New Football Governance Bill ‘a significant victory for the English Football League at the expense of the Premier League’ according to LCP’s Head of Football Governance

The new Football Governance Bill, which has been released today, represents a significant victory for the English Football League at the expense of the Premier League. It is also a step in right direction when it comes to the role of the Football Association, according to LCP’s Head of Football Governance, Aaryaman Banerji.

There have been several significant changes from the Bill published in the last months of the previous Conservative government. A change which appears to be under the radar at the moment is the increased importance of the Football Association, working in conjunction with the Regulator. In relation to the publication of the landmark State of the Game Report, and defining key terminology, the new regulator must consult with the FA.

According to LCP this is a step in the right direction to what should be the ultimate aim of reforming the governance of the FA and restoring its role and authority in the regulation of English football.

The Bill also makes provision for the regulator to consider all methods of redistribution, including now parachute payments, as part of the redistribution package between the Premier League and EFL, should the Regulator’s backstop powers to enforce a deal be activated.

Other significant changes include:

• Requiring clubs to engage with fans on ticket price changes
• a renewed focus on Equality, Diversity and Inclusion standards
• the abolition of clauses in the legislation that had previously undermined the new body’s independence from government.

Any dilution of parachute payments may result in greater competitive balance below the Premier League and a more financially stable football pyramid, with many clubs no longer having to spend excessive money to effectively compete with clubs in receipt of parachute payments. This would, however, need to be a gradually implemented process, to allow clubs time to adapt financially to this change.

LCP’s Head of Football Governance Aaryaman Banerji, commented: “This reformed Bill is a significant victory for the EFL at the expense of the Premier League. The Premier League has continuously insisted on the importance of parachute payments for the financial sustainability of relegated clubs. The inclusion of these payments as part of the regulator’s potential assessment of redistribution is a blow for the Premier League and increases the power of the EFL’s bargaining position significantly.

This Bill is an improvement on the previous version. I am particularly encouraged by the increasing relevance of the Football Association and their relationship with the Regulator. This is a step in the right direction to what should be the ultimate aim of reforming the governance of the FA and restoring its role and authority as regulators of English football.

There remains, however, widespread concern about the funding of the Regulator. The proposed method of funding under the Bill via a levy on clubs could prove to be an impractical solution that may well result in the Regulator either being underfinanced or creating an extremely difficult market in which it must continually ask for money from clubs to fund its operation.”

Bart Huby, LCP’s Head of Sport Analytics, added: “If implemented practically, the new regulatory environment for men’s professional football in England should result in greater financial sustainability for clubs, as well as improved involvement and engagement for fans. The Regulator will need to establish a pragmatic regulatory regime and many clubs will need to improve their finances and governance to comply - and LCP is ready to provide support in this important development for our national game.”