The proposed English independent football regulator (IFR) will have the power to force unsuitable owners to sell their clubs, according to the football governance bill published by the government on Tuesday. The bill, which follows two years of consultation, outlines the regulator's key responsibilities, including operating a licensing regime and enforcing compliance with financial regulations, club ownership standards, fan engagement, and heritage protection.
The licensing regime will be the primary tool for assessing clubs' financial health. Initially, clubs will receive provisional three-year licences, with the regulator working to ensure they meet minimum criteria. Permanent licences may be granted after this period, but could be withdrawn as a last resort for persistent and wilful non-compliance.
Owners and directors will face a three-stage test. The first assesses integrity, honesty, and financial soundness, with directors also required to prove competency. The second stage allows for enhanced due diligence to prevent illicit money from being used to buy club stakes. The third stage requires a business plan demonstrating how the club will be run sustainably. Existing owners and directors will be tested as part of the licensing process, and the regulator can force divestment or impose lifetime bans if conditions are breached.
On fan engagement, clubs must consult supporters regularly but are not obliged to act on their concerns. However, changes to heritage aspects such as crests or colours require fan consent, and any sale of a home ground must be approved by the regulator.
Many specifics, including cost controls for financial sustainability, remain to be determined. The bill acknowledges that the regulatory framework may need to adapt to industry changes, such as shifts in broadcast revenues. Rick Parry, chair of the English Football League, described the bill's publication as a 'big, big day' and supported giving the regulator scope to set its own criteria, likening it to the establishment of the Gambling Commission in 2005.
