New Regulator to Govern English Football
Author:
Megan Butler
The UK government has announced plans to create an independent regulator to protect the long-term future of English football. Following the recommendations of a fan-led review last year, the new watchdog will block clubs from joining breakaway leagues, give fans a greater say in the running of clubs and seek to prevent financial failings. The move has largely been welcomed by fans and those within the sport.
The introduction of a regulator aims to combat challenges within the sport, including financial instability and breakaway leagues.
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More Power to Fans
The Department for Culture, Media and Sport has published a white paper outlining greater protections for English football. The move follows a fan-led review carried out last year after a number of crises within the sport. The review, led by former sports minister Tracey Crouch, has led to one of the most significant transformations in football’s governance since the formation of Sheffield FC in 1857.
A new independent regulator will be set up to oversee the men’s elite game, for the first time ever. The regulator will be tasked with overseeing the financial sustainability of the game and return more powers to fans concerning how football is run. A new licensing system will be implemented, covering all clubs from the top flight to the National League.
Clubs will now be required to show robust business models and corporate governance as part of an application process before being allowed to compete. Club owners and directors will be subject to new tests to ensure thorough financial planning and due diligence on sources of wealth.
Fans will benefit from the changes too, gaining a greater say in the running of their favorite clubs. This will include safeguards to protect the heritage of clubs and prevent owners from changing club names, shirt colors and emblems without fan consultation. Clubs will also have to attain approval from the regulator before any sale or relocation of stadiums, a process that fans will have a say in.
The regulator will have the power to stop clubs from jumping ship to new competitions that don’t meet its criteria. Both fans and the FA are to be consulted in this process. The new watchdog’s criteria could include steps to prevent clubs from taking part in breakaway competitions deemed harmful to the domestic game, such as the European Super League.
Financial Challenges
Announcing the white paper, the government department explained why radical transformations to football’s governance were judged to be so necessary. English football is one of the UK’s greatest cultural exports. The Premier League is the most watched football league in the world and is broadcast to an international audience of up to 4.7 billion people.
The government is keen to protect the long-term future of the game, which has been threatened by a wide range of issues in recent years. Speaking on the publication of the new paper, Prime Minister Rishi Sunak promised to put fans back at the heart of football and protect the rich heritage and traditions of clubs. Sunak added:
“Since its inception over 165 years ago, English football has been bringing people together, providing a source of pride for communities and inspiration to millions of fans across the country. Yet despite the success of the sport both at home and abroad, we know that there are real challenges which threaten the stability of clubs both big and small.”
In 2019, the Conservative party committed to delivering a fan-led review of football governance as part of its election manifesto. The government was already facing pressure to address failings in the sport, after historic clubs Bury and Macclesfield Town went out of business. Both clubs were mismanaged and were two of 64 clubs that have gone into administration since the launch of the Premier League in 1992.
In 2021, six top flight English clubs announced plans to form a European Super League. The move was widely condemned by fans, UEFA, the Premier League and former Prime Minister Boris Johnson. The clubs were forced to back down in the following days after facing accusations of financial greed and harm to the integrity of the game.
Positive Reception
The government’s report has also cited concerns of continuing financial risk in the leagues. Despite the global success of English football, the combined net debt of clubs in the Championship and Premier Leagues was estimated to have reached ￡5.9 billion at the end of the 2020/21 season.
During the same season, Championship wage-to-revenue ratios were averaged at 125%. Clubs were evidently stretching themselves beyond their means. Recent months have seen a number of clubs fail to meet their payroll. Last year, Derby County FC was close to liquidation before eventually being bought by East Midlands property developer David Clowes.
The leagues are still plagued by financial challenges, an issue the new regulator will have to address. The government stated that a solution led by those running the leagues and their clubs remains its preferred outcome. However, if football authorities are unable to reach an agreement, the regulator could be forced to step in.
In addition to ensuring that club directors exhibit good financial practices, the regulator will improve governance by introducing a Football Club Corporate Governance Code. The government will also review the existing visa system for English football. It will aim to balance attracting top global talent with support for the development of young domestic players from the grassroots level.
The white paper has largely been welcomed, although some concerns have been raised. The Premier League said that it appreciated the government’s commitment to protecting the its success, but warned that regulation should not damage the game or its ability to attract investment and interest.
Labour praised the decision to introduce an independent regulator but criticized the slow pace of change, urging the government bring forward legislation. Appearing on BBC Newsnight, co-owner of Crystal Palace Steve Parish said that there would be many details left to work out. Parish stated:
“It is unprecedented, we will be the only sporting industry to be regulated by the government. Of course, there is a lot of fantastic broad brushstrokes in the press release and the white paper, but the devil will be in the detail.”
