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.
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. Richard Scudamore, the Premier League chief executive, said the debt question, particularly the highly leveraged status of elite clubs such as Manchester United and Chelsea was ‘overblown’ and that Mr Burnham was reacting to ‘noise’ around the football industry. ‘The fundamental base point is the clubs not being jeopardised [in how they run their financial affairs],’ he said.
The proposed changes to be introduced from the 2010-11 season would require owners to submit to a ‘fit and proper person’ test before completing takeovers rather than after their arrival, as at present. The range of offences for which conviction would bar individuals from becoming directors is being extended and will include sentences of more than a year. The changes were drawn up after examining suitability tests applied by US sports bodies such as the NFL. However, Mr Scudamore admitted that the tightened test would probably still not have prevented Thaksin Shinawatra, the former Thai prime minister who faces corruption charges, from becoming Manchester City’s owner in 2007. Clubs will also be required to submit forward-looking financial data to improve the Premiership’s ‘early warning system’ of risks to clubs’ stability. Other rule changes require club owners to disclose a shareholding in another club above 10 per cent; make clubs reveal other companies they are controlled by or they themselves control; and force clubs to show annually that they have declared outstanding debts to each other and they do not owe money to the tax authorities.
The Premiership also intends to introduce minimum quotas of home-grown players next season. They favour something along the lines of the quota system that exists in the Champions League, where clubs are required to name a squad of 25 players, including a minimum of four home-grown players (which means products of their own youth academies, even if imported from overseas) and another four home-grown players who can fall under the ‘locally trained’ category. The Premiership also plans to introduce financial incentives for clubs to encourage the development of players at youth level from the 2010-11 season. In reality, there will be no distinction between English youngsters and those imported to clubs’ academies before the age of 18.
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