Article Taxonomy: Football Governance

Strike Threat in La Liga

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Spanish clubs have threatened to go on strike following the announcement of Spanish Government plans to remove tax laws that give La Liga a big advantage over the English Premiership. The so-called ‘Beckham Law’ allows high-earning foreigners to pay 24 per cent income tax instead of the 43 per cent levied on locals. The Spanish League (LFP) have warned that their clubs will face a bill of more than £90m and could kill the competition. The law coincided with David Beckham signing for Real Madrid from Manchester United in 2004.

Football League Supremo Calls For Wage Cap

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Former Conservative minister Lord Mawhinney has called for wage controls in his capacity as chairman of the Football League. He noted that most clubs were trading at a loss and increasing their debts. The league has seen 25 clubs go into administration since 2002. Cristiano Ronaldo’s £80m summer transfer to Real Madrid not only had a ‘ratcheting effect’ for top Premiership clubs, but for Football League clubs as well, he said. Player wages in the Football League rose 24.1 per cent last season, when revenues for all professional clubs rose to £2.5bn, but operating losses hit £529m.

Three Clubs Face Football League Probe

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Three clubs are to be considered by the Football League board next week after questions were raised about whether they met the ‘fit and proper person’ test. At Queen’s Park Rangers, Flavio Briatore may sell up rather than face another investigation by a sporting body after being thrown out of Formula One. QPR vice-chairman Amit Bhatia, the eighth-richest man in the world, has been letting it be known that he would buy Briatore out if he wanted to go. Briatore is thought to have paid £540,000 for his original 54 per cent shareholding.

English Clubs To Fight Platini’s Plans

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Some of Europe’s leading football clubs, especially those in the Premiership, are preparing to oppose plans bu Uefa to curtail the ability of club owners to buy their way to success. Michael Platini’s campaign, which some think is aimed at Premiership clubs, has been approved by Uefa’s executive committee and will come into force over the next three years. The concept has the approval of the European Club Association, which represents about 150 clubs.

Premiership Response To Government Criticisms

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The Premier League has made a number of responses to government criticisms of the way it runs its affairs. The proposed changes do not address the competitive balance or debt burden issues raised by culture secretary Andy Burnham, but he has welcomed the Premiership’s response. It may be that he has other matters to concentrate on at the moment and cannot afford a confrontation with the Premier League.

Burnham Wants To Break Grip of Premier League Top Four

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Culture Secretary and Everton supporter Andy Burnham has stepped up his campaign to break the grip of the top four clubs on English football. He wants the Premiership’s revenue to be shared out more evenly among its clubs. He wants smaller squads and compulsory quotas of English players in team line ups. His most contentious demand is for the big four to share some of their earnings from Europe’s Champions League, ranging from £15m to £40m. The money plays a key role in helping them to entrench their dominant position.

FIFA’s 6+5 Policy In Trouble

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Fifa’s desire to force the controversial 6+5 blow on English clubs, which has been seen as a major threat to the Premiership, has been dealt a heavy blow by the European Commission. It had hoped that the rule, under which six players in every starting line up would have to be qualified to play for the national team where the club is based, could be introduced under a ‘specificity of sport’ provision, giving it an exemption from EU legal rules. Last month Fifa delivered a 200-page report compiled by legal experts in support of its claims.

Serie A Clubs Form Their Own Premiership

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Italian football clubs look likely to adopt the English Premiership model after 19 of the 20 Serie A clubs voted to break away from the Lega Calcio. The underlying issue is television rights. Serie A clubs sell their rights individually, rather than collectively, which means that the biggest sides such as Juventus or AC Milan earn in excess of £85m for their domestic rights, while smaller clubs, such as Chievo, only receive around £4m. In exchange for this arrangement, Serie A clubs contribute a lump sum to their counterparts in Serie B.

MPs Want to Tighten Fit and Proper Persons Test

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The All Party Football Group has called for a reform of the ‘fit and proper persons’ test for owning a football club. The MPs said that a prospective buyer should have their debt leveraging plans assessed to judge whether they would be suitable. They also want the test to consider the practice of directors lending clubs money for short-term gains.

Parliamentary Group Backs Blatter Plan

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Following a year-long investigation into the state of English football, the All Party Parliamentary Group is expected to back Sepp Blatter’s plan for a ‘six plus five’ rule. This would require each team in the Premiership to field a minimum of six players eligible to play for England. The Premier League has dismissed the plan as unworkable and argued that it is incompatible between European law that protects freedom of movement for workers between member states.