Landmark Football Governance Bill set to be introduced to Parliament

The regulator's powers will be confirmed when the Football Governance Bill is introduced to Parliament on Tuesday. 

The Government has previously warned football authorities the regulator would have ‘backstop powers’ to intervene. 

A Government announcement on the Bill said: “These powers mean that if the leagues fail to agree on a new deal on financial distributions, then the backstop can be triggered to ensure a settlement is reached." 

Details over the point at which the powers would be triggered – and what those powers would look like – have not yet been confirmed.

EFL chairman Rick Parry's statement reads: "The EFL welcomes the arrival of the Football Governance Bill to Parliament in what we hope will be an important milestone to help us secure the long-term financial sustainability of England’s football pyramid.    

EFL chairman Rick Parry welcomes powers given to an independent football regulator (Image: PA)

“If delivered on the right terms, this landmark legislation can help fix the game’s broken financial model by offering the independent input ultimately needed to help ensure that all clubs can survive and thrive in a fair and competitive environment.  

“The establishment of the independent football regulator will be at the heart of this reform, and we are encouraged that the regulator will be given backstop powers to deliver financial redistributions should the game be unable to agree a deal itself." 

Saints CEO Phil Parsons has been vocal in favour of reform in discussions with league members and has lobbied Prime Minister Rishi Sunak during the process. 

PA Media reports the Government said in a consultation response last September that one possible option was binding final offer arbitration.

Under that system, the two leagues would each submit their proposal for the regulator to assess against predetermined criteria.

The regulator would then choose and impose one as the binding arrangement.

There had been hope that the Premier League’s clubs would make a formal offer to the EFL at a meeting last Monday.

No offer was made and the Premier League said its clubs were focused on agreeing new financial rules for the top flight first. 

A new Premier League statement issued in response to the Bill reads: “The Premier League will now study the Football Governance Bill, working closely with Government, parliamentarians and key stakeholders.

“We agree it is vital that football clubs are sustainable, remain at the heart of their communities and that fans are fundamental to the game.”

The Football Supporters’ Association said: “The regulator provides a means to intervene and stop clubs being run into the ground, protect the heritage of clubs. (Image: PA)

Top flight clubs had been accused by Culture, Media and Sport select committee chair Dame Caroline Dinenage of making an “empty promise”.

The EFL said it was “clearly disappointed” at the “repeated failure” to put forward any new funding offer.

Premier League sources insist the EFL pushed back on 15 separate points when they made a proposal covering increased funding and cost controls to the EFL last September.

Parry told MPs in January that the funding offer under discussion would give his competition 14.75 per cent of the net media revenues earned by the EFL and the Premier League, projected to be worth an extra £900million to the EFL over six seasons.

The new regulator’s primary purpose will be to safeguard the financial sustainability of clubs in England through a licensing system.

This will cover clubs from the National League up to the Premier League. The Government said the regulator will have the ability to fine clubs up to 10 per cent of turnover for non-compliance.

It will also have the power to block clubs from competing in unapproved competitions.

Outrage was caused among fans when six of England's top clubs sought to form a European Super League in April 2021.

The Government intends the regulator’s licensing regime to be “proportionate” and said it will involve a system of provisional and full licences, to give clubs time to transition.

It adds the regulator will have the power to assess prospective new owners and directors and disqualify them where they persistently or deliberately fail to comply with licensing conditions.

PM Sunak said: “For too long some clubs have been abused by unscrupulous owners who get away with financial mismanagement, which at worst can lead to complete collapse – as we saw in the upsetting cases of Bury and Macclesfield Town.

“This Bill is a historic moment for football fans – it will make sure their voices are front and centre, prevent a breakaway league, protect the financial sustainability of clubs, and protect the heritage of our clubs big and small.”

Labour’s shadow culture secretary Thangam Debbonaire added: “We’ve long been calling for an independent regulator for football to give fans a greater say in the way their clubs are run, tackle poor governance and prevent bad-faith ownership.

“The new regulator must robustly defend the interests of fans and ensure the financial sustainability of the football pyramid.

“We will scrutinise the proposals of the Bill carefully and work to ensure the new regulator has the powers it needs to protect clubs."