With the kick off of the new football season, we thought it timely to take a look at the Football Governance Act 2025 (“the Act”), a major legislative intervention that establishes new regulatory structures and oversight frameworks for England and Wales’ professional football clubs.
Here we take a look at the rationale for the Act, its key mechanisms, stakeholder response, and notable criticisms.
The Act was enacted in response to recurring issues in English football, including financial mismanagement (notably the cases of Bury FC and Derby County), controversial changes in club ownership, and the global backlash to attempts at establishing breakaway competitions such as the European Super League in 2021. A government-backed, fan-led review (2021) indicated strong public and stakeholder appetite for independent regulation. The legislation advances previous policy commitments by both Conservative and Labour administrations.
Independent Football Regulator (IFR)
- The Act establishes the IFR, an independent statutory body responsible for overseeing the top five tiers of professional football in England and Wales.
- The IFR is empowered to issue provisional (granted for three years) and full licenses to clubs. Licensing is conditional on meeting statutory tests relating to governance, financial sustainability, and conduct of owners and officers.
- Robust “fit and proper” criteria are introduced for both new and existing club owners/directors, mandating standards for honesty, integrity, financial soundness, and the transparency of funding sources.
- The IFR is empowered to compel the sale of a club or revoke its license if criteria are breached or if there are material changes in ownership status.
Club Heritage and Fan Engagement
- The Act codifies the requirement for meaningful fan engagement and consultation on changes to a club’s home ground, crest, or primary kit colours.
- Major heritage-altering decisions may not be implemented unless supported by a majority of club supporters.
- Disposals or leveraging of stadium interests for financial arrangements require IFR assessment and approval on sustainability grounds.
Financial Oversight and Redistribution
- The IFR is mandated to conduct ongoing financial oversight of licensed clubs, with powers to intervene, sanction, or direct changes to ensure club sustainability.
- The IFR may arbitrate and enforce revenue distribution arrangements with the objective of promoting competitive balance and stability across football’s league structure.
Competition Integrity
- The Act prohibits IFR-regulated clubs from participating in so-called “closed-shop” (breakaway) competitions or similar ventures, unless approved by the IFR.
- Approval criteria include considerations of openness, financial integrity, and the impact on domestic football.
- The legislation addresses, for the first time in law, cross-border competition issues and FIFA/UEFA compliance, although implementation details are pending.
- Fan and supporter groups have broadly supported the Act, welcoming the prioritisation of club legacy protection and increased transparency in club decision-making.
- Many legal experts and governance analysts note that the Act introduces long-awaited enforcement measures and strengthens football’s integrity framework.
- Government statements highlight the measure as a historic turning point, focussing on sustainability and the preservation of football as a “soft power” asset.
- The Premier League and certain club executives have been critical, citing risks of regulatory overlap, potential stifling of investment, and bureaucratic complexity.
- Uncertainty remains regarding the interaction of the IFR’s licensing and regulatory regime with existing league-imposed codes, with the risk of conflicting rulings or ‘legal limbo.’
- Stakeholders have called for further clarity on the enforcement mechanisms, scope of IFR intervention powers, and the process for resolving disputes, particularly those involving international tournament obligations or commercial arrangements.
- The Act’s operation in practice—specifically the exercise of powers such as mandatory divestments, club sales, or overrides of commercial strategy—remains untested and is anticipated to spawn significant litigation and regulatory review.
- Immediate effects are expected in club governance and transaction due diligence, with an increased need for legal and compliance resources.
- The IFR’s powers with respect to “material changes in circumstances” (such as insolvency events or criminal convictions) impose new duties of notification and transparency on owners and directors.
- Broader implications for club finance—including the use of real property assets for loans and compliance with ‘financial fair play’ initiatives—are likely to create new areas of regulatory and commercial risk.
The Football Governance Act 2025 marks a comprehensive overhaul of football regulation, introducing statutory controls over financial stability, ownership, competition integrity, and fan participation. While broadly welcomed by supporters and some legal commentators, practical and commercial uncertainties remain, especially concerning regulatory overlaps, enforcement dynamics, and international obligations. The Act’s full impact will become clearer as the IFR develops, publishes rules, and begins test cases.
