Glenda's Legs
Les Ferdinand
Details of the review and its recommendations in full can be found here :
https://www.gov.uk/government/publi...football-governance-securing-the-games-future
I have extracted bits from the summary of Recommendations in Annex A.
Points (A), (F) and (G) are of interest in terms of regulation and fan-involvement/oversight.
(A) To ensure the long-term sustainability of football, the government should create a new independent regulator for English football (IREF)
1. IREF should have a statutory objective of ensuring a sustainable and competitive future for English football, for the benefit of existing and future fans and the local communities football clubs serve. It should have further duties to promote other aspects of the game.
2. In achieving its objectives, IREF should utilise a licensing system under which each club operating in professional men’s football — i.e Step 5 level (National League) or above — would be required to hold a licence to operate, and be subject to various licence conditions. Licence fees should be based on a sliding scale of broadcast revenue.
3. IREF to operate a system of advocacy to help clubs comply with rules, but also have strong investigatory and enforcement powers.
4. IREF should have a chair and board with expertise from a range of industries, appointed by a panel of experts separate from the government. The FA should have observer status on the IREF board.
(B) To ensure financial sustainability of the professional game, IREF should oversee financial regulation in football.
7. The government should introduce a financial regulation regime operated by IREF based on prudential regulation.
8. IREF should have a proportionality mechanism managing the level of owner subsidies based on the size of a club’s existing finances or if owner injections at one or a few clubs is destabilising the long-term sustainability of the wider league.
9. The government should explore ways to support the regulation of football agents operating in English football by working with the relevant authorities including FIFA.
(C) New owners’ and directors’ tests for clubs should be established by IREF replacing the three existing tests and ensuring that only good custodians and qualified directors can run these vital assets.
10. Through licence conditions, the new Owners’ and Directors’ Test should be split into two parts, one test for owners’ (i.e. those who own a minimum of 25% shares in the club alone or acting in concert with others) and one test for directors as well as shadow directors, executive management and any individuals holding those roles regardless of job title.
11. In addition to not being subject to any disqualification criteria based on existing rules, prospective new owners should also be required to: - a. submit a business plan for assessment by IREF (to include financial forecasts). - b. evidence sufficient financial resources to meet the requirements of the business plan. - c. be subject to enhanced due diligence checks on source of funds to be developed with the Home Office and National Crime Agency. - d. pass an Integrity Test.
15. It should be a licence condition that the identity of the Ultimate Beneficial Owner (UBO) of a club be declared to IREF.
(D) Football needs a new approach to corporate governance to support a long-term sustainable future of the game.
16. A new Code for Football Club Governance based on the Sports Governance Code should be introduced for licenced clubs, with compliance being a licensing condition.
17. As a condition of the licence, clubs should be required to publicly present evidence of compliance with the Code for Football Governance on an annual basis.
18. The Code for Football Governance should adopt a model which includes a proportionate approach to the governance requirements. Tier A should involve the highest level of requirements and should apply to Premier League and Championship clubs, with Tier B applicable to Leagues One and Two, with minimum standards applying to Tier C to the National League.
22. The English football authorities should continue to reform their own corporate governance to create independence in decision making from the vested interests in the game, including boards of at least 50% independent directors and the removal of historic oddities such as the need for the FA Chair to be approved by the FA Council.
(E) Football needs to improve equality, diversity and inclusion in clubs with committed EDI Action Plans regularly assessed by IREF
(F) As a uniquely important stakeholder, supporters should be properly consulted by their clubs in taking key decisions by means of a Shadow Board.
26. A Shadow Board should be a licensing condition of IREF. The club should engage and consult this Shadow Board on all material ‘non football/off pitch’ business and financial matters.
27. The football authorities should work with the FSA to upgrade the current Independent Football Ombudsman so that it meets the criteria for full membership of the Ombudsman Association.
(G) Football clubs are a vital part of their local communities, in recognition of this there should be additional protection for key items of club heritage.
