To oversee the financial viability of the men's game in England, British ministers stated on Wednesday that they plan to create an independent football regulator with authority to bar clubs from joining breakaway leagues.
On Thursday, the government will release its white paper on football governance, announcing it will implement the recommendation to establish a regulator from the 2021 fan-led review of the sport.
Following the recent demise of lower-league teams Bury and Macclesfield, the regulator would oversee a licensing system to guarantee clubs are managed sustainably.
If the Premier League, the English Football League, and the Football Association (FA) cannot agree on how top-flight revenues support the game at lower levels, it would also be entitled to intervene and demand arbitration.
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The administration is sure that the regulator's authority would be distributed to preserve the competitiveness and power of the affluent Premier League.
The licensing system will include a fan veto power over club heritage issues, preventing owners from changing a club's name, stadium, badge, or kit without supporter input. It will also give fans and the FA the authority to prevent clubs from participating in new competitions that do not meet specific requirements.
The government brought forward its plan to commission the fan-led assessment in response to the outcry among supporters over the anticipated creation of a European Super League in April 2021.
The government will also implement a new owners' and directors' test, emphasizing the propriety and suitability of new owners and increased due diligence.
Despite demands for one from Amnesty International during the Saudi-led takeover of Newcastle, it is not yet apparent whether there will be any human rights component to the test.
The administration indicated that it would start further consultations and introduce legislation as soon as parliamentary time permitted.
The FA's Mark Bullingham said his organization appreciated the white paper's commitment to enhancing professional clubs' financial stability and governance.
Bullingham stated, "our answer will stress a vital point highlighted frequently by the Fan Driven Review, which suggested that the professional game improves support of the grassroots game."
"The players, officials, coaches, and volunteers in grassroots football are the cornerstones of the English game, and it is crucial that an independent regulator recognizes this and supports the long-term health of the entire game," said one independent regulator.
A white paper is a document for consideration that could serve as the foundation for legislation.
Despite the sport's popularity at home and abroad, UK Prime Minister Rishi Sunak stated: "We realize that significant issues threaten the survival of clubs of all sizes.
The grassroots game will once again be at the centre of football thanks to "these daring new initiatives," according to Bullingham. They will also conserve our beloved teams' illustrious past and storied traditions.
