The Premier League is on a potential collision course with the Government over plans for a beefed up independent regulator for football, claiming it could have an impact on the league’s global competitiveness.
The football governance bill will be published in the House of Lords on Thursday and Labour has increased the potential remit of the independent regulator while also mandating clubs to consult with supporters over ticket price hikes and potential stadium moves.
Those conditions – not included on the initial proposals – will be necessary for clubs to be granted a licence by the regulator and have been roundly welcomed by supporter groups.
The regulator is being introduced to tackle rogue directors and owners, ensure greater fan engagement and monitor club finances and will do that through a licensing system.
But it will also have “backstop” powers to mediate on a fair financial distribution down the leagues if the Premier League and the EFL can’t come to an agreement on a settlement. Talks between the two organisations are currently deadlocked.
In theory the regulator could impose a settlement they see fit on the Premier League, a prospect that sparked a strong response.
“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.
“We appreciate the Government’s recognition of the role English football plays in the economy and society. This is fundamental to the sustainability of the entire game, enabling the £1.6bn of funding in the last three years to EFL and National League clubs, the grassroots of the game, football communities and women’s and girls’ football.
“With our clubs, we will continue to work with Government and parliamentarians to consider appropriate checks and balances in the legislation to protect the hard-won position of English football, which is globally admired and a driver of economic growth all over the country.”
In another potentially significant change to the regulator’s remit, it will also be able to consider the role and even size of parachute payments to teams relegated from the Premier League. That is understood to have caused alarm but sources played down the prospect of the regulator making big calls on parachute payments.
Lisa Nandy, the Culture Secretary, welcomed the new proposals, saying: “English football is one of our greatest exports and a source of national pride which this Government wants to see thrive.
“But for too long, financial instability has meant communities have risked losing their cherished clubs as a result of mismanagement. This bill seeks to 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.”
So what is new?
Beefed up powers include a requirement for clubs to “effectively engage” on ticket price hikes – a reaction to huge increases at clubs like Tottenham, Nottingham Forest and West Ham recently. Sources told i that means more than lip service and they may have to justify the reason for ticket price hikes to fan representatives.
The regulator will also require owners to do the same on stadium relocations, with possible powers to block them if they can’t be proved to be in the best long-term interests of the club. Newcastle United are among the most high-profile clubs considering a move away from their current ground.
The regulator will no longer be required to consider Government foreign policy and trade objectives when they are approving takeovers. That is seen as guaranteeing the independence of the regulator. That proposal had prompted a threat from Uefa to bar England from its own home Euros in 2028.
Also included are requirements to improve equality, diversity and inclusion within the game.
What does it mean for supporters?
The idea is that fans will get a meaningful say in matters that really count to supporters. Including ticket prices as an issue clubs must “effectively engage” on is potentially hugely significant given how sharp the price spikes have been in the Premier League.
The idea behind the regulator emerged from the wreckage of the European Super League and will effectively block our top clubs from joining a breakaway league. That can only be welcomed.
What has the reaction been from key figures?
The Premier League’s lukewarm response suggests there may be opposition from the biggest clubs to the creation of an independent regulator, and many of the owners at the top of the game have expressed reservations about Government intervention in a league that is hugely popular overseas and at home.
But the measures have the support of the biggest fan group in the country with the Football Supporters’ Association throwing its weight behind the proposals.
Kevin Miles, the chief executive of the FSA, said: “Earlier this year more than 200 supporters’ groups signed an FSA open letter calling on all parties to get behind a new Football Governance Bill – we’re very pleased the Government has listened and look forward to working with Parliamentarians to ensure the Bill delivers upon its promise.
“The FSA was at the heart of 2021’s Fan-Led Review of Football Governance which made a range of recommendations to strengthen the game’s governance – most notably the commitment to introduce an independent regulator.
“The regulator has the potential to protect our historic community clubs and stop the 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.”
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