Written evidence submitted by the Premier
League
EXECUTIVE SUMMARY
Overview of the structure of the Premier League
(A-E)
— Context
and relationship with other footballing bodies.
— Objectives
- investment led virtuous circle.
— Economic
impact—more than football.
— Football
solidarity—benefits to every level of the game.
— Premier
League and Supporters - listening to their needs and wants.
Q1. Should football clubs in the UK be treated
differently from other commercial organisations?
— Historical
context of the development of the game.
— Working
within a legal and regulatory framework.
Q2. Are football governance rules in England
and Wales, and the governing bodies which set and apply them,
fit for purpose?
— Development
of Premier League Rule Book.
— Areas
of responsibility.
— Implementation
of the Burns Review.
Q3. Is there too much debt in the professional
game?
— Context
and use of debt in professional football.
— Response
to the changing nature of debt in professional football and the
wider economy.
Q4. What are the pros and cons of the supporters
trust shareholding model?
— Neutral
about ownership models.
— Funding
of supporter groups.
Q5. Is Government intervention justified and,
if so, what form should it take?
— What
necessitates Government intervention.
— The
strength of the English game.
— Where
Government intervention is justified.
Q6. Are there lessons to be learned from football
governance models across the UK and abroad, and from governance
models in other sports?
— Development
of governance models.
— Specific
characteristics of differing and comparative governance models.
A. THE PREMIER
LEAGUE
A.1 The Premier League was formed in 1992 and
is composed of the top 20 football clubs in England, playing 380
matches in each season. It is a private company wholly owned by
the member clubs at any one time, with an additional share held
by the Football Association (The FA). The Premier League Rule
Book of the Premier League is the expression of a contract between
the clubs as to how the competition should be run, how relations
between clubs should be conducted and how disputes should be resolved,
and is approved by The FA annually for approval. The FA is the
national governing body for football in England and is responsible
for regulating on-field matters, with FIFA responsible for the
regulation of football at world level. UEFA is responsible for
the organisation and regulation of cross-border football competition
in Europe.
A.2 Each individual club is independent; within
the Laws of football and the law of the land each is free to make
its own decisions. In a very competitive environment clubs decide
what their ambitions are and manage them accordingly. Missing
out on the UEFA Champions League at the upper end of the League,
or being relegated at the lower, creates challenges. But, as Professor
Stefan Szymanski has pointed out, English football clubs are very
resilient with 95% of the clubs in the Football League in 1923
still in existence today and the vast majority within two divisions
of their 1923 position. The Premier League's responsibility is
to ensure that the overall system is healthy with as many clubs
as possible competing to be successful within a framework where
the penalties for failure, however real, do not damage the structure
and credibility of the League itself nor threaten the sustainability
of individual clubs. Risk taking is at the heart of how clubs
compete and underpins the high levels of excitement in the English
game but the regulatory framework needs to ensure that such risk
taking is handled responsibly.
A.3 We welcome the opportunity to submit our
evidence to the Select Committee and we would also welcome the
opportunity to discuss these issues with the Committee at an oral
hearing. The FA have shared their response with us and we endorse
their observations. In the interests of brevity we have sought
to avoid repeating their views.
B. THE PREMIER
LEAGUE'S
OBJECTIVES
B.1 The Premier League's principal objectives
are: to stage the most competitive and compelling league with
the best prepared world class players competing in high quality,
safe and comfortable stadia, and to develop clubs to levels where
they can compete effectively in Europe.
B.2 The distribution of central revenues is equitable,
unlike the unequal distributions in Spain and Italy (Annex 1).
Playing standards are high—since 2007 UEFA's Association's
Coefficient has placed the Premier League first, followed by Spain,
Italy, Germany and France. According to UEFA, the standards of
the Premier League relative to other leagues in Europe have risen
steadily in the last 18 years (Annex 2). England also has more
teams capable of competing at the highest level than other large
footballing nations in Europe (Annex 3).
B.3 High levels of interest generated by high
quality, competitive, football generate commercial returns. These
are re-invested in the game to raise standards even further, generating
greater fan interest which stimulates further commercial revenues
which are then re-invested.
B.4 This re-investment includes a substantial
commitment to Youth Development (YD). Over 2,700 boys are in training
at Premier League club Academies and Centres of Excellence. The
Premier League contributes to the costs of YD in the Football
League. The Premier League and its clubs are committed to generating
Home Grown Players (HGP), with over 95% of young players in training
being British. Recent Rule changes have strengthened this commitment
further, with a squad limit and HGP quota for first team squads.
