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by Munro Research

Football Governance (No. 2) Bill


Official Summary

A Bill to require professional and semi-professional football clubs in England to disclose the identity of their owners; to give the Football Association powers to block the ownership of a club by anyone whom they consider is not a fit and proper person; to require all creditors of a football club to be compensated equally should the club go into administration; to facilitate the raising by supporters’ organisations of the finance required to acquire a controlling stake in a football club; and for connected purposes.

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Overview

This bill aims to improve governance in English professional and semi-professional football. Key changes include increased transparency in club ownership, stricter ownership eligibility rules, fairer treatment of creditors in insolvency, and easier pathways for fan ownership.

Description

The bill mandates that clubs in the top eight English leagues must publicly disclose the identity of their ultimate beneficial owners, including details about trusts and community benefit societies. The Football Association (FA) gains the power to veto owners deemed "unfit and proper," considering their ability to adhere to FA rules and regulations. The bill abolishes preferential treatment for certain creditors when a club enters administration, ensuring all creditors are treated equally. Finally, it prevents football leagues from enacting rules that discriminate against fan-owned clubs (community benefit societies and community interest companies).

Government Spending

The bill's impact on government spending is not directly specified. The costs associated with implementing and enforcing the new regulations would need to be assessed separately by the government and would likely be absorbed within existing budgets of relevant organizations such as the FA. No figures are available in the provided text.

Groups Affected

  • Football Clubs: Increased transparency and stricter ownership rules may impact club operations and transfers.
  • Football Club Owners: Greater scrutiny of their identity and background will be required.
  • Football Club Creditors: They will receive fairer treatment in insolvency proceedings.
  • Football Supporters' Organisations: The bill makes it easier for them to acquire controlling stakes in their clubs.
  • The Football Association (FA): Takes on a greater role in regulating club ownership.
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