Skip to main content

Let owners spend as much as they want argues FT writer

Simon Kuper is an outstanding football journalist who has co-authored one of the best books on the economics of football.  So it is interesting to read his controversial views on the Manchester City affair in the Financial Times.

He is not saying that City should not be sanctioned if, at the end of the process, it is established that they have broken the Premier League's rules.   But he does think the 'misguided' rules should themselves be scrapped.

'Owners should be free to spend their own money on football. Their funding has made the Premier League better and more competitive. English football has a different problem: brutal regimes and people owning clubs. The English game has been uniquely successful at attracting foreign buyers.   Foreigners own the vast majority of Premier League clubs. 

Some — notably Sheikh Mansour and the Russian oligarch Roman Abramovich, who owned Chelsea until 2022 — put their own money into football, especially in the era before restrictions tightened. Coupled with the boom in TV rights and sponsorship since the 1990s, owners’ funding has made the Premier League the world’s richest and best football league. 

It’s a domain of English excellence that pulls in tourists, supports an estimated 104,500 jobs, boosts British soft power, has helped improve England’s national team and makes life more fun. Spendthrift owners have increased the competition for trophies. Chelsea and City only began winning after Abramovich and Sheikh Mansour splashed cash. 

Well-funded upstarts took on the game’s aristocrats — Manchester United, Liverpool and Arsenal, the clubs that have won the most English titles. If the league’s financial rules had more bite, they would be damaging. 

Had they succeeded in limiting Abu Dhabi’s spending, City couldn’t have become competitive, and the clubs with superior revenues — United, Liverpool and Arsenal — would have dominated. That would have suited these clubs’ American owners, who are in football to make profits — that is, to take money out of the game. 

Football should prefer owners, like Mansour, who want to put money in. The league says its spending restrictions make clubs financially sustainable, but it worries too much about that. Football clubs are extraordinarily sustainable. Almost every English professional club that existed in 1926 still exists today — unlike most companies of 1926. 

True, many small clubs have had spells in administration, but they almost invariably survive. The only Premier League club to enter administration since the league’s 1992 creation was Portsmouth in 2010. It’s now doing fine. 

We know what happens when a big league rejects rich owners. Germany’s is second rate even though the country has Europe’s largest economy and a world-class football tradition. English football should welcome donors, just as charities, universities and museums do. 

But it must tighten one rule: the Owners’ and Directors’ Test, previously called the Fit and Proper Person Test. This rule is supposed to stop bad actors from buying English clubs. It doesn’t. Mansour’s United Arab Emirates and Saudi Arabia, whose sovereign wealth fund is the majority owner of Newcastle United, have dire human rights records, while Abramovich has close links to Vladimir Putin. 

Admittedly almost all British institutions have welcomed brutal regimes, but there is a limit: the government blocked an Abu Dhabi-backed bid for the Telegraph newspaper. Football, an inessential leisure activity of great symbolic importance, can thrive without foreign states or their rulers or proxies owning clubs. 

The Premier League lets undesirable owners buy clubs, seemingly for sports washing purposes, and merely restricts their spending. It should screen for fit and proper owners, then encourage them to burn fortunes on funding brilliant football.'

Comments

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do