Connect with us

Published

on

Professional football club-owners in England will be overseen by a new licensing regime forcing them to demonstrate fully-funded three-year business plans under proposals to be set out by a former sports minister this week.

Sky News has learnt that a review of football’s governance led by Tracey Crouch, the Conservative MP, will outline the new structure as one option to avert future financial collapses of the kind seen at Bury in 2019.

It was unclear whether the new regime would apply to existing owners or only to those seeking to take control of clubs in future.

Image:
The report by Tracey Crouch is due to be released on Thursday

Ms Crouch is expected to make roughly 50 recommendations in her review, which runs to approximately 150 pages and will be published on Thursday.

Some of the recommendations will require legislation to ensure their implementation, a process that could take several years depending upon the availability of parliamentary time.

The government is expected to formally respond to Ms Crouch’s review in the next few months.

Under the proposals, clubs could be required to set up ‘shadow boards’ for fans, which would allow them to influence non-football matters such as plans to relocate from their existing stadium or alter their badge or the colour of their home kit.

More from Business

These would form a series of “protected rights” that an owner or board would not be able to override without fans’ endorsement.

Ms Crouch floated the idea earlier this year of creating a ‘golden share’ that would give “veto powers over reserved items, to…a democratic legally constituted fan group”.

Her Independent Fan-Led Review of Football Governance is understood to raise a number of alternatives for promoting fan engagement.

General view of an official winter Nike Premier league match ball on the grass
Image:
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur were involved in the ESL plan

Oversight of club-owners and directors, which is currently handled by the Premier League and English Football League (EFL), would pass to a new industry-funded Independent Regulator for English Football (IREF) under her proposals.

In her interim findings, published in July, Ms Crouch said IREF would “address issues that are most relevant to the risks to the game and already at least partially a matter of English law – particularly financial regulation, corporate governance and ownership”.

“The related requirements are likely to include cost controls, real time financial monitoring, minimum governance requirements (including a requirement for independent non-executive directors on club boards) and revised separate tests for owners and directors of clubs on an initial and ongoing basis,” she wrote in a letter to Mr Dowden in the summer.

One Whitehall source said the report would be a “powerful fulfilment” of the mandate given to Ms Crouch by Boris Johnson and Oliver Dowden, the then culture secretary, when they commissioned the review in April.

It was triggered by the outcry over plans by six Premier League clubs – Arsenal, Chelsea, Liverpool, Manchester City, Manchester United and Tottenham Hotspur – to join a new European Super League that would have earned the participants hundreds of millions of pounds, widening the financial gulf between them and the rest of English football.

The ESL was abandoned by the English clubs within 48 hours following interventions by public figures including Mr Johnson and the Duke of Cambridge, who is also president of the Football Association, but the project’s collapse failed to allay concerns about risks to the long-term health of the national game.

Some of the likely recommendations in Ms Crouch’s review, such as a requirement for the Premier League to commit additional funding to the rest of the English football pyramid, have already been partially addressed.

The Premier League announced last week that it would allocate a further £25m to the EFL – the three divisions below the top flight – and the National League, which have been hit hard by the pandemic.

Clubs from the top tier down have been forced to take on substantial new debts in order to continue funding themselves, raising fears that more may face going out of business.

Derby County, which fell into administration last month, was this week hit by an additional nine-point deduction after acknowledging breaches of the EFL’s profitability and sustainability rules.

Last week, the Daily Mail reported that the EFL chairman Rick Parry had expressed support for the principle of an independent football regulator, although the idea has been rejected by the Premier League’s chief executive, Richard Masters.

Earlier this week, Sky News revealed that Gary Hoffman, the Premier League chairman, was to resign amid pressure from clubs over its handling of the controversial Saudi-led takeover of Newcastle United.

A spokesman for the Department for Digital, Culture, Media and Sport (DCMS) declined to comment on Tuesday.

