Ambitious strategy to safeguard the long-term viability of English football

• A new independent regulator is set to be established to help avert the financial failures witnessed at clubs like Derby County, Bury, and Macclesfield Town.

• The owners’ and directors’ test will be strengthened to safeguard clubs and their supporters against untrustworthy owners.

• Supporters will have a bigger voice in the management of their clubs, with crucial elements such as team names, badges, and stadiums prioritized in new initiatives.

• The regulator will have the authority to block English clubs from entering contentious breakaway leagues, including the European Super League.

• This initiative comes after the Government has accepted recommendations from the Fan-Led Review of Football Governance, spearheaded by Tracey Crouch CBE MP.

For the first time, legislation will establish a new independent regulator for men’s elite football, addressing the game’s financial viability and placing fans at the center of its governance.

The regulator is set to introduce a licensing system from the Premier League down to the National League, mandating clubs to demonstrate sound financial practices and good governance before they can compete.

This will ensure fans have a greater voice in the strategic operations of their clubs, safeguarding historical elements so that owners cannot alter names, badges, or home shirt colors without consulting fans. Clubs will be required to obtain regulatory approval for any stadium sales or relocations, heavily involving fan engagement in that process.

New owner and director tests will be implemented to ensure clubs are in trustworthy hands, with heightened scrutiny on wealth sources and mandates for robust financial planning.

The regulator will hold the power to stop English clubs from joining new competitions that fail to meet certain criteria, in collaboration with the FA and fans. This might include measures to prevent clubs from engaging in closed-breakaway leagues that could undermine domestic football, such as the European Super League.

English football remains one of the UK’s most cherished cultural exports, with clubs and leagues worldwide modeling their success on it. Thus, the Government is taking necessary and focused measures to ensure this legacy continues for future generations.

This move follows the Government’s 2019 manifesto promise to conduct a fan-led review of football governance, prompted by the failures of historic clubs like Bury and Macclesfield Town, which shut down due to mismanagement. Since the Premier League’s launch in 1992, 64 clubs have entered administration.

Recently, in 2021, a proposal for a breakaway European Super League by select Premier League and elite European clubs was scrapped amid widespread public backlash and government intervention.

There are ongoing financial threats in the leagues. Despite the global popularity of English football, the overall net debt of Premier League and Championship clubs reached £5.9 billion by the end of the 2020/21 season.

In that same season, the Championship recorded an average wage-to-revenue ratio of 125 percent, indicating clubs were exceeding their financial capacities, and a number of clubs have struggled to meet payroll. Derby County FC almost faced liquidation last year, and indicators suggest that financial health is worsening across the leagues.

The Government initiated a Fan-Led Review Of Football in 2021, which it responded to in April 2022.

Prime Minister Rishi Sunak stated:

For over 165 years, English football has united people, instilling pride in communities and motivating millions of fans across the nation.

However, despite the sport’s successes domestically and internationally, genuine challenges threaten the stability of clubs of all sizes.

These ambitious new plans will position fans at the heart of the game, protecting the treasured heritage of our clubs while ensuring the sport remains viable for future generations.

Culture Secretary Lucy Frazer remarked:

I understand the significance of football to this nation, and I aspire to see our domestic league sustain its remarkable success both domestically and globally.

Today, we are taking action to secure the enduring future of the national game and ensure that fans are central to the governance of football.

Our plans will mandate clubs to manage their finances responsibly and prevent dishonest owners from treating clubs as disposable assets rather than cherished community institutions.

This is about safeguarding the beautiful game, ensuring we retain our status as home to the world’s strongest league, and protecting clubs of all sizes across the nation.

Sports Minister Stuart Andrew commented:

My first major engagement as Sports Minister was with football fans. I learned how some clubs have suffered due to owners who have exploited their stewardship.

Without fans, football clubs lose their value. That’s why today we are centering fans in football governance, creating a stronger foundation for the ongoing growth and success of English football.

This new independent regulator will enhance the Premier League, English Football League, and National League, ensuring our football hierarchy remains a model for leagues worldwide.

Tracey Crouch CBE MP, Chair of the Fan Led Review of Football Governance, expressed:

Today marks a significant milestone for football in this country, and I am thrilled the Government has acted on the pivotal recommendations from my review.

The establishment of a new independent regulator will fortify our renowned football pyramid, instilling confidence in investors, fans, and communities regarding club governance, allowing them to prosper in the finest leagues globally.

Football thrives on its supporters, and today’s announcement assures fans remain at its core as the game continues to evolve domestically and internationally.

Kevin Miles, Chief Executive of the Football Supporters Association, stated:

The Football Supporters Association has been involved in the fan-led review since its inception, and we warmly welcome the Government’s historic pledge to create an independent regulator for English football.

