Multi-club ownership: Why EFL rule change will help in transfer market
While multi-club ownership across the football industry continues to grow and remains a headache for Uefa, the EFL has gone the other way and taken the decision to remove restrictions for member teams to invest into sides across Ireland and Scotland for the first time.
Under new regulations coming into effect next season, the EFL will only prohibit owners from having interests in more than one club that competes in the same competition across the EFL, Premier League, National League, Southern League, Isthmian League and Northern Premier League.
The move aligns the EFL’s outlook with other competitions and opens the door for these teams to play a more active role in the multi-club ownership game of thrones.
It will be argued by those in favour of the decision that it will create greater interest and attract potential investment but, perhaps more pertinently in a post-Brexit world and the points-based immigration system in football, multi-club owners will have additional options to accumulate points or place EU players.
When freedom of movement between the UK and the EU ended in January 2021, so did the blanket approach of British clubs to signing players from Europe regardless of profile, fee or experience.
As part of the UK’s immigration framework, each home nation’s football association is responsible for its own Governing Body Endorsement system, which ultimately sets entry requirements that determine whether players are eligible to make a transfer.
In short, Scotland’s interpretation of the exceptions panel makes it easier for players to join than it would be in England, resulting in it and Ireland – which is still a part of the EU framework – being an attractive option for investors who may already have an interest somewhere it might be tougher to sign foreign players.
EFL clubs set for increased investment
There will be those asking if this move came too late since several owners of Premier League clubs already have stakes in Ireland and Scotland – one of the more recent cases saw Leeds United’s majority owner, 49ers Enterprises, being part of a group that acquired a 51 per cent stake in Rangers, a deal that would have been delayed if they had not secured promotion under the previous regulations.
In any case, multi-club ownership is a growing trend, so it is not surprising that the EFL has agreed on a good-for-all change, closing the gap with other competitions, standardising regulations and enhancing the appeal of EFL clubs and competitions, while bringing increased investment and growth capabilities to perceived smaller leagues.
Time will tell if we see further investment across various teams under a single entity, but the EFL appears to be preparing for a future which welcomes multi-club ownership.
Carlos Hurtado is a sports lawyer at Baker McKenzie in Madrid.