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26 October 2024
The UK government has proposed to give an independent regulator new authority to stop Premier League clubs from selling their stadiums to related parties or third parties. This is in a broader strategy to safeguard the authenticity and sustainability of English football, particularly in the light of clubs seeking ways to avoid FA rules regarding financial span control by making one-off gains out of stadium sales.
In June, the Premier League tried to shut the legal gray area that let clubs off the hook from P&S rule charges via property sales. But only 11 of the 20 clubs endorsed the concept at the league’s annual general meeting, three votes short of the two-thirds majority needed to alter the rules. The English Football League (EFL) has already banned sales of stadiums to related parties, and now the government wants to apply the same rules to the Premier League.
According to the new football governance bill, which applies to the English men’s top five leagues, clubs will require permission from the independent regulator before selling their stadiums. It is said that this approval will only be given if the sale is in the best interest of the club and also supported by the fans, as reported by sources from DCMS. This measure is in the government plan to protect clubs and their stadiums as important communal facilities and to provide measures against the clubs’ relocation.
Other clubs have used stadium sales to avoid penalties in the past. For instance, in 2019 Aston Villa sold Villa Park to the company owned by its current owners, Nassef Sawiris and Wes Edens, which allowed the club to avoid the new threats of the EFL’s financial fair play sanctions. Sheffield Wednesday, Derby, and Reading also employed stadium sales to remain in line with the financial regulations while Chelsea sold two hotels at Stamford Bridge to a related company. The government’s new plan, however, will specifically restrict future stadium transactions.
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