Continue Reading

Business

Eco-tycoon Vince weighs sale of solar energy project

Published

on

By

Eco-tycoon Vince weighs sale of solar energy project

The energy group founded by Dale Vince, the eco-tycoon, is kicking off a hunt for investors in a solar park which is expected to become one of Britain’s biggest renewable energy projects.

Sky News understands that Ecotricity, Mr Vince’s company, has hired KPMG to explore talks with prospective investors or buyers for the project at Heckington Fen in Lincolnshire.

The development was approved by Ed Miliband, the energy secretary, earlier this year, and when completed it is expected to generate roughly 600MW of solar power.

It has been designated a Nationally Significant Infrastructure Project by the government.

Heckington Fen will also provide 400MW of battery storage capacity.

According to documents circulated to potential bidders, Ecotricity is prioritising the sale of 100% of the project, but is open to retaining a minority stake.

The company wants to complete a deal during the third quarter of the year.

More from Money

Responding to an enquiry from Sky News, Mr Vince said: “Heckington Fen is a fabulous opportunity; it’s also a massive one, possibly the biggest onshore renewable initiative in Britain.

“The project is shovel-ready with a grid connection in 2028 – something which is increasingly hard to find these days.

“Whilst this is a great project which is going to go ahead, the sums of money required to build this alone in a short timeframe, means we’re looking for investors or partners to help make this happen.”

Continue Reading

Business

Sir Keir Starmer pledges to protect UK companies from Trump tariff ‘storm’

Published

on

By

Sir Keir Starmer pledges to protect UK companies from Trump tariff 'storm'

Sir Keir Starmer has said his government stands ready to use industrial policy to “shelter British business from the storm” after Donald Trump’s new 10% tariff kicked in.

The UK was among a number of countries hit with the lowest import duty rate following the president’s announcement on 2 April – which he called ‘Liberation Day’, while other nations, such as Vietnam, Cambodia and China face much higher US levies.

But a global trade war will hurt the UK’s open economy.

The prime minister said “these new times demand a new mentality”, after the 10% tax on British imports into America came into force on Saturday. A 25% US levy on all foreign car imports was introduced on Thursday.

It comes as Jaguar Land Rover announced it would “pause” shipments to the US for a month, as firms grapple with the new taxes.

On Saturday, the car manufacturer said it was working to “address the new trading terms” and was looking to “develop our mid to longer-term plans”.

Please use Chrome browser for a more accessible video player

Jobs fears as Jaguar halts shipments

Referring to the tariffs, Sir Keir said “the immediate priority is to keep calm and fight for the best deal”.

Writing in The Sunday Telegraph, he said that in the coming days “we will turbocharge plans that will improve our domestic competitiveness”, adding: “We stand ready to use industrial policy to help shelter British business from the storm.”

It is believed a number of announcements could be made soon as ministers look to encourage growth.

NI contribution rate for employers goes up

From Sunday, the rate of employer NICs (national insurance contributions) increased from 13.8% to 15%.

At the same time, firms will also pay more because the government lowered the salary threshold at which companies start paying NICs from £9,100 to £5,000.

Also, the FTSE 100 of leading UK companies had its worst day of trading since the start of the pandemic on Friday, with banks among some of the firms to suffer the sharpest losses.

Sir Keir said: “This week, the government will do everything necessary to protect Britain’s national interest. Because when global economic sands are shifting, our laser focus on delivering for Britain will not. And these new times demand a new mentality.”

Please use Chrome browser for a more accessible video player

Trump defiant despite markets

UK spared highest tariff rates

Some of the highest rates have been applied to “worst offender” countries including some in Southeast Asia. Imports from Cambodia will be subject to a 49% tariff, while those from Vietnam will face a 46% rate. Chinese goods will be hit with a 34% tariff.

Imports from France will have a 20% tariff, the rate which has been set for European Union nations. These will come into effect on 9 April.

Read more:
Red wall on Wall Street – but Trump undeterred
How will UK respond to Trump’s tariffs?

