The Barclays Premier League has voted to implement new financial rules from next season. The vote was only secured after chief executive Richard Scudamore wrote to all clubs and Swansea defected from the ‘Gang of Six’, allowing the supporters of the move to secure the necessary two-thirds majority.
The Barclays Premier League has voted to implement new financial rules from next season. The vote was only secured after chief executive Richard Scudamore wrote to all clubs and Swansea defected from the ‘Gang of Six’, allowing the supporters of the move to secure the necessary two-thirds majority.
Why has a competition that once advocated an unrestrained market model taken a step in the direction of regulation, albeit self-regulation? The main reason is that clubs don’t want the increased television income all going to even higher player wages. Essentially, the clubs want rules to protect themselves from their own reckless behaviour in the pursuit of success.
The main backers of the move have been Arsenal and Manchester United and there has been more than a suspicion that the established clubs want the pull the ladder up behind them and particularly to discourage any more interlopers on their cartel like Manchester City.
Before supporters of regulation get out the champagne, it should be noted that even their backers think that the new rules have been rushed through too quickly and are a bit of a mess. As always, the devil will be in the detail of implementation.
It should also be noted that some of the opponents of the changes included well-regarded clubs such as Southampton and West Bromwich Albion. The so-called ‘Gang of Six’ opponents got together in secret in a hotel in Hertfordshire at Easter to plot their strategy. There was even talk of legal action, although that is unlikely to happen now. Inevitably, the news of the plotters’ meeting leaked out.
Remarks by Sir John Madjeski indicated that Reading, who had abstained in February, might vote against which would have created a blocking minority. It was then that Richard Scudamore, who it has to be admitted is very smart and shrewd, intervened. Swansea City then defected to the majority camp and Reading joined them. The five clubs voting against were Aston Villa, Fulham, Manchester City, Southampton and West Bromwich Albion.
There could be trouble ahead if points are actually deducted points for making a loss of more than £105m over the three years from 2013 to 2016. It is conceivable that clubs receiving a penalty might feel inclined to consult learned counsel.