Words like ‘governance’, ‘regulator’ and ‘legislation’ are often enough to make the average person cross-eyed with boredom and indifference. But when it comes to football, and specifically how the beautiful game is run in the UK, it’s well worth fans taking note of the Football Governance Bill.
This is a set of rules and regulations that will determine how the sport is governed, but within the pages of the sleep-inducing document are some very key changes that could strip the power away from cash-rich club owners and hand it back to the fans. Meanwhile, the introduction of an independent football regulator could – emphasis on the word ‘could’ – help the sport return to the good old days when money wasn’t the be-all and end-all for success out on the pitch.
Decoding the Football Governance Bill
The Football Governance Bill requires clubs to have a licence to operate ensuring a club’s fan engagement, finances, and corporate governance are up to standard#FootballGovernanceBill
— Department for Culture, Media and Sport (@DCMS) October 24, 2024
We won’t bore you with every detail of the Football Governance Bill, which in its current version runs to some 130 pages of legalese and blandness, as these things tend to. But there’s a number of takeaway points that are well worth knowing about. The most salient of these is the possible introduction of an Independent Football Regulator, which will be handed the power to effectively ‘manage’ the direction of English football.
Opposition
There’s opposition to a regulator – the Premier League and the Football Association, to some extent, would concede power to the body – who would have the ability to change the rules on things like club ownership and parachute payments; specifically, the amount of money that filters down from the EPL into the Football League.
At one point, it looked as if the regulator’s power would be watered down, in the respect that decisions on overseas club ownership would be guided by the government’s foreign policy. However, that has now been vetoed: the regulator will have full power to operate independently after the bill was ‘toughened’ in its amended version.
Gives Fans More Power
The Football Governance Bill will also provide fans with more power, enforcing rules that will make it a legal obligation – rather than voluntary – for clubs to consult with supporter groups on things like moving to a new ground, changing the traditional colours of their kit and even increasing ticket prices.
There will also be movements to increase diversity within the professional game, with specific reference to the number of black players (who make up around 45% of those plying their trade in the Premier League) getting a chance to work in management or other senior roles at clubs.
Vote Must Be Passed
It should be noted that, at the time of writing, the Football Governance Bill is yet to be enshrined in law. First, a vote must be passed in the House of Commons, before securing approval from the House of Lords too. Royal assent would then be the final link in the chain.
However, it’s likely that the Football Governance Bill will be passed without much in the way of opposition. There’s a feeling that all control has been lost in English football, with fans ultimately the ones that have suffered the most. The statutes have also garnered unilateral support from all of the main political parties, which is rare in itself. Perhaps, whisper it, the bill will finally level the playing field once more.
Assessing the Possible Impact of the Football Governance Bill
Lisa Sandy, the culture secretary, says:
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.
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.
It’s a lofty set of ambitions, which have been met with support by fan groups and representatives from the EFL, who will benefit from more money trickling down from the Premier League via parachute payments.
The proposed impact of the Football Governance Bill is to stop Premier League clubs from operating outside of the competition’s own rules. In fact, many believe that the reason that EPL chiefs have got tougher on financial rule breaches lately – leading to a number of clubs having points deducted – is to prove that it can self-govern.
However, it’s a case of too little, too late. Rogue owners will also be targeted in a bid to ensure that only legitimately ‘fit and proper persons’ are allowed to own and/or run a football club. The hope is that fewer clubs will find themselves in financial strife.
And, for the first time in more than 30 years of the Premier League, clubs will be forced to have heightened fan representation in their decision-making. That can only be considered a positive step, even if the power of supporter groups is, ultimately, minimal.
Will the Football Governance Bill Change Anything?
You perhaps won’t be surprised to learn that not everyone is happy with the rules set out in the Football Governance Bill. Premier League chiefs, while appreciating that some elements of the bill will help to make English football ‘stronger’, have also warned of the ‘unprecedented and untested’ powers of an independent regulator.
A spokesperson for the EPL has also claimed that the regulator ‘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.’
Financial Implications
When an organisation is concerned about checks on their ‘global appeal and growth’, they’re basically referring to one thing: money. The Premier League, as a business, is concerned that the Football Governance Bill will prevent them – and their member clubs – from having free reign to make money… and then spent it freely and without concern of any regulatory impediment.
And a loophole to give clubs an easy way out of a financial hole – selling their stadium and/or training ground to a third party – will be closed, meaning that (heavens above) they will have to live within their means in order to comply with profit & sustainability rules.
Premier League Unhappy
So no: the Premier League is not happy with the Football Governance Bill. The real question is will the EPL and its clubs abide by the new code of conduct and will the regulator really have sufficient powers to punish those that don’t?
