On Tuesday 19th March The Government introduced the Football Governance Bill to parliament and it has been well publicized in the press.
The reason why campaigners and football needs this Bill is because we know that Football cannot regulate itself.
The Premier League was created with the help of TV money when 20 League clubs resigned from the Football League to sign up for it in May 1992. Since then, the financial chasm between the richest clubs and those at National League level further down the pyramid has widened. The enormous disparity between the wealthiest and the less well-off mirrors the increasing inequality within society as a whole.
The scale of the PL’s bigger and bigger national and international global TV rights packages has piled pressure on all the clubs beneath the PL. Club owners have been tempted to overspend in order to compete, to turn to crooked behaviour, to profiteer for themselves or to gamble too much on club success. We know that this has caused many clubs to go out of business, or to be in danger of going out of business.
It is this continuing financial danger faced by smaller clubs in the EFL that has created the perceived need and the political pressure to introduce legislation that will protect football clubs and help to sustain their identities and the communities they serve.
Fan-led Review
The fan-led review, conducted by Tracey Crouch MP, consulted with supporters group through the Football Supporters Association {FSA) and she concluded her Football Governance Report in November 2021.
It was the storm created domestically by the threat of the European Super League, with the PL’s big six announcing their intention to break way in April 2021, that finally pushed the government into action.
The central proposal of the fan-led review was to introduce statutory independent regulation of the game, and now it is here, in the form of the Independent Regulator for Football (IREF).
As well as blocking clubs from joining a breakaway league the regulator provides an opportunity to stop clubs being run into the ground, it protects the heritage of clubs and give supporters a much bigger voice in the running of the game.
The FSA’s response
Kevin Miles, CEO of the FSA, the organization to which we are affiliated, says, “The FSA warmly welcomes the tabling – at last! – of the Football Governance Bill arising from the 2021 Fan Led Review, and particularly its central proposal to introduce statutory independent regulation of the game.
“The regulator must be given the power to impose a financial settlement in the interests of the sustainability of the game as a whole; it’s far too important to be left to the squabbling between the vested interests of the richest club owners.” His full quote can be found here.
The EFL Statement is certainly more favourable to the introduction to the bill, compared to the PL’s more apprehensive response.
Below are some of the FSA’s key recommendations that went to the Fan-led Review:
How could the Football Governance Bill help Bradford City?
Ownership - there should be regular owner’ and directors ‘ tests as well as for new owners overseen by an independent regulator.
Fan engagement – The Government report, ‘A Sustainable Future –Reforming Football Club Governance’, February 2023, recommends that Supporters / Shadow Boards, ‘should at least include a club’s Supporters’ Trust and adequate representation for the women’s team if the club has one affiliated’, as well as other representative groups of fans.
The ‘Golden Share’ - should be held by a Community Benefit Society (CBS) such as a Supporters Trust which would act as extra protection on ‘heritage’ issues such as:
The sale of a Club stadium; The re-location of a Club; The Club joining a new competition; Club badge; Club home colours; Club name.
Any changes to the above would require consent of Trust members. The Government doesn’t object to Clubs using the Golden Share model but prefers giving the independent regulator further powers to protect these heritage issues.
Greater financial distribution of wealth
Key to the whole desire to protect and sustain the game is seeing a greater redistribution of wealth from the top of the English football pyramid to the bottom. The Premier League cannot agree among its member clubs how an overall sum of around £900m over 6 years, partly tied to future TV revenues, would be paid. It should be those clubs with the biggest profits who can afford to pay more that should fund most of it.
The football governance bill is supposed to include new backstop powers around financial distributions between the Premier League and the EFL, so that if the two parties continue to fail to agree on a 'new deal', the regulator can ensure a settlement is reached.
Concluding remarks
The Bill has not been debated in parliament so it is not yet enacted, but eventually when it becomes law, football governance's big moving feast will no doubt need constant tweaks to tighten up the many moving regulatory parts, and to beef up the powers of the independent regulator.
The debate and pressure from below – from the fans in particular, will continue to attract public attention if clubs continue to slide into financial trouble, continue to get points deducted or cease to exist after this legislation is passed. The campaigning work of supporters certainly doesn’t rest once the Bill gets over the line.