MP's Say Yes to Football Regulator, No to Free Premier League Football Matches on TV
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MP's Say Yes to Football Regulator, No to Free Premier League Football Matches on TV

MP's Say Yes to Football Regulator, No to Free Premier League Football Matches on TV

MPs have backed plans to set up the Independent Football Regulator and roll out operating licences for football clubs.

The Football Governance Bill is poised to become law after it cleared the Commons, with MPs voting in favour at third reading by 415 votes to 98, a majority of 317.

What is the Independent Football Regulator?

The Independent Football Regulator (IFR) is a proposed UK government body to oversee financial sustainability and governance in English football. Introduced via the Football Governance Bill, it aims to ensure clubs in the top five tiers (Premier League to National League) are financially stable, protect fans, and enhance transparency.

The IFR’s main objective is to ensure the financial stability and sustainability of English football, ensuring that clubs have sound corporate and financial governance in place. The 116 clubs in the top five tiers of English men’s professional football will be subject to its oversight, covering the Premier League, the Championship, and divisions one and two of the English Football League, and the National League. Safeguarding ‘the heritage of English football’ is also an objective.

It has three primary objectives. They are:

  • Club financial soundness- to protect and promote financial sustainability of regulated clubs, ensuring that clubs take sensible financial decisions and consider the long-term when taking risks.
  • Systemic financial resilience- to protect and promote the financial resilience of English football as a whole, ensuring that systemic risks and structural issues like the distribution of revenue through the pyramid are managed appropriately.
  • Heritage- to safeguard the traditional features of English football that matter most to the fans and local communities of clubs.

The IFR, as its name suggests, is largely autonomous and independent in how it chooses to act. The leagues and clubs have no representatives on the board, but the IFR is required to consult them on certain matters, and must also engage with the views of fans. The Football Association (FA) has an observer on the board. The government has no power to direct the IFR to act, but it appoints the chair and the non-executive directors, and it may issue guidance which the IFR is required to have regard to.

The regulator is funded by an annual levy imposed on the 116 clubs, which it can set at different levels for different clubs. Their approach to regulation is likely to vary significantly as between clubs in the Premier League and clubs in lower divisions.

The leagues are entitled to impose additional obligations on clubs, providing they do not conflict with the minimum requirements set by the IFR.

Understandably, fans were keen to express their delight following the announcement with many rushing to social media.

The IFR and the leagues work in tandem and are each under duties to cooperate with and consult one another, as far as possible. This applies in particular when either is making or changing rules concerning the finance and governance of clubs.

The licensing regime is the cornerstone of the IFR’s regulation of English football. Every club will need to hold a licence in order to be able to operate a team in any of the top five tiers of English men’s professional football. To obtain a licence, the club must satisfy the IFR that it meets its financial and corporate governance standards.

Every club must meet the basic mandatory licence conditions as to financial resources and planning, corporate governance and fan consultation. In addition, the IFR may impose additional discretionary licence conditions on a particular club, requiring it to take further specific actions, if the IFR has concerns about the club’s financial resources or management.

If a club is dissatisfied with an IFR decision, an internal review process is available in most cases. IFR decisions can also be appealed to the Competition Appeal Tribunal (CAT).

An arbitration process allows the IFR to intervene and impose a settlement if the Premier League and English Football League are unable to reach an agreement on the redistribution of a portion of the Premier League’s broadcast revenue to lower leagues. If the leagues cannot reach an agreement by negotiation and mediation, the IFR can appoint an expert panel, which can impose a settlement that it considers consistent with the IFR’s objectives to ensure the financial stability and sustainability of English football.

With so many arguments for and against the regulator, it begs the question will its introduction fix football's problems for good or is it only a temporary solution?

Free-to-air football proposals denied

However, that's where the votes of confidence ended as MPs rejected a Liberal Democrat proposal to show at least 10 Premier League games on free-to-air television each season.

The vote was defeated by 340 votes to 86, the new clause would have also required the League Cup final, and the Championship, League One and League Two play-off finals to be free-to-air.

Live Premier League matches have been broadcast behind a paywall since the league's inception 33 years ago, with only a handful of games shown on the BBC during Covid in 2020.

Sports Minister Stephanie Peacock said: "The government believes that the current list of events works well, and it strikes an appropriate balance between access to sporting events and allowing sports to maximise broadcasting revenue.

Football fans were understandably frustrated following the vote,

Despite falling broadcast figures with Sky Sports’ viewing numbers down 10% last season and TNT Sports down 17%. It was also revealed fans face annual costs of £660 to access all available Premier League matches, a substantial amount considering today's current financial climate.

Benji Kosartiyer
Journalist
Glen Mathews

Writer

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