electra-supply.comIn an exclusive report, Matt Hughes reveals that the government is set to empower an independent regulator with the authority to prevent Premier League clubs from selling their stadiums to related or third-party companies. This move comes on the heels of the Premier League’s failed attempt in June to address a loophole that allowed clubs to make one-off profits from property sales, evading profitability and sustainability regulations. Despite support from 11 out of the 20 clubs during last summer’s AGM, they fell short of the necessary two-thirds majority to amend the rulebook.
The English Football League (EFL) already prohibits stadium sales to related companies, and now the government aims to implement similar measures for the Premier League. Proposed legislation included in the upcoming football governance bill, which will apply to the top five divisions of English men’s football, mandates that any club wishing to sell its stadium must obtain approval from the independent regulator. According to sources familiar with the draft being prepared by the Department for Culture, Media and Sport (DCMS), such requests will only be approved if the club can prove that the sale serves their long-term interests and has the support of their fanbase.
The government views this bill as a means of safeguarding clubs and their stadiums as community assets, with additional provisions in place to prevent clubs from relocating. Illustrating the need for tighter regulations, Aston Villa sold their stadium, Villa Park, to a company owned by their owners Nassef Sawiris and Wes Edens for £56.7 million four years ago, which likely prevented financial fair play breaches while the club was in the Championship. Other clubs, such as Sheffield Wednesday, Derby, and Reading, have also sold their grounds in recent years to navigate EFL financial fair play regulations.
Chelsea, for their part, sold two hotels at Stamford Bridge to a sister company for financial reasons, though the government’s focus will remain strictly on stadium sales. Currently, DCMS officials are finalizing the updated version of the bill, initially introduced by the previous administration in April but stalled before the general election. This new iteration is expected to feature significant changes, particularly with many Labour MPs advocating for the independent regulator to have the power to oversee parachute payments. Culture Secretary Lisa Nandy has expressed support for including these powers in the broader scope of the Whole Game Review that the regulator is expected to conduct.
The bill will also grant the regulator backstop powers to impose financial settlements between the Premier League and EFL, as negotiations for additional funding remain stagnated. The recent arbitration ruling regarding Manchester City’s legal challenge has complicated discussions further, making a new agreement with the EFL seem increasingly unlikely. As of now, DCMS has declined to comment on these developments.
