Football fans and their clubs will be given greater protections under a radical transformation of the rules governing how football is run in England
For the first time, a new independent regulator for the men’s elite game will be established in law to oversee the financial sustainability of the game and put fans back at the heart of how football is run.
The regulator will implement a new licensing system from the top flight down to the National League, requiring clubs to demonstrate sound financial business models and good corporate governance as part of an application process before being allowed to compete.
It will guarantee fans a greater say in the strategic running of their clubs and help protect clubs’ heritage to stop owners changing names, badges and home shirt colours without consulting fans. It will require clubs to seek regulator approval for any sale or relocation of the stadium, with fan engagement a major part of that process.
There will be new tests for owners and directors, ensuring good custodians of clubs, stronger due diligence on sources of wealth and a requirement for robust financial planning.
The regulator will have the power to prevent English clubs from joining new competitions that do not meet a predetermined criteria, in consultation with the FA and fans. That criteria could include measures to stop clubs participating in closed-shop breakaway competitions which harm the domestic game, such as the European Super League.
The English game remains one of the UK’s greatest cultural exports, with clubs and leagues around the world modelling themselves on its success. That is why the Government is today taking the necessary and targeted steps to ensure that continues for generations.
The move follows the Government’s 2019 manifesto commitment to deliver a fan-led review of football governance, in light of the failings at historic clubs such as Bury and Macclesfield Town which went out of business as a result of mismanagement. Those clubs are among 64 instances of a club being put into administration since 1992, when the Premier League was launched.
More recently, in 2021, plans for a breakaway European Super League by a select group of Premier League and other European elite clubs were shelved after widespread public condemnation and action from the Government and football authorities.
There continues to be serious financial risk in the leagues. Despite the global success of English football, the combined net debt of clubs in the Premier League and Championship had reached £5.9 billion by the end of the 2020/21 season.
In the same season, the Championship reported a wage-to-revenue ratio average of 125 per cent – meaning clubs were stretching themselves far beyond their means – and in recent months multiple clubs throughout the leagues have failed to meet their payroll. Derby County FC found itself on the brink of liquidation last year, and indications are that things continue to deteriorate across the leagues.
Sports Minister Stuart Andrew said:
My first major meeting as Sports Minister was with football fans. I heard how some clubs had suffered at the hands of owners who used and abused their stewardship.
Without fans, football clubs are nothing. That is why today we are putting fans back at the centre of football governance, and creating a stronger foundation for the continued growth and success of English football.
This new independent regulator will create an even stronger Premier League, English Football League and National League, so our pyramid of elite football remains the envy of leagues the world over.
Chair of the Fan Led Review of Football Governance Tracey Crouch CBE MP said:
This is a big day for football in this country and I am delighted the Government has acted on the key strategic recommendations in my review.
The introduction of a new independent regulator of football will strengthen our incredible pyramid, giving investors, fans and communities confidence in the governance of our clubs, enabling them to thrive in the best leagues in the world.
Football is nothing without its fans, and the announcement today will ensure they remain at its heart while it continues to grow at home and abroad.
Chief Executive of the Football Supporters Association Kevin Miles said:
The Football Supporters Association engaged in the fan-led review from day one and we warmly welcome the historic commitment from the Government to introduce an independent regulator of English football.
The football governance white paper clearly addresses our key concerns around ownership, rogue competitions and sustainability and of course we support any proposals that offer fans a greater voice in the running of their clubs.
We look forward to engaging with the Government on the next steps.
