Football Regulator: Lawyers react to Kings Speech pledge

On Wednesday King Charles III’s King’s Speech – on behalf of the new Labour government – included a commitment to a football regulator.

The Football Governance Bill fell to the wayside at the end of the last Parliament after a snap General Election was called by then Prime Minister Rishi Sunak.

But Wednesday’s confirmation relating to the governance of the Beautiful Game, and suggestions by some commentators that Labour could go further than the Conservatives attempted to, suggests it’s back on the agenda for the next parliament.

But what do lawyers and commentators think about the return of the Football Regulator to the legislative agenda and where does it go from here?

Football regulator basics?

“Amongst a number of measures to protect the position of fans, clubs will be prevented from selling a stadium or relocating without regulatory approval and clubs will be required to meet minimum standards of fan engagement,” Matthew Gregory, Albert Weatherill and Stephen Rigby of Norton Rose Fulbright say.

“Certain key decisions around heritage-related matters, for example to change the badge or home shirt colours, will require fan approval and certain existing FA protections for club names will be placed on a statutory footing.

“Individual clubs will face ongoing regulatory requirements to improve financial resilience and intended to reduce the risk of club failure.

“For some clubs already facing financial pressures, and given the effects of the inflationary environment remain in sharp focus across the country affecting football clubs and their fans, many will be anxious to understand the detail here and some may already be considering possible restructurings and other measures to stabilise balance sheets.”

What could be introduced?

“The new owners test is part of a whole raft of measures to ensure financial stability within the game and maintain fan engagement,” Udo Onwere, partner at Bray & Krais and ex-Fulham midfielder, says.

“The test, once passed into law, will certainly cause football club owners to be more cautious with their spending and take fewer risks. This will be especially true if owners can only operate if licensed and, subsequently, if these licences only remain valid on the condition that there are no regulatory breaches.

“It will be interesting to see if the regulator goes further with the owners’ tests and begins to politicise certain decisions by applying other criteria to pass the test, such as not having a history of human rights abuses, for example.”