A summary of Premier League support for YD is at Annex 4 and Squad
Rules are at Annex 5.
B.5 The community origins of Premier League clubs
are reflected in the extensive community programmes delivered
by both the Premier League and Member clubs. Premier League funds
also support the Football League Trust and the community activity
of clubs in the Football League. The Football Foundation, a tri-partite
agreement between the Premier League, the Government and The FA,
is a major investor in grassroots facilities and is also responsible
for the Football Stadium Improvement Fund which directs Premier
League funds towards making football stadia in the lower leagues
safe and secure. This community programme (Annex 6) is the most
substantial undertaken by a single domestic sporting body anywhere
in the world.
C. THE ECONOMIC
IMPACT OF
THE PREMIER
LEAGUE
C.1 Competitive and compelling football is the
principal objective of the Premier League, however playing success
has led to continuous economic growth generated by buoyant attendances
and strong media and marketing revenues (Annex 7).
C.2 This revenue growth is reflected in the contribution
made by Premier League clubs to their local economies, particularly
in smaller urban communities such as Blackpool, Sunderland and
Stoke. Larger cities such as Manchester also gain from the direct
and indirect economic benefits of being the homes of successful
football clubs. Tourism and the hospitality industries are beneficiaries,
and the Premier League partners with the Government's tourism
agency VisitBritain to encourage tourists to visit the UK to watch
football.
C.3 The popularity of football makes a contribution
to the UK's creative and communications industries. The Premier
League itself runs a global television service and website. Each
club has a website and many have their own TV channel. Television,
radio, print and internet media all use football to attract consumers,
while the manufacture and retail of television, radio, internet
and mobile equipment is encouraged by the continued growth in
the popularity of football.
C.4 The public sector gains directly from the
economic growth enjoyed by football in the last 20 years. Deloitte
figures suggest that the continued growth in football revenues
and the increased levels of taxation—notably income tax,
National Insurance, VAT and UBR—together mean that tax revenues
from football in England will exceed £1 billion in the coming
tax year.
C.5 The banking crisis and the arrival of much
straitened banking circumstances pose new challenges to clubs
in the Premier League. Loans and investment funds are much harder
for football clubs to achieve, just as they are for households
and companies. Business models adopted by clubs vary and so some
are more affected than others, but on balance, healthy revenue
growth through the recession has enabled Premier League clubs
to emerge so far less threatened than much of the rest of the
British economy, demonstrating the strength and sustainability
of the English model.
D. FOOTBALL SOLIDARITY
D.1 The success of the Premier League has not
harmed the rest of English football. Attendances in the Football
League have risen by 59% since the formation of the Premier League
and the value of Football League media rights has also risen steadily.
It currently stands at £280 million over three years giving
the Football League the 7th highest league turnover in Europe.
The FA enjoys a similar history of growth. Revenues from The FA
Cup, matches at Wembley and from England's media and marketing
rights are strong, with FA turnover up 185% since 2000.
D.2 The involvement of Premier League clubs contributes
to the revenues of the League Cup and The FA Cup. Cooperation
between the Leagues and The FA includes achieving a balance of
match dates and kick-off times to minimise timing clashes of broadcast
matches and commitment to protecting the status of the Saturday
3.00 pm kick-off, with no matches broadcast in the UK during the
protected period of 2.45-5.30 pm.
D.3 Direct financial support from the Premier
League to lower league football includes parachute payments to
relegated clubs for four years, meaning that up to 12 clubs in
the Football League at any one time could be in receipt of such
payments. Other clubs in the Championship receive an average of
£2.2 million each from Premier League funds. Clubs in Leagues
One and Two receive an average of £350k and £240k respectively,
and the Blue Square Conference receives £1.6 million. Premier
League finance underpins Football League community programmes
and Youth Development. Of the Premier League's income, £162
million (13%) is distributed away from Premier League clubs for
the benefit of others.
E. THE PREMIER
LEAGUE AND
SUPPORTERS
E.1 English football has some of the most passionate
supporters in the world of football. Gates in the Premier League
average about 350,000 per match weekend, with an occupancy rate
over 92%. The Football League averages 375,000, with the Championship
the 5th best in Europe, significantly better than those in Bundesliga
2.