The white paper on football governance addresses our primary concerns regarding ownership, problematic competitions, and sustainability, and we back any proposals that amplify fans’ voices in club management.

We look forward to collaborating with the Government on the next steps.

Despite the Premier League’s status as a pinnacle of club competitions globally, the Government continues to fully support its sustained prosperity. Still, a solution driven by those overseeing the leagues and clubs must be found to ensure financial sustainability across all levels.

However, if football authorities fail to reach a consensus, the regulator will possess targeted powers to intervene and facilitate an agreement as necessary.

In addition to its comprehensive remit, the regulator will also:

Alongside the white paper release, the Government will assess the efficacy of the current visa system for English football, aiming to attract the best global talent while supporting young domestic players’ development from grassroots.

The Government will initiate engagement and further consultations with selected stakeholders regarding the key reforms detailed in the white paper. Proposals for legislation will follow as parliamentary opportunities become available.

ENDS

Notes to editors

• Statement from the former Secretary of State for Digital, Culture, Media and Sport on the fan led review.

• Tracey Crouch’s Fan Led Review of Football governance report.

• The review engaged with supporters’ trusts, fan groups, women’s football representatives, football authorities, club owners, player representatives, and underrepresented interest groups, alongside feedback from over 20,000 fans through an online survey. The final report, supported by an expert advisory panel from football, was presented to the Government in November 2021, including 57 recommendations, ten of which were key strategic recommendations.

• The findings indicated that football needs a robust, independent regulator to ensure the future security of the national game, with a significant factor in football’s precarious state attributed to reckless financial decisions often made by unsuitable owners and directors in pursuit of success, jeopardizing clubs’ future and their role as community assets.

• The new test for potential and existing owners and directors will complement tests currently enforced by the Premier League and English Football League.

• The Government’s response to the Fan Led Review of Football Governance report.

• Simultaneously with this white paper, a detailed review into the future of domestic women’s football is underway.

• Led by former England and Great Britain footballer Karen Carney MBE, the review is exploring how to achieve bold and sustainable growth in women’s football at both elite and grassroots levels. It focuses on evaluating audience potential and growth, the financial well-being of the game, and the structures existing within women’s football. A full report is expected later this year.

• The Government is also considering the safety and economic rationale for trialing the sale and consumption of alcohol in view of the pitch during matches in the men’s lower leagues, following recommendations from the fan-led review of football governance. Consultation with stakeholders, including Safety Advisory Groups and the Sports Grounds Safety Authority, will continue.

• Further details regarding the Home Office’s review of the current visa system will be announced in due course.

Additional statements follow:

David Clowes, owner of Derby County FC, stated:

Derby County faced imminent extinction for too long. It is vital our supporters—and every football fan—are granted a powerful voice and support to ensure no other club faces similar threats. Since exiting administration, we have collaborated with various supporter stakeholders to implement the measures outlined in this white paper, striving to enact them promptly.

Gary Sweet, Chief Executive at Luton Town Football Club, remarked:

Having experienced the greatest fluctuations in the pyramid over the past decade, we deeply value the preservation of our beloved game’s principles and are passionate about protecting its heritage.

Similar to other vital sectors in society, football also requires a leveling-up initiative to ensure the integrity of our national sport. Football has had ample opportunity for self-repair without success, thus the release of the white paper is met with universal approval here at Kenilworth Road.

We eagerly anticipate the formation of an independent regulator to provide fair opportunities for all clubs to compete through genuine effort while ensuring sustainable practices, with full supporter inclusion and community influence.

Andrew Parkinson, Chief Executive at Plymouth Argyle Football Club, said:

Being a transparent, values-driven club focused on financial and environmental sustainability, we wholeheartedly welcome the Fan Led Review and look forward to playing our part in creating a more equitable game.

Fans are central to our mission, especially evident during the periods of closed-door matches. The publication of the white paper and subsequent discussions present a chance to advance crucial issues like regulation and the equitable distribution of revenues, ensuring that the football pyramid thrives across all levels.

Mark Palios, Chairman of Tranmere Rovers Football Club and former Chief Executive of The Football Association, noted:

The white paper serves as a welcome response to Tracy Crouch’s exceptional Fan Led Review. Kudos to the Government for initiating steps that could safeguard the unique football pyramid within this country.

The subsequent step is to define the strategic priorities for the Independent Regulator and guarantee it possesses the necessary powers for long-term implementation.

A Notts County Football Club spokesperson commented:

Notts County, the world’s oldest professional club, fully endorses measures to secure the future of clubs and the structure of English football, which is globally revered.

As evidenced by the unfortunate closure of clubs like Bury FC, many clubs find themselves vulnerable, especially in light of the challenges posed by Covid-19, requiring support and guidance.

Fans, the lifeblood of football, deserve assurance that their interests are prioritized and efforts are undertaken to prevent experiencing the turmoil of losing their club or its identity.