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The EFL clubs now earning just 16% of broadcast income (and most of that on parachute payments), compared to 50% before the Premier League. 99% of the 10,000-12,000 boys in football’s youth development scheme released before scholarship and then 85% of scholars released; 90% of released players reporting depression or high-levels of anxiety.
Chaired by Tracey Couch MP the
review published its 10 overall strategic recommendations and 47 detailed recommendations in November 2021. Some of the key findings are summarised below.
An Independent Regulator for
English Football (IREF). The most significant recommendation is for a
new Independent Regulator for English Football (IREF), established by an Act
of Parliament, which would operate a licensing system for professional men’s football. This means that any men’s professional club – from non-league
to Premier League champions – could only play football matches if they have
a licence granted by IREF, and that licence would only be granted if specific conditions (set by IREF) are met.
This gives the Review, and the future regulator, some teeth as it can insist on clubs – whether it be Peterlee Newtown FC or Manchester City – meet certain conditions around finance, governance and fan engagement in order to gain their licence to play games.
Finance and Governance. The Review seeks to secure long-term sustainability of the whole game and makes numerous recommendations in relation to financial probity, transparency and fairness. This relates to the security of individuals, clubs, and the communities they represent and for the game as a whole and includes: Ensuring clubs have the sufficient capital and liquidity, realistic risk assumptions and sound business plans, monitored in real-time, in-season.
Regulation of owner subsidies which threaten to destabilise the game and reduce competition – such as the Abramovich era at Chelsea – to avoiding monopolisation of the game. Clear corporate governance and replacing the ‘fit and proper’ owner test with 2 new
tests: one for owners and one for directors, applicable to all those with a minimum of 25% share in the club and those who are discharging executive management functions or advisory roles.
Better distribution of finances from the Premier League, including reforming parachute payments. A 10% levy on all transfers paid by buying Premier League clubs (excluding those for EFL players) and an automatic adjustment on player salaries triggered by relegation or promotion.
Fan Engagement: Fan engagement runs right through the Review’s 162 pages but here are two major recommendations for action: A Shadow Board, consisting of 15 members, democratically selected and rotated each season, should be consulted on all material ‘non-football/off pitch’ business and financial matters, including, but not limited to the club’s vision, business plans, match day issues etc. Meetings should be at least quarterly and the CEO must attend at least twice a year.
Specific ‘heritage matters’ of fundamental significance to a club’s DNA are covered
by a ‘Golden Share’ which requires the consent of fans for any changes. This would be held by a fan representative body, such as a Supporters’ Trust, and any proposed changes should be subject to a democratic fan vote. The minimum items covered would include: the sale of club stadium, re-location, the club joining a new competition (e.g. European Super League), club badge, first team home shirt club colours, and club name.
What happens next? In April 2022, the Secretary of State for Digital, Culture, Media and Sport, Nadine Dorries MP, published
the Government Response to the Fan-led Review, agreeing in principle to the primary recommendation (IREF) and citing ‘good progress’ in introducing an independent regulator as soon as possible. Final details on how reforms will be implemented are promised in a White Paper in the Summer (of 2022).
Fans are encouraged to contact their MP and ask for their support in implementing the review findings and seeking an update on progress – go to:
www.theyworkforyou.com
ALOVESUPREME
ISSUE259
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BY JON ADAMSON