The English Premier League is set to introduce laws that will change how clubs are being run at the moment.
Premier League authorities are set to reinvent their structure in order to counter the delusions of football business. According to local media, the league is set to introduce new laws that will look into the management of club owners and controlling investors who wish to buy an English team.
The goal is to prevent scenarios such as the recent takeover of Newcastle United by the Saudis. It is being said that the new rules will come into effect at the start of the 2023/24 season.
Transfer fee distribution
One of the most important features of the law would be the establishment of a 10 per cent solidarity tax on all Premier League transfers from abroad and from other high level clubs. The objective is to redistribute the revenue to clubs in the lower echelons of the footballing pyramid. According to the report, if such a measure had been placed in recent years, English FA would have at least 190 million euros to distribute to the lower leagues every year.
Premier League Parachute Payments
Another measure is the revision of the system of parachute payments by the Premier League which gives a huge advantage to teams relegated to the Championship.
Each season, the League pays part of its income to a number of clubs, including the relegated ones. The aim was to allow relegated teams compensation for the loss of income linked with their participation in the Premier League.
The other salient feature of the new law would be the creation of a shadow board for the supporters in each club with the idea of granting supporters a share in the club, thereby giving them the right of veto on several issues such as participating in new competitions, relocating a stadium or changing club colors or badges.
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