What Brexit will Do to the English Premier League

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Brexit, which divided the UK like nothing we’ve seen before, has exacerbated the rift between the FA and the Premier League. The main issue between the two parties is the work-permit regulations being negotiated in triggering Article 50. Each will try and put their stakeholders’ interests first. Whatever happens in the negotiations will not only have a tremendous impact on the future of English football but in the global footballing landscape as well. To fully understand why they would go against each other, it is important to know the relationship dynamics between them.

AS THE UK GOVERNMENT NEGOTIATES ARTICLE 50 WITH THE EU, WE LOOK AT WHAT IT WOULD MEAN FOR THE WORLD’S RICHEST FOOTBALL LEAGUE

First and foremost, the Football Association or the FA and the Premier League are independent organizations. The break-up happened in 1992 when clubs in the old First Division decided to create a break-away league to take advantage of lucrative television deals. The 20 clubs in the Premier League are equal shareholders with a vote each on determining rules and governance. The FA is a special shareholder in the Premier League who has veto power when new rules are adopted.
The FA’s goal is to ensure England is successful on the international stage and therefore, they want to create conditions for English players to prosper and thrive in the Premier League. The Premier League clubs, on the other hand, want to build the strongest possible squads irrespective of the nationalities of the players to compete in arguably the world’s most competitive league.

PROVEN TOP PLAYERS LIKE GERMAN REGULAR, MESUT OZIL FROM ARSENAL OR DANISH REGULAR, CHRISTIAN ERIKSSEN FROM TOTTENHAM HOTSPURS ARE HIGHLY UNLIKELY TO BE AFFECTED, BUT PLAYERS WITH A LACK OF INTERNATIONAL CAPS MAY NOT BE ABLE TO PLAY IN THE PREMIER LEAGUE.

International players from non-EU countries or the EEA (European Economic Area) are currently required to obtain an endorsement from the FA before applying for a work permit. To automatically qualify for the endorsement, the FA needs players to participate in a minimum number of games for the national team in the two years before the time of application. If a player does not meet the specified criteria, they are subject to a points-based system which takes into account the transfer fee, the player’s salary, relative to others in the league, and the level of his previous club in domestic and international competitions. EU/EEA players have the freedom of movement and so are not required to fulfill these criteria.
With Brexit looming, however, the UK government will have to negotiate work permits for EU and EEA citizens, as Prime Minister Theresa May has insisted that the points-based system will not apply to EU/EEA citizens. With nothing set in stone, The FA will try and influence the decision so that only the best EU and EEA players get work permits which will give English players a chance to thrive in the league. Premier League clubs, however, will seek exemptions from any such rules as they wish to get players at all levels.
If the FA have their way, then the number of European players playing the Premier League will be significantly impacted. Proven top players like German regular, Mesut Ozil from Arsenal or Danish regular, Christian Erikssen from Tottenham Hotspurs are highly unlikely to be affected, but players with a lack of international caps may not be able to play in the Premier League. This means French player N’golo Kante, who was instrumental in both Leicester City’s Premier League triumph in 2016 and Chelsea’s in 2017, would not have been eligible to play.
Such a scenario will have an enormous impact on the global footballing landscape as well. English teams currently scout and recruit hundreds of under eighteen European players and bring them up through their academies. With Brexit, they will no longer be able to do so, and other European clubs will have additional time for recruitment from Europe. As a result, while English clubs focus on talent only in the UK, European clubs can scour the whole of Europe to find the best players from an early age. It could so happen that by the time Premier League clubs can sign a European player, the player may command a substantial transfer fee. Even though Premier League clubs are some of the richest in the world, the lower teams in the league may struggle to obtain even older players because of the inflated fees.

ENGLISH TEAMS CURRENTLY SCOUT AND RECRUIT HUNDREDS OF UNDER EIGHTEEN EUROPEAN PLAYERS AND BRING THEM UP THROUGH THEIR ACADEMIES. WITH BREXIT, THEY WILL NO LONGER BE ABLE TO DO SO, AND OTHER EUROPEAN CLUBS WILL HAVE ADDITIONAL TIME FOR RECRUITMENT FROM EUROPE.

Premier League clubs, in general, can expect their entire recruiting system to change. Acquiring young talent and nurturing them is a relatively cheap way for teams to build their squads. Not every acquisition has to make it to the first team to reap the rewards. Using N’golo Kante’s example again, he was signed by Leicester City for a reported £5.6 million. He was then sold to Chelsea a year later for £30 million. It’s an important mechanism for clubs especially in light of UEFA’s financial fair play regulations.
What makes the Premier League the best, and the richest league in the world is the competitive nature of the league. Most other European leagues eventually boil down to a two-horse title race. The Premier League is the only competition where even teams of Liverpool and Manchester United’s caliber have to compete for a top four place. At the start of the 2016/2017 season, SIX clubs were in contention to win the title. If player restrictions are imposed, then there is a very strong possibility that Premier League clubs, especially those in the lower half, would lose their competitiveness. The Premier League will face stiff competition from other leagues, not just in Europe but in the United States and even China, where massive investments are being made.

Both the FA and the Premier League have valid concerns and both would want to protect their interests. Whatever is decided has to be a balance between the FA’s wishes and the Premier League’s needs.

It may be a while before any changes are actually seen, or be seen at all. The results of the UK general election on June 8th, 2017 will have a huge impact on Brexit negotiations (which may end up getting postponed). Before anything happens, there are certain facts which have to be taken into consideration:
1. The Premier League is the world’s richest and most competitive league.
2. The Premier League makes a huge contribution to the UK economy.
3. The last time the English national team won an international competition was in 1966.
4. The English team did not win anything since even before the formation of the Premier League.
5. A hard Brexit will allow more young English players to come through in the Premier League.
6. A hard Brexit may reduce the competitiveness of the Premier League by inhibiting the lower clubs’ ability to spend.
7. The Premier League will face stiff competition for players from Europe and beyond.
8. The Premier League will face competition for revenue from other European leagues.

The writer is a Deputy Manager for Communications at BRAC International. He can be reached at sheahan.bhuiyan@brac.net.

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