UEFA has sounded alarm bells over multi-club ownership, claiming that holding stakes in multiple clubs would undermine the integrity of the game and distort the transfer market.
A detailed report in the Financial Times states that there are trends of owners buying stakes in more than one club.
Multi-club ownership trend explained
Multi-club ownership typically involves investors controlling one club and holding a stake in others. Other forms of ownership are not uncommon where an individual or a group might be the outright owner of two or more different clubs.
As of the end of 2022, UEFA reported that more than 180 teams were part of multiple ownership, a significant increase from just 40 in 2012. The report also claims that the trend is being driven primarily by US-based investors.
American businessman John Textor’s Eagle Football Holdings had previously acquired French team Olympique Lyon for 800 million euros and also owns Brazil’s Botafogo and Belgian tier-two side Molenbeek. The 57-year-old also has a 40% stake in London-based Premier League side Crystal Palace.
Miami-based 777 Partners also has several clubs in its portfolio, owning Serie A side Genoa, Belgium’s Standard Liege, Paris’ Red Star FC and Rio Vasco da Gama’s Brazilian club. They also have minority stakes in Spanish club Sevilla.
UEFA highlights the dangers
UEFA said: “Increased investment from various clubs has the potential to pose a material threat to the integrity of European club competitions, with an increasing risk of seeing two clubs with the same owner or investor clash on the pitch. “.
Those in favor of the timeshare model say it reduces financial risk among investors if a club does poorly and is relegated.
However, it has always provoked protests from fans who claim that the owners have vested interests in more than one team.
Under UEFA rules, investors are prohibited from holding stakes in more than one club from the same country, but may do so in different leagues.
UEFA also mentioned in its report that timeshare can ‘distort’ the transfer market, as an increasing percentage of transfers within the multiclub model would benefit investors rather than justify the ‘fair value’ of players in the market.
UEFA said: “Most player movement within the investment pools of various clubs is via ‘free transfers’ or loans, meaning no fees are paid. With the growth of cross-investment structures, some soccer investors are now able to exercise control over clubs that have a cumulative total of a few hundred registered players.
The Uefa Intelligence Center estimates that more than 6,500 players worldwide are registered with clubs that belong to a cross-investment structure.
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