English football needs an independent governing body to prevent it from “mumbling from crisis to crisis”, said the person who chaired a fan-led review into the sport.
Former sport minister Tracey Crouch is calling on the government to set up a new independent governing body for English football (IREF).
Reviews say this is necessary for the long-term financial stability of the men’s professional game.
“This is a huge opportunity for football,” Crouch told BBC Sport.
“We’ve seen football swing from crisis to crisis over the past decade and unfortunately we haven’t had the right levels of regulation to prevent that from happening.”
BBC Sport understands that Downing Street will support the plan for an independent regulator.
Speaking to the BBC’s sports editor Dan Roan, Crouch added that the recommendations were to remove “a vested interest” from football to ensure it could “become sustainable into the long-term future”.
The government-mandated review also recommends Premier League clubs pay a “solidarity transfer fee” to further support the football pyramid.
It suggests that clubs should have a ‘balloon board’ of fans so that they are properly advised on key decisions and that supporters keep a ‘golden stake’ to protect the club’s legacy and the leagues in which they compete.
The review also recommends new owner and director checks and these be carried out by IREF instead of the Premier League, English Football League (EFL) and English Football Association (FA).
Crouch says she is “completely confident” that such measures will prevent any resurgence of failed in the European Super League or a similar breakaway contest and would prevent a club from going bankrupt in a way Bury FC did it in 2019.
She added that she was “extremely optimistic” the government would support the idea of an independent regulator but said the legislation would not come into force at the start of next season.
However, she said a ‘shadow regulator’ could be set up ‘immediately’ to set guiding principles for the IREF.
The Premier League said it recognized the need to “restore and retain” fan confidence in football’s governance and would study the recommendations before working with government, fans, the FA and the EFL on these issues.
The EFL said it hoped the review was “a catalyst for positive change that can make clubs sustainable”.
The FA said “many positive changes have been made”, some of which are “a direct result of the review”.
The Football Fans’ Association (FSA) said the assessment “lays the groundwork for a prosperous and sustainable future” for English football at all levels.
What is being recommended?
The report makes 47 recommendations, which are summarized in 10 key points:
- The government should establish a new independent regulatory body (IREF)
- IREF should oversee financial regulation in football
- IREF should set up tests on new owners and directors
- Need to establish a new set of corporate governance rules
- Equity, diversity and inclusion plans must be mandatory for all clubs
- Supporters should be consulted on all key decisions off the pitch via a ‘ball board’
- Important items of club heritage should be protected with a ‘golden section’ for fans
- More Premier League support is needed for the pyramid through a solidarity transfer fee, paid by Premier League clubs when buying players from abroad or other top clubs
- Women’s football should be treated equally and have its own assessment
- Stakeholders should work to strengthen protection of the welfare of players who leave the game
The examination of Premier League owners and directors has come under close scrutiny recently after Saudi Arabia’s takeover of Newcastle.
Amnesty International urged the federation to change the test to address human rights issues, in which the Saudi state is accused of human rights abuses.
The Premier League says it has “legally binding guarantees” that the Saudi state does not control Newcastle directly, although the Public Investment Fund (PIF), which has an 80% stake, is owned by the Crown Prince. Mohammed Bin Salman as chairman. Western intelligence agencies believe the crown prince approved the 2018 murder of journalist Jamal Khashoggi, which he denies.
The review did not specify whether human rights issues would be considered in the new proposed tests, but did say that owners and directors must be “of good character” to pass.
Crouch said she did not know if the new tests would hinder a Newcastle takeover but added they would ensure “greater transparency”.
Premier League and EFL have agreed £250 million rescue package for EFL clubs in light of the Covid-19 pandemic last December, before the top flight was made Another 25 million pounds available to Leagues One and Two and the National League last week.
The review says the proposed transfer fee will add to it and work in a similar way to stamp duty to “distribute revenue throughout the pyramid and to the base”.
Crouch said the Premier League “has a duty” to move more of its assets down – but both it and the EFL need to come to a decision on what percentage of tax should be.
If they cannot agree, she said the IREF will make the decision on their behalf.
Why did the review take place?
The review heard more than 100 hours of evidence from fans representing more than 130 clubs, the FA, Premier League, EFL, League Managers Association and Professional Players Association.
The government promised a fan-led review in the 2019 general election manifesto after Bury was expelled from League One following the collapse of a takeover bid.
The review comes as a result of the Covid-19 pandemic, which has kept matches closed, impacted revenue, and an attempt to kick off the 12-team European Super League in April has failed.
The review’s recommendations aim to address concerns about the financial disparity between the Premier League and the Championship, with clubs in the second tier breaching profitability and sustainability rules in an attempt to claim power. promoted.
This has been clear this season with Reading is deducted six points for violating financial rules and Derby County scored nine more points if they violate the EFL accounting rules, their total deductions this season is 21 points.
The European Super League, which features six Premier League clubs, has collapsed amid widespread condemnation from other clubs and players as well as governing bodies, politicians and in particular. are fans.
The review’s ‘gold share’ proposal seeks to prevent this from being attempted again as it gives fans a say in the club’s heritage – including team and stadium colors them, as well as prevent them from playing in competitions not affiliated with Fifa, Uefa or the FA.
What was the reaction that happened?
The chairman of the Digital, Culture, Media and Sport Committee, MP Julian Knight, said he welcomed the proposal of an independent football governing body.
He said there must be “urgent government action” and called on Culture Secretary Nadine Dorries to introduce a football governing body during the Queen’s next Speech.
The Premier League said: “We acknowledge the call for some form of independent regulation to protect the essential strength of English football and the Premier League have undertaken their own strategic and governance assessments. I.
“These will continue to evolve with the continued work of the fan-directed review.”
EFL President Rick Parry said it was “delighted” to see the review conclude that “additional allocations” were needed from the top flight.
He added: “Achieving financial stability should be the number one priority.
“Reducing volatility and enhancing balance throughout the British league will provide the foundation on which reforms can be built.”
FSA chief executive Kevin Miles said the review “has the potential to be a huge step forward for football governance” and it is “something the government has to do”.