E.2 Supporters attending matches have benefitted
from over £2 billion in expenditure on stadia and facilities
since the formation of the Premier League. Their interests are
protected by the requirement for each club to meet the standards
of their Supporters' Charters and Supporter Liaison Officers at
each club work closely with fans to improve the match-day experience
and the relationship between fan and club. Away attendance is
encouraged by Rules which insist on a minimum number of tickets
for away fans at prices as good as the equivalent tickets for
home fans.
E.3 The inevitability of failure in football
(only one team can be champions, only four in the UEFA Champions
League, three must be relegated) means that at any one time some
fans will be unhappy. Fans complaining about individual players,
the team as a whole, the manager, the Board or the owners have
always been a feature of football, wherever it is played and whatever
its governance model. However, the steady growth in match attendance
to a level 62% greater than in 1992 would suggest that fans in
England believe that playing standards are significantly higher
and the entertainment greater. Television audiences are also robust,
suggesting that so far we have managed to balance the expansion
of live football on TV with live gates. Full and noisy stadia
are an important part of the spectacle offered by Premier League
clubs, vital to the enjoyment of both attending and armchair fans.
Over-exposure on television to the detriment of the spectacle
is a concern as there can be an impact on attendance. The current
138 matches televised live in the UK tend to focus on the most
attractive matches, the ones most likely to sell out anyway.
E.4 The Premier League consults widely with the
many different categories of fans at home and abroad, ranging
from dedicated season ticket holders to casual attenders, from
those who subscribe to Pay-TV sports channels to those who watch
in pubs and clubs, and those whose main engagement is via free-to-air
highlights or the internet. Our research indicates a high degree
of satisfaction, with attending fans continuing to place winning
football played attractively in quality, safe stadia with good
sightlines at the top of their priorities. Other concerns appear
to have much less salience, although of course vocal minorities
are able to articulate a wide range of demands.
E.5 This continuing programme of research is
undertaken to ensure that we understand the full range of fan
opinion, not just that of the most vocal. A summary description
of our extensive research is attached at Annex 8. We understand
that the Committee is commissioning private advice from experts
and we would like to offer the Committee the opportunity to access
any of our research or invite Populus, the research company that
carried out the surveys of fans, to present their information
to you.
SELECT COMMITTEE
QUESTIONS
Q1. Should football clubs in the UK be treated
differently from other commercial organisations?
1.1 Professional football clubs in England emerged
in the 1870s and 1880s as an expression of the drive to play the
best possible football to put on show for the local fans. That
continues to be the motivation, widened today through technology
to include fans around the world. Nineteenth century club owners
did not embark on this course to make profits, the conventional
purpose of commercial organisations, a feature which has remained
over the intervening years. Clubs have often been the beneficiaries
of owner investment, a vital feature of English football since
the beginning. This investment typically allows a club to play
to a higher standard than would otherwise be possible simply from
its own operations and prevents the established order becoming
entrenched. In that sense football clubs are not the same as most
commercial organisations. Each Premier League club is a trading
organisation of significant size and, by Rule, a registered UK
company which fully expects to meet the obligations and enjoy
the freedoms that this status confers.
1.2 Each club is deeply rooted in and engages
with its own community far more than the vast majority of commercial
organisations. The vast range and quality of community programmes
is greater than any undertaken by other sporting bodies. The importance
of each football club within its own communities is reflected
in football rules and practices which make it very hard for an
individual club to go out of existence.
1.3 Football clubs also differ from conventional
businesses in being part of a League. A League is greater than
the sum of its parts, with the quest for honours and to avoid
relegation adding interest for fans and value to the matches,
while the competition itself has to be organised to a high standard,
with high integrity and with all clubs being treated fairly. One
club going out of business, being unable to complete its fixtures,
would damage the interests of every other League member and the
integrity of the League itself. Our League therefore is a group
of clubs that both co-operate together and compete against each
other and where the extinction of a competitor damages them all.
This is reflected in the collective selling of media and other
rights derived from League activity, ensuring that the value earned
from competing in our League is distributed in a way that reflects
the overall strength of the League as well as the appeal of individual
clubs and the need for the League to be competitive throughout.
1.4 The Premier League supports the view that
football should be subject to the normal application of the law,
with the specific circumstances of sport being taken into account
within the law. We do not support the idea that sport should benefit
from exemptions from the law.
