New regulator to be given power to stop breakaway leagues

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Fans will be protected from “breakaway” leagues like the abortive European Super League under government plans for a new watchdog.

Ministers will shortly publish plans for a football regulator aimed at preventing the bankruptcy of clubs and attempts by the biggest teams to carve up competitions for their own financial benefit.

In April 2021, 12 clubs from England, Italy and Spain caused uproar when details came to light about their vision for a new European Super League.

The league – which included the Premier League’s “Big Six” of Manchester City, Manchester United, Chelsea, Liverpool, Arsenal and Tottenham – guaranteed its founding members permanent places irrespective of how they performed in domestic competitions.

It was condemned by fans, every major body in European football and politicians from all parties, with the then prime minister Boris Johnson saying it would have created a “kind of cartel”.

The English clubs withdrew their support within days, but Real Madrid, Barcelona and Juventus are still pushing the idea.
Since then the Government has endorsed the central recommendation of a fan-led review of football for a new independent regulator.

Under new reforms, the regulator will be given powers to prevent clubs from competing in “breakaway” competitions. This will be achieved by mandating that the criteria for any newly proposed competition has to be decided in consultation with the Football Association and fans.

To guard against clubs going bust the regulator will meanwhile require them to demonstrate good financial practices.
They will be required to demonstrate adequate resources to meet any cashflow problems and to protect the club’s core assets, such as their stadium, from being sold off against the long-term interests of the club.

The Premier League and FA have opposed the introduction of a regulator, arguing that they are capable of doing the job themselves.

Source: telegraph.co.uk