Government and Premier League set to clash over plans to strengthen football regulator

The government has put itself on a collision course with the Premier League with plans to strengthen the powers of the football regulator.

One of its new proposals, published as part of the Football Governance Bill and changed from its first draft by the Conservatives in the last parliament, allows the regulator to control the distribution of finances from the top flight to the lower leagues if a deal cannot be agreed.

This new power refers mainly to controversial 'parachute payments’ given to clubs who get promoted to the Premier League and are then relegated.

To date, England’s top league has not been able to agree on a distribution model with the English Football League (EFL), which runs the rest of the football pyramid.

The Premier League, one of Britain’s most successful exports, is firmly opposed to these “unprecedented and untested powers” and warns that any interference will weaken the league’s worldwide attraction.

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In a statement, the Premier League warned that the regulator’s licence to intervene in the distribution of revenue could “have a negative impact on the League’s continued competitiveness, clubs’ investment in world-class talent and, above all, the aspiration that drives our global appeal and growth.”

Elsewhere the Bill aims to strengthen fans' involvement in running their clubs, and also a commitment to improve equality, diversity and inclusion (EDI) across the sport.

Clubs will now be required to publish what action they are taking on EDI.

But one controversial element that has been dropped from the previous plan is a requirement to consider the UK government’s “foreign and trade policy objectives” when making decisions.

UEFA warned the Culture Secretary Lisa Nandy that any “interference” could lead to Euro 2028 co-hosts England being banned from taking part in their own tournament.

However, the biggest threat to the Premier League at the moment appears to be infighting precipitated by Manchester City and their legal fight over restrictions on spending.

On the face of it, this Bill gives the regulator no powers to minimise the damage being caused by a near civil war among England’s top clubs.

Nandy said today: “For too long, instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending.

“This Bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.”

Niall Couper from the lobbying group Fair Game broadly welcomed the new government’s tweaking but is still concerned by how the Premier League’s billions are shared out.

”The financial divide between divisions has been growing over the last 20 years. The pressure to overspend to climb the pyramid has reached epidemic levels - 58% of our top 92 clubs are technically insolvent.

“If the Bill is to deliver financial sustainability for the football pyramid then the Regulator must have powers to set parameters around what any deal must deliver - and that should include closing the gaps between divisions and rewarding well-run clubs.”

Former England and Manchester United player and co-owner of Salford City FC Gary Neville said these proposals were key to protecting the game’s future.

”Football is too important in this country to be left solely in the hands of individual owners to design its future. We've seen inequality across the game grow but now independent regulation can act as a catalyst to create a thriving and sustainable game for future generations.”

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