Q2. Are football governance rules in England
and Wales, and the governing bodies which set and apply them,
fit for purpose?
2.1 The Premier League Rule Book began as 142
Rules and has evolved to meet changing demands and circumstances
to stand at over 800 Rules today. A summary of the most significant
recent changes is attached at Annex 9, including a strengthened
Owners' and Directors' Test, a requirement for demonstrating viable
finances at the start of each season or at change of ownership,
and prohibition of third party ownership. The Rule Book, Premier
League policy and all major spending decisions are agreed by the
Shareholders (ie the 20 member clubs) who meet at least five times
a year. The FA holds a special share and is present at Shareholder
meetings. Day-to-day decisions are taken by the Premier League
Board and reported to Shareholders. Disputes between individual
clubs or between a club and the League, if not resolved at executive
level, are referred to independent tribunals and panels, made
up of appropriate experts. The arbitration procedure meets the
requirement of the Arbitration Act and cases before the courts
have shown it to be robust and legally defensible. Coordination
between the Premier League, the Football League and The FA is
integral to the working of English football and is achieved by
close links at executive levels, by a series of bi-lateral and
multi-lateral forums for all issues of significance and through
the regular meetings of the Football Management Team.
2.2 Matters affecting professional football are
overseen by the Professional Game Board (PGB) of The FA which
reports to The FA Board and Council.
2.3 In an intensely competitive environment,
in which wide ranging opinions are passionately held, it is inevitable
that disagreements and disputes will occur. It is also inevitable
that successes for some clubs mean that others will be deemed
to have failed. The test for governance is not whether challenges
arise, but rather that when they arise they are dealt with fairly,
promptly and effectively, that lessons are learned in that Rules
and their application are developed further, and that the overall
system remains healthy.
2.4 It is always the case that improvements in
governance can be made. The Premier League supported the recommendations
of the 2004 Burns Review and, while the existing governance system
has dealt with recent challenges in a better way than is often
reported, we continue to hold the view that its recommendations
should be fully implemented.
Q3. Is there too much debt in the professional
game?
3.1 Debt is a feature of the modern economy.
The household sector carries £1.46trn in debt while the Government
presides over total net debt of over £860 billion and is
adding to that debt burden at the rate of around £150 billion
per year. As for all debt, the key questions are whether the burden
can be financed without jeopardising the economic health of the
debtor, whether it is backed by assets and whether the trend indicates
that borrowing is under control.
3.2 Prior to the banking crisis, debt in the
Premier League reached approximately £3.1 billion, against
assets of about £2.5 billion. This reflects the relative
ease of credit at the time, the high (and rising) asset values
in English football, and the fact that the costs of carrying debt
are allowable against tax, thus encouraging owner investment to
be held as debt rather than equity. Since the pre-crash peak,
it is clear that clubs have taken active steps to reduce levels
of debts, evidenced by the recent transactions at both Liverpool
and Manchester United.
3.3 The banking crisis and the accompanying recession
has created problems throughout the UK economy. In the case of
Portsmouth FC it exposed high-risk strategies and poor management,
and led to the club going into administration and receiving a
nine-point penalty. Portsmouth FC has now stabilised in the Championship
on a firmer financial basis. In general, Premier League clubs
have survived the continuing economic turbulence reasonably well.
Overall income has increased, mainly due to the strong interest
in the Premier League in overseas markets, although clubs are
having to work extremely hard to maintain attendances and income
from hospitality. Concern about costs has led to a series of regulatory
changes (listed in Annex 9) and the Premier League fully supports
the objectives of UEFA's Financial Fair Play proposals for teams
in European competition.
Q4. What are the pros and cons of the supporters
trust shareholding model?
4.1 The Premier League is neutral about ownership
models. There is no evidence to suggest that any single model
is better than others and in a dynamic, rapidly-changing environment
there is strength in flexibility and diversity. The top level
of English football needs to be competitive with the best in Europe
if it is to meet the demands of fans. Ownership models need to
deliver effective leadership, clear and timely decision-making
and the ability to raise finance. Provided supporter ownership
can meet these tests then there are no reasons why it should not
be successful and the Premier League supports The FA's evidence
to the Select Committee in this regard.
