- Central to the plans will be the establishment of a strong, independent regulator established with statutory backing to deliver financial sustainability throughout the national game
- Strengthened owners and directors test, including an 'integrity test' to improve corporate governance and protect clubs and their fans from unscrupulous owners
- Government commits to giving fans a voice in the running of their clubs with white paper to be published in the summer
The Government has today set out its plans to radically reform the governance of men's football in England, reiterating its commitment to fans to deliver a sustainable future for the game.
In a statement to the House of Commons, Sports Minister Nigel Huddleston announced that the Government has endorsed the 10 key strategic recommendations set out in its fan led review of football governance, published by Tracey Crouch MP in November 2021, which will improve financial sustainability and corporate governance across our national game, and place fans squarely at the heart of decision-making.
The regulator will be backed by primary legislation to provide it with the statutory powers to licence and sanction clubs as part of its remit to tackle the most pressing issues throughout the football pyramid.
It comes as an independent study commissioned by the Government published today highlights the widespread culture of clubs operating unsustainable financial practices, placing the pursuit of success over sound financial management. This includes an over-reliance on owner funding which can leave clubs dangerously exposed if owners decide to pull the plug on cash injections.
Premier League and Championship clubs are now regularly exceeding UEFA's guidance on spending no more than 70 per cent of club revenue on wages, leading to weak balance sheets across the industry that would be unacceptable in any other field.
The regulator will also be given the power to exercise financial oversight of clubs, including information gathering, investigation and enforcement powers. The review recommended looking at financial distribution, including solidarity payments. It is the Government's view that this should be solved by the football authorities in the first instance.
