LONDON – A new proposal in the ongoing Football Governance Bill could force changes to the ownership of some high-profile Premier League clubs, specifically Manchester City and Newcastle United.
According to a report by The Time, Lord Bassam of Brighton, a Labour peer, has introduced an amendment to the bill that aims to prevent state-controlled entities from owning English football clubs.
The amendment seeks to ban clubs owned or controlled by sovereign wealth funds or government figures from obtaining an operating licence in England. Should it pass, both Manchester City, owned by Sheikh Mansour of the United Arab Emirates, and Newcastle United, owned by Saudi Arabia’s Public Investment Fund (PIF), would be required to divest their state-controlled ownership in order to comply with the new regulation.
The proposed amendment defines a state-controlled club as one that is either wholly or majority-owned by individuals or entities under the influence of any state actor, including government ministers, heads of state, diplomats, and sovereign wealth funds. According to the amendment, clubs falling under this definition would not be granted an operating licence unless they have severed ties with their state ownership.
For this amendment to become law, it would need approval not only from the House of Lords, but also from the House of Commons, where it would require support from the government. While the proposal has been debated in the House of Lords, the likelihood of it passing remains uncertain. Some Premier League clubs have previously voiced support for such a ban, citing concerns about the impact of state ownership on the integrity of the league.
However, Whitehall insiders suggest that the proposal faces a tough battle, as it would be difficult to pass without the government’s backing. The issue of state-backed ownership in football has been contentious, with critics arguing that it undermines the competitive nature of the sport and gives clubs an unfair advantage due to their financial backing from governments.
As the bill progresses, the potential consequences for Manchester City and Newcastle United remain unclear, with the possibility of a major shake-up in the ownership landscape if the amendment is passed.