Following the Government’s fan-led review a new regulator will be set up to oversee financial sustainability and fans’ input into the men’s elite game.
The regulator will implement a licensing system from the Premier League down to the National League. This will require clubs to demonstrate sound business models and robust corporate governance. Clubs will need to apply for a licence before being able to compete.
Fans will also be given a greater say in the running of their club and its heritage. Owners will not be allowed to change the club’s name, badge or home shirt colours without consulting supporters. Regulatory approval will also be required for any sale or relocation of the stadium.
There will also be new tests for owners and directors and stronger due diligence on sources of wealth. The regulator will also be given powers to block English clubs from joining any breakaway league similar to the European Super League.
While English football is a global success story the combined debt of Premier League clubs is now £5.9bn. In the 2020/21 season the Championship also had a wage-to-revenue ratio of 125 per cent. Multiple clubs across the pyramid have also failed to meet their payroll in recent months.
Andrew Jones MP said: “I am pleased to see the Government act on the fan-led review and take action to improve financial sustainability in English football.
“In January I attended a meeting hosted by the English Football League, along with Harrogate Town CEO Sarah Barry, to discuss the proposals. It was good to hear that the proposals are welcomed by clubs further down the football league that are responsibly looking after their finances as opposed to those over-extending themselves at the top of the pyramid.”
You can watch Andrew and Sarah Barry discuss the meeting on Facebook here.