What is Multi-Club Ownership in Football?

Multi-club ownership happens when a single entity, such as an individual, a company, or a consortium, buys ownership holdings in multiple football clubs. These clubs might be within the same country or spread across multiple countries, allowing the owner to establish a network of teams under their ownership. This concept is frequently utilised to create club synergies, facilitate player development, and capitalise on commercial potential in several countries.

The History of Multi-Club Ownership in Football

The concept of multi-club ownership is not wholly new, but its popularity has grown considerably in the twenty-first century. Historically, affluent individuals or businesses may have owned multiple clubs, but this was frequently done as a status symbol rather than a strategic investment.

In the 1990s and 2000s, we saw increasingly organised ways to multi-club ownership. One of the first instances is the Red Bull Group, which owns many clubs, including RB Leipzig in Germany, Red Bull Salzburg in Austria, and the New York Red Bulls in the United States. Another notable example is the City Football Group, which owns Manchester City in England, New York City FC in the United States, and Melbourne City FC in Australia, among others.

Rules on Multi-Club Ownership in Football

Various football regulatory organisations regulate multi-club ownership to ensure the sport's integrity. UEFA, the regulatory body of European football, has established special measures to eliminate conflicts of interest and promote fair competition.

One of the fundamental regulations states that clubs owned by the same business cannot play in the same competition. For example, if two clubs belonging to the same group qualify for the UEFA Champions League, one of them must withdraw to avoid a conflict of interest. National leagues also have their own rules, which might vary greatly between countries.

Examples of Multi-Club Ownership

Several high-profile examples of multi-club ownership highlight the various techniques and strategies used by owners:

- City Football Group: Perhaps the most extensive network, City Football Group owns Manchester City (England), New York City FC (USA), Melbourne City FC (Australia), Yokohama F. Marinos (Japan), and a number of other teams worldwide. Their model is based on sharing resources, scouting, and commercial methods within their network.

- Red Bull Group: The Red Bull Group, known for their aggressive brand promotion, owns RB Leipzig (Germany), Red Bull Salzburg (Austria), New York Red Bulls (USA), and Red Bull Bragantino (Brazil). They concentrate on nurturing and promoting young talent within their club hierarchy.

- Watford and Udinese: Owned by the Pozzo family, Watford (England) and Udinese (Italy) have a history of exchanging players and resources, which has helped both teams' competitive edge.

Advantages of Multi-Club Ownership

• Resource Sharing: Clubs in the same network can share scouting resources, coaching staff, and training facilities, resulting in cost savings.
• Player Development: Young players can be developed within the network by progressing through various clubs to gather experience before reaching the flagship squad.
• Commercial Opportunities: Multi-club ownership enables worldwide brand expansion and greater sponsorship opportunities.
• Market Penetration: Owning clubs in multiple nations allows owners to tap into a variety of markets, expanding their global reach.

Disadvantages of Multi-Club Ownership

• Conflict of Interest: There is always the possibility of conflicts of interest, especially when clubs owned by the same entity compete in the same league or competition.
• Regulatory Challenges: Different countries have different laws, making it difficult to manage several clubs in multiple jurisdictions.
• Fan Opposition: Fans of clubs owned by a multi-club group may feel inferior to the flagship / main club, which can result in unhappiness and protests.
• Financial Risks: If the plan fails, it could result in substantial financial losses for all clubs in the network.

The Future of Multi-Club Ownership in Football

The trend of multi-club ownership is expected to continue as football becomes more globalised and commercialised. Advances in technology and data analytics will simplify operations across several clubs, making the model even more appealing. However, regulatory bodies must keep up with the growth to regulate and maintain the integrity of the sport.

New investors, particularly private equity firms and worldwide conglomerates, are becoming more interested in this strategy. As these corporations bring in more wealth and smarter management procedures, the landscape of football ownership will continue to change.

Conclusion

Multi-club ownership marks a fundamental transition in the football industry, offering both opportunities and challenges. Stakeholders can better navigate this complicated landscape by understanding the model's history, legislation, advantages, and limitations. As the trend continues to spreads, it will surely affect the future of football, resulting in a more integrated and commercially viable global sport.

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