Season › 2024-25 › General Forum Independent Football Regulator Bill reintroduced By Michael Kenrick 24/10/2024 17 Comments [Jump to last] The new Labour government are set to introduce an amended version of the Football Governance Bill in the House of Lords today. It includes the establishment of an independent regulator in an effort to tackle excessive and reckless risk-taking in the game, as well as clubs deemed to be “living way beyond their means”. Proposals for a new body to oversee elite football in the UK were championed by former Conservative sports minister Tracey Crouch, who led a government-backed fan-led review into the industry. The original legislation was formulated under the previous government but was not ratified before the general election. The Labour government has made a series of changes to the bill in an attempt to address systemic problems seen in the sector. Despite generating billions in revenue every year, football clubs consistently post losses to avoid paying tax, with reliance placed on funding from rich owners to keep the cash flowing. “For too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending," Culture Secretary Lisa Nandy said on Wednesday. “This bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.” The regulator will be handed powers over payments that the Premier League makes to clubs that are relegated from the top flight to the Championship in England. The Premier League and the EFL have clashed over the way the top flight should redistribute revenue to the rest of the football pyramid. The regulator will have “backstop” powers to “mediate a fair financial distribution” if the Premier League and the EFL are unable to reach an agreement. But the requirement for the incoming Football Regulator to consider government foreign policy in club takeovers has been dropped from the new Bill. Under the previous version, prospective takeovers by overseas buyers would have been required to tally with British foreign policy, for instance, to prevent rogue states from buying Premier League teams. The Premier League has defended “parachute payments” — worth tens of millions a year to an individual club — for encouraging teams to invest in their squads to ensure they are competitive. However, the English Football League has said payments skew competition and incentivise other clubs to overspend in order to keep up with those in receipt of the payments. In response to the update, the Premier League reiterated its concern about the regulatory framework: “We believe rigid banking-style regulation, and the regulator’s unprecedented and untested powers to intervene in the distribution of the Premier League’s revenues, could have a negative impact on the League’s continued competitiveness, clubs’ investment in world-class talent and, above all, the aspiration that drives our global appeal and growth.” Reader Comments (17) Note: the following content is not moderated or vetted by the site owners at the time of submission. Comments are the responsibility of the poster. Disclaimer () Michael Kenrick 1 Posted 24/10/2024 at 12:05:42 I think I'd be curious of the extent to which the regulator will be able to interfere with or correct the internal running of an individual club, especially their financial structure? Such as in the case of the PSR problems we have had. When we've had this discussion before, some posters have seen the regulator as coming in to ensure that each club is 'run properly' — whatever that might mean. Whereas — apart from the fan involvement stuff, which Everton have pioneered to their credit through early establishment of the Fan Advisory Board — most of the chatter relating to parachute payments and the redistribution of Premier League monies down to the pyramid are broad generalities. Brian Harrison 2 Posted 24/10/2024 at 12:43:38 Michael,I haven't read the bill and have only heard brief outlines as to what the independent regulator can and can't do. I think that if anybody believes this is the panacea of all financial as well as other problems, they may well be disappointed. So they have ruled out the regulator being involved in rogue nation-states controlling yet more clubs. The bill apparently says it will mediate between Premier league clubs and the English Fotball League as to how much of the Sky cake will be given to the lower leagues… well, good luck with that one. The Premier League have never shown any appetite for giving the lower leagues a bigger share of the cake, and the way that grassroots football has been treated in all this is shameful. The fit and proper test has seen so many clubs get into financial difficulty would suggest that needs a massive overall, and I wonder if Gary Neville's idea of a bond signed by prospective owners to guarantee that they can't leave the club in a worse financial state than when they took over will be looked at by the independent regulator? Maybe if this bond scheme could be introduced, so every owner of every club had to sign it, we could do away with FFP or PSR, as the main reason we were told for introducing these measures was to make sure owners didn't place their clubs in jeopardy by leaving the clubs with massive debts when the owner walks.As I say, I haven't read the bill but is there any legislation to have more fan involvement at board level? Michael Kenrick 3 Posted 24/10/2024 at 13:19:27 I found this in The Independent write-up:A licensing regime is also to be