British government has unveiled plans to establish an independent football regulator aimed at promoting financial stability within the sport.
This initiative, introduced in parliament on Tuesday, seeks to create an oversight body separate from both the government and football authorities.
According to a government press release, the regulator would possess the authority to levy fines of up to 10% of a club’s turnover for failure to comply with financial regulations.
Additionally, the proposed legislation aims to enhance scrutiny of club leadership and prevent the formation of exclusive competitions, such as the European Super League.
Furthermore, clubs would be mandated to engage with fans on matters concerning strategic decisions and the preservation of their heritage.
“For too long, some clubs have been abused by unscrupulous owners who get away with financial mismanagement, which at worst can lead to complete collapse,” Prime Minister Rishi Sunak said.
“This bill is a historic moment for football fans; it will make sure their voices are front and centre, prevent a breakaway league, protect the financial sustainability of clubs, and protect the heritage of our clubs big and small.”
The government’s announcement follows the Premier League’s recent failure to reach a new financial agreement with the English Football League (EFL), responsible for organising professional matches in lower divisions.
In February, the government cautioned the Premier League that it must come to terms on a new deal or face having one enforced upon it. The Premier League has stated that it will review the proposed bill.
“We agree it is vital that football clubs are sustainable, remain at the heart of their communities and that fans are fundamental to the game,” the league said in a statement.
“[But we are] mindful that the future growth of the Premier League is not guaranteed, and we remain concerned about any unintended consequences of legislation that could weaken the competitiveness and appeal of English football.”
The EFL welcomed the bill.
“We hope [it] will be an important milestone to help us secure the long-term financial sustainability of England’s football pyramid,” chairman Rick Parry said in a news release.
“The establishment of the independent football regulator will be at the heart of this reform, and we are encouraged that the regulator will be given backstop powers to deliver financial redistributions should the game be unable to agree on a deal itself.”
David Sullivan, the proprietor of West Ham United, a Premier League club, voiced his dissent regarding the formation of a football regulatory body, contending that it would incur significant expenses and prove to be ineffectual.
“The Premier League is the best league in the world so why change a winning formula?” he told Sky News. “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.”