An important development in the progress of the Football Governance Bill was announced overnight and this morning with the UK government revealing its plans to strengthen and enhance powers / the remit of the independent football regulator.
This announcement is significant and consequential. In July, the government confirmed that it would support and push the Bill through Parliament, the announcement today confirms that it will do so but with the addition of material changes and modifications.
Football Governance Bill – what are the proposed changes?
One of the key changes confirms the doomed fate of one of the most controversial proposed sections of the original Bill (previous clause 37). If adopted in its original form this would have compelled the regulator to “have regard to the foreign and trade policy objectives” of the UK government when considering the suitability of new owners.
The removal of this section clearly seeks to address any concerns as to the potential compromising of the regulator’s ability to operate independently. Interestingly the government indicated this morning that it came under pressure from UEFA to remove this to reduce the risk of or perception of state interference with English football and as a condition of participation of English teams in UEFA competitions.
What are the objectives of the proposed changes?
The key objectives of the further changes are, according to the government, with the protection of the game, fans and club heritage in mind. A few notable examples:
- There will be an obligation to consult with fans on legacy issues (such as kit change, stadium relocation etc), but interestingly no veto right for fans.
- The regulator will require clubs to engage with fans on ticket prices.
- The issue of parachute payments will be considered and included in the remit of the regulator when assessing financial stability in the football pyramid (this issue was excluded from the original Bill).
Whilst the changes amount to adapted modifications of the existing Bill, they are unquestionably significant. Opening the door to the regulator having the opportunity to assess the role and impact of parachute payments in terms of risk to financial sustainability feels particularly seismic in terms of expanding its scope and remit.
How will be the proposed changes be received?
The changes and enhancement of powers/remit of the regulator may deepen the (reportedly) polarised positions of the Premier League and the EFL on the question of the need for greater regulation. The EFL and many professional football clubs in the lower tiers of the English Football League largely support increased and tighter regulation of the game, particularly focusing on financial redistribution arrangements and ownership competency rule changes.
However, the Premier League and many of its member clubs are concerned that stricter “banking-style” regulations (as stated by Premier League Chief Executive Richard Masters in April 2024) could have a negative impact on a globally revered and admired product.
It is understandable that Premier League member clubs, i.e. those clubs benefitting from financial stability and the consequences of their status in terms of lucrative revenue from TV deals, are likely to be more cautious about proposed change. However, it is difficult to deny that there is an urgent need for additional and effective regulatory measures to protect the game and the fan experience with recent crisis cases, particularly affecting clubs in the lower leagues, in mind.
The task for the government and regulator (once established) will be to implement effective rules and practises to protect vulnerable clubs and at the same time ensuring that action taken is proportionate to ensure the continued commercial and operational success of the Premier League and those at the top of the pyramid.
Moore Barlow – sports law specialists
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