News analysis
Premier League tightens governance rules for directors
The UK government is putting pressure on the Premier League to strengthen the governance of the world’s richest soccer clubs.
Premier League club owners and directors must now be clean and transparent about their wealth and business practices.
The criteria that would cause a club director or owner to be disqualified now include a broader list of offences, including fraud and tax evasion.
Why is the UK government concerned about governance in the Premier League?
The UK government is concerned that the ‘wrong kind of rich people’ are buying and running Premier League clubs, i.e. those who have received government sanctions or been prosecuted for human rights abuses and tax-related crimes.
The number of regulatory bodies that can oversee activities in the league has increased to include the Charity Commission, HM Revenue & Customs, the UK’s financial regulators and the Gambling Commission.
What does this mean for the directors of Premier League clubs?
You should have an impeccable business record if you are a board member, director or owner of a Premier League club.
In a white paper on Premier League reforms, the UK government says a new regulator will be set up to scrutinise the wealth of club owners and test their fitness and propriety.
The UK government has identified football club owners across England with ‘flaws’, including business bankruptcies and serious criminal convictions.
“This is an attempt by the UK government to clean up the Premier League, which has been dogged in recent years by investors, owners and club directors who have very questionable governance records and views,” says David W Duffy, CEO of the Corporate Governance Institute.