Overview

The Football Governance Bill aims to improve the governance and financial stability of English football. It establishes an Independent Football Regulator (IFR) with significant powers to license clubs, regulate owners and officers, and oversee the distribution of competition revenue.

Description

The bill creates the IFR, an independent body responsible for licensing football clubs and ensuring their financial sustainability. This involves granting operating licenses (provisional and full) to clubs, subject to mandatory and discretionary conditions. The IFR will assess the suitability of club owners and officers, potentially issuing disqualification orders or removal directions for those deemed unsuitable.

Licensing

The bill outlines a licensing system where clubs require either a provisional or full operating licence to participate in specified competitions. These licenses are subject to mandatory conditions (e.g., financial planning, corporate governance) and discretionary conditions (e.g., debt management, cost reduction) that the IFR can impose to ensure financial stability. The IFR can revoke licenses if conditions aren't met.

Owner and Officer Suitability

The IFR will determine the suitability of club owners and officers. Prospective owners and officers must apply for approval. The IFR can disqualify individuals, direct their removal from clubs or impose restrictions on their activities if they fail to meet the required criteria of honesty, integrity and financial soundness. Incumbent owners and officers will also be subject to review by the IFR.

Revenue Distribution

The bill introduces a mechanism for the IFR to intervene in the distribution of competition revenue, particularly broadcast rights revenue, between competition organisers. If disagreements arise, a mediation process is established; if mediation fails, the IFR can issue a distribution order.

Investigatory Powers

The IFR has broad investigatory powers including requesting information, appointing expert reporters, and conducting investigations into relevant infringements. These powers are backed by enforcement mechanisms such as sanctions (including financial penalties and license suspension/revocation), warning notices and urgent directions.

Reviews and Appeals

The bill provides for internal reviews of IFR decisions and appeals to the Competition Appeal Tribunal (CAT).

Government Spending

The bill does not explicitly state the total cost to the UK government. However, it will involve establishing and funding the IFR, as well as potential costs associated with the implementation and enforcement of the bill's provisions. Initial and establishment costs of the IFR will be recovered via a levy paid by licensed clubs.

Groups Affected

• Football Clubs: Subject to licensing, regulatory oversight, and potential sanctions for non-compliance. Will face new obligations including submitting financial and corporate governance statements and paying a levy.
• Club Owners and Officers: Subject to suitability assessments, potential disqualification, removal, or restrictions on their activities. Will have new reporting obligations.
• Competition Organisers: Subject to new duties concerning notification, consultation with the IFR, and potential intervention by the IFR regarding revenue distribution.
• Fans: May experience improved club governance and financial stability but could potentially face disruption if clubs are sanctioned or if there are major changes as a result of the IFR's actions.
• Government Departments: The Department for Culture, Media and Sport will be responsible for establishing and overseeing the IFR, incurring establishment costs.

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