Overview

The Football (Financial Transparency) Bill mandates increased transparency in football club finances, particularly for those in the top four tiers of English and Scottish professional leagues. It aims to improve financial accountability by requiring disclosure of ownership, creditors, and third-party interests in players' contracts.

Description

This bill introduces several key requirements for football clubs:

• Ultimate Beneficial Ownership Disclosure: Clubs must publicly declare the ultimate beneficial owner of the club, its assets (home ground, training ground, intellectual property), and, if applicable, the beneficiaries and trustees of any trusts involved. Supporters trusts and community groups must also list their shareholders.
• Third-Party Stakes Disclosure: Clubs and players must disclose any third-party interests in players' contracts.
• Creditor Disclosure: Clubs must publicly declare all outstanding creditors every six months.
• Football Creditors Rule Amendment: The bill abolishes the preferential treatment of certain creditors in insolvency proceedings, ensuring equal compensation for all creditors.

Government Spending

The bill does not directly specify government spending figures. The implementation and enforcement costs will likely fall on the Football Associations and Leagues rather than directly on central government. There is potential for a minor increase in government spending related to oversight and enforcement but this is not stated explicitly in the bill itself.

Groups Affected

• Football Clubs (Top Four Tiers): Increased administrative burden and potential compliance costs due to transparency requirements.
• Football Players: Requirement to disclose third-party interests in contracts.
• Creditors of Football Clubs: Potentially affected by the abolition of preferential creditor treatment in insolvency.
• Football Associations and Leagues: Responsible for enforcement and oversight of the new regulations.
• The Public: Benefits from increased transparency and accountability in football club finances.

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