4.2 Premier League funding via the Football Foundation
helped sustain the expansion of Supporters Direct (SD), the umbrella
body for the Supporter Trust movement. Last year the previous
Government decided to focus its Foundation funding to sports participation
projects only. As this excluded SD the Premier League has become
SD's sole funder.
Q5. Is Government intervention justified and,
if so, what form should it take?
5.1 In a free society the case for Government
intervention is usually based on arguments that restrictions on
the freedom of individuals and organisations to take their own
decisions are justified because of negative impacts on others.
The failure of the market to deliver desirable public outcomes
may also lead to intervention and in such circumstances the Government
or its agencies might do a better job. It is far from proven that
these conditions exist in the case of football.
5.2 Football in England is by-and-large successful,
with fans attending Premier League and Football League matches
in greater numbers and TV audiences robust. As indicated, the
Premier League is currently at the top of UEFA's league rankings
while the England football team is ranked sixth out of 203 in
the world by FIFA. While some might wish this ranking to be higher
it compares well with other sports (English cricket is currently
third out of the nine nations playing top-level cricket, English
rugby stands at fourth out of the 94 rugby nations). Premier League
football is attractive enough to be the most watched domestic
sporting competition in the world, bringing fast-growing revenues
to the UK economy and establishing the Premier League and its
clubs as positive British symbols. In a highly competitive League
there will always be clubs failing, just as there will always
be clubs on the rise. The temporary periods of failure endured
by some clubs do not mean that the system as a whole is failing.
Premier League research earlier this season into the attitudes
of fans suggests satisfaction levels are high, with close to 80%
indicating that, on balance, they are satisfied with their club.
5.3 The all-round quality of football in England
was thought to be the strongest argument in support of England's
recent bid to stage the 2018 FIFA World Cup™, a claim advanced
by a wide range of opinion both domestic and international. The
failure of the Bid does not invalidate the arguments on which
it was based.
5.4 Government intervention in individual sports
is justified when those sports need public money to sustain high
standards at the elite level or where public sector action is
required to achieve higher levels of participation in sport at
the grassroots level. English football at the elite level is not
in this position although it is always ready to work with Government
to invest jointly in the pursuit of shared objectives, particularly
in encouraging grassroots activity.
5.5 Government intervention is also justified
in the areas of stadium safety and security and all clubs welcome
the statutory framework that seeks to guarantee high standards.
The failings of the 1970s and 1980s exposed the many problems
that then prevailed and Government action was necessary. Since
then over £2 billion has been spent on stadium improvements,
attendances have risen steadily, injury levels are very low and
police reports of incidents and arrests have declined sharply.
Q6. Are there lessons to be learned from football
governance models across the UK and abroad, and from governance
models in other sports?
6.1 Sports governance for each sport tends to
be a combination of sport-specific rules developed over many years
in distinctive national environments and more generic rules and
standards developed as a result of greater international competition.
In addition, the evolution of sport rules have been characterised
by the extensive exchange of ideas, initially with Britain having
much to offer the rest of the world and more recently a truly
global traffic in best practice, innovation and imitation. There
is no single "best" model, nor can successful models
from one particular cultural, historical and economic context
be readily transplanted to another. The franchise model works
well in the USA but does not fit with British sporting traditions.
The highly regulated German model of football governance clearly
works well in the context of Germany, but does not deliver the
success at club level that would be expected from a country with
the largest population in western Europe, the biggest GDP, the
biggest fanbase, some of the richest clubs and a history of state
aid. German football also fails to sell globally, suggesting that
its attractions tend to be domestic. The Spanish football model
produces two great clubs but suffers from a lack of competitiveness
within its top League, with economic problems common amongst the
smaller clubs.
6.2 As noted above, the Premier League's Rules
have expanded from 142 20 years ago to over 800 today. This development
has included incorporating international influences, most recently
from the adoption of a number of Rules to align financial regulation
more closely with the principles of UEFA's Financial Fair Play.
Other imports include rule changes to conform with international
anti-doping objectives. The Premier League will continue to learn
from best practice elsewhere, conscious always of the need to
ensure that lessons are applied appropriately given the specific
traditions and circumstances of English football.
