Fifa and Uefa are dealing with a potentially unresolvable issue regarding ownership of multiple clubs.

Uefa and Fifa are in disagreement regarding rules on owning multiple clubs, as the two largest governing bodies face challenges in resolving a major problem in the world of football.

The European body are pushing for Fifa to come up with rules before next year’s inaugural Club World Cup in the USA, especially with the possibility that it could feature clubs from multiple groups. Manchester City and Chelsea are both certain to be involved, as two examples, and the former are part of one of the biggest such groups in the world as City Football Group while the London club’s owners investigating the possibility of expanding beyond the recent purchase of Strasbourg.

Fifa is urging Uefa to provide clarification on its regulations, which have resulted in situations such as the Europa League match between Leipzig and Salzburg – both owned by Red Bull. This goes against the intended purpose of the rules, which aim to prevent conflicts of interest. However, the two clubs were able to demonstrate enough separation, raising concerns about the effectiveness of these regulations.

The complexities arise from two primary concerns. The first is that each rule in football is centered around individual clubs as distinct entities.

The second issue is that Fifa has not provided a clear definition of what constitutes a club.

Each confederation has its own unique ideas, not to mention the different countries involved. This poses a significant challenge, especially for the Asian Football Confederation, where sports are highly centralized.

At this time, the regulations of Fifa state:

“Any clubs, leagues, or other groups associated with a member organization must abide by and be recognized by said member organization. The member organization must also guarantee that its associated clubs have the autonomy to make decisions regarding membership without interference from external entities. This requirement applies regardless of the club’s corporate structure. Furthermore, the member organization must ensure that no individual or company (including holding companies and subsidiaries) has control over more than one club in a way that could compromise the integrity of any match or competition, such as through majority ownership, voting rights, board seats, or economic dependency.”

The underlying issue is that these groups span across various member associations and confederations. This means that Fifa needs to take control, as they are the sole authority with jurisdiction over all possible groups.

One recent notable example is Saudi Arabia’s Public Investment Fund, which has ownership of four clubs in the Saudi Pro League and Newcastle United. They are also considering expanding into Europe.

The concern is that the issue has reached a point where it is no longer manageable by regulations, as Uefa’s report on the landscape of the situation showed that more than 300 clubs worldwide are participating in these groups.

The situation is seen by gamers as a common occurrence where external investors take advantage of football regulations, creating a problem that cannot be solved before regulators become aware of it. Many employees at both Fifa and Uefa are frustrated because this issue was predicted to happen and they were aware that it needed to be regulated.

The president of Uefa, Aleksander Ceferin, has expressed conflicting opinions on the matter in his statements throughout the past year. At times, he has acknowledged the possibility of further relaxation of the rules, but more recently, he has admitted that it is something that needs to be examined.

The different factions within the football industry can lead to various sources of conflict, such as conflicting interests and issues concerning player transfers and loans. These groups also have the potential to disrupt the transfer market. However, the most significant issue at hand is the philosophical discussion surrounding traditional clubs losing their unique identities or existing solely as feeder teams for larger brands.

Fifa is currently in talks regarding the regulations for the upcoming expanded Club World Cup in 2021, which will include 32 clubs. It is anticipated that this tournament will not allow teams from the same group to participate. However, there is recognition from the international organization that this is a significant matter that must be addressed head-on, particularly with the potential increase of larger global competitions, which aligns with Gianni Infantino’s goals.

Fifa aims to communicate with all parties involved in order to gather a well-rounded perspective, but this process is expected to be time-consuming.

Source: independent.co.uk