Historic legislation to reform the governance of men's elite football in England and put fans back at the heart of the game has been introduced in Parliament today...
- ‘Independent Football Regulator’ to be enshrined in law that will give fans a greater voice in the running of their clubs
- Regulator will promote financial sustainability and will have the ability to fine clubs up to 10% of turnover for non-compliance
- Breakaway closed-shop competitions such as the European Super League to be blocked under new legislation
- Regulator will implement strengthened owners’ and directors’ tests and be equipped with backstop powers to impose a ‘new deal’ on financial distributions
The Bill comes at a critical juncture for English football, following the attempted breakaway European Super League, and a series of high profile cases of clubs being financially mismanaged or collapsing entirely.
The legislation being introduced today goes further than the Government’s manifesto commitment, establishing the new ‘Independent Football Regulator’ (IFR) as a standalone body - independent of both Government and the football authorities.
The body will be equipped with robust powers revolving around three core objectives: to improve financial sustainability of clubs, ensure financial resilience across the leagues, and to safeguard the heritage of English football.
Under the Football Governance Bill, new owners and directors will face stronger tests to stop clubs falling into the wrong hands, and face the possibility of being removed and struck off from owning football clubs if they are found to be unsuitable.
The Bill also includes new backstop powers around financial distributions between the Premier League and the English Football League (EFL). These powers mean that if the leagues fail to agree on a new deal on financial distributions, then the backstop can be triggered to ensure a settlement is reached.
For the first time, clubs from the National League (Step One in the football pyramid) all the way to the Premier League will be licensed to compete in men’s elite football competitions in England. The proposed licensing regime will be proportionate to any problems, size and circumstances and involve a system of provisional and full licences, to give clubs time to transition.
It follows a number of issues in recent years including financial mismanagement, breakaway plans for the European Super League, and changes to club names, badges and colours against the wishes of fans.
The Football Governance Bill is the result of the Government’s commitment to deliver a fan-led review of football governance. Triggered after the attempted breakaway European Super League competition, the review sought to examine the industry in detail following the failure of at least 60 professional football clubs since the advent of the Premier League in 1992.
The key recommendation from the review chaired by Tracey Crouch MP was the introduction of an independent regulator of elite men's football in England.
In parallel with the Bill’s introduction, the Government has today confirmed plans to stand up a shadow regulator that will be operational as the IFR is formally set up.
Decisions will be taken on the location of the IFR, the Chair of the regulator and other board members in the weeks and months ahead as the bill makes its passage through Parliament. This follows the appointment of the interim chief operating officer Martyn Henderson OBE in January, who will work with a team on the frameworks, policies and guidance required for the formation of the regulator.
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