(Bloomberg) — The UK will introduce legislation to set up an independent football regulator to re-distribute revenues between the top-tier Premier League and the lower English Football League, as the government intervenes to try to safeguard the financial sustainability of smaller clubs.
The Football Governance Bill will be proposed in the House of Commons on Tuesday, the government said in a statement. Bloomberg reported last week that Prime Minister Rishi Sunak signed-off on introducing the bill after the Premier League failed to agree on a deal to share revenues with smaller clubs.
Read more: Sunak Pushes to Create Football Regulator After Club Talks Fail
The regulator will have backstop powers to impose a new arrangement on financial distributions between the Premier League and the English Football League if they fail to reach a settlement. It will also be able to fine teams up to 10% of their turnover for non-compliance.
“For too long some clubs have been abused by unscrupulous owners who get away with financial mismanagement, which at worst can lead to complete collapse,” Sunak said. The bill will ensure fans’ views “are front and center, prevent a breakaway league, protect the financial sustainability of clubs, and protect the heritage of our clubs big and small,” he said.
The government will set-up a shadow regulator to operate while the Independent Football Regulator is formally set up. The establishment of a regulator is expected to gain cross-party support in Parliament, which means it may become law before the summer recess in July.
The decision to push forward with legislation came the day after Premier League clubs opted not offer clubs a proportion of broadcast revenues, potentially worth about £900 million ($1.1 billion) over six years, a decision which frustrated politicians.
“We have advocated for a proportionate regime that enables us to build on our position as the most widely watched league in the world,” the Premier League said. “We remain concerned about any unintended consequences of legislation that could weaken the competitiveness and appeal of English football.”
Read more: UK Plans to Set Up Football Regulator With Legislation This Year
Fair Game, which campaigns to improve football governance, said ministers must ensure the new regulator has authority to break up any deal the Premier League does strike with the EFL in the meantime if it does not go far enough.
“Without that power, it will be toothless from the start,” said Fair Game’s director of advocacy Mike Baker.
–With assistance from David Hellier.
More stories like this are available on bloomberg.com
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2024-03-19 00:05:54
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