Man United sale set to test UEFA rules on multi-club owners

Feb 16, 2023, 5:54 PM | Updated: Feb 17, 2023, 1:59 pm
Newcastle United's Joe Willock, right, celebrates scoring a goal before it is later ruled out, duri...

Newcastle United's Joe Willock, right, celebrates scoring a goal before it is later ruled out, during the English Premier League soccer match between Newcastle United and West Ham United, at St. James' Park, in Newcastle upon Tyne, England, Saturday, Feb. 4, 2023. (Owen Humphreys/PA via AP)

(Owen Humphreys/PA via AP)

              Salzburg's Nicolas Capaldo, right, celebrates with his teammates after scoring his side's first goal during the Europa League Europa League playoff first leg soccer match between FC Red Bull Salzburg and AS Roma at the Red Bull Arena in Salzburg, Austria, Thursday, Feb. 16, 2023. (AP Photo/Petr David Josek)
            
              Leipzig's Timo Werner, center, celebrates scoring the 3:1 against Hoffenheim with Konrad Laimer, left, and Mohamed Simakan during the German Soccer Cup round of 16 soccer match at the Red Bull Arena in Leipzig, Germany, Wednesday, Feb. 1, 2023. (Jan Woitas/dpa via AP)
            
              Newcastle United's Joe Willock, right, celebrates scoring a goal before it is later ruled out, during the English Premier League soccer match between Newcastle United and West Ham United, at St. James' Park, in Newcastle upon Tyne, England, Saturday, Feb. 4, 2023. (Owen Humphreys/PA via AP)
            
              Manchester United's head coach Erik ten Hag congratulates with Marcus Rashford as he leaves the pitch during the English Premier League soccer match between Leeds United and Manchester United at Elland Road, Leeds, England, Sunday, Feb.12, 2023. (AP Photo/Jon Super)

GENEVA (AP) — The sale of Manchester United is set to test European rules designed to protect soccer from the integrity risks of owners controlling multiple clubs.

Three widely expected bids to buy the most storied brand in English soccer are closely tied to clubs already established in UEFA competitions like the Champions League, or have ambitions to break into the elite.

State sovereign wealth funds from Qatar and Saudi Arabia already bought Paris Saint-Germain and Newcastle, respectively, and British industrialist Jim Ratcliffe, a lifelong Man United fan, owns French club Nice.

UEFA first fought a legal case against “multi-club ownership” 25 years ago, and only this month warned of the risks this industry model poses for collusion on the field and in player transfers.

The European soccer body has rules to bar clubs from its competitions in any season if owners have “decisive influence” over two clubs which qualify. A key test case was resolved in June 2017 after an investigation into Red Bull’s ownership of Leipzig and Salzburg. UEFA let both clubs enter the next Champions League.

Other UEFA cases on separate matters in recent years involving PSG and Manchester City, plus the French club’s president, either were closed or ended with less severe consequences than had seemed possible during investigations.

UEFA declined comment Friday and likely won’t take a position on Man United’s next owner until the season ends. Entries for next season’s competitions will be clear after the Champions League final on June 10.

UEFA RULES

Article 5 of regulations in each UEFA competition — the Champions League, Europa League and Europa Conference League — is about integrity and multi-club ownership.

Clubs cannot hold shares or have management control in another club taking part in a UEFA competition, nor can individuals and legal entities have ownership or management control over more than one club.

It is defined as “being able to exercise by any means a decisive influence in the decision-making of the club.”

Ratcliffe’s company, INEOS, would have a clear conflict. The Qatari proposal revealed Friday is led by Sheikh Jassim bin Hamad Al Thani, the chairman of Qatar Islamic Bank (QIB) who is the son of a former prime minister.

It could be difficult to prove Sheikh Jassim’s investment vehicle is entirely separate from state-backed interests that fund Qatar Sports Investments at PSG.

UEFA requires the club that qualified for “the most prestigious” competition to take its place while the other is excluded. The next tiebreaker is which club finished higher in its domestic league.

A loophole to let both clubs play is if one qualified directly to the Champions League and the other qualified for the Europa Conference League. In that scenario, the two teams could not cross paths in the same competition.

PREVIOUS CASES

In the quarterfinals of the 1997-98 European Cup Winners’ Cup, three of the eight teams — AEK Athens, Slavia Prague and Vicenza — were part-owned by the same investor, known as ENIC. The company best known for owning Tottenham also had stakes in Rangers and Basel.

