Even if you’re only a casual fan of UK football, you’ve most likely noticed the increasing trend toward the foreign ownership of British clubs. From Premier League giants to lower league underdogs, foreign investors are pouring money into the communities that produce our most popular global export. While fresh capital and new ideas are welcome, there is a darker side to this phenomenon.

For every Hollywood story – literally, in the case of Wrexham AFC – there is a cautionary tale when it comes to football’s new overlords. We’ve already witnessed the near implosion of Wigan Athletic due to reckless spending, to name one. Another commonly cited issue with foreign ownership is ‘sportswashing,’ i.e. using sport to launder an owner’s reputation. The most glaring example here is the Saudi ownership of Newcastle United FC. While their investment has been attributed to the Magpies’ recent success on the pitch, it has also served as a useful distraction from Saudi Arabia’s serious human rights abuses. This manipulation of football for image laundering erodes the sport’s core values of fair play and community, leaving ordinary supporters feeling complicit in unethical practices.

However, as concerning as sportswashing might be, the bigger issue is money, particularly the sustainable finance of these great community assets. As of 2023, the Premier League and Championship clubs were drowning in a combined net debt of £4.7 billion. Foreign ownership is typically associated with injections of capital, and sure, foreign money can help with new players, better facilities, and fancy stadiums. However, it can also lead to disaster if not managed properly, as several clubs are learning via the point deductions levied for violations of league profit and sustainability rules. Spend big in the Championship if you like, but if you miss out on promotion, you could be in serious financial difficulty very quickly.

A club’s financial peril can quickly lead to a panicked search for a white knight. But as things stand, prospective owners can buy clubs without much in the way of proof of financial security and honest, suitable backgrounds. Case in point, the recent collapse of American firm 777’s proposed purchase of Everton FC, currently owned by Farhad Moshiri, has placed this great club on the brink of ruin.

Sadly, this is not just an upper-league phenomenon. Further evidence of the effects of unscreened ownership can also be seen in Dr. Abdulla Al-Humaidi’s ownership of non-league club Ebbsfleet United. Acquired in 2013, under his watch, the club has faced significant financial losses, including a £1.7 million hit in 2022 alone. The club has five outstanding charges against it from Faithdean PLC, and players have dealt with late payments, paused pensions, and inadequate medical insurance.

Al-Humaidi’s personal financial mess only adds to the concern. Declared bankrupt in November 2023, he is in no way fit to be the owner of Ebbsfleet FC. And yet, he remains so through a Kuwaiti holding company despite resigning as a director of the club. His other ventures aren’t doing any better; London Resort Company Holding entered a Company Voluntary Arrangement in January 2014, Landmarque Belgard Development Company Ltd. entered administration in June 2023, and Armila Capital Ltd. faced a winding-up order in January 2024. Al-Humaidi also has an international arrest warrant against him for committing nine counts of fraud in Kuwait and thanks to the lack of an extradition treaty with the UK, is dodging a potential combined 25-year prison sentence.

Ebbsfleet United FC might not have the same level of stardom as Newcastle United or Everton, but the collapse of this club could have an equal, if not more, impact on the fans and local community, particularly given its 80-year history. Not to mention, the loss of the club would also lead to the loss of jobs—from players to managers and grounds people—the disappearance of this historic club would be grave for local livelihoods.

With this in mind, it is clear that the reintroduction of the Football Governance Bill in Labour’s King’s speech is well overdue. Introduced to Parliament for the second time, the bill seeks to establish a regulatory body to ensure clubs follow sound financial practices and protect key assets like stadiums, prevent changes to stadium locations or club names without proper consultation, and ensure fair financial flow between the Premier League and the English Football League (EFL).

However, more importantly, the bill will grant an independent football regulator the powers to conduct robust ownership fitness criteria and checks. This means owners must be honest, financially sound, and free from criminal connections. This comprehensive review is crucial to prevent individuals like Al-Humaidi or 777 from mismanaging and exploiting our football clubs.

Football clubs are not just businesses; they are community organisations that carry significant cultural and emotional weight. The owners’ role in managing these clubs impacts both on- and off-field performance, and it is crucial that they uphold the integrity and heritage of the clubs they manage. It’s time to ensure a fair, transparent, and sustainable future for UK football. Our beautiful game deserves nothing less.