The Football Governance Bill is on the verge of becoming law in the UK, marking a significant shift in the regulation of English football. The bill cleared the Commons with a decisive 415 to 98 vote in favor at its third reading, demonstrating strong support from Members of Parliament. This paves the way for the establishment of an Independent Football Regulator (IFR) to oversee the top five tiers of men's football in England.
The primary objective of the IFR is to ensure the financial stability and sustainability of football clubs while holding them accountable to their fans and communities. The regulator will have the power to issue operating licenses to clubs, mandating compliance with financial and governance criteria. This includes providing financial documentation, adhering to a corporate governance code, and demonstrating a commitment to fan engagement and the protection of club heritage. The IFR will also have the authority to prevent clubs from joining unmeritocratic breakaway competitions, such as the proposed European Super League.
One of the key aspects of the new legislation is the IFR's "backstop" power to impose a financial settlement between the English Football League (EFL) and the Premier League if they cannot reach an agreement on their own. This intervention mechanism aims to address the long-standing issue of revenue distribution within English football and ensure that funds are allocated fairly across the football pyramid.
The creation of the IFR follows the independent Fan-Led Review of Football Governance, commissioned in April 2021, which sought to improve the governance, ownership, and financial sustainability of football clubs. The review's recommendations were reiterated in a subsequent White Paper, which received broad cross-party support. The establishment of an independent regulator was a key proposal aimed at preventing widespread financial failures and protecting fans and communities from the resulting social and economic damage.
The IFR will operate independently but must adhere to certain regulatory principles outlined in the bill. These principles include acting proportionately, considering the specific circumstances of clubs, and working collaboratively with the football industry. The government will appoint the chair and non-executive directors of the IFR. David Kogan, a media rights expert with extensive experience in the sports and television industries, is the government's preferred candidate for chair. Kogan's appointment is subject to pre-appointment scrutiny by MPs.
The IFR will have a range of enforcement powers to ensure compliance with its rules and decisions. These include issuing censure statements, appointing individuals to assist in running clubs, imposing financial penalties (up to 10% of a club's revenue), seeking court injunctions, and suspending or revoking a club's operating license. The IFR is expected to begin its work in autumn 2025. In addition to financial regulation, the IFR will promote fan engagement by requiring clubs to report on their corporate governance arrangements and how they are applying the code of practice developed in partnership with stakeholders. Clubs will also be required to publish information on their actions related to equality, diversity, and inclusion, as well as their contribution to the economic and social well-being of their local communities.
During the Bill's report stage, there were some debates and rejected proposals. Calls from Conservatives to consult on ending the alcohol ban in football stands were rejected, as were attempts to demand broadcasters show a minimum number of Premier League matches on free-to-air television.
