UK government to introduce independent regulator for football،
British Prime Minister Rishi Sunak confirmed in his royal speech on Tuesday his intention to create an independent football regulator to safeguard the future of English football clubs.
The Independent Football Regulator (IREF) will have the power to intervene to resolve cash flow and other systemic issues within clubs, many of which are financially vulnerable.
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“Legislation will be introduced to safeguard the future of football clubs for communities and supporters,” King Charles said in his speech.
A separate government briefing document says the fragility of the English football pyramid has been exposed in recent years.
“The collapse of Bury FC, the devastating impact of the pandemic on clubs and the botched plan for a breakaway European Super League have all exposed the financial unviability of some clubs and the need for greater accountability from fans,” he said.
The regulator will manage a licensing system that will apply to the top five tiers of English men’s football with the power to act on issues such as compliance with financial regulations, corporate governance and fan engagement.
Tougher testing will be carried out on club owners, minimum fan engagement standards will be introduced and clubs will not be allowed to join breakaway or unlicensed leagues.
Fair Game, a group of clubs campaigning to improve football governance, called the announcement a “historic moment for football”.
“[The IREF] represents a real opportunity to end the cycle of overspending and mismanagement that has plagued our domestic football and threatened the very existence of our clubs,” Fair Game CEO Niall Couper said in a statement.
“Right now, clubs like Sheffield Wednesday, Reading and Scunthorpe United are staring into the abyss.
“Reckless spending, disconnection between clubs and their communities and words in favor of equality standards must be thrown into the dustbin of history,” he added.
“This transformation can only be achieved if the regulator has the means and resources necessary to achieve it.”
The Government’s bill highlights the success of the Premier League globally and how it attracts more viewers and higher revenues than any of its international rivals during the 2021-22 season. The league’s overall revenue was £5.5 billion ($6.8 billion), compared to £2.8 billion for the Spanish La Liga.
However, clubs are constantly losing money and relying on external funding as their debt levels rise.
Since the 1999-2000 season, 19 of the 23 Premier League seasons have ended in pre-tax losses for all clubs combined. In the Premier League and second-tier Championship, net debt increased to £4.4 billion in 2022.
