An independent regulator has taken a massive step towards creation after the government’s football governance bill was finally introduced to parliament with prime minister Rishi Sunak hailing it as an “historic moment” for the sport.
The bill, which has been three years in the making, will now go through the regular parliamentary process before becoming law and ministers want it in place before the general election.
It will see powers granted to establish a regulator that will aim to improve the financial sustainability of clubs, safeguard the heritage of English football and place supporters at the core of decision-making.
And its creation is expected to see Newcastle United's ownership placed under fresh scrutiny. Under the new laws, clubs will have to obtain a licence to operate and that will only be granted when they have proved the identity of their ultimate owner. That will apply to existing owners as well as prospective owners.
When the takeover of Newcastle was completed in 2021, it was only waved through when the Premier League received “legally binding assurances” that Saudi Arabia’s Public Investment Fund - which has an 80 percent stake in the club - is separate from the Saudi state. Those assurances seem certain to be re-examined when the new independent regulator is in position.
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The regulator will be able to impose fines that amount to 10% of a club’s turnover if it does not comply with any new statutory regulations on matters such as financial mismanagement, breakaway competitions, stadium relocations and changes to club names, badges and colours against the wishes of fans. But the regulator will not be able to impose points deductions, leaving those penalties to the leagues themselves.
Culture Secretary Lucy Frazer said: “Football is nothing without its fans. We are determined to put them back at the heart of the game, and ensure clubs as vital community assets continue to thrive. The new independent regulator of football will set the game on a sustainable footing, strengthening clubs and the entire football pyramid for generations.”
Premier League chief Richard Masters is working for clubs firmly against the regulator. (Getty Images)The bill’s introduction arrives at a moment of high tension between Premier League clubs and the rest of the pyramid. Last week top flight sides could not even reach a vote on a “new deal” that would see an improved financial redistribution model filter down the divisions to assist smaller clubs.
In a statement the Premier League, whose chief executive Richard Masters has been put under pressure by both clubs and the government, said that a regulator could have "unintended consequences … that could weaken the competitiveness and appeal of English football."
However, West Ham majority owner David Sullivan last night went much further by leading the charge against its foundation.
West Ham owner David Sullivan is against the creation of a regulator... (Getty Images)
... because he thinks the Premier League, which has had deducted points from two clubs owing to financial breaches this season, is such a "winning formula." (DeFodi Images via Getty Images)"The government has shown an inability to run anything,” Sullivan said. "The Premier League is the best league in the world so why change a winning formula? I hope the government don’t wreck something that works.
"This means we will be competing with teams from leagues in Europe who give a fraction of the money Premier League clubs give to both the EFL and grassroots football. If over the coming seasons the Premier League ceases to be the best league in the world it will be down to an interfering government."
But EFL chairman Rick Parry has welcomed the bill’s arrival at parliament, saying: “If delivered on the right terms, this landmark legislation can help fix the game’s broken financial model by offering the independent input ultimately needed to help ensure that all clubs can survive and thrive in a fair and competitive environment.”
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