The Football Governance Act 2025 and the Rise of Statutory Regulation in English Football

The passing of the Football Governance Act 2025 marks a significant turning point in the legal regulation of English football. The establishment of a new Independent Football Regulator (IFR) has replaced the previous self-regulated system which followed a model of voluntary codes and league-specific rules. This article provides a critical analysis of the reforms introduced by the Act, assessing their implications to determine whether they will genuinely have a positive impact on English football clubs, fans, and communities.

Changes to legal regulation

The Football Governance Act 2025 fundamentally affects the statutory requirements governing the economic, operational, and cultural framework of English football clubs. The legislation applies to the top five professional leagues: the Premier League, Championship, League One, League Two, and the National League, but notably does not extend to grassroots football clubs. All affected clubs are now required to obtain an IFR license to confirm adherence to the new regulations, including:

• Stronger financial restrictions designed to prevent clubs from overspending

• Assessments for prospective owners and directors, aimed at preventing incoming executives from undermining the effective management of clubs

• Protections to club heritage, to fend off hasty attempts at changing football club names, badges, and kits without sufficient justification. Clubs will now be required to prove their engagement with fans on these matters before making changes

• The banning of entry to alternative leagues without substantial fan support

The Powers of the Independent Football Regulator

Whilst the stricter regulatory requirements for football clubs appear to represent a step in the right direction, concerns remain regarding their practical enforcement, given many football authorities’ historic reluctance to punish offenders (as demonstrated by the Football Association’s tentative handling of Manchester City’s 115 charges). Fortunately, the IFR’s constitutional powers are vast and unprecedented in the context of British sport. The IFR has the authority to suspend or revoke their licenses if a club is proven to breach their requirements. In addition, following an investigation, the IFR bears the power to impose financial penalties, on both clubs and individuals. Nevertheless, it is important to note that the IFR will not be able to apply sporting-related sanctions, such as points deductions or transfer bans, as its mandate is confined to ensuring compliance in matters of finance and governance.

The Implications of the Football Governance Act 2025

Both the Football Governance Act and the creation of the IFR have been polemic introductions to the world of football, attracting equal measures of praise and skepticism. Supporters of the bill highlight that the new legal structure will bear greater financial longevity across the football pyramid. A key problem historically with English football clubs has been the sudden collapse of several long-standing football teams, such as Bury in 2019, due to insurmountable financial turmoil. The prospect of heightened economic sustainability in English football leagues is therefore appealing, particularly as the reforms aim to embed fan engagement in club governance, ensuring that long-term success is prioritised over short-term profit. Furthermore, the bill has also been praised for protecting the cultural longevity of football clubs, recognising that identity is as central to supporters as on-field performance. Moreover, by preventing the possibility of clubs moving to unsanctioned breakaway leagues, the legislation attempts to avoid the chaos brought about by the Super League in April 2021, where fans protested in masses against a league which they claimed was built upon financial greed and injustice.

Nonetheless, there are also concerns for the implications of the Football Governance Act 2025, particularly from clubs with fewer resources. For instance, the executive and regulatory burdens imposed by the introduction of an IFR license could disproportionately affect smaller clubs in each league. Such outcomes would appear to contradict one of the Act’s central objectives: to bridge the financial and structural gap between larger and smaller clubs in English football. Furthermore, the possible involvement of the government (even through an independent regulator) has prompted fears of excessive and impractical interference in a system that has traditionally operated with a high degree of autonomy.

Verdict

Through the application of the Football Governance Act 2025, Parliament has enacted a permanent and unprecedented shift in English sports law. The introduction of the Independent Football Regulator hopes to bring about more confidence from fans, in the enforcement of regulations and equity of punishment. However, many remain understandably skeptical due to historic failures in financial regulation amongst many football associations. Nevertheless, it is an undeniable step in the right direction, of accountability, of financial responsibility, and of cultural sustainability across the entire sphere of professional English football leagues.

Image by Markbarnes via Wikimedia Commons