The Premier League is lobbying Uefa to close a loophole in its Financial Fair Play (FFP) rules that allows European clubs to benefit from third-party ownership of players.
But they all harbour concerns that as things stand the Premier League’s rule barring third-party ownership, typified by the Carlos Tévez case, could put them at a disadvantage to their European rivals.
FFP requires clubs to break even, losing no more than £38 million in total over the next three seasons. For English clubs this limits transfer spending and wages to what can be covered by trading and legitimate football income.
In Spain, Portugal and other European countries where third-party ownership is permitted, investors can place players in clubs, allowing them to recruit at a fraction of the upfront cost.
Clubs sign a player by purchasing a minority stake in his economic rights, a fraction of the upfront cost an English club would have to pay out, though they would not enjoy all the profit from any onward sale. Clubs could also raise money by selling shares in their players’ economic rights to third-party funds, a route not open to Premier League clubs.
The practice is particularly prevalent in Portugal. Accounts for Benfica show they made £37.7 million from the sale of rights to an investment fund in 2009.Former Chelsea chief executive Peter Kenyon has established a player fund, Quality Sports Investment, which operates as a “funding partner” to clubs in exchange for a share of future transfer returns, and also invests directly in players.
In a statement the Premier League said: “We have made Uefa aware we feel restricting transparent owner equity investment while having no prohibition on third-party ownership seems at odds with the principles of FFP.”
