Club Partnerships - An MCO Loophole
50% of 25/26 Premier League clubs have 20 club partnerships between them
Club Partnership Evolution
The concept of club partnerships dates to the early 20th century, when English clubs began forming informal ties with non-league teams to develop young players. All three of the North London teams in the 1930s had nursery clubs in Kent. Tottenham were linked with Northfleet United, Clapton Orient with Ashford and Arsenal with Margate.
Early 1990s, the FA introduced Standardised Rule 2.4, which explicitly banned "nursery clubs” The prohibition forced clubs to dissolve formal written agreements, though informal partnerships persisted.
With feeder clubs prohibited, Premier League teams began loaning players to unaffiliated clubs, creating the "loan army" model epitomised by Chelsea’s network of 100+ loanees in the 2000s.
Now the majority of clubs have foster unofficial alliances. Player loans have evolved from simple developmental arrangements into complex financial strategies. Club partnerships have moved away from non league affiliates to clubs that have a professional status
Modern loans increasingly serve as a mechanism in club finances. Loan fees are part of the norm, loan fee with obligation to buy helps clubs navigate PSR rules whilst Institutions like Farrer & Co. offer “squad-value linked loans,” where clubs borrow against the projected value of their players. For instance, a Premier League club might secure a £50 million loan based on the combined transfer valuation of its academy squad, with repayments tied to future sales
Future Developments: Dec 2024 European Court of Justice (CJEU) ruled on the case of former Real Madrid player, Lassana Diarra. A case that started in 2015, Found that certain sections of the transfer regulations contravened against EU law. Many believe that FIFA have been in discussions since this ruling, initial proposals include players need to give one transfer window notice and that the contract length must be paid up in full prior to leaving.
Training Compensation and Solidarity Mechanism fees could be overhauled.
MCOs will evolve, collaborations with player agencies, form new stand alone academies and increase club partnerships.
Reasons to why clubs form Club Partnerships
Technical partnerships eliminate the costs of club acquisition or investment.
Up skilling learning about each others environment and how each other operates.
Partnerships can be instantly financially beneficial to the bigger clubs whilst the investing club can gain a long term ROI
Clubs can enter emerging markets with minimal complications, whilst clubs can rapidly pivot partnerships to address evolving needs
Fans perceptions of club partnerships are significantly different to those of acquisitions.
Avoid NGBs conflict-of-Interest rules, FIFA / UEFA prohibits sister clubs from competing in the same European tournament. Example CWC, If LAFC win their playoff vs Club America LAFC & FC Bayern Munich will be cleared to participate despite having a joint venture in club partnerships and club acquisitions through Red&Gold.
Exiting EU meant British clubs cannot sign players aged U18 placing clubs at a disadvantage, club partnerships can providing a holding ground.
Partner clubs defined as having no minority or majority ownership stake and the partner club being a professional team.
AFC Bournemouth
Kyoto Sanga (Japan) - 2025: youth development, staff exchange
Orlando City (MLS-USA) - 2025: player development, scouting operations, executive collaboration and commercial opportunities
Aston Villa FC
Vissel Kobe (Japan) - 2023: Player pathways into Europe and staff development
Zed FC (Egypt) - 2020: Develop young talent
Brentford FC
Gil Vicente (Portugal) - 2025: Sharing knowledge on player development, plus access into Brazil
Brighton & Hove Albion FC - Through Jamestown
Hearts of Midlothian (Scotland) - 2024: Player and staff development
COMO (Italy) - 2023: Player and staff development
CD Castellon (Spain) - 2022: Player and staff development
Grimsby Town (England) - 2024: Player and staff development
Burnley FC
Dundee (Scotland) - 2024: Developing talent and knowledge sharing
Everton FC
Sligo Rovers (Ireland) - 2021: Academy training base and summer camps
Everton De Vina Del Mar (Chile) - 2020: Renewed, links ongoing since 1910s, player and knowledge sharing
Fulham FC
Dundee Utd (Scotland) - 2023: Coach exchange and academy games
Manchester City FC
Club Bolivia (Bolivia) - 2021: Access to CFG's expertise, technology and strategic advice, including coaching and scouting
İstanbul Başakşehir FK (Turkey) - 2024: Consultancy on transfers, senior training and youth development.
Geylang International (Singapore) - 2023: Access to CFG's expertise, technology and strategic advice, including coaching and scouting
Vannes olympique club (France) - 2021: Share best practices in scouting, training methods, and to explore other areas of common interest
West Ham United
FC Austria Klagenfurt (Austria) - 2023: Loan player partnership
Wolverhampton Wanderers FC
Shonan Bellmare (Japan) - 2024: Academy Development - sharing practices
Nantong Zhiyun FC (China) - 2025: Academy Development - sharing practices