EFL owners clear to buy Scottish and Irish teams after multi-club rules change

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"EFL Modifies Multi-Club Ownership Rules to Include Scottish and Irish Clubs"

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The English Football League (EFL) has amended its rules regarding multi-club ownership, facilitating the opportunity for its members to invest in clubs within the Scottish and Irish leagues for the first time. This change, which was agreed upon during the EFL's Annual General Meeting (AGM) this month, lifts previous restrictions that barred clubs from investing in the Scottish Professional Football League and the Irish Football League. The EFL's decision reflects a growing trend of multi-club ownership in football, which has raised concerns about potential integrity issues. However, the league has chosen to align its regulations with those of other competitions, including the Premier League, in light of the increasing prevalence of such ownership structures across the sport.

A recent case that underscored the need for regulatory alignment involved Leeds United's majority owner, 49er Enterprises, which engaged in negotiations to acquire a stake in Rangers, a prominent Scottish club. This deal, valued at £75 million for a 51% ownership, was completed last month and would have faced delays had Leeds not secured promotion to the Premier League. While EFL officials have acknowledged the Leeds and Rangers situation, they have clarified that the rule changes were not specifically aimed at addressing this particular case. Under the new regulations, owners and directors are still barred from holding interests in more than one club within several leagues, including the EFL and the Premier League. This means that while clubs can now explore investment opportunities in Scottish and Irish teams, they must ensure compliance with ownership regulations. As a result of this rule change, clubs in the Irish Football League are expected to attract more investment proposals, particularly as EFL teams seek solutions for accommodating European Union players in light of post-Brexit work permit requirements.

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The EFL has changed its multi-club ownership rules to allow members to buy clubs in the Scottish and Irish leagues for the first time. Agreed at its AGM this month, the EFL is understood to have removed the Scottish ProfessionalFootball Leagueand Irish Football League from the list of competitions clubs are prohibited from investing in.

The EFL has concerns about potential integrity issues raised by multi-club ownership, but given it is increasingly widespread it has opted to align its rules with other competitions, including the Premier League.

The need for greater alignment was highlighted when Leeds’s majority owner, 49er Enterprises, entered exclusive negotiations about buying Rangers ina deal completedlast month. 49ers Enterprises paid £75m for 51% of Rangers in a transaction that would have been delayed hadLeeds not been promotedto the Premier League.

The EFL declined to confirm whether it would have blocked the investment had Leeds remained in the Championship. EFL sources acknowledged the Leeds/Rangers issue, but said the changes were not made to address that situation.

Under the regulations that will come into operation this coming season, owners and directors are prohibited from having interests in more than one club in the EFL, Premier League, National League, Southern League, Isthmian League and Northern Premier League. An interest is defined as holding shares in two clubs or exerting any managerial or administrative influence.

In the Premier League, the Brighton owner, Tony Bloom, paid £10m for a 29% stake in Hearts this month, and Bournemouth’s owner, Bill Foley, paid £6m for 25% of Hibs last year.

IFL clubs are likely to benefit from more investment offers after the rule change, with EFL sides eager to increase their options for parking European Union players. Since Brexit, EU players moving to the United Kingdom require work permits issued by the Home Office under the governing body endorsement (GBE) points-based criteria.

The GBE system requires players to secure 15 points to pass, with those lacking a significant number of international appearances or not playing in one of Europe’s top five leagues often missing out.

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Source: The Guardian