The independent football regulator could put itself on collision course with world governing body Fifa if it exercises its ultimate power to disqualify errant club owners, experts have warned.
Further details of the regulator emerged on Tuesday after the government introduced the long-awaited Football Governance Bill to parliament.
Launching the publication of the bill with an appearance at Leyton Orient, culture secretary Lucy Frazer said she was confident legislation would be passed before the next general election.
The regulator’s main responsibility will be monitoring the finances of all 116 clubs in the Premier League, EFL and National League and issuing licences to those in compliance.
It will also be tasked with conducting enhanced tests for owners and directors of clubs, with the consequences for failure including bans and being forced to sell their stakes.
That could put it at loggerheads with Fifa, however, which explicitly bans government interference and insists that all football matters be dealt with by national bodies.
Such powers may also deter potential investors in English football, said Simon Leaf, a Partner and Head of Sport at law firm Mishcon de Reya.
“This is truly unprecedented and means that football-related disputes would for the first time be heard in public rather than in private, as is generally the case now,” Leaf said.
Fifa forbids government interference and insists football matters are dealt with national bodies
“Typical disputes that could arise include claims following a decision by the regulator not to sanction certain pre-season tournaments that clubs may wish to participate in, all the way through to the potential ability for the regulator to ‘disqualify owners/officers’.
“On that particular point, while there is no suggestion that the regulator would take such a decision lightly and further detail is still needed, on paper this could potentially amount to the nationalisation of a club by the regulator where it considers there has been ‘persistent and wilful non-compliance’.
“This may put many new owners off acquiring English clubs.”
Further details of the regulator, which is expected to cost £10m a year and be paid for with a new levy on clubs, are still to be discussed by MPs and peers.
It will also have some powers to resolve the stand-off between big and small clubs over how cash is redistributed, as well as preventing a European Super League breakaway.