German Football Oversight on the Verge of Closure as Government Confirms ‘Historic’ Law

Football Governance Law to be Released on Tuesday
Prime Minister: Law will ‘Prevent a Breakaway League’

An independent regulatory body for English football is on the verge of realization after the government confirmed plans to introduce a law to Parliament, under which clubs can be penalized up to 10% of their revenue if they breach agreed conditions.
The long-awaited Football Governance Law is set to be released on Tuesday and will define the regulator’s powers according to three objectives: “To improve the financial sustainability of clubs, ensure financial resilience across the leagues, and protect the heritage of English football.”

The details of the law, once published, will be scrutinized closely by politicians, football administrators, and fans as a day advocated for by supporter groups finally becomes a reality.
The law has been in preparation for months, with the government under pressure to fulfill its promise of a regulator, as recently as last week. On Monday, Rishi Sunak confirmed the law in what he termed a “historic moment” for fans.
“Some clubs have been exploited for too long by unscrupulous owners indulging in financial mismanagement, which in the worst cases can lead to complete collapse – as we have seen in the sad cases of Bury and Macclesfield Town,” said the Prime Minister. “This law is a historic moment for football fans – it will ensure their voices are at the heart of it, prevent a breakaway league, safeguard the financial sustainability of clubs, and protect the heritage of our clubs, whether big or small.”
The regulator has been subject to debate and lobbying within the game since the government released its fan-led review of football governance led by MP Tracey Crouch. The Premier League has long argued that English football is capable of self-regulation, but the decision of 10 of its clubs last week to withdraw from a financial redistribution agreement with the English Football League is said to have prompted the government to push forward with legislation.
The Premier League said on Monday evening: “We remain concerned about any unintended consequences of legislation that could weaken the competitiveness and appeal of English football.”

The primary function of the regulator will be to issue operating licenses for clubs from the Premier League down to the non-league, depending on whether they meet mandatory criteria relating to fan engagement, corporate governance, and financial reporting. Additionally, specific criteria relating to financial and non-financial resources (including club structure and staff composition) could be added to license conditions.
The regulator will have the ability to ensure financial redistribution between different levels of the game, its so-called “backstop powers”. However, government sources insist that the regulator will not “unduly intervene” and will pursue an “advocacy-first” approach to addressing non-compliance issues. It will not have any influence over on-field decisions.
Crouch, the Conservative MP for Chatham and Aylesford and former Sports Minister, said: “Football fans can breathe a sigh of relief knowing that the next steps to secure the long-term sustainability of the pyramid have now been taken.”

A structural issue in the game was also highlighted by a study published by the Black Footballers Partnership, revealing disparities for black former players hoping to enter management.
The work, conducted for the BFP by three academics on a cohort of 3,500 players who played in the Premier League or Championship between 1990 and 2010, found that non-black players were 50% more likely to enter management, regardless of the individual’s playing career. It was also found that black managers were 41% more likely to be dismissed than white managers, while black coaches had fewer opportunities for promotion.