implemented in order to ensure a more consistent approach in how clubs from the Premier League to the National League are run, while monitoring finances.The devil being in the details, which should be spelled out in the text of the Bill, so I guess I will have to read it. Michael Kenrick 4 Posted 24/10/2024 at 14:39:35 Well, I pulled it up after lunch… and now I feel like throwing up! At first glance, the granting (or not!) of an operating licence to a club, and everything that goes with it, seems to be the central thrust of the proposed legislation. Talk about over-arching bureaucracy!For example, owner suitability (Section 28; Part 4):(2) An application under subsection (1) must be made in accordance with rules made by the IFR, which— (a) must require information about the following matters to be provided with an application— (i) the proposed operation of the club; (ii) the estimated costs of that operation; (iii) how those costs are to be funded; (iv) the source of such funding; Also, regulation of owners and officers (Section 26; Part 4): (7) An individual meets the “individual ownership fitness criteria” if the individual— (a) has the requisite honesty and integrity, and (b) is financially sound. (8) An individual meets the “officer fitness criteria” if the individual— (a) has the requisite honesty and integrity, (b) has the requisite competence, and (c) is financially sound.Completely out of context... but I think it gives a taste of what's in the 134 pages!!!House of Lords [HL] Bill 41: Football Governance Alan J Thompson 5 Posted 24/10/2024 at 15:06:57 Given the numbers wanting to look after the money, it's surprising anyone would get into financial difficulties. Peter Hodgson 6 Posted 24/10/2024 at 15:41:05 Initially I, along with many others, welcomed the reins being taken from Masters & Co. I still do but hope that there is much change from what I have read above as it reads as though a Dogs Dinner is being prepared for us all. If that is so it will be a case of from the frying pan and into the fire.I just can't see, if the extracts Michael has written here, being implementets withourt much revision. For example there are many Clubs that are not run properly, in cluding Everton, and this needs to be addressed but the wording used at the moment doesn't suggest to me that much is going to be done effectivly to address this problem.Further down the page the quote from The Independent A licensing regime is also to be implemented in order to ensure a more consistent approach in how clubs from the Premier League to the National League are run, while monitoring finances. must be spelled out Michael because as it is it mean absolutely nothing. It is all getting to sound like the Govt are going to talk alot but in reality not do very much except to throw the baby out with the bathwater. Finally the Bill says that in an application under subsection (1) for an Operators Licence it must be accompaned by answers to a list of requirements which, to be honest, is pure gobbledygook which can be answered in a thousand different ways (except those idiots who answer truthfully of course).It is a Dog's Breakfast and a Dog's Dinner as it stands. Niall McIlhone 7 Posted 24/10/2024 at 16:05:13 Some interesting points there, Michael (#1). The narrative coming out of the Premier League seems to me to be wholly defensive as regards any hint of government regulation. In short, Masters & Co think the Premier League is only a global success story because of their lack of external regulation; this stance is seemingly backed by the richest clubs (the usual suspects).Change is most definitely needed in the governance of the Premier League, as the utter nonsense we have seen in relation to points deductions has laid bare the inconsistencies that are in play. In order to move on from this, it would require all of the Premier League clubs to agree upon a set of clear, relevant and fair guidelines in relation to the financial rules, but it would appear that certain clubs will only vote for change if they see it is in their own interests? Fred Quick 8 Posted 24/10/2024 at 16:38:26 What other industry has to have a 'fit and proper' test for it's owners? If any individual or group has enough money to buy and fund a business, then it's on you go mate. Whilst a football club does occupy a special place in its local community, and some benefit those communities more than others, it should also be remembered that it is a business and has always been so. Imagine Tesco sharing with ASDA et al, how it manages to keep its costs low by having preferred suppliers or special deals in place to help beat its competition! It just doesn't happen, although there is perhaps some evidence that the big banks, supermarkets and others do 'share' some information when it comes to having similar price levels. The point is that all are individual businesses that succeed or fail by their actions; what makes football clubs any different? Raymond Fox 9 Posted 24/10/2024 at 17:02:37 Not for me.If governments start meddling with the game, it will all end in tears. Pete Neilson 10 Posted 24/10/2024 at 17:32:28 The government is/was already involved in the Man City case and was in the Newcastle takeover. Ultimately, I imagine it'll be more roles for chinless wonders and those that move in the right circles. And in the meantime, has Masters made any comment on the leaked Newcastle/Staveley WhatsApp messages suggesting that the buyout