The Government have confirmed its plans to introduce a new independent football regulator as Newcastle United and other Premier League clubs prepare for change.
The long-awaited white paper arrived on the back of the Fan-Led Review, also known as the Crouch Report, of English football in the wake of the failed European Super League plot and the collapse of historic football clubs such as Bury FC and Macclesfield Town.
That review was completed by Tracey Crouch MP, the former sports minister, back in November 2021 and was endorsed by the government five months later. Its publication was, however, delayed by a series of leadership changes and crises in government.
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The publication of the white paper has adopted many of the recommendations put forward by the Crouch Report, with the most prominent proposed changes being the introduction of an independent regulator of English football, power to block any moves by clubs to be part of a breakaway competition and stricter owner and directors tests.
But what does the publication of the white paper mean to clubs, and why is it being described as one of the biggest reforms the English games has ever seen.
Why was it needed?
No industry was left unaffected by the COVID-19 pandemic, not least football. An industry reliant on the gathering of thousands of people on a weekly basis saw clubs across the world faced with a tremendous financial burden.
As the English game struggled on there were moves made by 12 European clubs, six of them from the Premier League (Arsenal, Manchester City, Manchester United, Liverpool, Chelsea, Tottenham Hotspur) to push ahead with clandestine plans for a European Super League, an effectively closed shop that threatened to alter the landscape of the game on the continent forever.
However, the plans were slammed by fans, governing bodies and governments and rejected by the wider football family, with all but three ESL clubs (Real Madrid, Juventus and Barcelona remaining committed) forced into embarrassing climb-downs as the plan rose and fell within a staggering 48 hours in April of 2021.
The ESL debacle highlighted the need for fans to have a greater say in how their football clubs were run, and it came on the back of a series of financial collapses of historic English clubs through mismanagement by their ownership, with both Bury and Macclesfield Town going bust within a short period of time.
The government’s 2019 manifesto, pre-pandemic, had included a Fan-Led Review of Football Governance that sought to address the structural challenges that existed within the English game in order to attempt to preserve its future.
Since the inception of the Premier League in 1992 there have been 64 instances of clubs being put into administration.
What are the key points in the white paper?
The introduction of an independent football regulator is an unprecedented step for the English game.
A regulator will implement a new licensing system from the top flight down to the National League, requiring clubs to demonstrate sound financial business models and good corporate governance as part of an application process before being allowed to compete.
Its introduction, it has been claimed, will ‘guarantee’ fans a greater say in the strategic running of their clubs and help protect clubs’ heritage to stop owners changing names, badges and home shirt colours without consulting fans. It will require clubs to seek regulator approval for any sale or relocation of the stadium, with fan engagement a major part of that process.
What about the European Super League?
While Real Madrid, Barcelona and Juventus continue to posture over another attempt at an ESL launch, continuing their legal battle with UEFA in the European courts, the introduction of an independent regulator will be a further blow to those plans of getting English clubs involved. Without Premier League clubs there is precious little chance of another ESL attempt getting off the ground.
The regulator would have the power to prevent English clubs from joining new competitions that ‘do not meet a predetermined criteria’, in consultation with the FA and fans. That criteria could include measures to stop clubs participating in closed-shop breakaway competitions which harm the domestic game, such as the ESL.
Some English clubs who had been involved in the initial proposals have already publicly renounced the competition and any interest moving forward, with Liverpool introducing a Supporters Board that would have the power of consent over any such attempts in the future, while Chelsea co-owner Behdad Eghbali of Clearlake Capital has publicly said that there was no appetite for another run at the ESL.
What about tests for those who want to buy football clubs?
For some time there have been calls from football fans that the owners and directors test, the test that is applied to find out whether a potential owner is fit and proper to acquire a football club, has not been strong enough. That has been borne out by the collapse of several clubs through mismanagement at ownership level since the turn of the century.
There will be new tests for owners and directors with a focus on stronger due diligence on sources of wealth and a requirement for robust financial planning.It will also seek to ensure club directors demonstrate good basic financial practices, have appropriate financial resources and protect the core assets of the club
It will complement the current tests administered by the Premier League and English Football League
What has been said about it?
Prime Minister Rishi Sunak said: “Since its inception over 165 years ago, English football has been bringing people together, providing a source of pride for communities and inspiration to millions of fans across the country.
“Yet despite the success of the sport both at home and abroad, we know that there are real challenges which threaten the stability of clubs both big and small.
“These bold new plans will put fans back at the heart of football, protect the rich heritage and traditions of our much-loved clubs and safeguard the beautiful game for future generations.”
Chair of the Fan Led Review of Football Governance Tracey Crouch MP said:"This is a big day for football in this country and I am delighted the Government has acted on the key strategic recommendations in my review.
"The introduction of a new independent regulator of football will strengthen our incredible pyramid, giving investors, fans and communities confidence in the governance of our clubs, enabling them to thrive in the best leagues in the world.
"Football is nothing without its fans, and the announcement today will ensure they remain at its heart while it continues to grow at home and abroad."
Chief Executive of the Football Supporters Association Kevin Miles said: “The Football Supporters Association engaged in the fan-led review from day one and we warmly welcome the historic commitment from the Government to introduce an independent regulator of English football.
“The football governance white paper clearly addresses our key concerns around ownership, rogue competitions and sustainability and of course we support any proposals that offer fans a greater voice in the running of their clubs.
“We look forward to engaging with the Government on the next steps.”
Niall Couper, Fair Game CEO said: “This is a historic moment. At last we have a roadmap to a brighter future. Football is broken - the European Super League, reckless overspending, fans being ignored, and a financial flow that is flawed. We need culture change. Football should no longer rest in the hands of a few billionaires with vested interests. We need a fairer future for football.
“Football is in crisis and the White Paper could change football for the better forever. But we’re deep in time added on for the introduction of the regulator. Every minute that passes clubs move closer to the abyss.
“So it is great to see the steps finally in place to make that regulator a reality. Fans want it, politicians want it, communities want it. The question now is to ensure that any new regulator is fit for purpose and has real teeth to make a difference.”
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