On 10 May 2022, the Queen’s Speech confirmed the government’s commitment to the introduction of an independent regulator into English football.

The proposals are to be set out in a White Paper which is expected to be published “in the summer”. The proposed reforms which follow on from the November 2021 Fan-led Review Report and subsequent government response in April 2022, are geared towards supporting the long-term future of the game and ensuring that football clubs are operated in a more financially sustainable way.

The Fan-led Review and government response

The Fan-led Review Panel met for the first time in May 2021 following the ‘three points of crisis’ in the game, namely:

1. the collapse of Bury FC;
2. COVID-19; and
3. the attempt to establish a breakaway European Super League in April 2021.

After a lengthy consultation with a wide range of football stakeholders, the final report of the Fan-led Review made the following strategic recommendations for the future of English football: -

Recommendation

Government response

(A) To ensure the long-term sustainability of football, the government should create a new independent regulator for English football (IREF).

Accept the recommendation to introduce an independent regulator.

(B) To ensure financial sustainability of the professional game, IREF should oversee financial regulation in football.

Accept, with further detail on the precise model to follow in the White Paper.

(C) New owners’ and directors’ tests for clubs should be established by IREF replacing the three existing tests and ensuring that only good custodians and qualified directors can run these vital assets.

Accept, with further detail to follow on a strengthened Owners’ and Directors’ Test.

(D) Football needs a new approach to corporate governance to support a long-term sustainable future of the game.

Accept

(E) Football needs to improve equality, diversity and inclusion in clubs with committed EDI Action Plans regularly assessed by IREF.

Accept the need for action, and support clubs’ commitment to improving equality, diversity and inclusion focusing on improving outcomes while remaining flexible on plans for action.

(F) As a uniquely important stakeholder, supporters should be properly consulted by their clubs in taking key decisions by means of a Shadow Board.

Support, with further consideration of the mechanism.

(G) Football clubs are a vital part of their local communities, in recognition of this there should be additional protection for key items of club heritage.

Support, with further detail on options to follow.

(H) Fair distributions are vital to the long term health of football. The Premier League should guarantee its support to the pyramid and make additional, proportionate contributions to further support football.

Support, with an expectation of further action from the football authorities ahead of the White Paper.

(I) Women’s football should be treated with parity and given its own dedicated review.

Accept

(J) As an urgent matter, the welfare of players exiting the game needs to be better protected — particularly at a young age.

Support as a matter for the football authorities

To clarify, to ‘Accept’ a recommendation means that the government agrees with and will implement the recommendation into legislation. To ‘Support’ means ‘either that the government agrees in principle with the recommendation (and not necessarily the specifics of the recommendation), or that it is a recommendation for another organisation’.

The White Paper

It is understood that the White Paper will significantly build upon the issues outlined in the government’s response as noted above. As such, it is anticipated that some of the central issues will focus around: -

1. The Owners’ and Directors’ Test – A consideration of how an enhanced version of the current test will operate in practice and the potential consequences and impacts on the clubs or their fans if an owner failed the test or is no longer able to own a club, i.e. Roman Abramovich at Chelsea. This will include a consideration of a new ‘integrity test’ and enhanced due diligence, around issues like sources of funding upon acquisition.
2. The implementation of a ‘shadow board’ at clubs in order to give fans a greater voice in the running of their clubs.
3. The ‘golden share’ – This will elaborate on government plans for improved fan engagement on club heritage issues such as changes to club stadia, logo, name and kit.
4. A focus on the improvement of equality and diversity in club boardrooms throughout the football pyramid.
5. The financial distribution of money throughout the football pyramid, particularly the disparity between the finances of the Premier League compared to the rest of the football pyramid.
6. Review of the Sporting Events (Control of Alcohol etc.) Act 1985 governing the sale of alcohol at football matches and whether it is still fit for purpose.
7. An update on the football authorities progress in relation to player welfare.

As the summer draws to a close, the much-anticipated White Paper is expected to land in the coming weeks. Our Sports Law team will take an in-depth look into the White Paper upon its release.  

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