MPs have voted to back the Football Governance Bill and establish an independent regulator to oversee the men's game in England's top five divisions.
They voted by 415 to 98 to pass the bill at its third reading in the House of Commons. It now looks set to gain Royal Assent, and thus become law, before Parliament closes for summer recess on 22nd July.
The Football Supporters Association has produced an overview:
"There’ll be better supporter engagement, more blocks on unsuitable owners and increased financial and club heritage protections. On top of that it’ll stop any domestic club from entering a breakaway European Super League."
For those who want more detail:
1. Purpose and overview
The Act’s purpose is to protect and promote the sustainability of English football, so that it continues to serve the interests of fans and contribute to the economic or social well-being of the local communities served by football clubs. It covers the Premier League, the EFL and the National League, although it can be expanded to cover more tiers and competitions if that becomes necessary.
6. The IFR’s main objectives are:
- (a) to protect and promote the financial soundness of regulated clubs
- (b) to protect and promote the financial resilience of English football
- (c) to safeguard the heritage of English football
It should cooperate with clubs, owners, competition organisers, and players and fans. This additional provision has been added after intense lobbying by the FSA.
The IFR must publish a report on the state of English football including an overview of the main issues affecting the game. The first State of the Game report must be published within 18 months of the Act passing and then at five year intervals.
A core function of the IFR is a licensing system. When clubs apply for a provisional licence they must identify the club’s ultimate owner and senior officials. The IFR can revoke provisional licences if its tests are not met by recalcitrant owners.
Prospective owners must provide information on the proposed operation of the club; the estimated costs of that operation; how those costs are to be funded; the source of such funding and more.
In extreme examples the IFR has the power to bring about a change in club ownership.
Section 45 prevents clubs from taking part in “prohibited competitions.”
The IFR must look at whether the competition is merit-based, operates on the basis of fair and open competition, jeopardises relevant competitions, or harms the heritage of English football. The proposed European Super League would have failed this test and thus domestic clubs could not have entered.
Before prohibiting a competition the IFR must also “take reasonable steps to determine the views of fans in England and Wales of regulated clubs”. The FSA will engage with IFR on precisely how such consultation should be carried out but it is broadly to be welcomed.
Clause 46 restricts owners from using grounds as security for a loan or other liability. The IFR has final approval and must be satisfied that such a move “would not undermine the financial sustainability of the club”.
Clause 48 offers some protection regarding ground relocation and, although fans will not have an absolute veto, the club must show that it has consulted supporters and taken their views into account.
Clause 49 stops clubs from changing their emblem or crest or predominant home shirt colours without taking reasonable steps to establish that those changes are supported by a majority of the club’s fans in England and Wales. Changes to club names require the approval of the FA, which has rules requiring fan consultation.
If competition organisers (e.g. Premier League and EFL) fail to agree on revenue distribution the IFR can intervene in relation to domestic competition revenue.
This puts parachute payments into the scope of the Act – which is something we lobbied in favour of – as it was not part of the previous Football Governance Bill launched under the Conservative Government.
There is a complex mediation process to work through before IFR intervention and this process would be triggered by a competition organiser rather than the IFR. At the end of the mediation process, if no deal has been reached, IFR must then invite the competition organisers to submit proposals with supporting evidence.
The IFR then has the power to implement its own proposal for distribution of revenue if it thinks it is more likely to promote delivery of its statutory objectives than either of those received from the competition organisers. A reminder that those objectives are to protect the financial resilience and heritage of the game.
The IFR can conduct investigations where it has reasonable grounds for suspecting that a person has committed an infringement. Section 78 makes it a criminal offence to destroy or falsify information, punishable by fines and up to two years imprisonment.
Section 18 sets out what a club must do to secure a full operating licence. There are conditions within that relating to supporter engagement which make clear a club must consult its fans and take those views – including “persons elected by the club’s fans” – into account on relevant matters.
As well as strategic direction and business priorities “relevant matters” refers to match-day issues (including ticket pricing) and club heritage. But what counts as club heritage? The Act references the club’s home ground, crest and home shirt colours and the name of the club.
The full FSA article:
https://thefsa.org.uk/news/whats-in-the-football-governance-bill/