In the wake of events at Portsmouth, the Premier League has put forward proposals on who is allowed to own its football clubs. The ‘fit and proper person’ test, which was limited in its scope, will be supplemented by a ‘means and abilities’ test. In other words, prospective owners will have to demonstrate that they have the money that they say they have to allow them to run a club properly.&n
In the wake of events at Portsmouth, the Premier League has put forward proposals on who is allowed to own its football clubs. The ‘fit and proper person’ test, which was limited in its scope, will be supplemented by a ‘means and abilities’ test. In other words, prospective owners will have to demonstrate that they have the money that they say they have to allow them to run a club properly. Owners will no longer be able to hide behind front men, but will have to meet League officials, overcoming the ‘El Mirage’ problem.
The Premiership is also going to start consulations with the Football League about increasing parachute payments. The proposed formula is £16m for the first two years after relegation and £8m for the next two years. The concern has always been that this will create a two tier league in the Championship, although there are elements of that already with some teams contesting for promotion and others trying to avoid relegation. However, it could be argued that two years is long enough either for a team to get promoted again (as Newcastle and West Brom have done this year) or to adjust their finances