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British Government considers banning state-owned clubs like Manchester City and Newcastle

29. November 2024
Newcastle United (foto: Uradni Twitter profil kluba/zveze)
A proposal to ban state-owned clubs in the Premier League could force Manchester City and Newcastle United to change ownership, though its chances of approval remain slim.

The British Government is reviewing a proposal that could potentially ban state-owned clubs in the Premier League, a move that would require Manchester City and Newcastle United to change their owners. The initiative, led by Labour Party politician Lord Bassam, is part of the broader reform of English football, but its chances of approval are slim due to potential diplomatic and economic repercussions.

Lord Bassam’s proposed law would specifically target clubs owned by sovereign wealth funds, such as Manchester City, controlled by the United Arab Emirates, and Newcastle United, owned by Saudi Arabia’s Public Investment Fund (PIF). If passed, this law would prevent state-owned clubs from receiving the necessary licenses to operate in the Premier League, effectively barring them from competition.

"No state-owned club should receive an operational license, and all clubs must comply with the new law’s reforms," Lord Bassam stated. However, the measure has limited support in the House of Lords and would also require approval from the British Government. According to The Times, the proposal faces significant obstacles, including concerns about its impact on UK-Middle East relations and the commercial ties between the countries involved.

A controversial reform
The proposed ban stems from ongoing efforts to reform English football, spurred by the European Super League debacle in 2021. Among other provisions, the reform seeks to establish an independent regulator to oversee club finances and issue licenses for participation in competitions. While some Premier League clubs have advocated for stricter rules on state-backed ownership, the government appears reluctant to jeopardize its diplomatic relationships with Saudi Arabia and the UAE.

City and Newcastle’s transformations
Since being acquired by Abu Dhabi in 2008, Manchester City has risen from a mid-table team to one of the world’s most successful clubs, winning eight Premier League titles, a Champions League, and numerous domestic trophies. Newcastle United, purchased by Saudi Arabia’s PIF in late 2021, has similarly undergone a remarkable transformation, qualifying for the Champions League in 2023 and reaching a League Cup final the same year.

While the law’s passage remains unlikely, its introduction reflects the growing debate over the role of state ownership in football and the balance between financial oversight and diplomatic considerations.

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