The British Prime Minister confirmed Rishi Sonak There are plans to create an independent football regulatory body to protect the future of English football clubs, during the King’s speech on Tuesday.
Football’s independent regulatory body will have the ability to step in to deal with cash flow and other regulatory issues within clubs, many of which are financially weak.
And he said King Charles In his speech on the Football Governance Bill, “legislation will be introduced to protect the future of football clubs for the benefit of the game’s stakeholders and fans.”
A separate government document stated that the fragility of the English football hierarchy had been exposed in recent years.
The document added, “The collapse of the Bury Club (one of the clubs in the English city of Manchester), the devastating impact of the epidemic (Coronavirus) on the clubs, and the failed plan for the breakaway European Super League, all revealed the financial unsustainability of some clubs and the need to grant more accounting authority to the fans.”
The regulatory body will operate a licensing system that will apply to the top five league levels of English men’s football with the ability to deal with issues including compliance with financial regulations, corporate governance and fan engagement.
Stricter tests will be implemented on club owners, minimum standards for fan participation will be introduced and clubs will not be allowed to join breakaway or unlicensed leagues.
The Fair Game group described “Fair Sport,” which includes clubs seeking to improve football management. The announcement was declared a “historic moment for football”.
“It represents a real opportunity to end the cycle of overspending and mismanagement that has plagued our national sport and threatened the very existence of our clubs,” Niall Cooper, the group’s chief executive, said in a statement. “At the moment, clubs such as Sheffield Wednesday, Reading and Scunthorpe United are staring into the void.”
He added, “Reckless spending, separation between clubs and their communities, and paying lip service to equality standards must go to the dustbin of history. This transformation can only be achieved if the regulatory body has the capacity and resources necessary to achieve it.”
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English Football League President Rick Barry described the decision as a “historic commitment” that would help mitigate the risk of fans losing their clubs completely.
“The football pyramid is important. It is a unique force in English football and something that must be protected and nurtured,” Barry said.
Former Sports Minister Tracey Crouch, who stressed the importance of an independent regulatory body in the review report into football governance she published last year, said she was “delighted” to have it mentioned in the King’s Speech.
Crouch added in a statement on the social networking platform .
The briefing pointed to the success of the English Premier League globally, attracting more viewers and higher revenues than any of its international competitors in the 2021-2022 season.
The league’s total revenues amounted to 5.5 billion pounds ($6.8 billion), compared to 2.8 billion pounds for the Spanish League.
However, clubs are constantly losing money and relying on external financing as their debt levels rise.
Since the 1999-2000 season, he has led 19 of 23 Premier League seasons to pre-tax losses for all clubs combined. Across the English Premier League and Championship, net debt rose to £4.4 billion in 2022.