Annex
SUPPORTIVE INFORMATION
1. BROADCAST
DISTRIBUTION RATIOS
| Broadcast Revenue Distribution Ratios—Top Club/Bottom Club (four major European Leagues)
|
| Premier League | Germany (Bundeßliga)
| Spain (Primera Liga) | Italy (Serie A)
|
| 1.49 : 1 | 2.11 : 1
| 12 : 1 | 13.5 : 1
|
2. UEFA ASSOCIATION'S
COEFFICIENT (1991-92 TO
2009-10)
3. TOP 20 EUROPEAN
CLUB DATA
A. EUROPE'S LARGEST CLUBS—TOTAL
REVENUES 2008-09 (€M) (DELOITTE)
| £m |
| Real Madrid | 401.4
|
| FC Barcelona | 365.9
|
| Manchester United | 327.0
|
| Bayern Munich | 289.5
|
| Arsenal | 263.0
|
| Chelsea | 242.3
|
| Liverpool | 217.0
|
| Juventus | 203.2
|
| Internazionale | 196.5
|
| AC Milan | 196.5
|
| Hamburger SV | 146.7
|
| AS Roma | 146.4
|
| Olympique Lyonnais | 139.6
|
| Olympique de Marseille | 133.2
|
| Tottenham Hotspur | 132.7
|
| Schalke 04 | 124.5
|
| Werder Bremen | 114.7
|
| Borussia Dortmund | 103.5
|
| Manchester City | 102.2
|
| Newcastle United | 101.0
|
B. EUROPEAN CLUBS TEAM STRENGTH INDEX 2009-10
(DECISION TECHNOLOGY)
4. PREMIER LEAGUE
YOUTH DEVELOPMENT
A. YOUTH PLAYERS REGISTERED AT PREMIER
LEAGUE CLUBS (STUDENTS AND
SCHOLARS ONLY*)
| Nationality | Scholars
| Students |
| British | 160 |
1,705 |
| English | 124 |
604 |
| Irish N.I | 4 |
2 |
| Scottish | 3 |
0 |
| Welsh | 4 |
11 |
| Total British | 295
| 2,322 |
| Other | 46 |
117 |
| Total Registered | 341
| 2,439 |
| % British | 87%
| 95% |
| * Students and Scholars means players (other than contracts, trialists or amateurs) registered in the age groups, U9 to U21.
|
B. FINANCIAL INVESTMENT IN YOUTH DEVELOPMENT
| £m |
Max £m |
| Premier League Clubs (average £2.4m per Club)
| 48.0 | 5.5 |
| Premier League contribution to Football League YD
| 5.5 | |
| FA Contribution to Football League YD
| 6.8 | |
| Annual Investment in Youth Development
| 60.3 | |
5. PREMIER LEAGUE
RULE BOOK
CONTENT—SQUAD
LIMITS AND
HOME GROWN
PLAYER QUOTA
As of Season 2010-11, Premier League Clubs must name a squad list
of up to 25 players, of which no more than 17 can be over the
age of 21 and not home grown, with an unlimited number of players
under 21 being eligible for selection. Changes to the squad list
may be made during a transfer window.
"Home Grown Player" means a Player who, irrespective
of his nationality or age, has been registered with any Club (or
club) affiliated to the Football Association or the Football Association
of Wales for a period, continuous or not, of three seasons or
36 months prior to his 21st birthday (or the end of the Season
during which he turns 21).
6. FINANCIAL INVESTMENT
IN COMMUNITY
ACTIVITY AND
SOLIDARITY PAYMENTS
| Community Funding | 2010-11
£m
|
| Football Foundation | 12.0
|
| Football League | 8.1
|
| PL Domestic | 20.3
|
| PL International | 3.0
|
| Total community investment | 43.4
|
| Solidarity Payments |
|
| Football Leagues 1 & 2 Solidarity
| 12.9 |
| Football League Championship Solidarity
| 43.5 |
| Parachute Payments | 62.2
|
| Total Solidarity & Parachute Payments
| 118.6 |
| Total COMMUNITY/SOLIDARITY | 162
|
| % of Premier League Turnover | 13%
|
| % of UK Broadcasting Revenue | 22%
|
7. PREMIER LEAGUE
TURNOVER AND
ATTENDANCE PATTERNS
A. TURNOVER GROWTH IN PREMIER LEAGUE REVENUES
(1998-99 TO 2009-10)
B. GROWTH IN PREMIER LEAGUE ATTENDANCES
(1995-96 TO 2009-10)
8. PREMIER LEAGUE
RESEARCH PROGRAMME
SUMMARY
The Premier League manages a research programme for its own purpose
and on behalf of the 20 member clubs. The programme content includes
attendance and audience data, fan research and marketing intelligence.
