By David Fabri
FOOTBALL IN ENGLAND – A NEW STATUTORY REGIME
A new Independent Football Regulator (IFR) has been set up under English law – literally a ‘game-changer’. Indeed, the game of football in England (not the UK) is now subject to special statutory regulation governed by a new public authority.
This means, in brief, that football clubs are now subject to a regulatory framework similar to what banks and insurance companies have been accustomed to. The first question to ask is whether it was really necessary to go this far, with an extensive, full, and expensive controlling statutory regime complete with licensing and ongoing compliance, as well as “fit and proper” obligations.
This development will surely affect the future role of the Football Association, which promotes the game of football, decides the rules of the game and organises it into separate divisions.
Interestingly, the recently appointed Chief Executive Officer of the IFR comes from the financial services sector. Until recently, he occupied senior regulatory positions with the Financial Conduct Authority and its predecessor, the Financial Services Authority. There, he apparently managed the implementation of Brexit and the new financial regimes for investment firms.
In brief, the Football Governance Act of 2015 establishes the new Independent Football Regulator, whose objectives are to protect and promote the sustainability, financial soundness and resilience of English football, and to ‘safeguard the heritage of English football’.
The law now requires English football clubs to set up proper systems of governance and financial governance. It establishes a licensing regime and a fit and proper suitability test for club owners and senior officials. New club owners as well as key club decisions shall henceforth need to be approved by the new agency.
The law takes great pains to highlight the autonomy and independence of the new regulator. One suspects that that is an attempt to pre-empt problems with FIFA, whose rules famously militate against political and governmental involvement or interference in the running of national football.
Government cannot meddle in the affairs of the IFR, but it can issue binding guidance, whatever that may mean. The IFR is funded by the clubs themselves, but these have no representation on its Board; instead, they have a right to be consulted. The Football Association has one member of the Board.
The views of supporters (fans) also have to be considered. In extreme scenarios, the IFR may force owners deemed unsuitable to sell their club. For purposes of judicial review, appeals from IFR decisions may be made to the Competition Appeals Tribunal.
The Act has not yet been brought into force, partly to allow further consultations and partly to give time to football operators to become familiar with the new obligations and risks. It has been claimed that many clubs are currently operating at a loss.
The new law will apply to the 116 clubs that constitute the current five divisions, with the new licensing regime expected to start from season 2027 – 2028.
David Fabri LL.D., Ph.D. lectures in law at the University of Malta and sits on the Board of Appeal of the Malta Football Association and on the Administrative Review Tribunal. This article seeks to encourage awareness and critical thinking regarding recent legal and corporate developments.
READ THE 28TH EDITION OF THE CORPORATE TIMES:
