Football regulator has power to block Premier League stadium sales | American football

The government is preparing to give the independent regulator powers to prevent first division clubs sell their stadiums to related companies or third parties.

In June, the Premier League attempted to close the loophole that allows clubs to use one-off profits from property sales to escape accusations of profitability and sustainability rules, but failed to gain the support of enough clubs. Eleven of the 20 clubs voted in favor of the league's proposal at its Annual General Meeting last summer, three votes short of the two-thirds majority needed to secure a rule change.

The EFL bans stadium sales to related companies and the government will empower the regulator to impose similar restrictions on the top flight. Under proposals to be contained in the Football Governance Bill, which covers the five main divisions of English men's football, any club wanting to sell its stadium would need approval from the independent regulator. Sources with knowledge of the bill being prepared at the Department of Culture, Media and Sport (DMCS) told The Guardian that such requests would be granted only if the club could demonstrate it was in its long-term best interests and had with the support of his government. fans.

The government is determined to use the bill to protect clubs and their grounds as community assets. Other measures will include safeguards against clubs attempting to change location.

Aston Villa sold Villa Park to a company controlled by its owners, Nassef Sawiris and Wes Edens, for £56.7 million four years ago, without which the club, then in the Championship, would almost certainly have been accused by the EFL of a fair play breach financial. Sheffield Wednesday, Derby and Reading have also sold their grounds in recent years to circumvent the EFL's FFP regulations.

Last year, Chelsea sold two hotels at Stamford Bridge to a sister company for PSR reasons. The government's plans would be limited to the sale of stadiums.

DCMS officials are in the final stages of preparing the latest version of the bill, which was introduced to parliament by the previous government in April but failed to reach statute before the general election. The new bill is expected to include significant differences, with many Labor MPs pushing for the independent regulator to have powers to determine the level of parachute payments. Culture secretary Lisa Nandy is believed to be sympathetic to including them in the terms of reference of the Whole Game Review that the independent regulator will have to carry out.

The bill will give the regulator backstop powers to impose a financial deal between the Premier League and the EFL, talks with which have stalled. In March, top-flight clubs postponed negotiations on additional financing waiting focus on agreeing its new financial regulations.

The Premier League's need to make further rule changes following the referee's ruling Manchester City's legal challenge This month has made the likelihood of reaching an agreement on the so-called new deal for football with the EFL look even more remote.

DCMS declined to comment.