Sir Keir has been speaking to foreign leaders on the phone over the weekend, including French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, to discuss the tariff changes.

A Downing Street spokesperson said of the conversation between Sir Keir and Mr Macron: “They agreed that a trade war was in nobody’s interests but nothing should be off the table and that it was important to keep business updated on developments.

“The prime minister and president also shared their concerns about the global economic and security impact, particularly in Southeast Asia.”

👉 Follow Trump 100 on your podcast app 👈

Trump’s warning

Mr Trump has warned Americans the tariffs “won’t be easy”, but urged them to “hang tough”.

In a post on his Truth Social platform, he said: “We are bringing back jobs and businesses like never before.

“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!

“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic.”

Continue Reading

Business

Santander UK lines up ex-Treasury chief Scholar as new chair

Published

on

By

Santander UK lines up ex-Treasury chief Scholar as new chair

Sir Tom Scholar, the former top Treasury civil servant sacked by Liz Truss during her premiership, is being lined up as the next chairman of Santander UK, Britain’s fifth-biggest high street bank.

Sky News has learnt that Sir Tom, who played a pivotal role in the UK’s response to the 2008 financial crisis, is the leading candidate to replace William Vereker.

The appointment, which is subject to regulatory approval, could be announced later in the spring, according to insiders.

Sir Tom’s prospective recruitment comes amid a period of intense speculation about the future of Santander UK, which bulked up rapidly during the banking crisis by absorbing Alliance & Leicester and Bradford & Bingley.

The Spanish banking giant entered the British retail market in 2004 when it bought Abbey National, setting in motion a chain of dealmaking which would result in it becoming a serious challenger to Barclays, Lloyds Banking Group and NatWest Group.

If confirmed in the role, Sir Tom will follow a pattern of former senior public officials in taking on the chairmanship of Santander UK.

The post has been held in the past by Baroness Vadera, a Treasury minister during the 2008 meltdown, and Lord Burns, the former Treasury permanent secretary.

Sir Tom also held that latter role until his ousting during the shortlived Truss government, which led to him receiving a payoff of more than £350,000.

In addition to his position during the banking crisis, he was instrumental in devising the COVID-19 furlough scheme, which protected millions of private sector jobs during the series of lockdowns imposed on the British public.

He was widely respected among international banking regulators and finance ministers, and his sacking by Ms Truss sparked fury among senior civil servants.

Since leaving the Treasury, he has been appointed as chair of the European operations of Nomura, the Japanese bank.

At Santander UK, he will work closely with Mike Regnier, the former building society boss who has been its chief executive since 2022.

In recent months, there has been growing speculation that Santander UK’s parent is open to a sale of the business amid frustration about the scope and burden of British banking regulation.

Both Barclays and NatWest have been sounded out about a potential merger of their UK retail businesses with that of Santander UK, although formal talks have not progressed to a meaningful stage.

Ana Botin, Santander’s group executive chair, has appeared to publicly rule out a disposal, saying that the UK remains a “core market” for the group.

An attractively priced offer could yet gain Ms Botin’s attention, according to people close to the earlier talks.

One insider said, however, that Sir Tom’s recruitment was likely to dampen further speculation about a possible sale of the British business.

Shares in the Madrid-listed parent company, Banco Santander, have performed strongly in recent months, but fell by more than 8% on Friday as investors digested the fallout from President Donald Trump’s global tariffs blitz.

The company now has a market capitalisation of about €83.25bn (£70.7bn).

City sources said the search for Mr Vereker’s successor had been led by Heidrick & Struggles, the headhunter, in conjunction with Baroness Morgan, the former cabinet minister who sits on Santander UK’s board as its senior independent director.

This weekend, Santander UK said in a statement issued to Sky News: “Santander UK is conducting a thorough appointment process.

“The new chair will be announced once that process has concluded, including having obtained board and regulatory approval.”

Continue Reading

Trending