In a bid to uphold the competitive integrity of the Premier League, member clubs are poised to cast their votes on a proposal that could significantly affect loan moves between associated parties during the forthcoming January transfer window. This article delves into the intricacies of this proposal and the motivations behind it, as well as the potential implications for the league.
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The Reasoning Behind the Proposal
Premier League clubs are considering a temporary ban on loan moves between clubs that have affiliations within the league. This move is prompted by the desire to protect the league’s integrity and also to create a window of opportunity for developing a more comprehensive, long-term solution. While this measure is not specifically targeted at any single transfer, it does bring related party transactions, including those involving front-of-shirt sponsorships, under scrutiny.
The Voting Process
The proposed rule change is set to be voted upon during the upcoming shareholders’ meeting on November 21. Achieving a two-thirds majority, which translates to approval from at least 14 clubs, is necessary for the regulation to be adopted. This democratic approach ensures that any decision made regarding the rule change is a consensus reached by a significant portion of the Premier League clubs.
The Current Scenario
Currently, Premier League players can be sold in one transfer window and subsequently loaned or permanently transferred back to the same division if the receiving club falls under the ownership of the selling club. However, this is allowed only if the transfer is deemed to be at fair market value. Some clubs advocate for extending these regulations to include permanent transfers and covering multiple transfer windows after the initial transaction has taken place.
A Case in Point: Ruben Neves
A pertinent example that illustrates the potential impact of the proposed rule change is the speculation surrounding Ruben Neves. The Portuguese international made a move to the Saudi Pro League club, Al Hilal, from Wolverhampton Wanderers in June. Recent rumors suggest that he might serve as a temporary replacement for Newcastle United due to the suspension of another player. However, the proposed ban on loan moves between related parties could indeed affect such potential transfers, given that both Al Hilal and Newcastle United are predominantly owned by Saudi Arabia’s Public Investment Fund (PIF).
Defining Related Parties
According to the Premier League, a related party is defined as an entity that has “material influence over the club or is an entity in the same group of companies as the club.” This definition emphasizes the substance of the relationship over the legal form. Clubs that operate under multi-club models, such as Newcastle, Al Hilal, Manchester City, Chelsea, and others, fall within this category.
Impact and Implications on other Premier League Clubs
The proposed changes would impact all multi-club ownership models, including City Football Group, which owns Manchester City. Several Premier League clubs, such as Arsenal, Aston Villa, Chelsea, Brighton, West Ham, Nottingham Forest, Bournemouth, Sheffield United, and Crystal Palace, have owners with stakes in foreign clubs. Additionally, the incoming co-owner of Manchester United, Sir Jim Ratcliffe, owns the French team Nice.
In contrast to Newcastle and the four PIF-owned Saudi clubs, many of the overseas teams involved in these ownership arrangements do not feature high-profile players. For example, Brighton utilizes their relationship with Belgian team Union St Gilloise, where the Seagulls’ owner, Tony Bloom, holds a minority stake, to send players on loan for development purposes.
However, going forward, the proposed new rules could affect all transfers, both permanent and loan deals, between clubs with shared ownership. There are concerns among several clubs about the potential for exploitation in such multi-club ownership structures.
Newcastle previously sold winger Allan Saint-Maximin to the PIF-owned Al-Ahli in July, a move that enabled them to make significant signings like Tonali, who arrived for £52 million from AC Milan. The Saint-Maximin deal, valued at around £20 million, passed the Premier League’s fair market value checks, which are still in place.
Currently, there are no restrictions preventing Newcastle or any club from loaning players from a PIF-owned club. However, it’s highly likely that this situation will change in the near future, with the Premier League supporting the move. It’s important to note that the ban is not specifically targeting Newcastle.
Nonetheless, all other 19 Premier League clubs will be free to take players on loan from the Saudi Pro League. Newcastle may argue that this is unfair, particularly considering the lower amount they received for Saint-Maximin compared to his market value, while other clubs like Wolves, Liverpool, and Chelsea received what seemed to be generous fees for players sold to Saudi clubs.
The Premier League’s contemplation of a temporary ban on loan moves between related parties underscores the league’s dedication to ensuring fairness and transparency in player transfers. The vote scheduled for November 21 will be pivotal in determining the fate of this proposed rule change. Moreover, it is likely to initiate further deliberations on related party transactions within the league. As clubs strive to strike a balance between competitiveness and preserving the integrity of the league, the outcome of this vote will be closely monitored by football enthusiasts across the globe. This potential rule change is emblematic of the Premier League’s commitment to maintaining a level playing field and fostering trust in the world of football.
