SQUEAKY BUM TYNE
Newcastle face fresh scrutiny as new football chief is rushed in
NEWCASTLE UNITED’S ownership will come under renewed scrutiny when football’s independent regulator comes into power.
The Football Governance Bill was introduced in Parliament yesterday and Government ministers want it rushed through before the next General Election.
And, when it becomes law, clubs will have to get a licence to operate and that will only be granted when they have proved the identity of their ultimate owner.
That will also apply to existing owners as well as prospective ones.
When the takeover of Newcastle was completed in 2021, it was only waved through when the Premier League received “legally binding assurances” that Saudi Arabia’s Public Investment Fund – which has an 80 percent stake in the club – is separate from the Saudi state.
Those assurances seem certain to be re-examined when the new independent regulator is in position.
The introduction of a regulator has been welcomed by the EFL, the FA and by supporters’ groups.
The Premier League has been distinctly cool on the prospect, but they will actually foot most of the bill as a means-tested club levy will be introduced to pay the annual £10million it will cost to run the regulator’s office.
And if the Premier League continues to stall on agreeing a financial deal with the EFL, the independent regulator will have the authority to impose one.
With a date for the next General Election yet to be set, there is uncertainty about when the regulatory system will come into full effect, with some Westminster sources suggesting it could be as long as 18 months’ time.
But there is already pressure from Parliament on the Premier League to agree a financial package for the EFL.
Prime Minister Rishi Sunak (above) gave his enthusiastic backing to the Football Governance Bill, which will now go through parliamentary procedure before being made law.
The regulator will be able to impose fines amounting to 10 percent of a club’s turnover if it does not comply with any new regulations on matters such as financial mismanagement, breakaway competitions, stadium relocations and changes to club names, badges and colours against the wishes of fans.
But the regulator will NOT be able to impose points deductions, leaving those penalties to the leagues themselves.
Culture Secretary Lucy Frazer, who expressed her “disappointment” the Premier League had not yet agreed a financial package for the EFL, said she expected legislation to be passed “before the end of the parliamentary session” – so, before the next General Election.