{"id":16922,"date":"2024-03-20T15:27:50","date_gmt":"2024-03-20T15:27:50","guid":{"rendered":"https:\/\/adcecija.pt\/?p=16922"},"modified":"2024-03-20T15:27:50","modified_gmt":"2024-03-20T15:27:50","slug":"multi-clubs-ownership-a-new-alternative","status":"publish","type":"post","link":"https:\/\/adcecija.pt\/en\/multi-clubs-ownership-a-new-alternative\/","title":{"rendered":"Multi-clubs Ownership: A new alternative"},"content":{"rendered":"
A. <\/span>Concept<\/span><\/strong><\/div>\n
<\/div>\n

Multi-ownership is a business model that has <\/span>come to <\/span>prominence in the <\/span>sports <\/span>market, especially <\/span>what concerns <\/span>football <\/span>clubs<\/span>. <\/span>This new model is <\/span>characterized by the fact<\/span> that a single <\/span>person (natural or legal) or economic group <\/span>holds shares in <\/span>more than one professional football club. <\/span>This new format offers investors the opportunity to acquire <\/span>a share <\/span>in <\/span>several clubs (majority or minority), making football <\/span>a <\/span>truly<\/span> entrepreneurial business, like many others<\/span>.<\/span><\/p>\n

The football industry is one of the most lucrative sectors in the world, turning over millions of euros every year. With passionate fans supporting their <\/span>beloved <\/span>clubs, football teams <\/span>are<\/span>becom<\/span>ing<\/span> true icons<\/span>,<\/span> not only <\/span>from a sports point of view<\/span>, but also economically and socially<\/span>, increasingly <\/span>interconnected and <\/span>linked to other areas such as fashion <\/span>(e.g. partnership between AC Milan and Off-White<\/span>) <\/span>or entertainment <\/span>(various series on different platforms about the daily lives of clubs)<\/span>. <\/span><\/p>\n

In this context, <\/span>and quite naturally, <\/span>multi-ownership of football clubs is on the rise<\/span>, <\/span>as an innovative strategy to attract new investors and raise funds for team development. <\/span>This <\/span>strategy <\/span>allows for the participation of several owners, who contribute <\/span>mainly, but not <\/span>limited to<\/span>, <\/span>with financial resources <\/span>and “unexpected” partnerships<\/span>.<\/span><\/p>\n

Multi-ownership is a complex concept involving the division of <\/span>the ownership of a company <\/span>\u2013 a<\/span>s is the case in Portugal with <\/span>Public Limited Liability Companies (in <\/span>portuguese<\/span>\u201c<\/span>Sociedades<\/span> An\u00f3nimas<\/span> Desportivas<\/span>\u201d)<\/span>, commonly known as “SAD”<\/span> \u2013<\/span> between several natural or legal persons or, in most cases, by just one majority shareholder, with the remaining <\/span>percentage going to the <\/span>founding <\/span>Club itself, as required by law<\/span> . <\/span><\/p>\n

It is, h<\/span>owever, <\/span>important to <\/span>emphasize<\/span> that<\/span> the <\/span>multi-ownership of football clubs presents significant legal challenges<\/span> as l<\/span>aws vary <\/span>from <\/span>country <\/span>to country and European\/global regulations <\/span>seek, in certain circumstances, to <\/span>restrict the possibility of multiple owners <\/span>in <\/span>a club <\/span>or the same owner in multiple clubs<\/span>. In addition, the relationship between investors and the club must be regulated clearly and precisely to avoid conflicts of interest<\/span>.<\/span><\/p>\n

The successful implementation of multi-ownership of football clubs requires a <\/span>perfectly thought-out <\/span>strategy. <\/span><\/p>\n

