UEFA have rung the alarm bells over multi-club ownership claiming that holding stakes across multiple clubs would undermine the integrity of the game and distort the transfer market.

A detailed report from Financial Times claims that there are trends of owners buying stakes in more than one club.

Multi-club ownership trend explained

Multi-club ownership usually involves investors controlling one club and having a share in others. Other forms of ownership are not uncommon in which an individual or a group could be the outright owner of two or more different clubs.

By the end of 2022, UEFA reported that more than 180 teams were part of a multi-ownership, a significant raise over from just 40 in 2012. The report also claims that the trend is being fuelled predominantly by investors based in the United States.

US businessman John Textor’s Eagle Football Holdings had earlier acquired French team Olympique Lyon for €800mn and he also owns Brazil’s Botafogo and Belgium tier two side Molenbeek. The 57-year-old also has a 40 % stake in London-based Premier League outfit Crystal Palace.

Miami-based 777 Partners, too, have several clubs in their portfolio, owning Serie A side Genoa, Belgium’s Standard Liege, Red Star FC in Paris, and Brazilian side Rio club Vasco da Gama. They also have minority stakes Spanish club Sevilla.

UEFA Highlights dangers

UEFA said, “The rise of multi-club investment has the potential to pose a material threat to the integrity of European club competitions, with a growing risk of seeing two clubs with the same owner or investor facing each other on the pitch.”

Those who are in favor of the muti ownership model claim that it reduces financial risk amongst investors if one club fares poorly and suffers relegation.

However, it has always drawn protests from fans claiming that owners have vested interest across more than one team.

As per UEFA rules, investors are banned from owning stakes in more than one club from the same country, but they are allowed to do so across different leagues.

UEFA had also mentioned in their report that muti ownership can ‘distort’ the transfer market as an increasing percentage of transfers within the muti-club model would suit investors rather than justifying the players’ ‘fair value’ in the market.

UEFA said, “Most movement of players within multi-club investment groups is via ‘free transfers’ or loans, meaning that no fees are paid. With the growth of cross-investment structures, some football investors may now exert control over clubs spanning a cumulative total of a few hundred registered players.

The Uefa Intelligence Centre estimates that more than 6,500 players worldwide are registered with clubs belonging to an across-investment structure.”

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