Strengthened Football Governance Bill Launched
The Government is taking its first step to address the significant issues facing the financial sustainability of elite men’s football in England with the introduction of a strengthened Football Governance Bill in the House of Lords.
With significant issues facing the financial sustainability of elite men’s football in England the introduction of a strengthened Football Governance Bill in the House of Lords was launched in October.
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.
Delivering on the Government’s manifesto commitments, the Bill 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.
Speaking, 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.”
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, added: “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.”