In 2022 there were already <\/span>68 cases of club multi-ownership<\/span>. For the most part<\/span>, <\/span>there are <\/span>only <\/span>two clubs belonging to the same owner. <\/span>Nevertheless<\/span>, by way of example, <\/span>the City Group already has <\/span>fourteen <\/span>clubs under its umbrella (<\/span>Manchester City, Girona, Lommel, Melbourne City, Montevideo City Torque, Mumbai City, New York City, Troyes, Palermo, Bol\u00edvar, Yokohama Marinos<\/span>, <\/span>Sichuan <\/span>Jiuniu<\/span> FC<\/span>, <\/span>Bahia <\/span>and, most recently, <\/span>Basaksehir<\/span>)<\/span>, spread across different parts of the globe<\/span>.<\/span><\/p>\n

 <\/p>\n

B. <\/span>Challenges<\/span><\/strong><\/div>\n
<\/div>\n

A <\/span>multi-ownership <\/span>represents <\/span>a <\/span>huge <\/span>challenge <\/span>for the bodies that oversee football<\/span>. <\/span>Both FIFA and UEFA have strict rules relating to <\/span>the <\/span>ownership and <\/span>control of <\/span>football clubs. <\/span><\/p>\n

Firstly, <\/span>for these <\/span>entities, it is <\/span>important to <\/span>analyze<\/span> the <\/span>alleged violations of Financial Fair Play, which aims to guarantee the financial sustainability of clubs. The fact that <\/span>one person is controlling<\/span> several <\/span>clubs can <\/span>utilize<\/span> this possibility <\/span>so that this requirement is always met, allowing business to be done – without restrictions – between <\/span>their <\/span>clubs. <\/span>Secondly, the very <\/span>natural competitiveness of the sport can be <\/span>jeopardized<\/span>, <\/span>since these teams will ultimately have a <\/span>common goal, which may be distinct from <\/span>the general principles of sport and football.<\/span><\/p>\n

 <\/p>\n

\u27a2 Red Bull’s case<\/span><\/strong><\/div>\n
<\/div>\n

A<\/span> practical and <\/span>well-researched <\/span>example of<\/span> this is the<\/span> Red Bull<\/span> case<\/span>. <\/span>The relationship between RB Leipzig <\/span>(Germany) <\/span>and <\/span>RB <\/span>Salzburg <\/span>(Austria) <\/span>is quite complex. <\/span>Although<\/span> b<\/span>oth clubs are financially supported by the <\/span>world-famous <\/span>energy drinks company and have a <\/span>similar <\/span>business model, they are two <\/span>entirely<\/span> separate <\/span>entities.<\/span><\/p>\n

The relationship between the <\/span>two <\/span>clubs <\/span>is a <\/span>sensitive <\/span>topic<\/span>,<\/span> raising questions about the <\/span>control <\/span>and influence of the same group in two different clubs competing in national and international competitions. <\/span>Particularly <\/span>concerning<\/span> international competitions, <\/span>FIFA and UEFA have always raised some <\/span>concerns<\/span> about whether both<\/span> clubs <\/span>could<\/span> take part in the same competition and possibly face each other.<\/span><\/p>\n

UEFA, after a long <\/span>and in-depth investigation, decided <\/span>that <\/span>RB Leipzig (Germany) and RB Salzburg (Austria) <\/span>are legally separate and distinct entities, and can therefore compete in domestic and international competitions simultaneously without violating UEFA rules<\/span>, namely Article 5 <\/span>of the<\/span> several<\/span> UEFA\u2019s<\/span> C<\/span>ompetition <\/span>R<\/span>egulations<\/span> (<\/span>Integrity of the competition<\/span>)<\/span>.<\/span><\/p>\n

UEFA took the view that no individual or entity had a decisive influence over more than one <\/span>of these <\/span>clubs<\/span>. <\/span>Although this <\/span>connection<\/span> continues to <\/span>generate controversy and debate about the ethics of the ownership and financing model of a single entity <\/span>controlling <\/span>several <\/span>clubs <\/span>in different competitions<\/span>, it was clarified that<\/span> on<\/span> one hand <\/span>Red Bull<\/span>owned<\/span> 4<\/span>9 <\/span>% <\/span>of <\/span>RB Leipzig<\/span>‘s<\/span> shares,<\/span> but on the other hand, <\/span>Red Bull was<\/span> only the main sponsor of RB Salzburg.<\/span><\/p>\n

