The British Prime MinisterRishi Sunakconfirmed plans to create an independent football regulator to safeguard the future of English clubs in today’s King Charles Speech.
The Independent Football Regulator (IREF) will have the power to intervene to address cash flow and other systemic issues within clubs, many of which are financially vulnerable.
“Legislation will be introduced to safeguard the future of football clubs for communities and fans,” King Charles said in his speech after the government announced a plan to create an independent regulator in February.
The weakness of the English football pyramid has been exposed in recent years, according to a government briefing document.
“The collapse of Bury FC, the devastating impact of the pandemic on clubs and the failed plan for a breakaway European Super League have revealed the financial disarray of some clubs. and the need for greater responsibility on the part of fans,” the document said.
The Regulator will operate a licensing system which will apply to the top five levels of English men’s football with the power to act on issues including financial regulatory compliance, corporate governance and fan engagement.
They will be executed tougher tests on club ownerss, minimum fan participation standards will be introduced and clubs will not be allowed to join breakaway or unlicensed leagues.
“A historic moment”
Fair Game, a group of clubs campaigning to improve football governance, described the announcement as a “historic moment for football”.
“(IREF) represents a real opportunity to end the cycle of overspending and mismanagement that has affected our National Game and threatened the very existence of our clubs,” he said. Fair Game CEO Niall Couper it is a statement.
“Right now the clubs want it Sheffield Wednesday, Reading and Scunthorpe United are staring into the abyssCouper was sad. “Reckless spending, the disconnect between clubs and their communities and lip service to standards of equality must be consigned to the dustbin of history,” he added. “This change can only be achieved if the regulator has the strength and resources to carry it out.
The Premier’s success did not stop the debts from growing
The government’s bill highlighted the success of the Premier League around the world, which attracted more viewers and higher revenues than any of its international competitors in the 2021-22 season. The league’s total revenue is 5.5 billion pounds ($6.8 billion), compared to 2.8 billion pounds for the Spanish LaLiga.
however, clubs continue to lose money and they rely on external financing, as their debt levels rise.
Since the 1999-2000 season, 19 out of 23 Premier League seasons have resulted in a pre-tax loss for all clubs combined. Across the Premier League and second division Championship, net debt rises to £4.4bn in 2022.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