A. FAN RESEARCH (POPULUS)
| Report | Overview
|
| Establishment Survey | An annual football fan establishment survey, comprising random sample telephone interviews in the UK to quantify different types of fans and the various levels of engagement that the general public has with the Premier League and its member Clubs. Report published via the research website in August.
|
| Club Match Attender Survey | An annual bespoke match attender survey for all Clubs, comprising online interviews sampled from Club databases. Report published via the research website in January.
|
| Football Nation Survey | An annual survey of the football nation, comprising 10,000 individuals representing a broader set of football fans, beyond season ticket holders and match day attenders. Report published via the research website in January.
Surveys representative of the 'Football Nation' will be conducted by the Premier League periodically to cover relevant and topical issues. Reports will be published via the research website.
|
| Premier League Fan Panel | An online Panel of 10,000 people, representing Premier League fans and followers with weighting based upon the establishment survey.
Surveys representative of 'Premier League fans and followers' will be conducted by the Premier League periodically to cover relevant and topical issues. Reports will be published via the research website.
|
| Focus Groups | Fan focus groups to identify and explore in depth the key drivers shaping behaviour, interest, attitudes and opinions of Premier League fans and followers. Reports will be published periodically via the research website.
|
| Key Stakeholder Research | Depth interviews and discussion groups with opinion leaders and stakeholders (eg representing legislators, advisors, policy makers and the media) to monitor attitudes and opinions on reputational and public policy issues associated with the Premier League and its Clubs. Reports will be published periodically via the research website.
|
B. FOOTBALL MARKET INTELLIGENCE (SPORT+MARKT)
| Report | Overview
|
| Football Scout | A syndicated market research tracking tool (10,000 nationally representative sample built from 200 per week over 50 weeks each Season) measuring league popularity and providing bespoke Club data about supporter bases, attitudes, interests, opinions, behaviour, sponsor awareness and other key issues. Published via the research website monthly.
|
| Sponsoring 21+ | A syndicated market research tool (1,000 nationally representative sample) measuring league popularity and providing bespoke Club data about supporter bases, attitudes, interests, opinions, behaviour, sponsor awareness and other key issues in 30 key International markets benchmarked against the UK. Published via the research website in August 2011.
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C. ATTENDANCE AND AUDIENCE DATA (SPORT+MARKT)
| Report | Overview
|
| Attendance Data | Match attendance data for all Barclays Premier League matches. Published via the research website monthly.
|
| Audience Data | BARB TV audience data (inc overnights and consolidated) from the UK is collated across all Competitions and for all programmes involving the Clubs. Published via the research website weekly.
TV audience data from international markets is collated across all Premier League Live Licensees (and sub-licensees where appropriate) for the Barclays Premier League and all related programmes. Published via the research website bi-monthly.
A global summary report of all the above domestic and international TV data is published via the research website bi-monthly.
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9. PREMIER LEAGUE
RULE BOOK—SIGNIFICANT
RECENT CHANGES
TO FINANCIAL
AND OWNERSHIP
RULES
CLUB FINANCES
| Date of implementation | Effect of Rule
| PL Rule |
| September 2009 | Scrutiny of club finances:
| C.78-C.90 |
| — | Club to submit annual accounts, interim accounts and future financial information;
| |
| — | Clubs must satisfy the Premier League Board that no transfer fees or sums payable to or in respect of employees are overdue;
| |
| — | The Premier League Board scrutinises the submissions to ensure that the auditors' opinion on the accounts is unqualified, that the club is not in arrears with regard to its transfer/employee payments, and that the club will be able to pay its football debts and fulfil its fixtures until at least the end of the following season;
| |
| — | If the Board concludes that the club will not be able to do so, it can impose a transfer embargo and/or require the club to adhere to an agreed budget.
| |
| June 2010 | | The financial scrutiny regime was extended to promoted clubs who must submit all the required information within weeks of being promoted to the Premier League.
| C.88 |
| June 2010 | | The financial scrutiny regime also extended to give the Premier League Board the ability to look again at a club's finances if there is a change of control or ownership. The Board will require updated future financial information and have the powers outlined above if not satisfied that, after the change, the club will be able to fulfil its obligations as a Premier League club and pay its staff and its football debts.
