The Government has taken its first step to address the significant issues facing the financial sustainability of elite men’s football in England, with the introduction of a strengthened Football Governance Bill in the House of Lords.
The Bill comes at a critical juncture for English football, following the attempted breakaway European Super League, and a series of high profile cases of clubs being financially mismanaged.
Pompey fans have seen the difficulties clubs can face if they overspend while chasing the dream, or if an owner becomes disinterested or encounters financial difficulties. In recent years we’ve also seen the devastating impact of the collapse of clubs like Bury and Macclesfield.
These cases came about as a result of fundamental governance problems in the game that have led to excessive and reckless risk-taking, with many clubs living way beyond their means.
Responding to the news, local MP Stephen Morgan welcomed key changes from the previous iteration of the Bill with new measures to strengthen the voice of fans, guarantee the Regulator is independent from influence and ensure the sustainability of football’s finances.
Commenting, Portsmouth South MP Stephen Morgan said:
“Football is an essential part of the social fabric of Portsmouth and our country, and is one of our greatest exports. But despite its success, irresponsible owners, unsustainable financial models and inadequate regulation have cast a shadow over too many clubs.
“This legislation will tackle rogue owners and directors and improve fan engagement, while the light-tough regulation will avoid adverse impacts on investment in English football or on club competitiveness.”
Speaking on the launch of the Bill, Secretary of State for Culture Media and Sport, Lisa Nandy MP said:
“English football is one of our greatest exports and a source of national pride which this Government wants to see thrive for generations to come.
This Bill will establish an Independent Football Regulator and a new set of rules to protect clubs, empower fans and keep clubs at the heart of their communities.”
The issue of football governance has enjoyed cross party support, following Tracy Crouch’s Fan-led Review.
The Bill will tackle rogue owners and directors, implement a club licensing regime to help ensure a more consistent approach in how clubs are run, monitor club finances and improve fan engagement throughout the football pyramid – from the Premier League to the National League.
It will also have a backstop measure to mediate a fair financial distribution down the Leagues should the Premier League and EFL (English Football League) not be able to come to an agreement.