Weeks later, the UEFA executive committee introduced the multi-club ownership rule. Slavia was accepted in the next UEFA Cup and AEK was excluded.

The clubs appealed to the Court of Arbitration for Sport, which ruled in their favor, saying UEFA “violated its duties of good faith and procedural fairness” enacting the rule so quickly.

Enforcement was delayed, and in 2001 a conflict with Canal+ owning stakes in two UEFA Cup teams, PSG and Servette, led the broadcaster to sell the Swiss club.

The anticipated potential conflict between Leipzig and Salzburg arrived in 2017. UEFA’s club finance investigators highlighted the “unusually high level of player loans/transfers” between the clubs and their “common visual identity/similar branding.”

However, Salzburg said it “removed certain individuals who were allegedly linked to Red Bull,” a cooperation deal with Leipzig was ended, and sponsorship by Red Bull was scaled back.

UEFA then accepted there was “insufficient evidence” of shared ownership. The teams eventually met in the 2018-19 Europa League and Salzburg won both games.

If Man United’s new ownership ties are examined, the UEFA club investigation panel is now led by Sunil Gulati, an economics professor and former president of United States soccer federation.

CURRENT POSITION

Tough words from UEFA came last week in its annual financial study of clubs and leagues.

“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,” UEFA wrote.

They identified “more than 180 clubs worldwide” in multi-club investment structure projects — about a five-fold increase in a decade — involving the careers of more than 6,500 players.

The trend “has the potential to distort transfer activity,” the UEFA document said, with a risk of transfer fees set “at prices that suit investors, rather than at fair values.”

___

More AP soccer: https://apnews.com/hub/soccer and https://twitter.com/AP_Sports

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Ex-Packer Guion gets 1 year for domestic violence assault

GREEN BAY, Wis. (AP) — Former Green Bay Packers defensive tackle Letroy Guion was sentenced to one year in jail after pleading no contest in a domestic violence assault at his home last fall. Brown County Circuit Court Judge Thomas Walsh also ordered Guion on Tuesday to serve three years’ probation and complete a domestic […]
26 days ago
Joe Jarzynka...
Associated Press

Durant eager for Suns debut vs. Hornets after knee injury

CHARLOTTE, N.C. (AP) — Kevin Durant has been through quite a bit during his 15-year NBA career — but joining a new team midway through the season is a new one for the 13-time All-Star. The 34-year-old Durant doesn’t seem all that worried. Durant makes his highly anticipated Phoenix Suns debut on Wednesday night against […]
26 days ago
FILE - Miami Dolphins head coach Brian Flores stands on the sideline during the second half of an N...
Associated Press

Judge: NFL coach can press discrimination claims in court

NEW YORK (AP) — NFL Coach Brian Flores can pursue some of his discrimination claims against the league and its teams in court rather than through arbitration, a judge ruled Wednesday. The written decision by Judge Valerie Caproni in Manhattan was issued months after lawyers for the league tried to get the lawsuit moved to […]
26 days ago
Chicago Blackhawks goaltender Alex Stalock cools off in the first period during an NHL hockey game ...
Associated Press

Kane trade reinforces hard reality of Blackhawks rebuild

CHICAGO (AP) — After days of speculation, the harsh reality of the Chicago Blackhawks’ situation was reinforced by one move in a flurry of transactions ahead of the NHL trade deadline. Showtime is over, at least in Chicago, and a seemingly bright future is, well, way off in the distance. The reverberations of Chicago’s decision […]
26 days ago
FILE -  Yves Jean-Bart, president of the Haitian Football Federation, wearing a protective face mas...
Associated Press

Disgraced ex-Haitian soccer president announces he’s back

PORT-AU-PRINCE, Haiti (AP) — Haiti’s former soccer federation president whose lifetime ban from sport over sexual abuse allegations was overturned last month announced Wednesday that he is reclaiming his position. Yves Jean-Bart’s defiant announcement could lead to a standoff with FIFA, which already has appointed an emergency management committee to lead the Haitian Football Association […]
26 days ago
FILE - Green Bay Packers' Aaron Rodgers walks off the field after an NFL football game against the ...
Associated Press

Rodgers says decision on future will come ‘soon enough’

GREEN BAY, Wis. (AP) — Aaron Rodgers says he will make a decision on his future “soon enough” as the four-time MVP quarterback ponders whether to play next season and if his future remains with the Green Bay Packers. Rodgers, 39, discussed his future while speaking on an episode of the “Aubrey Marcus Podcast” that […]
26 days ago
Man United sale set to test UEFA rules on multi-club owners