What is Football Governance Bill and How does it affect English clubs?

The UK government established a new independent football regulator when the Football Governance Bill was announced on Tuesday.

What is Football Governance Bill?

The Bill has been announced at a crucial juncture for English clubs, stopping teams from breakaway competitions like the European Super League. This new body will be equipped with powers revolving around three objectives: to improve the financial sustainability of clubs, ensure financial resilience across the leagues, and safeguard the heritage of English football. 

This means that new owners or directors will face the possibility of being removed and struck off from owning any football clubs if they are found unfit.

A statement released on Monday evening read: “The Premier League will now study the Football Governance Bill, working closely with Government, parliamentarians and key stakeholders.

“We agree it is vital that football clubs are sustainable, remain at the heart of their communities, and that fans are fundamental to the game.”

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How does the Football Governance Bill affect English clubs?

Every English club, from the Premier League down to the fifth-tier National League will be licensed to compete in elite competitions in England. The license would require every English club to maintain certain criteria, such as corporate governance, fan engagement, and financial reporting.

Fan engagement is a crucial aspect of the Governance Bill which will ensure fans are put back at the heart of the game. According to the license, clubs will be required to consult their fans on off-field decisions, such as club heritage and the club’s strategic direction.

Prime Minister Rishi Sunak said: “It is a historic moment for football fans. It will make sure their voices are front and centre,” he added. “Football has long been one of our greatest sources of national pride.

“But 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 – as we saw in the upsetting cases of Bury and Macclesfield Town.”