City Football Group, Galaxy Eagle Football, Galaxy Red Bull… So many football clubs are in the hands of « multi-owner ». But what is it? Why is it so criticized? We’re going to explain it to you
What is it?
This concept aims at grouping of clubs. That includes every situation in which one party exercises control or decisive influence over several clubs.
This system already existed in the 20th century, as PSG and OM. But it is in full expansion.. As mentioned by Le Point, in France, nine clubs out of eighteen are under the care of multiple ownership. 280 around the world, according to International Centre for Sports Studies. A number multiplied by 5 since 2000.
How to explain this development? Unsurprisingly, the pandemic played a role. Then, French clubs had very little income. No ticketing, no TV rights. Many teams were in financial difficulty. Inflation had also impacted the economic situation. The previous owners were therefore more likely to want to sell their club at an attractive price.
Why is this criticized?
From a purely external point of view, the panorama seems positive: more money, more reputation, more attractiveness.
But in reality, the observation is more open to criticism. Before understanding why multiple ownership is questionable, we must see the reasons that motivate shareholders to put it in place.
The objective : pooling income, means and facilitates player transfers, particularly loans. Loans lasting one year, that do not allow supporters to become attached to the players.
Because many French clubs are not for the purpose of this pyramid structure, quite the contrary. Strasbourg, for example, is Chelsea’s satellite club. A « partnership » which allows the Alsatian club to strengthen itself at lower cost.
For footballers, this allows them to progress within the same group with the same playing principles. For example, Dayot Upamecano, vice-world champion with the Blues, cut his teeth at RB Salzburg before being “promoted » at RB Leipzig in 2017.
The players are only passing through. They are generally disinterested in the territory and club they land in.
However, these young players are bought for ridiculous sums by one of the timeshare clubs. Like Ernest Nuamah, a 20-year-old striker recruited last summer for 25 million euros by Molenbeek, and immediately loaned to Olympique Lyonnais. A whole system which allows you to counter the budgetary restrictions imposed by UEFA.
And the regulation?
What do the regulations say exactly? In the majority of cases, leagues prohibit multiple ownership within the same championship. But they are not reluctant to either. Club buyouts bring in money. Clubs are growing. Thus, they can even do better in European competitions.
On the continental level, UEFA does not allow two clubs of the same owner to participate in its European Cups. However, two clubs (RB Leipzig and RB Salzburg) from the Red Bull galaxy faced each other in a European competition.
But the success of Red Bull’s strategy or that of the City Group should not make us forget failures. Like in Nancy, where the takeover of the club by a group of Chinese and American shareholders led to the relegation of the first team to the fifth division.
A generalization of multiple ownership in France would lead to a downgrading of the championship. Because being at the bottom of this pyramid structure, the progression of these clubs would be non-existent. They would then enter a vicious circle: fewer TV rights, fewer ticket sales, less income, then the owner decides to sell the club, multi-ownership of clubs is being allowed. A cycle which seems endless.
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