The Government has set out its' approach to the reform of club football governance in a fan-led review. This review outlines a comprehensive plan to introduce an independent regulator for English football (‘the Regulator’), backed by legislation, and free from the vested and conflicting interests that have hindered progress in the past.
The review sets out the licensing framework upon which the Regulator will operate, alongside the wider non-regulatory reforms also needed within football. The aim of the Regulator will be to help guarantee fans a voice in their own clubs, make sure those clubs are financially resilient, and ultimately, to protect cherished parts of our cultural heritage.
The Regulator will operate a licensing system, whereby all clubs in the top five tiers of the football pyramid will need a licence to operate as professional clubs. Legislation will establish four Threshold Conditions of the licence:
- Appropriate Resources and Governance - Improving financial resilience through a requirement for clubs to have appropriate financial resources and to comply with a new proportionate ‘Football Club Corporate Governance Code’.
- Fit and Proper Custodians - New tests for prospective owners and directors of clubs: a fitness and propriety test (for owners and directors), enhanced due diligence of source of wealth (owners), and a requirement for robust financial plans (owners). The Regulator will take an objective and evidence-based approach, and apply tests so as not to disproportionately deter desirable investors.
- Fan Interests - Implement a minimum standard of fan engagement and protections around club heritage, to make sure fans at any club have their voice heard.
- Approved Competitions - Clubs will only be able to compete in competitions that are approved by the Regulator, to prevent ‘breakaway’ competitions that do not meet predetermined criteria.
Commenting, Leo said:
"This review is about taking proportionate action to safeguard clubs across the entire football pyramid, and ensure clubs like Aldershot Town FC and Farnborough Town FC sit at the very heart of the community.
"Reform is required in football given the scale of problems and risk of harm. Since the formation of the Premier League in 1992, clubs have fallen into administration 64 times, some more than once.
"I am confident independent regulation for football will make the game more sustainable, and mean fewer fans and communities see their clubs put at risk."
Leo pictured at the EBB Stadium, home of Aldershot Town FC