The Premier League and the EFL’s protracted dispute over money distribution will be resolved by football’s independent regulator.
The government has long informed the football authorities that in the event that an agreement cannot be reached, the regulator will step in with “backstop powers.”
According to a government release on the bill, “these powers mean that if the leagues fail to agree on a new deal on financial distributions, then the backstop can be triggered to ensure a settlement is reached.”
“The Oxford United Supporters Panel welcomes the progress announced today regarding the Football Governance Bill, which places financial sustainability at its centre and recognises the importance of fans through enhanced requirements on fan engagement,” stated Janine Bailey on behalf of the panel.
While self control is admirable in a perfect world, ours is not one of those.
One instance of this is the Premier League’s inability to present a substantial proposal about the allocation of funds in recent weeks.
Communities around football teams need to safeguard their assets. We’re interested to see how the regulator handles this.
Nearby, the selling of Oxford United’s Manor Ground and the subsequent 20 years of playing at a stadium we do not own have limited our operations and financial resources.
A short distance away, Reading is having financial difficulties and appears to be considering selling their Training Ground at a low price in order to raise money for the upcoming few months.
“Any team may be just one owner away from a comparable outcome. We expect that the bill would establish significant enforcement and the enhanced owner’s and director’s exams that have been promised.
“In general, we support efforts to establish an independent regulator for football in this country,” an OxVox supporter representative stated.
Even though football is now a multibillion dollar industry, it is too significant to be left in the hands of a select few.
“At one extreme we have seen the threat of a European breakaway league, and at the other long-established community clubs going out of business.
“Fans across the country do not want a closed shop and are united in wanting football to remain a meritocracy in which any team, even our own, can aspire to the top division and share in the success.”
Precise details over the point at which the powers would be triggered – and what those powers would look like – have not yet been confirmed but the Government said in a consultation response last September that one option it was considering was binding final offer arbitration.
Under that system, the two leagues would each submit their proposal, the regulator would assess them against predetermined criteria, and then would choose and impose one as the binding arrangement.
There had been hope that the Premier League’s clubs would make a formal offer to the EFL at a meeting last Monday, but none was forthcoming and instead the Premier League said its clubs were focused on first agreeing new financial rules for the top flight.
“The Premier League will now study the Football Governance Bill, working closely with Government, parliamentarians, and key stakeholders,” according to a statement the league made on Monday night.
“We all agree that it’s critical for football teams to be able to sustain themselves, stay a vital part of their communities, and that the fans are essential to the game.”
Once created, the regulator’s main goal will be to use a licencing mechanism to protect the clubs’ financial viability in England. Clubs from the National League through the Premier League will be covered by this.
According to the government, the regulator would be able to sanction non-compliant clubs up to 10% of their sales.
Additionally, it will have the authority to prevent teams from participating in unapproved leagues, responding to the outcry from supporters incited by England’s “Big Six” attempt to establish a European Super League in April 2021.
In order to give clubs time to adjust, the government has stated that the regulator’s licencing structure will be “proportionate” and will include a system of temporary and full licences.
According to the government, the regulator will have the authority to evaluate potential new directors and owners and to disqualify them if they willfully or consistently disregard licencing requirements.
Prime Minister Rishi Sunak stated: “As we witnessed in the distressing situations of Bury and Macclesfield Town, for far too long some clubs have been exploited by unscrupulous owners who get away with financial mismanagement, which at worst can lead to complete collapse.”
“This Bill is a historic moment for football fans; it will ensure that their voices are heard, stop a breakaway league, safeguard clubs’ financial stability, and preserve our big and small clubs’ rich history.”
