EFL Rule Change Opens Door for Increased English Investment in Scottish Football.

Roger Hampel

Andrew Cavenagh | Photo Credit: Rangers FC

A recent regulatory shift by the English Football League (EFL) is poised to open new pathways for English clubs to invest in Scottish and Irish football, removing previous restrictions on cross-border ownership. As reported by The Guardian and cited by Glasgow Times, the EFL has amended its multi-club ownership rules, allowing Championship, League One, and League Two clubs to hold stakes in clubs in the SPFL and the Irish Football League.

This change comes at a time of increased activity in the ownership landscape, highlighted by the 49ers Enterprises consortium's acquisition of a majority stake in Rangers FC. The timing reflects a broader trend of strategic alignment between English football investment groups and Scottish clubs, with an eye on operational synergies, talent development, and global brand growth.

49ers Enterprises Completes Rangers Takeover: “This is the Starting Line” EFL Investment Scottish Football

Just days before the rule change was announced, Rangers FC Chairman Andrew Cavenagh—representing the American-led investment group 49ers Enterprises—gave his first interview since the deal was finalized.

In an interview published by the club, Cavenagh outlined the rationale for the acquisition:

“The supporters were a major draw. The breadth and depth of passion around this club is incredible—over 600 supporters’ clubs, more than 400,000 kits sold in a single season. That global following is an asset.”

He emphasized Ibrox Stadium’s cultural and sporting significance, and pointed to Rangers’ unique opportunity to compete annually for domestic trophies and European football, an attractive feature for any investor.

“Getting this deal completed is not the finish line. We are now at the starting line,” he added. “This club needs a catalyst, and Paraag [Marathe] and I are prepared to be that.”

Regulatory Realignment: Opening the Door for EFL Clubs

Under the new EFL rules, clubs in England’s Football League can now invest in Scottish and Irish clubs—something previously restricted due to concerns over competition integrity and potential conflicts of interest.

With Premier League clubs never subject to such constraints, this move brings greater regulatory consistency across English football. It also acknowledges the growing prevalence and operational viability of multi-club ownership (MCO) as a modern football business model.

Recent high-profile cross-border investments include:

• Tony Bloom, Brighton & Hove Albion owner, acquiring 29% of Hearts FC

• Bill Foley, AFC Bournemouth owner, purchasing a 25% stake in Hibernian FC

• 49ers Enterprises, majority owners of Leeds United, now holding 51% of Rangers FC

  
  

Why Scotland? Strategic Value in a Compact Market

Scottish football offers several competitive advantages for investors:

• Lower entry costs compared to top European leagues

• Established club brands with strong community and fan engagement

• Regular access to European competition via UEFA pathways

• Opportunities to expand commercial reach in a culturally aligned, English-speaking market

  
  

For English clubs and international investors alike, the SPFL provides a testbed for player development, brand activation, and operational scaling within a manageable and competitive structure.

Multi-Club Synergies: The Business Case

For groups like 49ers Enterprises, the strategic logic of MCOs includes streamlined scouting and player loan pathways, shared back-office infrastructure and commercial partners, enhanced sponsor value through cross-market exposure and data sharing and talent tracking at scale.

The EFL rule change now makes these advantages available to more English clubs, many of which are seeking stable revenue growth and broader commercial relevance in an increasingly globalized football landscape.