Football governance in England is set for a major shift following the introduction of the Government’s proposals to introduce an Independent Football Regulator.
In the latest episode of Bishop & Sewell’s podcast, ‘Listen without Prejudice’, David Little and Andrew Kavanagh from the firm’s Sports Law and Corporate Commercial teams explore what reform, regulation and governance will mean for the future of the sport – from financial transparency to stricter regulations – and the reasons why reform is now coming down the tracks.
Proposals to implement football governance have been mooted for many years, but in recent times the issue has been kicked into the long grass – the last Conservative government mentioned it in a bill in March 2024, but at that time everyone knew Parliament was not going to go full term, so the chances of any reforms then were slim-to-none.
With Labour now in power, the new Government has picked up the mantle of football governance once again. The Labour manifesto committed the Government to introducing a football governance bill which would establish an independent regulator to ensure financial sustainability in the English game and went on to state: “We will never allow a closed league of select clubs to be siphoned off from the English football pyramid.”
The point about clubs being siphoned off is in direct response to proposals for the formation of a European Super League back in April 2021, with the Government clearly looking to protect the integrity of the football pyramid, the clubs and the Premier League, by ensuring clubs are not allowed to join a European Super League, or other breakaway league. In fact, there was very little appetite for English involvement in a super league in any event, as evidenced by widespread demonstrations at clubs including Chelsea and Manchester United that had expressed an interest in joining the breakaway competition, and it quickly became apparent that fans would not allow such a schism to happen.
The Football Governance Bill, which is currently progressing through the House of Lords, seeks: to establish the Independent Football Regulator (IFR); to make provision for the licensing of football clubs; and to make provision about the distribution of revenue received by organisers of football competitions. The bill also aims to compel clubs to seek the regulator’s approval for any sale or relocation of their ground, in order to curtail opportunities for unscrupulous owners to purchase clubs for asset stripping purposes.
There are numerous examples where fans have borne the cost of poor decisions by club owners, such as Wimbledon’s relocation to Milton Keynes in 2002 (and subsequent rebranding as MK Dons). Many fans and neutrals alike viewed the relocation as a betrayal of the club’s history and identity, viewing the move as an abandonment of the club’s loyal fan base. Those Wimbledon fans should never have been put through that ordeal, but for MK Dons to fight their way back to the football league and build their own ground is one of the most heroic stories out there.
So, with the proposed reforms now on the table, how has all of this gone down with UEFA? To be sure, there has been some sabre rattling, but also some misinterpretation by the media of what UEFA said. Following news that the Government intended to establish an IFR, UEFA warned ministers that England could be excluded from the European Championship (and presumably Wales as Welsh clubs also play in the English pyramid?).
UEFA’s concern is predominantly that “the planned independent football regulator could lead to government interference in the sport” and ‘scope creep’ by the IFR. Personally, I don’t see that happening here in England, regardless of which political party is in power – none want to interfere in football, rather they are responding to fan pressure and concerns about owners and financial irregularity. What Labour has put together is generally sensible, and it is very doubtful that UEFA’s concerns will be borne out in practice.
I deal with governance issues on a daily basis, not just for sports clubs but also corporate clients. However, unlike many sectors, where if one company goes under there are likely to be others ready and able to provide the same or similar goods or services, football clubs are in a rather unique position. To put it simply, you can’t just walk down the road to another club if yours goes under. It may be a bit cliched, but one’s club, its history, identity and enduring rivalries, are ingrained in fans’ psyche – can you imagine Tottenham fans walking over to Islington to watch Arsenal if Spurs went broke?! A football club has been described as a ‘monopoly supplier’, in that if your club goes out of business fans cannot quickly or easily switch allegiances. Moves to introduce football governance must have a commitment to protecting clubs’ heritage and identity at its core.
Successive governments and the Premier League itself have wanted football clubs to get their house in order for some time. In the absence of any clear progress by clubs to introduce appropriate and robust governance on their own, the Government is now responding to fan movements and pressure for reform with proposals to introduce regulation. I think now is very much the time as football is still strong, both domestically where fan turnout for games is huge, and as an export with sales of overseas broadcasting rights having grown exponentially in value due to the strength of the Premier League’s offer.
With football at a crossroads, governance and regulation are crucial for securing its future and keeping fans, who are after all the lifeblood of any football club, firmly in the picture rather than banished to the sidelines.
You can hear David Little and Andrew Kavanagh discuss football reform, regulation and governance on the latest episode of ‘Listen without Prejudice’ for free on:
→ Apple
→ Spotify
→ YouTube
Contact our Sports Law and Corporate & Commercial experts:
David Little and Andrew Kavanagh are Partners at Bishop & Sewell in our expert Sports Law and Corporate & Commercial teams. If you would like to contact David or Andrew, please call David on 07968 027343 or either of them on 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 28 January 2025. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.