubs. Since allowed according to DFL statutes no one “be directly or indirectly involved in more than three corporations of the license leagues”only one of these three clubs may participate from “10 percent or more” consist. Is that enough?
The Future of Professional Football Alliance demands in a concept an international extension of the rule. The requirement is: “Anyone who holds more than 10 percent in a club in other leagues is not allowed to hold more than 10 percent in a club in Germany either.” The background: The phenomenon can also be observed more and more in Germany. The entry of 777 Partners at Hertha BSC is not an isolated case.
Despite 50+1, the phenomenon does not bypass the Bundesliga
The Chinese-American investor Chien Lee has a stake in 1. FC Kaiserslautern through “NewCity Capital”, but also holds shares in FC Barnsley (England), KV Oostende (Belgium), FC Den Bosch (Netherlands) and FC Thun (Switzerland). .
In 2021, the American investor David Blitzer bought 45 percent of the shares in FC Augsburg, he owns shares in, for example, Brondby IF (Denmark), Crystal Palace (England), Real Salt Lake (USA) and ADO Den Haag (Netherlands).
Ceferin: “Can you tell a coach to lose?”
Other problems for competition are clear: transfers within the network of multiple ownership clubs could be made at prices that reflect investor needs – rather than actual market values. This can help to save on taxes, to comply with financial fair play rules or to develop strong players at a small club and move them up to the biggest club at low cost.
Ceferin only addressed possible problems on the pitch in the interview. “On the one hand it’s true: if you own two clubs in the same competition, you could tell one to lose because you want the other to win”said the UEFA President. “But do you think it’s that easy to tell the coach to lose?” He was not sure what UEFA’s decision would be. “But it must be done quickly.”