As with everything controversial and debatable, <\/span>some people value the competitiveness and success brought about by Red Bull’s financial influence, while others believe that this distorts fairness and sporting justice<\/span>, <\/span>jeopardizing<\/span> the basic principles of sport<\/span>. <\/span><\/p>\n

N<\/span>otwithstanding the above<\/span>, during<\/span> the investigation, <\/span>UEFA imposed <\/span>several<\/span> changes<\/span> in their respective structures, for example<\/span>, <\/span>(i)<\/span> RB <\/span>Salzburg <\/span>can only be called <\/span>\u201c<\/span>Salzburg<\/span>\u201d<\/span>,<\/span> while RB Leipzig <\/span>can <\/span>only <\/span>be called <\/span>\u201c<\/span>Leipzig<\/span>\u201d<\/span>;<\/span> (ii)<\/span> RB Salzburg had <\/span>to change its <\/span>symbol<\/span>, <\/span>and <\/span>instead of having <\/span>Red Bull\u2019s<\/span> logo, <\/span>the <\/span>Austrian <\/span>team’<\/span>s players have a bull with a football on their shirts.<\/span>; <\/span>(ii<\/span>i<\/span>)<\/span> UEFA also forced the stadiums to be renamed, <\/span>with <\/span>RB <\/span>Leipzig playing <\/span>at the <\/span>“<\/span>RB Arena<\/span>” <\/span>and RB Salzburg <\/span>at the <\/span>“<\/span>Stadion Salzburg<\/span>“<\/span>.<\/span><\/p>\n

Multi-ownership is a highly complex model <\/span>with restrictions <\/span>from <\/span>national <\/span>federations and the bodies that oversee football <\/span>\u2013 <\/span>especiall<\/span>y<\/span> at European and world <\/span>levels<\/span> \u2013 <\/span>therefore, <\/span>scrupulous<\/span> compliance with the <\/span>laws and sporting regulations in force is <\/span>required. <\/span>An efficient <\/span>and detailed <\/span>strategy is crucial to the success of this form of ownership. <\/span>Only in this way were the two clubs identified above able to take part in the biggest football competition in Europe<\/span>, <\/span>and perhaps the world.<\/span><\/p>\n

<\/div>\n
C. <\/span>Final Notes<\/span><\/strong><\/div>\n
<\/div>\n

Multi-ownership of clubs can be beneficial for the development of football, provided it is done ethically and transparently<\/span>, <\/span>to make<\/span> the sport grow in a sustainable and balanced way. <\/span>However, <\/span>to achieve this, <\/span>an efficient and <\/span>conscientious <\/span>corporate governance <\/span>model is <\/span>required<\/span>, <\/span>as <\/span>the line between what is lawful <\/span>and what is <\/span>unlawful is very thin.<\/span><\/p>\n

 <\/p>\n

por Ricardo Cardoso<\/a> e Carlos Ferreira Vaz<\/a>, \u00c1rea de Pr\u00e1tica – Desporto, Moda e Entretenimento<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A. Concept Multi-ownership is a business model that has come to prominence in the sports market, especially what concerns football clubs. This new model is characterized by the fact that a single person (natural or legal) or economic group holds shares in more than one professional football club. This new format offers investors the opportunity…<\/p>\n","protected":false},"author":57,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[152],"tags":[],"class_list":["post-16922","post","type-post","status-publish","format-standard","hentry","category-news-media-2"],"_links":{"self":[{"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/posts\/16922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/comments?post=16922"}],"version-history":[{"count":1,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/posts\/16922\/revisions"}],"predecessor-version":[{"id":16923,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/posts\/16922\/revisions\/16923"}],"wp:attachment":[{"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/media?parent=16922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/categories?post=16922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adcecija.pt\/en\/wp-json\/wp\/v2\/tags?post=16922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}