The Football Governance Bill introduced to Parliament – what does it look like?
The Government introduced a strengthened version of the Football Governance Bill to the House of Lords to better codify the role of the Independent Football Regulator. It would also serve to introduce a new regulatory regime for men’s football.
Some key elements:
- the establishment of an independent football regulator
- strengthened ownership and directors’ tests, with sanctions available to deal with individuals deemed unsuitable.
- restrictions on clubs operating teams in prohibited competitions or changing aspects of the club’s heritage without fan approval. This will signify effective engagement for supports and acknowledges how vital the fanbase are to a club’s ecosystem. The IFR now has the authority to compel clubs to democratically select fan representatives, rather than unilaterally doing so, to ensure that individuals from all backgrounds can influence decisions.
- setting out a process for agreeing the distribution of revenue throughout the football pyramid if disputes arise.
- expanded financial oversight to Parachute Payments –the inclusion of parachute payments within the IFR’s financial oversight remit. Parachute payments, considered to reduce the financial impact of relegation, are funds distributed to clubs relegated from the Premier League to the Championship. The inclusion is set to function under a ‘backstop mechanism’, allowing the IFR to review and control parachute payments only if the regulator perceives them to be a “systemic risk to financial sustainability”.
- Dropping the previous proposal that the Regulator consider government foreign and trade policy when approving club takeovers – such a requirement would have risked political interference in football, undermining the key concept of an independent regulator. UEFA expressed recent concerns over the IF, threatening to ban England from Euro 2028 if the UK government continued with unchanged plans for the IFR. IFR can now act solely in the interests of the sport.
- promoting Equality, Diversity, and Inclusion (EDI) with new transparency measures - mandating that clubs publish their actions and progress on Equality, Diversity, and Inclusion to facilitate a more inclusive environment in football.