The ownership structures of Premier League clubs present potential risks for money laundering and other financial crimes, according to a recent study. Researchers examined the ownership frameworks of clubs from the 2023-24 season and identified a trend of complex setups. For instance, one club had 13 legal entities within its ownership chain, while another featured companies registered across multiple overseas territories. The study found that the owners of many clubs could not be fully identified due to these opaque arrangements.
The research revealed that more than half of the clubs had at least 10% of their holdings shielded by secrecy provisions, making it impossible to formally trace them back to their beneficial owners. Some of the clubs examined had their entire shareholdings unverifiable. While this does not imply that the publicly declared owners are mere front persons, it highlights how these conditions could enable such scenarios.
The study assessed clubs using three key criteria: the complexity of ownership structures, the involvement of entities located in jurisdictions known for secrecy, and the lack of information on beneficial owners those holding at least a 10% stake in a club. It found that many clubs combined these factors, creating conditions that could potentially facilitate illicit activities. The use of multiple secrecy jurisdictions and opaque entities was flagged as particularly concerning, as it obscures true ownership.
Although the findings were based on publicly available information and do not account for recent changes, the study emphasized that these structures are not inherently evidence of wrongdoing. Instead, the focus was on identifying conditions that could allow misuse of the football industry by those with malicious intent.
The researchers called for increased transparency and a reevaluation of the current owners’ and directors’ test (ODT) used for prospective club owners. They proposed enhanced due diligence and thorough source-of-funds checks for both current and future owners. Ownership structures featuring multiple enabling conditions for financial misconduct should be considered high-risk and subject to greater scrutiny.
The proposed independent regulator for English football could play a key role in implementing these changes. The regulator would oversee a revised ODT that requires individuals acquiring significant control over a club to demonstrate financial soundness and provide evidence of the source of their funding. This test would apply to those seeking to acquire more than 25% of a club’s voting rights or exert significant influence over its operations.
The study underscores the need for stricter governance to protect the integrity of English football. By addressing the risks posed by complex and opaque ownership structures, the sport can safeguard itself against potential misuse for financial crimes.
