Eight clubs, including Chelsea, Manchester City, Newcastle United, Everton, Nottingham Forest, Sheffield United, Wolverhampton Wanderers, and Burnley, successfully opposed a temporary Premier League ban on player loans between clubs with the same owners.
The Premier League sought these clubs to pass an amendment to suspend loans into the league for this January alone while new rules for dealing with loans and multi-club ownership are being drafted.
During private discussions with the 20 clubs, the Premier League asked for more time to address the complex issue of clubs loaning players from partner clubs. Although 12 clubs voted in favor, it fell short of the required 14 majority.
Furthermore, the clubs dismissed new amendments aimed at strengthening associated party transactions governing commercial deals agreed between clubs and external companies. It’s reported that 13 clubs voted in favor, one vote shy of the required majority. In this vote, Burnley changed sides. These regulations would have imposed greater personal liability on directors.
According to Telegraph Sport, Chelsea chairman Todd Boehly and Manchester City’s head of legal, Simon Cliff, advocated against the temporary moratorium on loans being rejected.
The challenge of player loans between clubs is also a concern for UEFA, as they fear that a club eliminated from the Champions League group stages could loan its top players to a partner club in the Europa League knockout stages.
Notably, Chelsea’s consortium, led by Clearlake Capital private equity investor Behdad Eghbali, has a majority stake in Ligue 1 club Strasbourg. Additionally, the primary owners of Newcastle, the Saudi Public Investment Fund (PIF), have ownership stakes in four clubs in the Saudi Pro League. Manchester City is part of the 12-strong global City Football Group. Furthermore, Nottingham Forest owner Evangelos Marinakis also owns Greek giants Olympiakos and is reportedly in talks with Portuguese side Rio Ave regarding potential investment.
As for Wolves, Sheffield United, and Burnley, their motives are less clear. Alan Pace, the US owner of Burnley, has been linked with the acquisition of a club in Belgium. Sheffield United is Saudi-owned, and Wolves are owned by Chinese conglomerate Fosun Group, whose chairman Guo Guangchang’s wife Jenny is the majority shareholder of Swiss side Grasshoppers Zurich.
Executives among the 12 clubs supporting the reforms expressed surprise as injury-hit Newcastle were effectively given the green light to do business with other PIF-owned entities this January.
Regarding the remaining rebellious clubs, Everton is presently the subject of a proposed takeover by US group 777 Partners, which operates an extensive multi-club ownership strategy across Europe and South America.
The proposed loan ban was intended as a temporary measure until a concrete solution could be agreed upon before the summer transfer window. Rules governing associated-party transactions already apply, to some extent, in the transfer of players on permanent deals. Newcastle had to demonstrate to the Premier League that they obtained fair market value when selling the French winger Allan Saint-Maximin to Al-Ahli, another PIF club, during the summer transfer window.
According to the Premier League, a related party is an entity that has ‘material influence over the club or is an entity in the same group of companies as the club’.
Calls for a crackdown on owner-funded sponsors arose after allegations were made during the Football Leaks scandal involving Roberto Mancini at Manchester City. Mancini, who led City to their first Premier League title in 2012, was allegedly paid in addition to his salary as a consultant with Al Jazira Sports and Cultural Club, which is controlled by City’s Abu Dhabi owners.
At a recent executive meeting in London, rifts emerged between clubs following Everton’s 10-point deduction for spending breaches. Additionally, there is disagreement among clubs, including the so-called big six, over the contributions towards the £130m-a-year New Deal in comparison with smaller clubs. Disagreements also exist regarding spending limits on clubs immediately after they are relegated to the Championship.
The Everton situation was not on the meeting agenda, but it was revealed on Tuesday that the same commission that penalized the club is set to hear imminent applications for damages by rival clubs. Prior to this, Burnley, Leicester City, Leeds United, Southampton, and Nottingham Forest showed interest in legal action and have 28 days to file a claim. Subsequently, David Phillips KC, Judge Alan Greenwood, and Nick Igoe, the former financial director at West Ham United, will decide if the clubs are entitled to payouts estimated at up to £200m combined.