Premier League clubs are concerned that the introduction of an independent government-appointed regulator could deter future investment and weaken the Premier League's standing in European football, according to a new report from The Times chief correspondent Martyn Ziegler.
The government's white paper on the creation of an independent regulator is due to be released on Thursday, with public support from current Prime Minister Sunak. It is understood that the Prime Minister will participate in the launch event.
The Premier League's financial strength appears to be growing at a time when United are surrounded by potential buyers from Qatar and the United States, as well as Sir Jim Ratcliffe, one of Britain's wealthiest men.
The white paper will outline the role of the regulator. These include taking over owner and director exams from the league and issuing annual licenses that allow clubs to compete under a business plan that demonstrates their financial sustainability.
It may also have "reserve powers" to force a settlement, possibly by sending it to an arbitration panel, over the amount paid by the Premier League to the EFL (Championship, League One, League Two) if agreement cannot be reached. It is this issue that has received the strongest opposition from the Premier League side.
A club insider said: "While the Premier League is now accepting appointments from regulators, clubs will resist financial regulation if they feel it limits future opportunities and may even prevent foreign investment. The concern is , new regulatory governance guidelines could make the Premier League less attractive to current and potential new clubs."
Meanwhile, EFL chairman Rick Parry is pushing for a 75-25 per cent interest split, with the Premier League splitting a quarter of its £3.5bn-a-year TV revenue among the three lower tiers based on league position league. He also wants to scrap parachute payments and insists regulators should have as much power as possible to enforce financial settlements.
"We anticipate that all will be asked to submit business plans, certainly annually, maybe a year or two in advance," Parry said. "They will also have to demonstrate their ability to finance those business plans.
캡토토 understands that in the future there will be a licensing system, which we fully agree with, and allow the regulators to be flexible. It's going to be very, very powerful because they put personal conditions on the club license, or in the worst case, they can cancel the license.
Clearly a license revocation would be a last resort as it effectively means the club cannot compete, but with conditions attached to the license, including how the owners support the club and how they can demonstrate that their funds are available and that it can Very, very directly tied to the financial fair play rules. They can be combined very well. "
Another club insider claimed the regulator's idea was to achieve a fairer distribution of wealth.
"But that means controlling the situation for everyone involved, which in turn means that broadcast revenue has to be redistributed," the source said. Talking about it leads to a downward curve of creative thinking.”
