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The new independent football regulator will test the fitness of new owners, ensure the clubs are run sustainably, resolve any concerns about how money flows from the Premier League down the pyramid and could stop clubs joining disbanded leagues.
The government will publish a White Paper on football governance on Thursday, and has now confirmed it will act on the recommendations of the 2021 fan-led football review to create a regulator.
The body’s main aim is to oversee the licensing system to ensure the clubs can be run sustainably, following the collapse of Bury and Macclesfield in recent years. The regulator will also conduct tests of owners and directors, with a focus on the fitness and propriety of new owners and more diligence.
The regulator will ensure that fans have a greater say over the club, giving them a say if owners try to change aspects of the club’s heritage, such as the team name, badge or the color of the home shirt. Clubs must also seek regulatory approval to sell or relocate their stadiums.
Following the formation of the European Super League in April 2021, which prompts the government to press ahead with plans to introduce a fan-led review, regulators will have the power to prevent English clubs from participating in new competitions that do not meet established criteria. , in negotiations with the FA and fans.
These criteria may include measures to stop clubs participating in breakaway competitions that harm the domestic game, such as the European Super League.
The regulator will also be able to step in and force arbitration if the Premier League, EFL and Football Association cannot reach a new settlement over how top flight finance supports the game at lower levels.
Negotiations between these bodies are ongoing. The EFL chairman, Rick Parry, wants to secure 25 per cent of all broadcast revenues collected in the new settlement, along with the introduction of payments based on two to one in the Premier League and Championship and the abolition of parachute payments in bids. to reduce what appears to be a “cliff edge” between the first and second tiers.
Parry called for regulators to be given backstop powers and said earlier this week he would be “very negative” if the government did not address them in the White Paper.
The government is confident that the powers of the regulator will be balanced in a way that will not reduce the competitiveness and strength of the Premier League, which is financially way ahead of the other ‘Big Four’ leagues in Europe.
At this stage, it is not clear whether there is a human rights element in the owners and directors test, which Amnesty International called on the Premier League to introduce after the Saudi-led takeover of Newcastle and has repeated it. amid the Qatari bid for Manchester United.
Premier League, FA, EFL response
Premier League statement: “The publication of this White Paper is an important moment for English football. The Premier League and its clubs will now carefully consider the government’s plans for England to become the first major country to make football a government-regulated industry.
“The Premier League, along with the rest of English football, is a global success. We fully recognize that the support of millions of football supporters is the basis for our competition. We are proud that our success is constantly shared for the benefit of the game more , and our club, which has a positive impact every day in the local community.
“The Premier League recognizes the case for change in football governance and continues to implement stronger and more independent regulations. We are strengthening ownership rules and have provided £1.6 billion in financial support for more games over the current three-year cycle.
“We appreciate the commitment of the government to protect the continued success of the Premier League. It is important that the regulation does not damage the game fans enjoy watching in the deepest professional pyramid in the world, or the ability to attract investment and grow interest in our game.
“We will now work constructively with our stakeholders to ensure that the proposed government regulations do not have unintended consequences that could affect the Premier League’s position as the most watched football league in the world, reduce its competitiveness or provide funding that is there is no match. we provide risk.
“The Premier League has taken action to address many of the issues raised in the Fan-Led Review, and will work with the government and MPs on the next stage of the White Paper. We are committed to delivering football-led solutions to tackle the game’s key issues – including financial distribution, financial control and the football calendar – together with the FA and the EFL.
FA CEO Mark Bullingham comment: “We welcome the publication of the White Paper and the commitment to improve the financial sustainability and governance of professional clubs.
“We will send a full response to the proposals in the White Paper in the coming weeks. Our response will highlight the critical point made repeatedly by the Fan Led Review, which recommended that professional games increase the funding of grassroots games.
“The players, referees, coaches and volunteers in grassroots football are the bedrock of the English game, and it is important that independent regulators recognize this and support the long-term health of the whole game.”
EFL statements: “The EFL has been clear that the English game needs a fundamental financial reset to make the game sustainable so that all clubs can continue to serve their supporters and communities for the long term.
“After an extensive consultation period, the EFL is pleased to note that the government’s announcement of an independent regulator proposes to “monitor the financial sustainability of the game” and we are pleased that the regulator will have “targeted powers to intervene. and facilitate agreements when necessary”, if football cannot find a funding agreement that safeguards the future of our pyramid for the long term.
“In addition to financial reform, the League supports proposals related to better regulation and looks forward to consulting with the government on issues including club licensing, owner and director tests and heritage protection in the future.
“This is an important moment for the future of our game, we are now waiting to review the White Paper in full and will consider our position in full. The Fan Led Review White Paper represents a once-in-a-generation opportunity that must be seized to address these systemic problems that are football insurmountable in the past 30 years.
A transfer fee levy, beer in the stands…Recommend other reviews
The review also recommended the introduction of a levy of up to 10 per cent on Premier League transfer deals to support the pyramid and grassroots football. It was heavily criticized at the time by bosses in the top flight, with Leeds chief executive Angus Kinnear comparing it to Maoism.
Aston Villa partner Christian Purslow also warned that over-regulation risks “killing the Premier League’s golden goose”.
The government is understood to have concerns that the levy could have unintended consequences, and believes that giving regulators backstop powers is a better solution.
The review also recommended consultation with the pilots at selected fourth- and fifth-tier clubs to allow the sale of alcohol on their pitches, which was opposed by England’s football policing chief, chief constable Mark Roberts. The government sees this as a complex issue that requires further work.
The government says it will now begin further consultations with key stakeholders, with plans to introduce legislation as soon as parliamentary time allows.
Prime Minister Rishi Sunak said: “Since its inception more than 165 years ago, English football has brought people together, provided a source of pride for communities and inspiration for millions of fans across the country.
“But despite the success of the sport at home and abroad, we know that there are real challenges that threaten the stability of clubs big and small.
“This bold new plan will put fans back at the heart of football, protect the rich heritage and traditions of the clubs we love and preserve the great game for generations to come.”
The government also plans to look at the existing visa system for elite football players in England to examine how the game can continue to attract the best global talent while maintaining strong support for young domestic players to develop from the grassroots level.
Since Brexit, English clubs have been unable to sign U18 players from abroad.
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