Football Finance: ‘Home grown’ rule sets challenge for top clubs

IN the second part of our investigation into Football Finance, TheBusinessDesk.com and leading law firm Hammonds take a look at the debate over ‘home-grown’ talent and immigration rules.

THE disappointing showing in the World Cup by the England team reignited the debate over the number of  English players plying their trade at leading football clubs, and whether enough home-grown talent is being nurtured to ensure the long-term success of the national team.

Even prior to the flop in South Africa, clubs in the Barclays Premier League knew that new rules were being introduced this season, in a bid to address this key issue.

From 5pm on September 1, a day after the closure of the summer transfer window, the clubs will have to name a squad of 25 players, of which eight must be deemed to be ‘home grown’.

To complicate matters, and to perhaps allay fears that the rules may discriminate against non-English players, home-grown players do not have to be English.

They are defined as those who “irrespective of nationality or age, have been affiliated to the FA or Welsh FA for a period of three seasons or 36 months prior to 21st birthday”.

In addition clubs can supplement their squads with unlimited number of players under the age of 21 – meaning that those clubs with the best youth academies and arguably the deepest pockets are at an advantage.

These new rules only apply to the 20 clubs in the Barclays Premier League – those teams in the Npower Championship and Leagues One and Two have their own rules, which have been phased in over the last few years.

Football Finance: The State of the Beautiful Game – read more on the subject here.

But what do the new rules mean in practice?

Phil Gartside, chairman of Bolton Wanderers and a board member of the Football Association, describes then changes as “sensible” and says they will mean more of a level playing field for smaller clubs, who often can’t afford to invest in building huge squads.

Mr Gartside said it makes financial sense to bring young players through the ranks too, and will hopefully benefit the national team as well.

Allan Duckworth, chief executive of Bolton Wanderers, said from an operational point of view, the new rules have not really had a huge impact.

“We’re not a Manchester City where they’ve had to cut a big squad of more than 40 to 25,” Mr Duckworth said. “It’s not had a negative impact on us.

“It remains to be seen whether the long term impact of improving the national team will be achieved. From my point of view it’s a wait and see issue.”

Mr Duckworth said the new rules may put a premium on the values of young ‘home grown’ players, which could fuel the transfer market.

Professor Tudor Rickards, Emeritus Professor at Manchester Business School, says the new regulations pose some significant strategic challenges for clubs.

Prof Rickards said: “I think it will lead to greater emphasis on investment in talent spotting and  youth academies and I think we will see pockets of success built around some very charismatic training staff.

“As with the entire football industry it’s a matter of resources though. For instance three or four years ago, Manchester City needed to invest in talent and the youth academy, today with the financial resources available you could argue the club can go out and buy the best rather than develop it.

“Generally though I do think clubs will have to develop a coherent strategy regarding their academies to develop the players of the future.”

Annabel Mace, head of business immigration at law firm Hammonds, added: “This season many clubs will have to comply with new rules over the size and make-up of their squads.

“These rules are designed to increase the number of young ‘home-grown’ players in the Premier League, with a long-term aim of giving more options to the England manager.

“It doesn’t mean the players have to be English but means they must have trained in England for three years prior to their 21st birthday. It will be interesting to see how these rules play out in the transfer market especially with the premium on young English talent.”

What do you think of the issue? Please leave your comments below.

Wednesday’s Football Finance feature will look at why English clubs are so attractive to overseas investors