28. It should be a licence condition that all licenced clubs should include within their articles of association a Golden Share requiring democratic consent to proposed actions relating to identified heritage items. Each Golden Share right should have circumstances in which it will not apply.
29. The consent of the holder of the Golden Share should be required for the sale of the club stadium, relocation outside of the local area which is not a temporary part of a redevelopment, joining a new competition that is not approved by FIFA, UEFA and the FA and/or leaving a competition in which it currently plays, club badge, first team home colours, and club playing name.
30. The Golden Share should be held by a Community Benefit Society formed for the benefit of the club’s supporters operating under standardised rules set by IREF in conjunction with the FCA.
31. Clubs should be required to provide formal notice of any intention to take any material steps or enter into a contract to alter any of the items covered by the Golden Share to which the holder of the Golden Share will have 45 days to notify rejection.
32. There should be an arbitration mechanism, at the club’s expense, which allows for resolution by IREF or a party appointed by IREF of an appeal by the club of any decision to withhold consent by the holder of the Golden Share.
35. The Government should explore the viability of introducing new security of tenure property rights for clubs where the club does not own the stadium in which it plays.
36. The Football Association should amend its rules to provide for protection of the additional heritage items identified by this report, to prioritise the voice of supporters in any decision, and to provide clarity on the procedures that will be followed in regard to any heritage changes.
(H) Fair distributions are vital to the long term health of football. The Premier League should guarantee its support to the pyramid and make additional, proportionate contributions to further support football.
39. The Leagues, FA, and PFA should work together to include a new compulsory clause in the standard player contracts that provides for an automatic adjustment to player salaries at a standard rate upwards on promotion and downwards on relegation.
40. A solidarity transfer levy should be introduced for Premier League clubs, to support the football pyramid and overseen by IREF. Its level and whether loans should be included should be determined through consultation.
(I) Women’s Football should be treated with parity and given its own dedicated review.
(J) As an urgent matter, the welfare of players exiting the game needs to be better protected — particularly at a young age.
https://www.gov.uk/government/publi...football-governance-securing-the-games-future
I have extracted bits from the summary of Recommendations in Annex A.
Points (A), (F) and (G) are of interest in terms of regulation and fan-involvement/oversight.
(A) To ensure the long-term sustainability of football, the government should create a new independent regulator for English football (IREF)
1. IREF should have a statutory objective of ensuring a sustainable and competitive future for English football, for the benefit of existing and future fans and the local communities football clubs serve. It should have further duties to promote other aspects of the game.
2. In achieving its objectives, IREF should utilise a licensing system under which each club operating in professional men’s football — i.e Step 5 level (National League) or above — would be required to hold a licence to operate, and be subject to various licence conditions. Licence fees should be based on a sliding scale of broadcast revenue.
3. IREF to operate a system of advocacy to help clubs comply with rules, but also have strong investigatory and enforcement powers.
4. IREF should have a chair and board with expertise from a range of industries, appointed by a panel of experts separate from the government. The FA should have observer status on the IREF board.
(B) To ensure financial sustainability of the professional game, IREF should oversee financial regulation in football.
7. The government should introduce a financial regulation regime operated by IREF based on prudential regulation.
8. IREF should have a proportionality mechanism managing the level of owner subsidies based on the size of a club’s existing finances or if owner injections at one or a few clubs is destabilising the long-term sustainability of the wider league.
9. The government should explore ways to support the regulation of football agents operating in English football by working with the relevant authorities including FIFA.
(C) New owners’ and directors’ tests for clubs should be established by IREF replacing the three existing tests and ensuring that only good custodians and qualified directors can run these vital assets.
10. Through licence conditions, the new Owners’ and Directors’ Test should be split into two parts, one test for owners’ (i.e. those who own a minimum of 25% shares in the club alone or acting in concert with others) and one test for directors as well as shadow directors, executive management and any individuals holding those roles regardless of job title.
