The Premier League is considering a formal ban on debt-ridden club acquisitions as part of a sweeping overhaul of its ownership rules.
Sky News has learned that the top 20 clubs are being polled by Premier League executives about the value of a block for so-called leveraged buyouts.
The consultation process, which has been publicly announced by the tournament’s chief executive officer, Richard Masters, is expected to conclude soon.
Any proposed rule changes related to the Owner and Director Test (OADT) will be discussed at next month’s meeting and voted on in September.
A ban on leveraged buyouts is unlikely to go ahead – and will not be reinstated – but if it does, would prevent the kind of deal Manchester United were bought by the Glazer family in the coming months. 2005.
Concern has been raised about the financial situation of Burnley, the Lancashire side currently battling relegation to the Championship.
Burnley is owned by ALK Capital, a US-based consortium that is said to have used the club’s money to help fund the £170m takeover.
Another Premier League club executive said they were asked for their views on whether such deals should be banned.
This weekend, an insider said restrictions on takeovers sponsored by private equity firms resulted from clubs showing no interest in such a move.
That is likely to matter as the £2.5 billion purchase of Chelsea from the sanctioned Russian businessman Roman Abramovich is being largely funded by Clearlake Capital, a private equity firm in California. .
The Chelsea deal has secured £1.75 billion in part to be used for its women’s team
The Chelsea deal, led by Todd Boehly, owner of the LA Dodgers baseball team, is being funded entirely with equity.
The assurances from Mr Abramovich’s advisers at Raine Group, the US commercial bank, mean the new owner will commit to a £1.75bn investment in Chelsea’s Stamford Bridge home ground, academy and team female.
Chelsea’s license to operate is set to expire at the end of this month, with the sale requiring separate approval from the Premier League and ministers.
A review of the Premier League’s OADT has been underway for months, stemming in part from the controversy surrounding the takeover of Newcastle United by a consortium led by Saudi Arabia’s sovereign wealth fund.
Its urgency has been enhanced by the government’s response to the review led by Tracey Crouch, the former sports minister, on English football governance.
Last month, the government signaled its support for an independent governing body for the sport, although key details, such as whether the FA will oversee a new body, remain. has not been determined.
Any changes to the Premier League’s ownership test would need to be approved by at least 14 clubs, and club executives acknowledge that the reforms could be superseded by anyone. any request made by the new regulatory body.
In March, The Guardian reported that a human rights test could be added to the league’s rule book – a nod to the flagship of the Newcastle United takeover.
The charter for private owners developed by the Premier League appears to have been shelved temporarily, with some of the so-called ‘big six’ reportedly refusing to sign contracts despite the controversy. about their participation in the European Super League.
The Premier League declined to comment on Saturday.
