Labour has launched a football governance regulation in parliament – bringing a conservative bill back to light.

Aiming to address ‘significant issues’ around elite men’s football’s financial stability, the Bill has resurfaced in the House of Lords by the Department of Culture, Media and Sport (DCMS).

Like its Conservative predecessor, Labour has highlighted what it believes are ‘fundamental governance problems’ in football that have led to poor financial management of clubs and unpopular decisions by club governors.

The Bill’s core provisions are the creation of an independent football regulator and a new set of rules to protect clubs, maintain the community role of clubs, and give fans a greater role in governance.

The latter two provisions are heavily influenced by the attempted breakaway league, the European Super League (ESL) proposed back in 2021. This hugely unpopular attempt saw six English clubs try and join, but was abandoned quickly following extensive fan backlash.

“English football is one of our greatest exports and a source of national pride which this Government wants to see thrive for generations to come,” said DCMS Secretary, Lisa Nandy, reiterating her responses to MPs’ questions on the issue last week.

“But 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.”

What can we expect from a football regulator?

The Football Governance BIll was first proposed to parliament in the spring and passed its second reading in April, meaning it was scheduled for further scrutiny by members of the House of Commons Select Committee on Culture, Media and Sport.

Due to the general election called on 4 July, however, it was shelved along with various other Conservative-introduced Bills. Labour pledged to reintroduce the legislation, which has been broadly supported by football fans, in its election manifesto.

Labour now asserts that it has enhanced the Bill, and has provided some clarity on the new football regulator’s powers. The regulator will require clubs to provide ‘effective management’ with supporters on changes to ticket prices and home ground relocations, for a start.

On parachute payments – made by Premier League clubs to teams competing in the lower divisions of the football pyramid – the regulator will include these payments in financial assessments of football. This is a notable change from the previous legislation, with Labour stating that the regulator should be required to take a full view of football’s finances.

Another major change will see the regulator no longer required to consider government foreign and trade policy when approving club takeovers. This is an interesting change in the context of major club takeovers in recent years, some of which have proven controversial.

Some segments of football fandom have voiced frustration with the growing role major overseas conglomerates, some linked or backed by national governments, are having in English football – particularly the financial advantage said clubs gain. The UAE-linked ownership of Manchester City and Saudi-linked ownership of Newcastle United are the most obvious examples.

On the other hand, in a move that may prove more popular with a broad section of football support, the regulator will have the power to compel clubs to democratically select fan representatives to be engaged with. 

This provision ultimately gets down to what is arguably the basic premise of the Bill when its origins are considered. The Bill came about as a result of the Fan Led Review of Football, initiated in the aftermath of the hugely unpopular ESL.

“For far too long fans have been at the back of the queue when it comes to their beloved football club,” said Dame Tracey Crouch, Author of the Fan Led Review of Football.

“Football means so much to millions of people and I’m grateful the Government is taking action to protect football from the threats of rogue owners and breakaway competitions.

“The protections in the new Bill reflect the Fan Led Review’s recommendations that supporters should be placed back at the heart of the game and will have a genuine say on things like ticketing and club heritage.

“The Independent Football Regulator will crucially help put clubs on a sustainable financial footing and help secure our national game’s long term future.”

How has the sport responded?

As expected, the reaction from the football fandom has been very positive. The Football Supporters Association (FSA), which played an active role in the Fan Led Review, has enthusiastically endorsed the Bill.

The Association noted that the Bill has wide fan support, with over 200 supporters groups signing its open letter to support legislation earlier in the year. The Association also led calls for a football regulator to be included in the legislation.

Kevin Miles, Chief Executive of the FSA, said: “The regulator has the potential to protect our historic community clubs and stop them being run into-the-ground by bad owners, rebalance the game’s finances, protect the heritage of all clubs, give supporters a bigger say in the running of the game and block any domestic clubs from joining a breakaway European Super League. 

“The FSA wholeheartedly backs its creation,” he emphasised.

The Premier League’s response seems to be a bit more reserved. The English top-flight has repeatedly raised concerns about the prospect of football regulation, arguing that ‘banking-style’ rules cannot appropriately govern the sport.

Writing for The Times earlier this year, Premier League CEO Richard Masters outlined the league’s concerns. Introducing banking-style regulations to English football could impact the sport’s competitiveness and appeal, he said.

Putting out a statement this morning, the Premier League asserted that football now faces a ‘collective challenge’ to ensure an ‘effective model of regulation which can work in practice’ is ultimately adopted.

The statement continued: “The Premier League recognises that key elements of the Bill can help make the English game stronger, including the principles of strengthened fan engagement, protecting club heritage, preventing breakaway leagues and encouraging responsible ownership.

“However, we remain concerned about the regulatory framework. Specifically, we believe rigid banking-style regulation, and the regulator’s unprecedented and untested powers to intervene in the distribution of the Premier League’s revenues, 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.”

In contrast to the Premier League, the English Football League (EFL) seems more optimistic. Rick Parry, CEO of the EFL, issued a statement earlier welcoming the legislation and praising Lisa Nandy’s approach to working with the sport.

 

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