Premier League expected to restrict debt-fuelled club takeovers

The Premier League is leaning towards imposing a ban on debt-fuelled club takeovers amid a wider overhaul of the governance of English football.

Sky News has learnt that a consultation process run by the Premier League in recent weeks with its member clubs has produced broad support for restrictions on so-called leveraged buyouts of top-flight sides.

Details of any limits are yet to be finalised, but will be discussed at the League’s annual “shareholder” meeting on Thursday.

“The question is not whether there will be a ban, but what form it should take,” said an executive at one Premier League club.

Sky News revealed last month that revisions to the Owners and Directors Test (OADT) encompassing leveraged buyouts would be discussed at the AGM, ahead of a formal vote in September.

A ban on debt-fuelled takeovers would not be applied retrospectively – but would, if implemented, prohibit the type of deal that saw Manchester United acquired by the Glazer family in 2005.

Concerns have also been raised about the financial health of Burnley, the Lancashire side relegated to the Championship last month.

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Burnley is owned by ALK Capital, a US-based consortium which is reported to have used the club’s money to help finance a £170m takeover.

The Premier League’s annual meeting comes just days after the completion of the most fraught club takeover in the history of English football, with Chelsea having been sold by Roman Abramovich, the sanctioned Russian businessman, to a consortium majority-financed by Clearlake Capital.

Guarantees secured by Mr Abramovich’s advisers at Raine Group, the US merchant bank, mean the new owners will commit £1.75bn to investment in Chelsea’s Stamford Bridge home, its academy and women’s team, in addition to the £2.5bn purchase price for the club.

The Premier League’s review of the OADT has been in train for months, having been triggered in part by the controversy surrounding the takeover of Newcastle United by a consortium led by Saudi Arabia’s sovereign wealth fund.

The Daily Mail reported on Wednesday that a ban on club takeovers by state-controlled investors would also be on the agenda.

The OADT review has been made more urgent by the government’s response to a review headed by Tracey Crouch, the former sports minister, on English football governance.

In April, the government signalled its support for an independent regulator for the sport, although key details, such as whether the FA has oversight of a new body, have yet to be determined.

Any changes to the Premier League’s ownership test would need to be approved by at least 14 clubs, and club executives acknowledge that reforms could be superseded by any requirements imposed by a new regulator.

The Premier League declined to comment on Wednesday.

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