Purchase of clubs by the same company turns on a warning sign – 02/25/2023 – Sport

Earlier this month, Slovenian UEFA president Aleksander Ceferin said he was concerned about the prospect of the same entity, person or company owning different football teams.

A few days later, the president of the Qatar Islamic Bank confirmed that he had made an offer to buy Manchester United (ING), one of the most famous clubs on the planet.

Sheikh Jassim Bin Hamad Al Thani tried to clarify that the proposal of 5 billion euros (R$ 27.5 billion at current exchange rates) was his, as an individual, and would have nothing to do with the royal family of Qatar, of which he is part. It would also be independent of the Qatar Investment Authority, the country’s sovereign wealth fund, controlled by the monarchy and worth $450 billion (£2.35 trillion).

Paris Saint-Germain (FRA) belongs to Qatar Sports Investment, a subsidiary company of the sovereign wealth fund. This could mean that, in practice, the Qatari state owns two of the most powerful teams in Europe. Even if, officially, this can be disputed.

“It’s a gray area. UEFA regulations date back to 1998 and say that two clubs cannot be controlled by the same person or company. But what is the definition of control? You can have 5% or 10%, no management position, and interfere in more than one club. Of course [a legislação] there are loopholes”, defines lawyer Marcos Motta, specialist in international sports law.

It is a problem that can be brought to Brazil with the SAF law, which authorizes associations to become corporations. The Pelé Law, like Uefa, prohibits the same company/individual from owning more than one team in the same competition. But the rules need to be updated to avoid dubious cases.

“There should be discussion about testing owners [se a pessoa interessada tem condições de ser dona]competition integrity, licensing system [as autorizações que o interessado precisa obter para adquirir uma equipe], financial fair play. I don’t see anyone discussing issues like these in the league in Brazil. When you buy a club, there is a direct impact on the market. It can happen to settle the balance of a team by selling or buying a player from another of the same owner”, completes Motta.

Last month, Botafogo signed striker Jeffinho to Lyon. It would be 5 million euros (R$ 27.4 million) for a five-month loan with a purchase option. The high value for such a short-term negotiation was questioned in France. The fans of the Brazilian alvinegro protested on social networks. The two associations belong to the American businessman John Textor.

Faced with the repercussions, Lyon announced shortly afterwards the purchase of Jeffinho for 10 million euros (R$ 54.9 million).

Transactions between clubs managed by the same company are not unheard of. Zaragoza (ESP) bought the winger Cafu in 1995 and São Paulo put in a clause that prohibited the player from being resold to Palmeiras, which at the time had the co-management of Parmalat. Five months later, the winger was acquired by the dairy multinational and placed at Juventude, where he also took care of football.

Cafu played two games in Rio Grande do Sul, stayed for about a month and went to Palmeiras.

The concern with the MCO (Multiple Club Ownership, or Ownership of Multiple Clubs in English) is real because market specialists noticed a movement in this direction of billionaires interested in sport.

UEFA detected last year that more than 6500 players around the world are registered in teams with owners that fit the concept of MCO.

John Textor’s Eagle Football Holdings, in addition to Botafogo and Lyon, owns Molenbeek, of the Belgian second division and has a 40% stake in Crystal Palace, of the English elite.

The North American 777 Partners, has Vasco, Genoa (ITA), Standard Liege (BEL), Red Star FC (FRA). It also has an equity stake in Sevilla (ESP). All of the first division in their countries.

City Football Group, a company that belongs to the royal family of the United Arab Emirates, owns eight clubs in eight countries. Among them, Bahia.

The participation of the monarchies of the United Arab Emirates, Qatar and Saudi Arabia (which owns Newcastle) also carries the allegation of sportswashing. It is about the use of state money from oil-rich nations as a geopolitical weapon and image improvement in the international community. There are three countries accused of disrespecting human rights and discriminating against the LGTBQA+ community and women.

Despite Uefa’s own rules, there are precedents for teams linked to the same company to compete in the Champions League. Something that could happen to Manchester United and PSG if they share a Qatari connection.

“Uefa set a precedent when Red Bull and its respective teams in Germany and Austria competed in the Champions League. In this case, after analysis of documentation and after some commitments made by Red Bull that there would be no interference in the independence of the clubs, the participation of both was given the green light. There is no doubt that this will be the precedent to be set by Qatar”, analyzes Eduardo Carlezzo, a lawyer specialized in sports law.