11. In addition to not being subject to any disqualification criteria based on existing rules, prospective new owners should also be required to: - a. submit a business plan for assessment by IREF (to include financial forecasts). - b. evidence sufficient financial resources to meet the requirements of the business plan. - c. be subject to enhanced due diligence checks on source of funds to be developed with the Home Office and National Crime Agency. - d. pass an Integrity Test.
15. It should be a licence condition that the identity of the Ultimate Beneficial Owner (UBO) of a club be declared to IREF.
(D) Football needs a new approach to corporate governance to support a long-term sustainable future of the game.
16. A new Code for Football Club Governance based on the Sports Governance Code should be introduced for licenced clubs, with compliance being a licensing condition.
17. As a condition of the licence, clubs should be required to publicly present evidence of compliance with the Code for Football Governance on an annual basis.
18. The Code for Football Governance should adopt a model which includes a proportionate approach to the governance requirements. Tier A should involve the highest level of requirements and should apply to Premier League and Championship clubs, with Tier B applicable to Leagues One and Two, with minimum standards applying to Tier C to the National League.
22. The English football authorities should continue to reform their own corporate governance to create independence in decision making from the vested interests in the game, including boards of at least 50% independent directors and the removal of historic oddities such as the need for the FA Chair to be approved by the FA Council.
(E) Football needs to improve equality, diversity and inclusion in clubs with committed EDI Action Plans regularly assessed by IREF
(F) As a uniquely important stakeholder, supporters should be properly consulted by their clubs in taking key decisions by means of a Shadow Board.
26. A Shadow Board should be a licensing condition of IREF. The club should engage and consult this Shadow Board on all material ‘non football/off pitch’ business and financial matters.
27. The football authorities should work with the FSA to upgrade the current Independent Football Ombudsman so that it meets the criteria for full membership of the Ombudsman Association.
(G) Football clubs are a vital part of their local communities, in recognition of this there should be additional protection for key items of club heritage.
28. It should be a licence condition that all licenced clubs should include within their articles of association a Golden Share requiring democratic consent to proposed actions relating to identified heritage items. Each Golden Share right should have circumstances in which it will not apply.
29. The consent of the holder of the Golden Share should be required for the sale of the club stadium, relocation outside of the local area which is not a temporary part of a redevelopment, joining a new competition that is not approved by FIFA, UEFA and the FA and/or leaving a competition in which it currently plays, club badge, first team home colours, and club playing name.
30. The Golden Share should be held by a Community Benefit Society formed for the benefit of the club’s supporters operating under standardised rules set by IREF in conjunction with the FCA.
31. Clubs should be required to provide formal notice of any intention to take any material steps or enter into a contract to alter any of the items covered by the Golden Share to which the holder of the Golden Share will have 45 days to notify rejection.
32. There should be an arbitration mechanism, at the club’s expense, which allows for resolution by IREF or a party appointed by IREF of an appeal by the club of any decision to withhold consent by the holder of the Golden Share.
35. The Government should explore the viability of introducing new security of tenure property rights for clubs where the club does not own the stadium in which it plays.
36. The Football Association should amend its rules to provide for protection of the additional heritage items identified by this report, to prioritise the voice of supporters in any decision, and to provide clarity on the procedures that will be followed in regard to any heritage changes.
(H) Fair distributions are vital to the long term health of football. The Premier League should guarantee its support to the pyramid and make additional, proportionate contributions to further support football.
39. The Leagues, FA, and PFA should work together to include a new compulsory clause in the standard player contracts that provides for an automatic adjustment to player salaries at a standard rate upwards on promotion and downwards on relegation.
40. A solidarity transfer levy should be introduced for Premier League clubs, to support the football pyramid and overseen by IREF. Its level and whether loans should be included should be determined through consultation.
(I) Women’s Football should be treated with parity and given its own dedicated review.
(J) As an urgent matter, the welfare of players exiting the game needs to be better protected — particularly at a young age.
