The government is proposing to set up an independent regulator for football in England and Wales, to help prevent the financial collapse of clubs, protect the sanctity of the football pyramid and stop club owners changing team names, club colours, or moving stadiums without the agreement of the fans.
The regulator would have the power to block English clubs from joining elite structures, like the European Super League which are “closed shops” with no promotion or relegation.
Football’s Finances in a ‘Perilous State’
Andrew said: “Despite the global success of English football, the game’s finances are in a perilous state. The combined net debt of clubs in the Premier League and the Championship is now around £6 billion.”He said clubs in the second tier of English football were spending an “unsustainable 125 percent of their revenue on player wages.”
Andrew said: “Many, if not most, club owners are good custodians of their clubs. But all too often we hear a flagrant financial misconduct, unsustainable risk-taking and poor governance driving clubs to the brink.”
Sunak said: “These bold new plans will put fans back at the heart of football, protect the rich heritage and traditions of our much-loved clubs and safeguard the beautiful game for future generations.”
The proposals in the white paper were drawn up after the government accepted recommendations from a “fan-led review of football governance,” which was led by Conservative MP Tracey Crouch.
Crouch said: “This is a big day for football in this country and I am delighted the government has acted on the key strategic recommendations in my review.”
The proposed independent regulator would cover English Premier League clubs and those in the second, third, fourth and fifth tiers of football, which includes four clubs in Wales.
It would not apply to football clubs in Scotland.
Unlike baseball, basketball and the NFL in the United States, English football has historically seen clubs firmly set in one geographical location, rather than franchises which can be moved if their owners decide another city would be a more profitable location.
The only exception was Milton Keynes Dons, which was formed in 2004 after the owner of Wimbledon, who was known as The Dons, decided to relocate the club from south west London.
Most Wimbledon fans were outraged by this decision and eventually formed their own club, AFC Wimbledon, which had to start at the bottom of the football pyramid but has since reached League One, only to be relegated last year.
Kieran Maguire, an associate professor of football finances at the University of Liverpool, said there were no big surprises in the white paper but he said they had decided to drop the option of a transfer fee levy, which had been considered.
Maguire, author of The Price of Football, told The Epoch Times the regulator needed to be “light touch” and a “regulator of last resort.”
Supporting English Football Club Is a ‘Cultural Thing’
Maguire said most English clubs date back to the late 19th or early 20th century and he said: “It is a rite of passage that you go to your first match with your grandfather and you will take your grandchild to a match with you and it’s very much a cultural thing, which in American franchise sports that doesn’t exist, that connection between club and individual.”The government says its proposals would give each club’s fans a much bigger say in the way their clubs are run and would prevent owners changing names, badges or home shirt colours without the approval of fans.
The Egyptian owner of Hull City also tried to change the team’s name to Hull Tigers, despite widespread opposition from fans.
Originally there were 92 clubs in the English Football League—including four from Wales—but in 1992 an elite English Premier League was launched, although it remains open to promotion and relegation.
Since 1992 and the dawn of the Premier League, there has been an increasing imbalance between the richest and poorest clubs in English football and 64 clubs have been put into administration.