of the club hinged on the approval of Saudi Arabia's Crown Prince, Mohammed bin Salman? Confirming that the Premier League was lied to about the ownership? Not a peep. Don Alexander 11 Posted 25/10/2024 at 03:26:31 Our country has long been identified by £mega-billionaire shysters as a very accommodating recipient of their ever-growing money, to our cost. What else did you expect of current Toryism and the acquiescence of their bonkers voters?We have now since been the safest 1st-world country chosen by dubiously wealthy bastards to engage with in terms of expanding their businesses here for more profitable greed to themselves, to the cost of us citizens, pay and conditions having been dispensed with yonks ago by Government. (Zero-hours contracts, anyone? No, I agree with you!) Christine Foster 12 Posted 25/10/2024 at 05:18:45 I confess to being confused... lots of words and top level stuff but the devil is in the detail, which isn't there in plain English, or perhaps just isn't there yet. The original Government fact sheet produced under the Tories was thus:Fact sheet - the Independent Football Regulator (IFR)A good bit of polaticing and thumping of the dispatch box but short on what and how.But it is in contradiction with the Premier League, but what is deemed as the problem, who is responsible and how is it going to be sorted, is as clear as mud. The Independent Regulator can and will operate within a set of agreed rules to achieve a sustainable outcome for all clubs. That runs contrary to the actions of the Premier League who approach the rest of the game akin the Thatcherite trickle-down theory. Emphasis on trickle. What's mine is mine and you're not having it... too big for their boots perhaps but the "football" of the Premier League bears little relation to lower league clubs, the facilities, the rewards or hardships of players, fans or managers. The plight of Duncan Ferguson's Inverness Caledonian Thistle, where he was working for nothing and subbing the players' expenses, is a disgrace and he ends up out of work, players likely sold and the club in administration for the cost of one week's pay for just one of some Premier League players. It can't be right.I seem to remember somewhere that, when Kenwright wanted to give Bury money when they were in the same boat, he wasn't allowed to as it broke FA rules? Absurd, let them go to the wall!Masters is against it; well, that's no surprise, but that must mean so are the majority of clubs and owners in the Premier League... so exactly what difference is this IFR going to make? Danny O'Neill 13 Posted 25/10/2024 at 08:19:28 Michael, Christine, I agree, lots of high level words, with little substance. We used to have a saying when Generals briefed us. "Big hands, small map". Basically, we're going here and we're going to do this. Then we'd have to figure out the objectives and detail of how to deliver!!I've long called for the Premier League to be regulated. For too long they've been self-regulating. A bit like marking your own homework.But I too, am nervous about too much Government interference. I don't mind governance, but I fear the nanny state.Stepping away from football, having worked for several multi-national companies, I am used to regulation, adhering to compliance and being subject to annual internal and external audits.But on the flip side, any business, football or not, should have the freedom and flexibility to invest as they see fit. "Speculate to accumulate" as they say and there is always risk.If they mess it up, then it's on them. But if they succeed, they reap the benefits.On dispersion of monies to the lower leagues, I've long suggested that Premier League clubs could sponsor clubs and the English football could adopt the B Team model as happens in other European countries.Chester, Marine, Prescott, Southport. If we are going to send out young players on loan, in my opinion, it would make more sense to have them in one place, and with the Everton coaching staff assisting. It would provide consistency. Peter Mills 14 Posted 25/10/2024 at 08:46:36 Michael, Rick Stein said on telly last night “There are two things in life you shouldn't watch being made – sausages and laws”.Wise words. Jerome Shields 15 Posted 28/10/2024 at 05:02:11 Seems to be more about funds and distribution than regulation of foreign ownership and accountability. It looks like lobbying has worked. The football authorities will continue to apply their P&S rules. It may be ironic that they may have been deemed successful in Everton's case. Orginated by our former Chief Executive who did not know what she was doing. Michael Kenrick 16 Posted 28/10/2024 at 21:44:26 And we have to read utter bullshit headlines like this:Dan Friedkin will be 'alarmed' as £900M decision taken out of Everton's hands - Kieran MaguireWhat £900M is this, you might wonder? That's a lot of money. Is someone going to lock up the new stadium, perhaps?No, the £900M is the value of the Premier League pyramid payment to the EFL... the deal that was rejected!!! Not even 1/20th portion of it would even have come from Everton, although you could perhaps argue some of that might reduce prize money that could be due to Everton — and all the other Premier League clubs. What unadulterated bullshit. Jerome Shields 17 Posted 30/10/2024 at 06:55:31 I did see that headline, but did not click. Maguire and Wyness no thank you. 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