Eligibility in Question: A Legal Perspective on the Promotion of Beyond Limits Academy to the NPFL

In a remarkable display of excellence, Beyond Limits Academy has solidified its reputation as one of Africa's finest football academies, boasting an impressive array of accolades. However, their outstanding achievements have been somewhat overshadowed by a contentious issue which is their eligibility to participate in the Nigerian Professional Football League (NPFL), given their parent club, Remo Stars, is already an active participant in the same competition. Although this scenario is not an isolated case in the NPFL, similar situations exist with Enyimba and Abia Warriors, both funded by the Abia State Government, despite claims of separate boards. In another instance, Dolphins and Sharks FC were merged by the Rivers State Government to form Rivers United due to similar eligibility issues.

This article addresses the heart of the matter, examining the validity of Beyond Limits' promotion to the NPFL.

On June 12, 2024, Beyond Limits Academy secured a triumphant victory over Inter Lagos, cementing their promotion to the NPFL for the first time in history. The issue at hand revolves around the concept of Multi-Club Ownership (MCO) and club licensing in the NPFL, as Remo Stars owned by Hon.?Kunle Soname is the parent club to Beyond Limits Academy, a club also participating in the NPFL. This ownership structure sparks debate about the academy's eligibility to compete in the same league as its parent club.

CURRENT REGULATORY FRAMEWORK

As of now, there is no specific regulations governing Multi-Club Ownership (MCO) at the FIFA level. This omission is attributed to the fact that clubs are not direct members of FIFA, but rather affiliates of member associations, as stipulated in Article 20(1) of the FIFA Statutes.

However, paragraph 2 of the same Statute imposes an obligation on member associations to ensure the integrity of competitions by exercising stringent control over club ownership. In so doing neither a natural nor a legal person (including holding companies and subsidiaries) exercises control in any manner whatsoever (in particular through a majority shareholding, a majority of voting rights, a majority of seats on the board of directors or any other form of economic dependence or control, etc.) over more than one club whenever the integrity of any match or competition could be jeopardized.

This provision implicitly acknowledges the potential risks associated with MCO and mandates member associations to implement measures that prevent conflicts of interest, protect the integrity of competitions, and uphold the principles of fair play.

Through its regulatory framework, FIFA acknowledges the vital importance of club independence in maintaining the integrity of competitions. Specifically, FIFA requires member associations to ensure that no individual or entity exercises control over multiple clubs in a manner that could compromise the integrity of the competition.

WHEN WILL THE INTEGRITY OF A MATCH/COMPETITION BE IN JEOPARDY?

The integrity of club competitions may be jeopardy when conflicts of interest arise. In the landmark ENIC case, the Court of Arbitration for Sport (CAS) signaled the football authorities' intent to prevent such conflicts by implementing measures to ensure the independence of clubs.

The ENIC decision stated that a company or a person has an 'Interest' in a club when it has:

1. The majority of the shareholders' voting rights in another club in the same UEFA club competition;

2. The right to appoint or remove a majority of the directors in another club in the same UEFA club competition; or

3. The majority of the shareholders' voting rights (through a Shareholders' Agreement) in another club in the same UEFA club competition.

While this case specifically pertains to UEFA competitions, its principles are relevant to the present situation, emphasizing the importance of maintaining club independence to ensure the integrity of competitions.

Additionally, appendix 22 of the NFF Club Licensing Regulations states that the licence applicant must submit a valid declaration by way of an affidavit, sworn to at a High Court or before a notary public, outlining the ownership structure and control mechanism of the club and confirming the following:

No natural or legal person involve in the management, administration and/or sporting performance of the club, either directly or indirectly:

a. holds or deals in the securities of any other club participating in the same competition;

b. holds a majority of the shareholders voting rights of any other club participating in that same competition;

c. has the right to appoint or remove majority of the members of the administrative, management or supervisory body of any other club participating in the same competition;

d. is a shareholder and alone controls a majority of the shareholders voting rights of any other club participating in the same competition pursuant to an agreement entered into with other shareholders of the club in question; or

e. is a member of any other club participating in the same competition; or

f. is involved in any capacity whatsoever in the management administration and/or sporting performance of any other club participating in the same competition; et cetra.

It is pertinent to note that the above criteria are not conjunctive in nature and despite reports of distinct Boards of Directors for Remo Stars and Beyond Limits Academy, a crucial consideration remains. If the owner of Remo Stars holds the authority to appoint and remove a majority of Beyond Limits Academy's directors, it could potentially compromise the integrity of the Nigerian Professional Football League (NPFL).

In such a scenario, the independence of Beyond Limits Academy is called into question, and the potential for conflicts of interest arises. This could undermine the fairness and credibility of the NPFL, as the owner's influence over both clubs could impact decision making and create an unfair advantage. As such, it is essential to ensure that the ownership structure does not compromise the integrity of the league.

WAY FORWARD

Hon. Soname must demonstrate the independence of Beyond Limits Academy by relinquishing control over the appointment and removal of directors. Establishing a separate and independent board of directors for the academy will help to alleviate concerns and ensure compliance with FIFA and NPFL regulations.

By taking this step, Beyond Limits Academy can cement its place in the NPFL and build a bright future for Nigerian football. The Academy will likely need to transform into a full-fledged professional football club to comply with Article 10 of the NFF Club Licensing Regulations.

REFERENCE

1. Daniel Geey, Multiple Football Club Ownership: Disparities Between Rules.
2. Luca Pastore (2018), Third Party Ownership and Multi-Club Ownership: Where Football is Heading For.
3. NFF Club Licensing Regulations