Key Facts

• Clause 8 proposes support for regulated clubs seeking provisional or full operating licences.
• Unregulated clubs likely to become regulated in the next season are also eligible for assistance.
• The IRF must consider factors listed in section 52(9) when providing support.
• The licensing system will cover top five leagues of English football pyramid as specified by Secretary of State.
• Clubs require provisional or full operating licences, which enable regulation through licence conditions tailored to each club.
• Provisional licences allow clubs time to adapt and meet requirements over a period up to three years.
• Mandatory licence conditions include financial plan, corporate governance statement, fan consultation condition, and annual declaration.
• Clauses 15 to 19 set out the process for applying and granting both provisional and full operating licences.
• Clubs can apply for a provisional licence, providing building blocks for the full-time licence.
• Clause 16 clarifies that any club can apply for a provisional licence.
• Amendments aim to improve club consultation processes.
• Clubs must engage fans before decisions such as moving home grounds are made.
• Independent Football Regulator (IFR) must consult the Football Supporters' Association on defining effective fan engagement measures.
• IFR must issue guidance on fan engagement measures within six months of the Act's implementation.
• Schedule 4 covers sustainable resourcing both financially and non-financially.
• The requirement includes financial resources, non-financial resources, and fan engagement.
• Amendment 16 aims to emphasize that fan consultation cannot be a token measure but must have meaningful outcomes.
• Amendment 17 requires the regulator to issue guidance on what constitutes 'effective' engagement.
• Schedule 4 introduces threshold requirements for club licensing.
• The regulator assesses each club's financial sustainability based on its competition level, owner relationships, and economic context.
• Non-financial resources include internal controls, systems, policies, information, and personnel.
• Fan engagement requires clubs to consult supporters on specified off-pitch decisions.
• The regulator can take enforcement action if clubs do not comply with the fan engagement threshold requirement.
• Amendments 4 and 16 seek to add something already captured in the legislation.
• Clubs must consult fans on 'relevant matters' including strategic direction, business priorities, operational issues, and home ground.
• Competition organisers are required to consult the regulator on changes to competition rules.
• The FSA has been extensively consulted from the fan-led review until now.
• Amendment 19 proposes inserting new clause '8A' into Schedule 5.
• Amendment 7 suggests adding clauses (3) and (4) to Schedule 5.
• Amendments aim to ensure that clubs consider legally registered Supporters Trusts in fan consultation processes.
• Clause 20 mandates four conditions for all licensed clubs' provisional and full operating licences.
• The mandatory conditions relate to financial management, corporate governance, fan engagement, and reporting.
• The financial plan condition allows the regulator to understand a club's risk profile and plans for mitigating risks.
• The statement addresses Clause 20 and Schedule 5 of the Football Governance Bill.
• Fair Game and Kick It Out questioned whether issues such as equality, diversity, and inclusion will be included in the code.
• In 2019, only 7% of board directors across all professional football clubs were female.
• Over 130 supporters trusts exist in football.
• Competition organisers already require clubs to demonstrate minimum standards of governance, operation, safeguarding, supporter relations, broadcaster access, stadium infrastructure, and club academies.
• The corporate governance statement should include policies on equality, diversity, and inclusion.
• Discretionary licence conditions can be used by the regulator to address financial risks.
• Conditions must relate to one of four areas: debt management, liquidity requirements, cost reduction, and restriction of illicit finance.
• For non-financial resources, conditions may pertain to internal financial controls, risk management, and financial reporting.
• The Football Governance Bill aims to improve confidence among fans through regulatory measures.
• Clause 23 outlines the procedure for regulators to attach financial discretionary licence conditions to clubs.
• Schedule 6 sets out detailed procedures for interactions between clubs, competition organisers, and the regulator, allowing a less burdensome solution where it meets regulatory objectives.
• Clause 21 allows the regulator to attach bespoke licence conditions to individual clubs.
• Clause 22 sets strict limits on what discretionary licence conditions can cover.
• Clause 23 requires notification of proposed financial discretionary licence conditions to clubs and relevant competition organisers.
• The Bill includes strong statutory owners and directors tests.
• Part 4 gives the regulator power to test prospective new owners and officers.
• Subsections (7) and (8) of the clause specify fitness criteria including honesty, integrity, financial soundness, and competence for roles at the club.
• The statement covers clauses 27 to 31 standing part of the Football Governance Bill.
• No specific statistics or dates are mentioned.
• Clause 27 places duties on persons to notify the regulator if there is a reasonable prospect of becoming an owner or officer.
• Clause 28 prohibits a person from becoming a new club owner unless they have been determined by the regulator as suitable before the acquisition.
• The regulator assesses suitability based on honesty and integrity, financial soundness, sufficient financial resources, and no grounds to suspect serious criminal conduct.
• The Bill requires new owners and officers to pass a suitability test.
• About 40% of football clubs own their stadium outright.
• Clubs must obtain regulator approval for selling or relocating home grounds under clauses 46 and 48.
• Clause 27 requires prospective owners and directors to notify the regulator.
• Clause 28 mandates a positive determination by the regulator based on three main standards: ownership fitness criteria, financial resources, and lack of grounds to suspect criminal wealth.
• Registered societies will have a tailored process focusing solely on sufficient financial resources.