The requirement for the incoming Football Regulator to consider government foreign policy in club takeovers has been dropped from the new Football Governance Bill, which will be reintroduced to Westminster today.
The Bill, formulated under the previous government but not ratified in time for the election, will enter the House of Lords today in a format the government has described as “strengthened”.
Under the previous version, prospective takeovers by overseas buyers would have been required to tally with British foreign policy, for instance to prevent rogue states from buying Premier League teams.
But that clause been dropped after European football’s governing body Uefa wrote to the government to warn that England could be expelled from Euro 2028 – which they are co-hosting – over concerns about “government interference in the running of football”.
Protection
The revised Football Governance Bill also gives the Football Regulator power to take charge of financial redistribution, such as parachute payments and the sharing out of Premier League riches down the pyramid. The Regulator will be given the remit to include parachute payments when assessing finances across the game in a move the government describes as “fairer”.
It is understood that the Football Governance Bill will continue to help clubs be protected from the financial risks that come with relegation, however.
The Bill will also require clubs to engage fans over ticket prices, stadium relocations and employ representatives.
Culture Secretary Lisa Nandy said: “For too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending.
“This Bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.”
Football Regulator reaction
The Premier League, however, said it remained worried about the regulatory framework of the Football Governance Bill, insisting a “banking-style regulation” and “unprecedented and untested powers to intervene” could have a negative impact on “competitiveness, clubs’ investment in world-class talent and, above all, aspiration”.
“We appreciate the Government’s recognition of the role English football plays in the economy and society,” the Premier League added, “and its commitment to ensure that these reforms provide protections to enable the Premier League’s continued global success.”
Reform campaigners Fair Game’s chief executive Niall Couper said: “As ever the devil will be in the detail… but our initial assessment is that this Bill is an improvement on the legislation put forward by the previous government.
“However, the big concern remains fair financial flow. The financial divide between divisions has been growing over the last 20 years. The pressure to overspend to climb the pyramid has reached epidemic levels – 58 per cent of our top 92 clubs are technically insolvent.”