By Luis Fernando Espejo & Emiliano Hernández
A Turning Point for Football Governance
FIFA’s decision to exclude Club León from the 2025 Club World Cup marks a pivotal moment in the regulation of multi-club ownership (MCO). While economic groups owning multiple teams have become a widespread model in modern football, concerns over competitive integrity are increasingly driving stricter regulatory oversight. León’s exclusion underscores FIFA’s evolving stance on ownership structures and raises critical questions about how global football will respond to these regulatory changes.
FIFA’s Decision and León’s Legal Challenge
FIFA Club World Cup regulations prohibit clubs under the same ownership or significant influence from competing in the same tournament. León, owned by Grupo Pachuca—which also owns CF Pachuca, a team that has already qualified—was deemed ineligible. However, León is currently appealing this decision before the Court of Arbitration for Sport (CAS), on the grounds of:
- Principle of Taxativity and Non-Retroactivity: FIFA cannot apply new restrictions retroactively to disqualify León after it had already secured its spot in the tournament. Rules and sanctions must be clear, specific, and established in advance to ensure fairness, legal certainty, and predictability in decision-making.
- Sporting Merit & Fairness: The club earned its place by winning the 2023 Concacaf Champions League; exclusion undermines competition integrity.
- Regulatory Compliance: León has fully cooperated with FIFA, with no violations justifying
exclusion. - Administrative Independence: A trust ensures León’s financial and operational separation from Grupo Pachuca.
- Precedents: FIFA and UEFA have allowed clubs like RB Leipzig & RB Salzburg or Girona & Manchester City to compete under compliance measures.
Alajuelense’s Legal Dispute
Liga Deportiva Alajuelense (LDA) of Costa Rica has filed a separate complaint with the Court of Arbitration for Sport (CAS), arguing that the multi-club ownership between León and Pachuca violates fair competition principles. LDA contends that no team has a superior right over them to participate in the upcoming Club World Cup. This legal dispute could influence future governance decisions regarding club eligibility and the regulation of ownership structures worldwide, further fueling the debate on FIFA’s approach to multi-club ownership (MCOs).
Possible Outcomes and the Future of MCO Regulation
The resolution of León’s case could set a lasting precedent for how multi-club ownerships are regulated in global football. Potential outcomes include:
- CAS overturns FIFA’s decision, allowing León to compete.
- Alajuelense qualifies based on FIFA ranking if FIFA limits Liga MX and MLS clubs to two teams each.
- Club América qualifies based on Concacaf ranking.
- Philadelphia Union qualifies based on their Concacaf ranking, unless limited by the three-club-per-country rule.
- LAFC qualifies as the 2023 Concacaf Champions League runner-up.
- Columbus Crew qualifies as the 2024 Concacaf Champions League runner-up.
- Tigres qualifies as the last Concacaf Champions League winner.
The club selected to replace León will join Group D of the Club World Cup, where it will face Flamengo, Chelsea and Espérance de Tunis. We will have to await the CAS ruling before the competition begins on June 14, 2025.
The Financial Impact on Club León
Beyond the sporting and legal implications, León faces a significant financial setback due to its exclusion. Unless CAS rules in its favor, the club stands to lose $9.55 million USD, the estimated earnings from participating in the Club World Cup. Moreover, had León advanced beyond the group stage, it could have accessed even greater prize money:
- Round of 16: + $7.5 million USD
- Quarter-finals: + $13.125 million USD
- Semi-finals: + $21 million USD
- Runner-up: + $30 million USD
- Champion: + $40 million USD
Given these substantial financial incentives and the global exposure that comes with competing in this tournament, several clubs may view the opportunity as a rightful claim. With the selection criteria for León’s potential replacement remaining unclear, multiple teams could argue that they deserve the spot, potentially leading to further disputes over the allocation of this highly valuable position.
The Growing Scrutiny of Multi-Club Ownership
León’s exclusion is part of a broader trend toward stricter regulation of MCOs in football. While proponents argue that multi-club ownership fosters investment, talent development, and long-term stability, critics warn of the potential risks such as match-fixing, competitive imbalances, and conflicts of interest. In Mexico, multi-club ownership has long been tolerated, but FIFA’s ruling may compel Liga MX to reassess its stance on the issue. Internationally, this decision signals a shift toward limiting the power of corporate conglomerates in football. With UEFA already tightening its regulations, FIFA is sending a clear message about its commitment to maintaining the integrity of the sport.
The Ongoing Debate on Multi-Club Ownership
The debate surrounding multi-club ownership is not new in football. However, previous cases have shown that the core issue is not ownership itself but the independence in the management and decision-making between clubs. If Club León can prove this separation before the CAS, it could set a groundbreaking precedent in sports law jurisprudence, providing clarity for future cases.
Implications for Mexican Football Governance and MCOs
The outcome of this case could also lead to significant changes in the governance of Mexican football. Clubs like Tijuana, Querétaro, León, Pachuca, Mazatlán, and Puebla—all part of multi-club ownership structures—may face ownership changes, potentially reshaping the landscape of Liga MX. Moreover, if FIFA and Concacaf tighten the regulations on multi-club ownership, the league may be forced to push ownership groups with multiple teams to sell some of their clubs in order to comply with eligibility requirements.
A New Era of Regulatory Oversight
Beyond this specific case, FIFA’s decision signals the start of a new era of regulatory scrutiny over MCOs in global football. Clubs, investors, and governing bodies will need to adapt to a football landscape where financial power alone is no longer sufficient. Compliance with evolving regulations will be crucial for ensuring competitive integrity in the sport, marking a significant shift in the governance of international football.