Historic legislation to reform the the way men’s elite football is governed in England has been introduced in Parliament.
The Football Governance Bill will see the introduction of an ‘Independent Football Regulator’ to be enshrined in law that will give fans a greater voice in the running of their clubs; promotion of financial sustainability, with the ability to fine clubs up to 10% of turnover for non-compliance; blocking of breakaway closed-shop competitions such as the European Super League; and strengthened owners’ and directors’ tests with powers to impose a ‘new deal’ on financial distributions
The Bill is said to come 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 establishes a new ‘Independent Football Regulator’ as a standalone body – independent of both Government and the football authorities. It will be equipped with robust powers revolving around improving clubs’ financial sustainability, ensuring financial resilience across the leagues, and safeguarding the heritage of English football.
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, the English Football League and National League. 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 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.
Culture Secretary Lucy Frazer said: “Football is nothing without its fans. We are determined to put them back at the heart of the game, and ensure clubs as vital community assets continue to thrive.
“The new Independent Regulator of Football will set the game on a sustainable footing, strengthening clubs and the entire football pyramid for generations.”
Chief Executive of the Football Supporters Association Kevin Miles said: “The FSA warmly welcomes the tabling of the Football Governance Bill arising from the 2021 Fan Led Review, and particularly its central proposal to introduce statutory independent regulation of the game.
“The regulator provides a means to intervene and stop clubs being run into the ground, protect the heritage of clubs, give supporters a much bigger voice in the running of the game, and prevent any chance of domestic clubs joining a breakaway European Super League.
“The regulator must be given the power to impose a financial settlement in the interests of the sustainability of the game as a whole. It is far too important to be left to the squabbling between the vested interests of the richest club owners.”
