Manchester United news as Sir Jim Ratcliffe’s ownership of two European clubs presents a huge stumbling block
Manchester United could face a problem with UEFA ruling if they qualify for the Champions League(Image: PA)
Manchester United suffered their 17th defeat in the Premier League this season on Sunday and despite their atrocious domestic campaign, they could still bring Champions League football to Old Trafford next year.
Sunday’s 2-0 home defeat to West Ham United has left Ruben Amorim’s men 16th in the table, one point above Europa League final opponents Tottenham Hotspur.
After knocking out Real Sociedad, Lyon and Athletic Bilbao, United will go head-to-head with Spurs for a chance for silverware. The winners of the clash will automatically qualify for the Champions League, but for United, that may not be the case.
Here, the Manchester Evening News brings you everything you need to know on the UEFA ruling…
What is the UEFA rule?
According to old UEFA rules, two clubs under the same control were prevented from competing even in different European competitions. As Sir Jim Ratcliffe holds a stake in both Man United and Ligue 1 outfit Nice, it would have been impossible for the two clubs to both be playing European football.
Ratcliffe’s Nice are in a great position to qualify for the Champions League with them sitting fourth in Ligue 1. The club were facing a similar situation this time last year, with UEFA eventually allowing both clubs to participate under certain provisions.
Fortunately, those rules were changed last year to accommodate the number of clubs under the same ownership. Each situation is looked at on a case-by-case basis, like Manchester City and Girona this season.
Reports have stated that Ratcliffe is exploring a sale of Nice meaning if everything goes well – United win the Europa League and Nice qualify for the Champions League – there should be no issues. If Ratcliffe keeps his stake in both clubs, there is still a way for both to compete, as revealed by a UEFA statement.
It was stated that “no one is simultaneously involved, directly or indirectly, in any capacity whatsoever in the management, administration and/or sporting performance of more than one club participating in a UEFA club competition; and no one has control or decisive influence over more than one club participating in a UEFA club competition.”
As such, all that is really needed will be proof that the two clubs are not run simultaneously and Ratcliffe’s desire to sell his Nice stake could certainly help their case if the worst transpired.
What is United’s stance?
The Manchester Evening News reported last season that United were confident about being allowed to play in Europe alongside Nice despite Ineos’ multi-club ownership model.
Ratcliffe was forced to transfer his shares in Nice into a ‘blind trust’. That mean that decision-making in France was solely in control of a trustee. However, those shares are due to be transferred back on July 1 meaning a problem could await Ratcliffe.
What has Ratcliffe said?
“No, there are no circumstances upon which an ownership of Nice would prevent Manchester United from playing in the Champions League. I’ll be crystal clear on that,” he said.
“It says you have to change the ownership structure, you know. So it’s all about influence and positions on the board and that sort of thing. A: the rules are changing, and B: there are shades of grey not black and white. Manchester City will probably have the problem before we have the problem because they’ve obviously got Girona.
“We have spoken to UEFA and I have to say the conversation wasn’t directed at, ‘you have to solve this problem and you know we don’t like it’. We have an issue and we might have to change some things. But what they do recognise is that the multi-club model in many circumstances benefits the smaller club quite a lot.
“They do have a concern that if they stop the multi-club model then you take away quite a lot from the smaller club. Because the smaller club benefits a lot from the bigger club. So that’s a good thing. But what they’re worried about is if there’s ever an accusation that somebody influences the result of a game – lack of integrity. That’s the most concerning thing.
“We’ve never spent time really understanding the benefits of a multi-club. But we’ve got Omar obviously, who’s been intimately involved in a really successful multi-club, which is Manchester City. So we need to spend a bit of time with Omar trying to understand it a bit better before we finish up with a view.
“I think my inclination is positive towards multi-clubs, not negative towards multi-clubs. We haven’t spent enough time understanding all the details of it yet. Also, the UEFA thing is changing so you have to do it in the light of where you think UEFA is going to finish up, what the handicaps are. There are obviously handicaps involved.”
What are UEFA’s rule now?
A statement released by UEFA on July 5, 2024, explains: “The First Chamber of the UEFA Club Financial Control Body (CFCB First Chamber) had previously opened proceedings involving: Girona FC (ESP) and Manchester City FC (ENG); and Manchester United FC (ENG) and OGC Nice (FRA) due to a potential conflict with the multi-club ownership rule provided for in Article 5 of the UEFA club competitions regulations.
“Following the implementation of significant changes by the concerned investors in Girona FC and OGC Nice (respectively City Football Group and INEOS), the CFCB First Chamber accepted the admission of Girona FC and Manchester City FC to the 2024/25 UEFA Champions League as well as Manchester United FC and OGC Nice to the 2024/25 UEFA Europa League. The clubs were able to demonstrate that such changes brought them into compliance with the multi-club ownership rule, considering that:
- No one is simultaneously involved, directly or indirectly, in any capacity whatsoever in the management, administration and/or sporting performance of more than one club participating in a UEFA club competition; and
- No one has control or decisive influence over more than one club participating in a UEFA club competition.
“More specifically, the significant changes made to the ownership, governance, and financial support of the concerned clubs, substantially restrict the investors’ influence and decision-making power over more than one club, ensuring compliance with the multi-club ownership rule during the 2024/25 season.
“In particular, the concerned investors have transferred their shares in Girona FC and OGC Nice to independent trustees through a blind trust structure established under the supervision of the CFCB First Chamber. Such blind trust was accepted by the CFCB First Chamber on an exceptional basis for the 2024/25 UEFA competitions. The trustees will regularly exchange information with the CFCB First Chamber during the 2024/25 season.
“As a result, the following applies at the level of Girona FC and OGC Nice for the 2024/25 season:
- the effective control and decision-making of these clubs rest solely under control of the trustee;
- following the resignation of its board members, the investor is no longer represented on the board of directors and has no capacity to directly appoint new directors to the board;
- the trustee appointed the new directors to the board;
- the investors have no ability to influence sporting related decisions;
- the investors have no ability to influence the club through veto rights or contractual arrangements entered into with other shareholders;
- the investors are restricted in their ability to provide subsequent financing;
- the club’s financial statements will be deconsolidated from the investors’ holding company.
“Furthermore, as additional evidence of their independence, the concerned clubs committed to the following:
- the clubs will not transfer players to each other, whether permanently or on loan, directly or indirectly, from July 2024 until September 2025, with the exception of pre-existing transfer agreements that had been entered into before the opening of the CFCB proceedings;
- the clubs will not conclude any kind of cooperation, joint technical or commercial agreements between each other; and
- the clubs will not use any joint scouting or player database.
“From 1 July 2025, the shares in Girona FC and OGC Nice will be transferred back to their respective investor. As a result, in the absence of any major modifications to the clubs’ shareholding, governance or financing, the above-mentioned clubs shall be considered, as from that date, under the control or decisive influence of their investor.
“The CFCB First Chamber will continue to monitor the above-mentioned situations to ensure that the multi-club ownership rule continues to be complied with during the 2024/25 season.”