Football to launch crackdown on owners and breakaway leagues as King Charles announcing independent regulator plans is hailed as ‘historic moment’

• Laws to create the independent regulator announced by King Charles in speech
• The regulator was advised at the outcome of Tracey Crouch’s fan-led review
• Can Liverpool challenge for the title? Listen to the debate on It’s All Kicking Off 

The introduction of a new independent football regulator has been confirmed in the first King’s Speech in 72 years.

King Charles used his first state opening of Parliament to announce that ‘legislation will be brought forward to safeguard the future of football clubs for the benefit of communities and fans’.

The regulator has been in the pipeline since it formed one of the key recommendations of Tracey Crouch MP’s fan-led review in November 2021, with the Government then including it on their white paper in February this year.

Its inclusion in Tuesday’s historic King Speech’s means Prime Minister Rishi Sunak will now try to bring it into legislation before next year’s election, although it is unlikely to be fully operational until the start of the 2025-26 season.

The aim of the regulator is ensure the financial sustainability of clubs and the stability of the English football pyramid.

King Charles used his first State Opening of Parliament speech to announce the regulator

The King confirmed the Government’s plans to create a new body to oversee the game

Explaining the Football Governance Bill, the Government said: ‘Across the Premier League and Championship combined, net debt increased to £4.4billion in 2022. This shows that many clubs across the pyramid are financially vulnerable.

‘The unique importance of football clubs to their fans and local communities means the social costs of financial failures would be significant.

‘The introduction of an independent football regulator will help to promote and secure the financial sustainability of clubs and reduce the likelihood of financial collapse.’

Under the regulator, all clubs will be forced to have a license, which they could have withdrawn, and they will be prevented from joining breakaway leagues.

A strengthened owners’ and directors’ test forms a key part of the plan and fans will be given a greater say in the running of their clubs.

The regulator will also have the power to intervene if the Premier League and EFL cannot come to a revenue sharing agreement.

EFL chair Rick Parry said: ‘We welcome the landmark commitment to the Football Governance Bill in the King’s Speech.

‘This is an opportunity to create a regulator that can help football to address the systemic issues that are facing the game, so that we can avoid clubs getting into financial trouble and the threat of supporters losing their club altogether.’

Campaign group Fair Game described the King’s Speech as an ‘historic moment for football’ but warned the regulator must have the ‘teeth and resources’ to deliver.

‘This represents a real chance to end the cycle of overspending and mismanagement that has plagued our national game and threatened the very existence of our clubs,’ said chief executive Niall Couper.

‘Right now clubs like Sheffield Wednesday, Reading and Scunthorpe United are staring into the abyss.’There will be intense pressure to weaken the regulator’s remit at a time when proper protection and scrutiny of our national game is needed more than ever.’Those tasked with setting up the regulator must resist that pressure and remain laser-focused to deliver a fairer future for football and the culture change the sport desperately needs.’

Dame Caroline Dinenage MP, chair of the Culture, Media and Sport committee, said the Government ‘should get on with setting it up in shadow form by the end of the year’.

She added: ‘This announcement should be a clear indication to the footballing authorities negotiating a revenue sharing agreement that they are firmly in added time.

‘If they can’t strike a deal to protect clubs throughout the pyramid soon, the new independent regulator should be in place and ready to step in to impose one upon them.’

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