The Board also has power to require incoming owners to meet with it and provide evidence of the source and sufficiency of any funds which they propose to invest in the club.
| C.91 |
| June 2010 | | Each club must certify to the Premier League that its liabilities to HM Revenue and Customs in respect of PAYE and NIC are up-to-date. This certification must be given each quarter.
Where the Board reasonably believes that a Club is behind in its HMRC liabilities, it may impose a transfer embargo and/or require the Club to adhere to an agreed budget.
| C.93-C.95 |
| June 2010 | | Any grant of security by a Club over central funds due from the Premier League must be fully disclosed to and approved by the Premier League.
| C.55 |
| June 2010 | | A club may only assign its entitlement to future instalments of a transfer fee to a recognised financial institution.
Taken together with the requirement for incoming owners to satisfy the Board about the source of new funding, and the fact that all transfer fees and agents' fees must be paid either via the Premier League or the FA "clearing houses", this provision illustrates the work undertaken to ensure transparency of money flows into and within the Premier League.
| L.37.10 |
| June 2010 | | Increased parachute payments to relegated clubs were introduced. This was part of the increased "solidarity" package with the Football League in general, whereby financial assistance to and for the benefit of Football League clubs was greatly enhanced. Further, the rules of both leagues were aligned in key areas with a commitment to further discussion and alignment of rules going forward. This will ensure the sharing of best practise across professional football.
| |
OWNERS' AND DIRECTORS' TEST
| Date of implementation | Effect of Rule
| PL Rule |
| June 2009 | Events in an individual's history which can prevent him from becoming an owner or a director of a Premier League club were significantly extended to include:
A conviction in respect of which an unsuspended sentence of at least 12 months' imprisonment was imposed;
A conviction for an offence which could reasonably be considered to be dishonest regardless of the sentence imposed.
Further, a provision was included in Premier League Rules that a person who is prohibited by law from entering the United Kingdom, or transacting business here, cannot acquire any shares in a Premier League Club.
In addition, a requirement was introduced whereby prospective directors and owners of Premier League Clubs had to be assessed under the test before taking up their role.
| D.2-D.25 |
| June 2009 | Clubs must disclose not only to the Premier League but also publicly who owns interests of 10% or more in the Club.
| V.11-V.13 |
| June 2010 | The list of events which prevent an individual from becoming an owner or director of a Premier League Club were further extended to include the following:
A suspension or ban from another sports governing body (whether a UK body or one based abroad);
A suspension, disqualification, or striking off by a professional body (including foreign professional bodies);
A finding that the individual has breached the rules of the Football Association against match fixing;
The long-existing provision that an individual who has been a director during two club insolvencies (whether the same or different clubs) was extended to include an anti-avoidance measure whereby if a director resigns from a club which enters into insolvency within 30 days after his resignation, this will count as a "strike" under the rule.
| D.2-D.25 |
CLUB INSOLVENCY
| Date of implementation | Effect of Rule
| PL Rule |
| June 2009 | The Premier League's detailed regime to disincentivise the insolvency of football clubs was extended so that a triggering insolvency event now includes where a club or its parent undertaking is placed in insolvency anywhere in the world (previously within the European Union).
If a club suffers an insolvency event, this triggers a 9 point deduction and the ability of the Premier League Board to suspend the club.
| C.57 |
PROHIBITION OF THIRD PARTY OWNERSHIP
| Date of implementation | Effect of Rule
| PL Rule |
| June 2008 | The Premier League became the first football body in the world to outlaw the practice of third parties, ie individuals or entities who were not clubs, taking a financial interest in players whereby that individual/entity could be said to have the beneficial entitlement to any value realised from a future sale of the player. Such practices have been utilised in certain other football jurisdictions, but were seen by the Premier League as an adverse development. Third party ownership strips money out of the game, preventing a "trickle down" of transfer fees, and increases the risk of a lack of transparency and probity in the sources of funds and potential money flows.
The Premier League's prohibition on clubs allowing third parties to have a material influence over their playing matters was likewise revolutionary and has since been adopted, nearly word for word, by FIFA in its regulations of global application.
The Premier League also requires, in the furtherance of full transparency, all contracts concerning players' registrations and economic rights to be disclosed to it, in certain circumstances in draft.
| L.7 & L.37-38 |
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