- New powers in the Bill deliver manifesto commitments and include consulting fans on ticket pricing, home stadium relocations, and fan representation at clubs
- Parachute payments included in Regulator’s remit so it will have full oversight to tackle financial sustainability across the football pyramid
- Requirement to consider government foreign policy dropped to cement regulator’s full independence
The Government will take its first step to address the significant issues facing the financial sustainability of elite men’s football in England today [Thursday 24 October], with the introduction of a strengthened Football Governance Bill in the House of Lords.
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. In recent years we’ve seen the devastating impact of the collapse of clubs like Bury and Macclesfield. These cases came about as a result of fundamental governance problems in the game that have led to excessive and reckless risk-taking, with many clubs living way beyond their means.
The Bill, which delivers on the Government’s manifesto commitments, will establish an Independent Football Regulator and a new set of rules to protect clubs, empower fans and keep clubs at the heart of their communities.
The Regulator will tackle rogue owners and directors, implement a club licensing regime to help ensure a more consistent approach in how clubs are run, monitor club finances and improve fan engagement throughout the football pyramid – from the Premier League to the National League. It will also have a backstop measure to mediate a fair financial distribution down the Leagues should the Premier League and EFL (English Football League) not be able to come to an agreement.
In major changes to the previous draft of the Football Governance Bill:
- The Regulator will now explicitly require clubs to provide ‘effective engagement’ with their supporters on changes to ticket prices, and any proposals to relocate their home ground.
- The singular carve out of parachute payments in the previous draft of the Bill has been dropped. The Regulator will now be given the remit to include parachute payments, through the backstop mechanism, when assessing finances across the game. Excluding these payments, would have significantly reduced the ability of the Regulator to take a full view of financial stability and resilience across the football pyramid.
- The Regulator will no longer be required to consider government foreign and trade policy when approving club takeovers. The move ensures the Regulator will be fully independent of government and industry.
- The Regulator will now have the power to compel clubs to democratically select the fan representatives the club must engage with, rather than clubs making a unilateral decision. This will ensure meaningful engagement with as many supporters of a club as possible.
- There is now a clear commitment to do more to improve Equality, Diversity and Inclusion (EDI) within the game. Clubs will now be required to be transparent and publish what action they are taking on EDI as part of reporting against a new Football Club corporate governance code that the regulator will introduce, improving decision making at clubs.
The Government has made it a priority to strengthen the Bill since taking office, ensuring English football remains one of the country’s greatest exports, and places fans back at the heart of the game, so that local clubs in towns and cities continue to thrive for generations.
Culture Secretary Lisa Nandy said:
English football is one of our greatest exports and a source of national pride which this Government wants to see thrive for generations to come.
But for too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending.
This Bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.”
Sports Minister Stephanie Peacock said:
Football would be nothing without its fans, and this strengthened Bill will deliver an Independent Regulator that puts them firmly back at the centre of the game.
From protecting club heritage such as shirt colours and badges that mean so much to so many of us, to requiring clubs to consult fans on changes to ticket prices, the Regulator will help make the game the best it can be.
Working side by side with the football authorities, the Regulator will protect clubs and make sure they’re kept at the heart of their communities, where they belong.
Kevin Miles, Chief Executive of the Football Supporters Association said:
Earlier this year 200+ supporters’ groups signed an FSA open letter calling on all parties to get behind a new Football Governance Bill – we’re very pleased the Government has listened and look forward to working with Parliamentarians to ensure the Bill delivers upon its promise.
The FSA was at the heart of 2021’s Fan-Led Review of Football Governance which made a range of recommendations to strengthen the game’s governance – most notably the commitment to introduce an independent regulator.
The regulator has the potential to protect our historic community clubs and stop the being run into-the-ground by bad owners, rebalance the game’s finances, protect the heritage of all clubs, give supporters a bigger say in the running of the game and block any domestic clubs from joining a breakaway European Super League. The FSA wholeheartedly backs its creation.
Dame Tracey Crouch, author Fan Led Review of Football said:
For far too long fans have been at the back of the queue when it comes to their beloved football club. Football means so much to millions of people and I’m grateful the Government is taking action to protect football from the threats of rogue owners and breakaway competitions.
The protections in the new Bill reflect the Fan Led Review’s recommendations that supporters should be placed back at the heart of the game and will have a genuine say on things like ticketing and club heritage.
The Independent Football Regulator will crucially help put clubs on a sustainable financial footing and help secure our national game’s long term future.
Former Manchester United and England player, football pundit and co-owner of Salford City FC Gary Neville said:
Football is undoubtedly one of our country’s greatest assets, but now more than ever we need an independent regulator to act as a guardian for our game, to make sure that clubs and their fans are protected for the long term.
I’ve had the honour of experiencing football as a fan, player, pundit and now as a club co-owner, but I know my role is to act as a temporary custodian of an institution that belongs to its fans and community which will last forever.
Football is too important in this country to be left solely in the hands of individual owners to design its future. We’ve seen inequality across the game grow but now independent regulation can act as a catalyst to create a thriving and sustainable game for future generations.
The new legislation echoes the sentiment from fans on the need for systemic change in football, as set out in Dame Tracey Crouch’s Fan Led Review of Football. While retaining many of the key findings, the Government believes the new Bill builds on these and delivers a stronger independent regulator for men’s elite football in England.
Notes to editors:
- The Fan Led Review of Football Governance can be found here.
- Parachute payments will be assessed only if the Regulator considers them to be of systemic risk to financial sustainability. The Football Governance Bill will require clubs to continue to be protected from the risks that come with relegation.
