The EFL chairman, Rick Parry, has dismissed claims that an independent football regulator could hinder the Premier League’s growth and foreign investment as “complete nonsense”. According to a government bill currently in Parliament, the proposed regulator is required to avoid negatively impacting the financial growth of English football. Despite reports suggesting that No 10 is considering reducing the regulator’s powers as part of a bureaucratic cut, a government source has downplayed these claims. Parry insists that the proposed changes would benefit the entire men’s professional game, and assures that wealthy clubs have nothing to fear.
The Football Governance Bill, set to complete its House of Lords stages next week before heading to the Commons for further consideration, aims to establish an independent regulator overseeing the top five divisions of English men’s football. This regulator would establish mandatory conditions for clubs regarding corporate governance and financial reporting. Additionally, clubs would need to engage effectively with fans on changes to ticket prices and any potential relocation of home grounds. As a last resort, the regulator could intervene between the Premier League and the EFL in case of failure to agree on the redistribution of funds to financially struggling EFL clubs.
References from Bloomberg UK suggest that No 10, prompted by lobbying from Premier League owners, is revisiting certain aspects of the bill to avoid discouraging foreign investors from purchasing English clubs. With both Sir Keir Starmer and Chancellor Rachel Reeves emphasizing economic growth and investment, the government is striving for a “light touch” approach to football regulation. Parry acknowledges that different parts of the government may have varying opinions, but remains optimistic about the positive impact of the legislation after successful resistance against attempts to weaken it in the Lords.
Parry refutes Premier League clubs’ claims that the proposed regulator could undermine their financial competitiveness, asserting that the Premier League must fulfill its responsibilities. He points out a substantial financial gap between the Premier League and the EFL, growing from £11 million to £3.3 billion since the Premier League’s creation in 1992. Highlighting the widening disconnect between the leagues, Parry notes that all three clubs promoted from the Championship in 2023 were immediately relegated the following season, with a similar trend expected this season. The bill, originally introduced in March 2024 by the Conservative government, faced delays due to a general election but was later reintroduced by Labour to prioritize clubs’ financial sustainability. Opposition from the current Tory leadership has emerged, with MP Kemi Badenoch claiming the bill would be a waste of money. Despite this, Parry remains eager to engage with the Conservative leadership on the importance of a regulator, believing that many grassroots Tories support the idea
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