When the Football Governance Bill is presented to MPs at Westminster later today, the UK government will continue to develop an independent football regulator. Prime Minister Rishi Sunak has called it a “historic moment for football fans.”
Tuesday is the official introduction of the Bill to parliament, which comes thirteen months after the Conservative government said that a fan-led review in 2022 will determine the appointment of a regulator. Prior to becoming law, it must first pass the Westminster due process. This comes just one day after Nottingham Forest lost four points in the Premier League owing to violations of profit and sustainability regulations. This season, Everton has already received sanctions, and Manchester City is currently the subject of an inquiry. Prime Minister Sunak stated, “For far too long, some clubs have been exploited by dishonest owners who get away with financial mismanagement, which at worst can lead to complete collapse.” Further down the line, Bury and Macclesfield Town have closed their doors in recent years. Some clubs are on the verge of collapse.
What power will an overseer possess? It will have “backstop powers” to force the Premier League and the English Football League to pay a settlement. This is especially important because it seems like the two leagues are still a long way from reaching an agreement. However, it’s still unclear exactly what will set off the regulator’s backstop capabilities and just what those authorities include. Additionally, the government said that the regulator will have the authority to sanction clubs up to 10% of turnover for the most significant licencing term violations. It would impose more stringent requirements on club owners and directors and grant the authority to remove anyone who willfully and consistently disobey the rules. The goal of this measure is to avoid a situation similar to the one that occurred in April 2021 when the Premier League’s “Big Six” attempted to join a Super League without UEFA’s support. Clubs will only be permitted to participate in sanctioned competitions. The licence will also establish guidelines for clubs’ interactions with supporters, including the need for fan consultation on important off-field decisions.
However, the Football Governance Bill will only be applicable to English football’s top five divisions. It will not have any influence over how the game is played north of the border, but its introduction may hasten the process of a similar arrangement in Scotland.
The topic of a Scottish football regulator was discussed at Holyrood just one month ago. MSPs debated the matter following a resolution presented by Ben MacPherson of the SNP through the Scottish Football Supporters Association, whose members expressed a stronger need for club openness. After that, Scottish Minister for Sport Maree Todd was unable to pursue the idea. On February 1, Todd stated, “I cannot commit to the establishment of an independent regulator.” To comprehend how that would function, who would be nominated, how it would be supported, and what the exact role would be, a great deal of study needs to be done. However, the matter is by no means closed, and I would be happy to carry on the discussion if a compelling argument could be presented for why it was required and why alternatives to regulation couldn’t be used.
Todd’s final statement is really important. The genie is definitely out of the bottle now that Westminster has welcomed the English football watchdog. Now that the Scottish Football Association (SFA) and the Scottish Professional Football League (SPFL) are under some scrutiny for how they administer the game, any disgruntled party can point to what is being established in England and claim that Scotland ought to have its own equivalent.
There is disagreement among the stakeholders in the Scottish game that I have spoken to. With 42 SPFL member clubs, conflicting agendas are a common occurrence. In Scottish football, a regulator would probably enhance money flow from the top to the bottom of the game. However, the amount of money around English football is significantly larger than the relatively small sums in Scotland. Operating a regulator would be expensive, and since every dollar matters to squeezed clubs, that must be taken into account.
Ian Maxwell, the chief executive of the SFA, has said that Scottish football is actively run at the highest levels. In December of last year, Maxwell stated before the Health, Social Care, and Sport Committee, “From a Scottish FA perspective, we think that the governance in the game is robust.”
More stringent regulations over club ownership in the Scottish game would accompany a football regulator. A turning point in that regard occurred last month when American billionaire Bill Foley purchased a 25% stake in Hibs, following approval from the SFA to make the investment due to his connections to Auckland, Lorient, and Bournemouth. This action opens the door for additional outside funding. Motherwell made a public plea to prospective suitors earlier in the season, and news emerged this week that Brighton and Brentford are considering a partnership with Scottish clubs akin to the one that Burnley and Dundee arranged. Increased openness and stricter fit-and-proper testing under a watchdog would be necessary for such a transaction. Current owners, shareholders, and boards might also be subject to checks and balances in addition to newcomers.
Most of this need not apply to Scotland at this time. However, those who want a regulation now have even more motivation to pound the drum after a historic day at Westminster, with the wheels having already begun to turn following the Scottish parliamentary discussion.
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