Source · Select Committees · Culture, Media and Sport Committee

Ninth Report - Football Governance

Culture, Media and Sport Committee HC 1288 Published 30 June 2023
Report Status
Government responded
Conclusions & Recommendations
11 items (6 recs)
Government Response
AI assessment · 11 of 11 classified
Accepted 3
Acknowledged 3
Deferred 3
Rejected 2
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Recommendations

6 results
2 Deferred

Establish a Shadow Independent Regulator for English Football by end of 2023 and pass required legislation.

Recommendation
We recommend that the Government should establish the Independent Regulator for English Football in a shadow form by the end of 2023 to ensure that it can begin initial engagement and preparatory work before waiting for legislation to be passed. … Read more
Government Response Summary
The government agrees on the importance of transitional arrangements but then entirely pivots its response to discussing fan engagement standards, the Regulator's role in oversight, and existing club engagement, without addressing the specific recommendation to establish a shadow regulator by end of 2023 or the timeline for legislation.
Department for Culture, Media and Sport
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5 Accepted

Require IREF to set higher fan engagement licensing conditions independently of existing standards.

Recommendation
IREF, beginning in shadow form, should ensure that its licencing conditions regarding fan engagement are set independently of the current Premier League Fan Engagement Standard. Unless there is immediate and significant change from leagues and clubs, we expect that IREF … Read more
Government Response Summary
The government agrees that the Regulator should set fan engagement standards independently and will have legal authority to do so, assessing clubs' structures and outcomes, and potentially applying additional licence conditions to ensure higher levels of engagement.
Department for Culture, Media and Sport
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7 Rejected
Para 32

Ensure substantive EDI measures are included in the new Code for Football Governance

Recommendation
We recommend that, while in shadow form, IREF should look to existing corporate governance codes and work with stakeholders to ensure that substantive EDI measures are included in the new Code for Football Governance.
Government Response Summary
The government supports calls for EDI but rejects the recommendation for the Regulator (IREF) to include substantive EDI measures in the Code for Football Governance, stating that these wider issues are best led by the industry.
Department for Culture, Media and Sport
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8 Rejected

Empower IREF to mandate EDI Action Plans as club licensing conditions

Recommendation
We are concerned that the Government has ignored recommendations to include EDI Action Plans for clubs and oversight of these plans within IREF’s remit. We believe that IREF would be well placed to receive and publish standardised data on compliance … Read more
Government Response Summary
The government rejects the recommendation to give IREF authority to mandate and assess EDI Action Plans, stating that the Regulator's primary purpose is financial sustainability and wider EDI issues are best led by the industry.
Department for Culture, Media and Sport
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10 Acknowledged
Para 43

Reach urgent agreement on sharing higher proportion of revenue across football pyramid

Recommendation
We urge football authorities, including the Premier League, EFL and the FA, to urgently reach an agreement on sharing a higher proportion of revenue with clubs down the football pyramid before the establishment of IREF. This should include no increase … Read more
Government Response Summary
The government echoes the Committee's call for football authorities to urgently reach a revenue sharing agreement and states that the future Regulator will have targeted powers to intervene as a last resort if they fail to agree.
Department for Culture, Media and Sport
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11 Acknowledged

Expedite plans to establish Independent Regulator with power to mandate revenue sharing solution

Recommendation
If there are no immediate signs of progress on revenue sharing, the Government should expedite its plans to establish the Independent Regulator with the power to mandate a solution. (Paragraph 44) 20 Football Governance
Government Response Summary
The government reiterates its commitment to establishing a Regulator with powers to intervene in financial distributions as a last resort, noting ongoing work to design this mechanism, but does not commit to expediting its establishment.
Department for Culture, Media and Sport
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Conclusions (5)

Observations and findings
1 Conclusion Acknowledged
Para 12
We welcome the Government’s commitment to establish an Independent Regulator. Introducing a Shadow Regulator as soon as possible to recruit staff and begin engagement and preparatory work is invaluable for clubs, leagues and other football stakeholders might help avoid unintended consequences in the new regime that could lead to dissatisfaction …
Government Response Summary
The government agrees reform should happen sooner and is working at pace to deliver an independent regulator when parliamentary time allows. It states a formal shadow regulator would require a Bill's second reading but assures that preparatory work is happening regardless.
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3 Conclusion Accepted
Para 21
We welcome the Premier League’s fan engagement standard and commend the Premier League for acting prior to the publication of the White Paper. However, the level of fan engagement from Premier League and EFL clubs still varies wildly and we are surprised at the Government’s acceptance of the internal standard …
Government Response Summary
The government agrees that the Regulator should independently set fan engagement standards and will have legal authority to do so, assessing clubs and potentially applying additional licence conditions beyond current industry standards.
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4 Conclusion Deferred
Para 22
The introduction of IREF remains a great opportunity to increase the pace of the important work that is already underway at football clubs consulting and engaging with their fans. Whilst clubs should be encouraged to exceed fan engagement standards and pursue best practice, this should be underpinned by the backstop …
Government Response Summary
The government states the Regulator's primary focus will be on financial sustainability, systemic stability, and protecting club heritage, not the wider fan engagement standards or independent regulatory framework, which it believes are best led by the industry.
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6 Conclusion Deferred
Para 31
The inclusion of concrete, universal EDI measures in the new Football Governance Code is a necessary step to address the significant concerns about a lack of EDI oversight in football. The work on EDI done by the leagues to date has not been undertaken collaboratively and opportunities to pool resources …
Government Response Summary
The government outlines its commitment to establishing the Independent Football Regulator with backstop powers to intervene on financial distributions and bringing forward legislation. However, it does not specifically address the recommendation for concrete, universal EDI measures in the new Football Governance Code.
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9 Conclusion Accepted
Para 42
The financial sustainability of the football pyramid is the responsibility of football itself. Football organisations can, and should, be the ones to find a solution to the current deadlock of revenue distribution. We welcome that progress seems to have been made on a “New Deal” for football and a new …
Government Response Summary
The government echoes the Committee's call for football authorities to reach a financial agreement and reiterates its commitment to establishing a Regulator with statutory powers to intervene as a last resort, aligning with the Committee's conclusion.
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