The UK government recently introduced a strengthened version of the Football Governance Bill into the House of Lords to enhance the role and autonomy of the Independent Football Regulator (IFR). The changes are aimed at increasing fan engagement; promoting financial resilience across the game; and ensuring a more inclusive culture in football. Here’s what’s new – and why it matters.
1. Enhanced Fan Engagement and Democratic Representation
One of the most notable changes is the IFR’s new authority to enforce ‘effective engagement’ with supporters. Clubs must now consult fans on changes to ticket pricing and any plans to relocate their home ground. This provision acknowledges the impact of ticket pricing and home ground locations on a club’s loyal fanbase, directly addressing past grievances where fans have felt sidelined by commercially motivated decisions by Club boards and directors.
Moreover, the IFR now has the authority to compel clubs to democratically select fan representatives, preventing clubs from unilaterally choosing who represents supporter interests. By enforcing democratic representation, the Bill aims to ensure that individuals from all backgrounds and viewpoints – in particular individuals whose views reflect those held by a majority of a club’s fanbase – can offer perspective and influence the club’s strategic direction.
2. Expanded Financial Oversight to Parachute Payments
A key update in the new Bill is the inclusion of parachute payments within the IFR’s financial oversight remit. Parachute payments, designed to ease the financial impact of relegation, are funds distributed to clubs relegated from the Premier League to the Championship.
In previous drafts of the Bill, parachute payments were explicitly exempt from the IFR’s remit, primarily due to concerns that regulatory oversight might disrupt the Premier League’s current financial model. However, this exclusion meant that the IFR would lack full insight into clubs’ financial landscapes, potentially undermining efforts to evaluate overall financial resilience across the football pyramid.
The strengthened Bill now includes parachute payments within the IFR’s scope, which is set to function under a ‘backstop mechanism’. This backstop mechanism allows the IFR to review and regulate parachute payments only if the regulator considers them to be of “systemic risk to financial sustainability”.
3. Independence from Government Influence in Takeover Decisions
In a critical shift toward regulatory independence, the Bill now explicitly removes any requirement for the IFR to consider ‘government foreign and trade policies’ when approving club takeovers. This adjustment has been made in an effort to reinforce the IFR’s autonomy and safeguard its decision-making process from potential political interference.
This may well be a move adopted after UEFA expressed recent concerns over the IFR and potential for government interference in English footballing matters – threatening to ban England from Euro 2028 (and English clubs from UEFA competitions) if the UK government continued with unchanged plans for the IFR.
By removing the requirement for IFR to take government foreign and trade policy into account, this should free-up the IFR to act solely in the interests of the sport, rather than other political or diplomatic motivations.
4. Promoting Equality, Diversity, and Inclusion (EDI) with New Transparency Measures
Responding to mounting calls for inclusivity, the Bill now mandates that clubs publish their actions and progress on Equality, Diversity, and Inclusion (EDI). These updates will be reflected in a new corporate governance code, with the IFR ensuring transparency and accountability. The requirement to disclose EDI initiatives signifies a commitment to facilitate a more inclusive environment within football, addressing historical underrepresentation and fostering cultural change.
Concluding Insights: The Road Ahead for Football Governance
The strengthened Bill is likely to receive a warm welcome by football-going fans in the midst of the FSA’s #StopExploitingLoyalty campaign, especially those changes which seek to bring fans closer to decision making process around ticket pricing and club strategy.
For clubs this all means greater accountability and transparency – particularly in terms of how relegated clubs are deploying parachute payments and the actions clubs need to take to promote EDI and foster inclusive environments as heritage institutions.
For the UK government – whilst these changes are made in an effort to bring about autonomous regulatory framework – the success of the legislation will come out in the wash and will depend heavily on its practical implementation. The IFR’s enhanced powers must be matched with robust enforcement to avoid becoming a mere formality and changes around fan engagement need ongoing scrutiny to ensure that democratic representation translates to genuine influence and isn’t merely symbolic.
The UK government will also be mindful of not wanting the IFR to stray into a territory that irks UEFA into suspending the FA’s membership on grounds of not being sufficiently independent. As I mentioned when speaking to CityAM earlier this week:
“The Uefa Statutes specifically state that 'a Member Association may in particular be suspended if state authorities interfere in its affairs in such a significant way that … it may no longer be considered as fully responsible for the organisation of football-related matters in its territory' – so the success of the Independent Football Regulator (IFR) will likely turn on its remit and whether Uefa perceives this to stray into footballing matters". “The government has been keen to stress it does not intend to regulate matters relating to “football” as a sport, but rather to oversee the long-term financial sustainability of clubs they perceive as heritage assets of the United Kingdom. However, senior Uefa executives and stakeholders have expressed deep concerns over the IFR’s potential for ‘scope-creep’ that could impinge on the FA’s autonomy and thereby breach the Uefa regulations".
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