The UK will establish an independent football regulator for England’s Premier League and lower divisions, to protect the financial health of smaller clubs and prevent the biggest teams from joining breakaway tournaments.
Prime Minister Rishi Sunak included a Football Governance Bill in his government’s legislative agenda, announced by King Charles III on Tuesday. Bloomberg first reported in July that legislation to set up the football regulator would feature in the King’s Speech.
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The collapse of historic clubs such as Bury FC and Macclesfield Town in recent years prompted a government-backed review of English football.
Each team in the top five tiers of men’s English football will now need a license to operate as a professional club, according to an overview of the bill. The regulator will have powers to monitor and enforce compliance with financial regulation requirements, corporate governance and club ownership. Clubs will need to seek the regulator’s approval for the sale or relocation of its stadium.
The King’s Speech marks an attempt by Sunak to set-out his priorities for the run-up to a general election expected next year. Appearing to be on the side of football fans, after a number of local clubs collapsed in recent years, forms part of his pitch to voters as he continues to trail Keir Starmer’s Labour Party by about 20 points in opinion polls.
Still, plans for the regulator to start its work in 2024 may be pushed back, Bloomberg previously reported. A recent job advert for the interim Chief Operating Officer for the regulator, reported by The Athletic, showed the government will pay a maximum salary of £128,900 per year.
The new regulator has also faced opposition from football executives, with Leeds United Chief Executive Angus Kinnear comparing it to Maoism.
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Sunak’s administration will also establish a compulsory governance code and prevent clubs from joining breakaway leagues, after an attempt to set up a European Super League in 2021 threatened the success of the English Premier League. It will also create a new test for owners and directors to guard against mismanagement and require clubs to seek fan support for changes to the club’s badge, name and home shirt colors.
The historical dominance of England’s most financially powerful teams, such as Manchester United, Manchester City, Liverpool and Arsenal, has disguised the underlying fragility of the English football pyramid, the government argues. Poor governance and industry self-regulation has increased the risk of financial failure of clubs, with Championship teams making collective pre-tax losses of over £3 billion ($3.7 billion) between 2010 and 2022, with levels of borrowing and debt increasing.
The regulator will also be able to intervene to redistribute broadcast revenue between clubs if leagues do not reach voluntary agreements, to ensure smaller teams remain financially sustainable.
