Labour takes action to protect football fans with Return of Governance Bill | Football Policy

Football policy

Plans in the King’s speech include rules for responsible ownership and an obligation for clubs to obtain permission when relocating.

Wed 17 Jul 2024 16.38 CEST

Labour wants to strengthen protection for football fans, including when changing stadium locations or club names. It also commits to a “fair flow of finance” between the Premier League and the English Football League (EFL).

The King’s Speech will revisit the Football Governance Bill, which the previous government failed to pass before the election. Labour sources said the new bill would provide better protection for clubs’ heritage and introduce rules for responsible ownership.

There will be a new independent football regulator, as proposed in the previous bill, and rules to ensure that there is no future for proposals such as the disastrous European Super League, which only has top teams in a closed system.

A government briefing document reveals that there will be new legal protections for club names and that clubs will have to seek approval from the regulator if they sell or relocate their stadium.

The bill is likely to give the new independent financial regulator backstop powers to secure an agreement between the Premier League and the EFL, whose negotiations have now stalled. In March, the top clubs paused negotiations over additional funding for the EFL to focus on new financial controls for the Premier League.

Reacting to the announcement, EFL chairman Rick Parry said they hoped the bill would be passed quickly.

“It is clear from the many conversations I have had since the General Election result that the football pyramid matters to people inside and outside of football,” he said. “It is a unique strength of English football and we stand ready to work together to protect it by introducing improved regulations as well as improved financial distributions so that we can continue to act in the best interests of clubs, their fans and the communities in which they live in the years to come.”

A Premier League spokesman said it was “vital that regulation of this hugely successful industry is proportionate and effective to ensure English football can continue to be a world leader and delight millions of fans”.

Niall Couper, CEO of Fair Game, which represents 34 professional male football clubs across the English football pyramid, said: “There are serious flaws in football’s financial flows – the gap between leagues has only grown wider over the last 20 years.”

“Currently, for every £1,000 a Premier League club receives from the current broadcast deal, just 14p goes to a club in the National League North or South. But the devil is in the detail. The concept of backstop powers must go further. The new regulator must also have the powers to ensure that any new inter-league deal addresses football’s flawed financial flows. Without them, football will be doomed to repeat the mistakes of the past.”

The bill implements all of the previous government’s original proposals, including the obligation for clubs to demonstrate sound financial practices and protect their most important assets and values, such as the stadium.

The government said the law would address the “underlying fragility of the English football pyramid”, particularly at lower league clubs, which meant there was a “high and growing risk of financial failure at clubs”. In the Premier League and Championship combined, net debt in 2023 was £4.7 billion.