Multi-club ownerships (MCOs): a critical analysis of transfer dynamics and sports integrity

Research objectives: Multi-club ownerships (MCOs) are becoming
increasingly common in sport management, especially in football.
Despite their growing importance, academic research on MCOs
remains limited. MCOs are often considered advantageous for
securing, developing, and retaining playing talent, but concerns
exist about potential integrity issues, such as the manipulation of
player transfers. This study aims to address these gaps by
investigating the characteristics of player transfers within MCO
networks. Specifically, it examines whether player transfers within
MCO networks differ in transfer types and prices compared to
those involving conventional clubs.
Research methods: Two studies were conducted with distinct
datasets. The first study analysed 69,217 fee-based, non-feebased,
and loan transfers across 419 leagues from 2020 to 2022.
The second study examined 11,852 permanent player
transactions involving 2,294 football clubs across 293 leagues
from 2017 to 2022. These datasets were complemented by and
aligned with a third set of data consisting of 89 MCO groups and
261 MCO affiliated clubs. Propensity Score Matching was used to
identify differences in transfer types (Study 1) and transfer prices
(Study 2) of MCO affiliated clubs compared to independent clubs.
Results and findings: Study 1 shows that MCOs have a greater
propensity to use loan deals within their networks, suggesting a
strategic approach to player development and retention. Study 2
demonstrates a subtle yet significant positive effect of MCO
membership on transfer fees, suggesting that MCO networks may
influence transfer prices. Together, these results indicate that
MCOs leverage their internal networks for both player
development and financial strategy.
Implications: The findings have important implications for both
football club managers and regulatory bodies. For clubs
considering an MCO strategy, this study provides empirical
evidence that MCOs can realise the theoretical benefits of
securing and retaining talent through internal networks.
However, managers must ensure that transfer activities comply
with fair value practices to avoid regulatory scrutiny. For governing bodies, the observed pricing differences in MCO- affiliated transfers highlight the need for vigilant oversight to maintain market integrity and ensure fair competition.