Football regulator imminent as Rishi Sunak and EFL outline what Football Governance Bill means

Premier League and EFL clubs are set for a dramatic shake-up as the government introduced the Football Governance Bill to Parliament.

The proposals - once passed through the House of Commons and House of Lords - will establish an independent regulator in English football. A fan-led review, chaired by Tracey Crouch MP in 2021, concluded that a body free from the government or football or authorities would be needed to keep domestic clubs in check.

High-profile names like Gary Neville have supported the regulator following financial mishaps at clubs like Derby County, Bury, Reading, Coventry City and Macclesfield Town. The failed European Super League project and controversial owners were also triggers for the fan-led review.

The Bill outlined the regulator’s remit “to improve financial sustainability of clubs, ensure financial resilience across the leagues, and to safeguard the heritage of English football”. Strengthened owners’ and directors’ tests, blocking future breakaway leagues and a 10 per cent fine of club takeover for breaching monetary regulations.

Rishi Sunak welcomed the Bill ahead of its first reading in Parliament. He said: “Football has long been one of our greatest sources of national pride. Up and down the country, it brings people together in celebration or commiseration.

“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.”

The Premier League have previously opposed the regulator, insisting present football authorities are capable of governing the game themselves. However, controversy arose last week when 10 top-flight clubs walked away from a distribution deal to help those power down the pyramid.

It perhaps comes as no surprise that the EFL support an independent body, given the recent backdrop and several clubs suffering financial turmoil in recent years. Chief Rick Parry announced: “The EFL welcomes today’s 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.

“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.

“In recent years, we have been working with the government and across Parliament on a cross-party basis. It is clear there is an appreciation of just how important professional Clubs are to their communities and why they must be protected.

“We are pleased that the government has stated its commitment to the State of the Game Review which will provide the basis for the Independent Regulator’s work in making the game financially sustainable. The League looks forward to contributing to that Review while simultaneously working with EFL Clubs, Parliamentarians and officials to ensure that the Football Governance Bill is fit for purpose and can deliver the best regulatory regime to safeguard our game for generations.

“Finally, on behalf of the EFL I would like to thank MPs, Peers, fans and all those who have helped get the Bill to Parliament and we will continue to work collaboratively in the months ahead.”