Football regulator amendments: No sunset clause but concessions to critics
The powers to be afforded to the independent football regulator have been clarified after the government published its list of amendments to the Football Governance Bill.
Calls for a sunset clause from some Tory peers have been rejected, although the Secretary of State will be required to formally review how well the act is working after five years of the football regulator.
It has been made clear, meanwhile, that the contentious backstop powers which would allow the watchdog to impose a financial distribution agreement on the Premier League must only be used as a last resort.
And in another small win for opponents of the plans, the football regulator will now be required to consider the financial growth of English football among its objectives.
On the whole, the amendments published this week at the Lords Report stage offer some concessions to those who have argued that the regulator will kill the golden goose, the global success of the Premier League, without providing a silver bullet to kill it off completely.
The bill is still to pass through the Commons but is expected to do so quickly due to Labour’s strong majority and could be enacted into legislation as soon as this summer.
Key amendments to Football Governance Bill
- Adding “the financial growth of English football” as a secondary duty of the football regulator is designed to ensure that any measures taken to safeguard clubs do not have the oft-cited unintended consequences of inhibiting top clubs’ on-field and off-field prosperity.
- Players and fans have been added to the list of stakeholders with whom the football regulator will be required to “proactively and constructively engage”. This could see footballers’ union the PFA and supporters’ groups consulted.
- The bill “has been amended to add a requirement for the Secretary of State to carry out a review of the operation of the act, and its impact on the industry, no later than five years from the full commencement of the licensing regime”. This is “not a sunset clause, it is an accountability clause”, says Niall Couper of Fair Game.
- The football regulator’s backstop powers have been tweaked to make clear that “it is a mechanism of last resort and that the IFR should consider if the questions that need to be resolved could be resolved through its other functions before triggering the process”. In addition, the backstop won’t be triggered before 2027, as the football regulator must first complete a State of the Game report 18 months into its operation.
- A register of interests, similar to that used in parliament, will be created to which all football regulator board members and experts it regularly consults must declare. This is designed to prevent conflicts of interest and bring greater transparency to the process.
Expert reaction to the amendments
Niall Couper, CEO of governance reform campaigners Fair Game:
“The changes to the Bill are tweaks around the edges. Ensuring a regulator is scrutinised by Parliament on a regular basis is common practice and will mean that it stays true to its key objective – to ensure financial sustainability of the English football pyramid.
“What is important is that the Regulator does have the power to address the main concerns of the game – namely financial flow. Without those powers, then what is the point of a Regulator? It is about right touch, not light touch.”
Joachim Piotrowski, a senior associate at Osborne Clarke:
“Overall, the amendments to the Football Governance Bill published today are a positive step towards improving football governance in the UK. However, the success of these amendments will depend on their effective implementation and the regulator’s ability to operate independently and fairly.
“With regard to point 3 (statutory review), my reading of it is that this is not entirely equivalent to a sunset clause due to the fact that no hard stop date has been introduced in the Bill – rather only a provision stating that a review will occur at some point in the future (after which the Secretary of State might make no changes to the regulator’s operations).
“Introduction of the statutory assessment can be seen as the government acknowledging that regulations may need to be adjusted based on their real-world impact. This provides an opportunity to identify any shortcomings or areas for improvement, ensuring that the regulatory framework evolves to meet the needs of the industry.
“On the positive side is the fact that the review will be based on empirical evidence gathered over the five-year period, allowing for informed decision-making. This approach will hopefully ensure that changes to the regulation are grounded in actual data and experience, rather than speculative assumptions.
“At the same time, there are still things to improve on the assessment front. The review should include comprehensive evaluation criteria that cover all aspects of the regulation’s impact, including financial sustainability, governance practices, competitive balance, and fan engagement.
“It is important to involve a wide range of stakeholders in the review process, including football clubs, fans, industry experts, and regulatory bodies. The results of the review should be clearly reported to the public, along with an action plan outlining any proposed changes or improvements. This transparency will help build trust and demonstrate the government’s commitment to effective regulation.”