Plans to tighten regulation of English football club owners will not rule out more state-backed takeovers, a U.K. government minister said on Thursday.
The government’s Football Governance Bill would give an independent regulator powers to safeguard the future of clubs and ensure their financial sustainability. It includes strengthened tests over who can run or own clubs.
Culture Secretary Lucy Frazer said the government did not propose to block state-backed investment, such as the Saudi-backed takeover of Premier League club Newcastle United in 2021.
“What we want (is) to ensure clubs are financially sustainable, not who owns them. So it is not going to be in this bill whether a foreign state, for instance, should own a club,” Frazer said at the Business of Football Conference. “What we’re interested in as a government is that the people who run the clubs run them well and that they survive. That is what the bill is all about.”
Saudi Arabia’s sovereign wealth fund led the buyout of Newcastle as part of the oil-rich kingdom’s move to become a major player in global soccer.
The ruling family of Abu Dhabi bought Manchester City in 2008 and has transformed the club into one of the most dominant forces is Europe. City won a historic treble of trophies last season including the Premier League, Champions League and FA Cup.
“We’re a conservative government. We don’t want to over-regulate, we just want to solve this issue about financial instability,” Frazer said. “So what we’re doing to ensure financial stability is making sure that owners and directors pass a fitness and proper test so good people are running and owning clubs, and clubs have financial plans and have financial stability within them.”
Under proposals, a regulator would also have powers to block English teams from attempting to join a breakaway league, such as the failed European Super League in 2021.
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