Multi-club Ownership Rules for the FIFA Club World Cup 2025

On November 5th, 2024, FIFA published the Regulations for the upcoming FIFA Club World Cup 2025 (hereinafter referred to as the "Regulations"). In my opinion, one of the most important provisions in these Regulations is covered in Article 10, where, for the first time, FIFA addresses issues related to multi-club ownership. In this short article, you will find answers to key questions regarding multi-club ownership in football, along with an analysis of Article 10 of the Regulations.

What is "Multi-Club Ownership"?

The concept of multi-club ownership refers to organizations that own multiple football clubs, located in different parts of the world. This ownership model allows for a shared philosophy in player development and facilitates the movement of players between teams.

Examples

The prime example that comes to my mind is City Football Group which as of November 6th, 2024 owns 14 clubs, including its two most successful teams - Manchester City and Girona FC.

Other notable multi-club ownership groups include Red Bull GmbH (5 clubs), 777 Partners (8 clubs), and Pacific Media Group (8 clubs).

Is "Multi-Club Ownership" beneficial or harmful to the football industry?

Multi-club ownership can bring significant benefits to the game, such as economic resources, financial stability, brand recognition, and the exchange of sports and business management knowledge and practices. However, there are key issues that regulators should consider, including potential loss of independence in exchange for financial resources, limitations on strategic decision-making, the risk of financial interests overshadowing sporting interests, and various legal and regulatory complications.

Analysis of the Article 10 of the Regulations

Article 10 of the Regulations clearly prohibits any legal entity or individual from holding direct or indirect economic or influential relations with more than one club participating in the competition.

What happens if there are doubts about the eligibility of clubs?

In such cases, the FIFA General Secretariat may refer the matter to the FIFA Disciplinary Committee. If two clubs belong to the same owner, the FIFA General Secretariat will decide which club may be admitted to the competition.

How can Manchester City and Girona FC both play in the UEFA Champions League this year if they are owned by the City Football Group?

When it became clear that Girona FC would participate in the 2024-2025 UEFA Champions League, UEFA required the City Football Group to reduce its influence over one of the two clubs.

After conducting investigations, UEFA confirmed that City Football Group does not exert decisive influence over both clubs. This was determined based on City Football Group holding only a minority, non-controlling stake in Girona FC and demonstrating operational independence between the two clubs. By structuring its investments to comply with UEFA regulations - either through limited shareholding or ensuring independent operations - City Football Group was able to meet the requirements for both clubs to participate in the competition.

Does the "Multi-Club ownership" strategy have a future in football?

The multi-club ownership concept is used in many other sports, such as basketball, baseball, Formula 1, MotoGP, esports, ice hockey, cricket, and rugby. Based on different approaches used by governing bodies in these sports, I believe football regulators could consider the following strategies:

1. Financial Controls: the regulatory bodies should ensure that owners do not use funds from one team to benefit another, as UEFA currently enforces through Financial Fair Play rules, which prevent multi-club owners from using one club’s resources to subsidize another.

2. Transparency and Disclosure: the regulatory bodies should require clear disclosure of ownership interests and management structures to allow governing bodies and the public to verify there is no collusion or unfair advantage.

3. Independent Team Management: the regulatory bodies should mandate that each team under shared ownership be obligated to maintain separate management, finances and competitive strategies to prevent conflicts of interest.

   
   

The importance of multi-club ownership is growing not only at the regional level but also internationally with the expansion of the FIFA Club World Cup. This brings additional legal questions that regulatory bodies will need to address.