The government is set to introduce strengthened legislation in Parliament to establish an independent regulator for elite men's football in England. This new Football Governance Bill will grant
the regulator additional powers, including addressing the Premier League's controversial multi-million-pound "parachute payments" to relegated clubs.
A key feature of the bill is the requirement for football clubs to engage meaningfully with fans on significant issues like ticket pricing and potential ground relocations. The regulator will no longer be obliged to consider government foreign and trade policies when approving club takeovers, and there is a firm commitment to improving equality, diversity, and inclusion (EDI) in football.
The bill is being introduced in the House of Lords on Thursday to expedite its passage, having initially been tabled in March but stalling when the general election was called in May. With significant changes, the Labour government aims to broaden the regulator's oversight, covering clubs across the top five tiers of English football.
Culture Secretary Lisa Nandy said: "For too long, financial instability has put clubs, fans, and communities at risk due to mismanagement and reckless spending. This bill is designed to shift the balance, prioritizing fans and helping secure the financial health of clubs."
The Premier League acknowledged that parts of the bill could strengthen English football but expressed concerns about the new regulatory framework. It warned that "rigid, banking-style regulation" could harm competitiveness, limit investment in talent, and threaten the global appeal of the league.
What does the bill say about parachute payments?
The bill empowers the regulator to mediate financial disputes between the Premier League and the English Football League (EFL) regarding funding redistribution. Notably, it now includes provisions to address parachute payments, which were initially excluded. These payments, worth millions, are given to relegated clubs, and the EFL argues they distort competition. The Premier League, however, views them as essential for ensuring investment in clubs.
If the payments pose a "systemic risk to financial sustainability," the regulator will step in. However, the bill maintains protections for clubs facing the financial impact of relegation.
Other key elements of the bill
In a significant shift from the original draft, the regulator will no longer need to consider the UK's foreign and trade policies in takeover decisions. This change is intended to reinforce the regulator’s independence. The bill also removes concerns that government involvement in football regulation could interfere with international tournaments like the European Championship.
The regulator will ensure clubs involve fans in critical decisions, such as ticket pricing. This comes as fan groups across the Premier League prepare to protest rising ticket costs as part of the #StopExploitingLoyalty campaign.
Furthermore, the bill addresses concerns about underrepresentation in football. Although previous legislation was criticized for not doing enough on this front, the new bill requires clubs to publish their efforts to improve EDI. Data from the Black Footballers Partnership (BFP) highlights that while 43% of Premier League players are Black, only 4.4% of management roles and 1.6% of leadership positions are held by Black individuals.
BFP executive director Delroy Corinaldi cautiously welcomed the bill but emphasized that more needs to be done beyond merely reporting data.
EFL chairman Rick Parry expressed support for the bill, stating that it would help ensure financial sustainability across the football pyramid. He added that the league would closely examine the details, particularly regarding the regulator's role in financial redistribution.
Niall Couper from the Fair Game campaign praised the improvements in the new bill but emphasized the need for fair financial distribution within the game. Photo by Christopher Bruno, Wikimedia commons.