Business With Blain: Open & Transparent
The Premier League cannot keep making it up as they go along.
The Chief Executive of the Premier League has not enjoyed much success in recent months.
During that time, he has though been accused of “making it up as he goes along” by a Parliamentary Select Committee; he was rebuked by a King’s Counsel of his own (indirect) choosing and, ultimately, he did not get his way with the punishment handed down to Everton by an experienced former Judge of the Court of Appeal.
That punishment ended up being half of what the Premier League CEO had originally asked for, and in part that was because he instructed his prosecuting King’s Counsel to seek a punishment that the independent Chair of the Appeal Board described as “internally inconsistent within the framework of Premier League Rules”.
What Richard Masters has succeeded in though, is getting football fans, mainstream journalists, television pundits and even politicians across the parliamentary divide in agreement in believing that the Premier League is not fit to self-govern, and that the imposition of an Independent Regulator for Football should be expedited, rather than ‘kicked it into the long grass’ or stopped altogether, which it seems was a clear and failed objective for him and the Premier League.
Although the Premier League CEO has lost battles, he does seem to have won one, with the expectation being that the bill that will pass through parliament will be in a form that means the new and forthcoming Independent Regulator for Football will not exercise oversight over financial matters, and thus the inadequate Profit and Sustainability Regulations and their supporting processes.
At the time of publication, Nottingham Forest are defending themselves behind closed doors after being referred to an Independent Commission for a breach of the Premier League’s PRS – rules which themselves seem to have been exposed as not fit for purpose at worst, and at best, are struggling under the weight of a stress test.
The outcome of Forest’s case will almost certainly result in a deduction of points, the size of which will be subjective as there are no guidelines within the rules to figure out how the punishment is calculated.
If the punishment is perceived to be too small – in comparison to Everton’s six-point deduction – pressure will no doubt increase on the Premier League. If it is too big then surely Forest, with their Premier League status at risk, will appeal.
We do not know when Everton’s second case will be heard, although it is expected to be when Forest’s case has concluded. The lack of transparency, and thus trust, around this process is damning and the integrity of it – and the sanctions that may come about as a result – has created a problem the Premier League needs to address.
It seems clear to all that the PSR will be changed. They could surely be improved by the application of comment sense and a commitment to transparency. It seems the PSR replacement will be somewhat more radical than that and brings with it the opportunity to ‘build-in’ transparency as it is likely to be based upon UEFA’s Squad Cost Ratio approach – a wages cap by another name, though it should also be noted that the maximum punishment for a breach of the new proposed rules, is said to be nine points, based on a comment made in the report from Everton’s partially upheld appeal against their 10-point deduction.
Lest we forget the Premier League is fundamentally a joint venture between the league and each of the twenty clubs who compete for the glory and the prize money each season.
Together, at least up to this point, they have not been big on transparency, and have shown little willingness to codify their sanctions either. After all, they would much rather have the wriggle room that vagueness brings, but the Everton and Forest cases leave a bitter taste, as we all seek to understand how clubs like Manchester City and Chelsea – who are under long-standing Premier League investigations – have so far avoided having a day in the competition’s court, while Wolves, Aston Villa and Leicester City – should the Foxes gain promotion from the Championship – may well be next.
Chelsea, meanwhile, have reported a pre-tax loss of £90.1million for the financial year 2022-23. Some analysts believe the Blues will have to bring in around £100m of profit from player sales prior to the end of June to avoid a breach.
Fear, uncertainty and doubt made the January transfer window a damp squib as Premier League football clubs one-by-one told their fans they could not strengthen their squads because of the PSR.
Subsequently, some clubs, notably Villa and Newcastle United, have hinted they may need to sell star players to either satisfy the current rules or, in order to sell-to-buy to therefore remain compliant.
It is not lost on some commentators that Newcastle last season, and Villa this, are threatening the six-club group that the Premier League seems to treat as first among equals.
The Premier League, of course, could remove the uncertainty and doubt that all fans now suffer by reaching an agreement at their next Board Meeting in June. At a stroke, the clubs could agree to a level of openness that many fans might suspect they are incapable of.
How much better would it be if, from January 2025, the Premier League annually published the PSR Calculation for all twenty clubs? A simple form, to be published on the league’s website, making it clear which teams had passed and which had breached – and by how much.
Does Masters have the strength of character, as CEO, to pull the clubs together for the good of the game, and bring in an open and transparent sanctioning policy that is not dependent on a King’s Counsel or forensic accountant attempting to come up with a number.
If the Premier League’s leadership is truly committed to transparency, then these are the steps they should take.
By JohnB
John is a board-level veteran at FTSE-100 companies, specialising in business improvement and organisational change across the Media, Financial Services, Manufacturing and Energy & Utility sectors. John offers an expert perspective on the business behind the game.
(Follow: @John_B58)
If your waiting for Masters to improve things you're wasting your time. I will have no trust in the process until it is completely open. Things have to change