Modified Club Ownership Regulations: Explanation of Benefits for the Transfer Market
The English Football League (EFL) has made a significant move in relaxing restrictions for its member teams, allowing them to invest in clubs across Ireland and Scotland. This decision, aimed at enhancing the appeal of EFL clubs and competitions, could potentially lead to increased investment and growth capabilities in perceived smaller leagues.
Proponents of the decision argue that it will create greater interest and attract potential investment, while critics remain cautious about the implications for competition fairness. Under the new regulations, EFL owners will be prohibited from having interests in more than one club that competes in the same competition within the EFL, Premier League, National League, Southern League, Isthmian League, and Northern Premier League.
As the EFL moves forward with this change, it finds itself in a dynamic regulatory environment. UEFA has adopted a firmer stance on enforcing multi-club ownership restrictions affecting eligibility for European competitions, with only one club in a related ownership group allowed to compete in a given UEFA competition. This has led to expulsions from European tournaments when conflicts arise, such as with Drogheda United’s exclusion from the 2025-26 Conference League despite attempts to resolve ownership disputes.
Meanwhile, the Premier League maintains careful financial oversight, having recently decided to continue with its existing Profitability and Sustainability Rules (PSR) rather than replacing them with new squad cost ratio controls. This decision does not specifically address multi-club ownership but reflects the league’s ongoing financial governance stance.
Notable figures in the discussion surrounding the EFL's decision include sports lawyer Carlos Hurtado of Baker McKenzie in Madrid. The decision to allow club owners to invest in clubs across Ireland and Scotland makes Scotland and Ireland, as part of the EU framework, an attractive option for investors due to their more lenient interpretation of player exceptions.
Several owners of Premier League clubs already have stakes in Ireland and Scotland, such as Leeds United's majority owner, 49ers Enterprises, who acquired a 51% stake in Rangers. The move aligns the EFL's outlook with other competitions, potentially leading to further investment across various teams under a single entity.
In a post-Brexit world, multi-club owners will have additional options to accumulate points or place EU players. When freedom of movement between the UK and the EU ended in January 2021, the blanket approach of British clubs to signing players from Europe also ended. The EFL appears to be preparing for a future that embraces multi-club ownership.
The increase in multi-club ownership is a growing trend, and the EFL's decision to standardize regulations across competitions is a response to this trend. Each home nation's football association is responsible for its own Governing Body Endorsement system, which determines player eligibility for transfers. However, as the regulatory environment continues to evolve, it remains to be seen how the EFL's decision will impact the sporting landscape in England and beyond.
- The English Football League's (EFL) decision to allow its member teams to invest in clubs across Ireland and Scotland could attract potential investors due to the EU framework's more lenient interpretation of player exceptions.
- Scott and Ireland, with their more lenient player exception rules, present an attractive investment opportunity for EFL club owners, as seen with Leeds United's majority owner, 49ers Enterprises, who acquired a stake in Rangers.
- As the EFL moves forward with this change, it faces a dynamic regulatory environment, with UEFA enforcing strict multi-club ownership restrictions for eligibility in European competitions.
- The increase in multi-club ownership is a growing trend, and the EFL's decision to standardize regulations across competitions is a response to this trend, potentially leading to further investment and growth capabilities in perceived smaller leagues.
