11/03/2024EFL regulations: ‘Far from perfectly drafted’
The English Football League (“EFL”) looks set to consider tightening its rules and regulations (“EFL… Read more
01/03/2023
Not long before the death of the late, great, John Motson, and on the heels of the Premier League charging Manchester City for allegedly breaking financial rules more than 100 times, the government published its much anticipated White Paper, A Sustainable Future – Reforming Club Football Governance; something we think John Motson would have gladly welcomed.
The White Paper largely adopts and builds on the recommendations of the independent report in November 2021, Fan-Led Review of Football Governance: securing the game’s future, led by Tracey Crouch CBE MP and triggered by the European Super League debacle.
The White Paper rightly recognises the importance and uniqueness of football (which is a part of our national identity and DNA):
“Football is not just a sport. It is part of our history, our heritage, and our national way of life – bringing communities across the country together week in, and week out… The English Football League is the world’s original football league, while for over three decades the Premier League has been the template for all other leagues to follow… Football is nothing without its fans – and yet in the last two decades, too many of those fans have been let down, ignored or shut out by their own teams. Historic clubs like Bury have gone to the wall, while others have been governed poorly or put at risk of financial collapse – threatening the stability of the wider pyramid. Too often, some owners have forgotten that they are only the custodians of their club, responsible for just one chapter in its history. So now we are stepping in to protect our national game and put fans right back at the heart of football.” [Secretary of State for Culture, Media and Sport, Rt Hon Lucy Frazer MP’s foreword in the White Paper]
The fundamental point of the White Paper is the commitment to an independent regulator (the “Football Regulator”) backed by legislation. This is a stark departure from other countries (e.g., the USA), where governments typically do not regulate professional sports. Indeed, Crystal Palace’s chairman, Steve Parish was quick to point out that “It’s unprecedented. We’ll be the only sporting industry to be regulated by government.”
The White Paper will be of interest to all stakeholders in football, as will the ‘targeted’ consultations the government intends to undertake ahead of finalising its policy and introducing legislation (perhaps prior to the next general election).
Key points
The main purposes of the Football Regulator will be to:
The Football Regulator will not intervene on the rules of the game or ticket prices. This will remain the remit of the applicable football authorities.
Reaction to the White Paper
Standing back, and certainly from the perspective of fans (football is nothing without fans), the general reaction to the White Paper is positive.
But it really depends on one’s position or perspective. For example, the incumbent football authorities are wary of a third party interfering in their existing monopolies. The Premier League has said that it is “vital” that a regulator does not lead to any “unintended consequences” which could affect the global appeal and success of the Premier League. At a time when the Premier League can assert with some confidence that it is the pre-eminent football league in the world, there is a concern that further regulation could undermine this if not brought in in a sensible manner. Some are disappointed that the Football Regulator will not take a more active role in helping to more fairly distribute monies down the football pyramid, as this has been a constant source of discontent between Premier League clubs and the rest of the Football League since the former’s inception. While others are disappointed that the Football Regulator will not be able to intervene on human rights grounds if the owner or buyer is linked to states with poor human rights records. And then there are some, like West Ham co-owner, David Sullivan, that are resolutely against any form of government interference or regulation.
Maybe we simply leave you with the famous words of Benjamin Disraeli: in a progressive country change is constant; change is inevitable.
How we can help you
Memery Crystal has experience in football transactions. Among others, Memery Crystal has acted for the sellers of then Premier League club West Bromwich Albion and the buyer (subject to EFL approval) of a high-flying Championship club. Members of our team have also acted on a number of football club sales, acquisitions and minority investments in Premier League clubs, and on high profile player transfers in England and around the world, prior to joining Memery Crystal.
Memery Crystal also advises on transactions involving other sports (including cricket and rugby).
We can help you if you are interested in:
We can also assist interested stakeholders in responding to proposed targeted consultations of the government.
Contact us
Should you have any questions, please contact one or more of the authors, or your usual Memery Crystal contact.
Authors
Christopher Allen, Partner, Corporate
Chris is an Arsenal fan and has many fond memories from his youth of cheering his then local team, Folkestone Invicta.
Andy Hughes, Senior Associate, Corporate
Andy is a season ticket holder at a Premier League club and regularly attends matches of the England men’s and women’s national teams, both home and abroad.
Disclaimer: We at Memery Crystal (and our parent company RBG Holdings plc) support and encourage free/independent thinking in relation to issues which are sometimes considered to be controversial subject matters. However, the views and opinions of the authors do not necessarily reflect the opinions, views, practices and policies of either Memery Crystal or RBG Holdings plc.
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