The Government has given the green light for a new independent regulator in football after backing 10 of the recommendations to change the game following a fan-led review.
The recommendations were put forward to No10 by former Sports Minister Tracey Crouch five months ago following the demise of Bury and Macclesfield and the watershed moment in the failure of the breakaway European Super League.
Crouch said the review was a necessity to help the long-term future of the game, holding owners accountable for their failings, showing more scrutiny over financial records and giving supporters more of a say in regards to club decisions among others.
Backing from the Government means the regulator will have the power to sanction clubs and help maintain financial stability by investigating over-looking accounts. It also means rules will be enforced so clubs aren't able to spend over 70 per cent of their revenue on player costs; last season, as per the club's accounts, Bristol City were paying 212 per cent of wages in comparison to the income received.
The rule is already implemented by UEFA across European competitions but will now come into the entire English game.
The regulator will also take responsibility for handing new owners a fit and proper test for when they buy the club and afterwards. The review states it will add an "integrity" test to research their business links and previous business ventures.
That could affect Bristol City at some point in the near future following comments made by Steve Lansdown last year who admitted he is looking for a succession plan and seeking "new investment into the club and developing it and getting the right people in, in the right structure."
Supporters are also going to have more of a say when it comes to decisions. Clubs will have a "shadow board" of fans who are consulted on any major changes including stadium name changes, changing the club crest and moving location.
Those supporters are able to veto any decisions with the review stating clubs should "engage and consult on all material ‘non football/off pitch’ business and financial matters".
The government said a white paper to bring forward the proposals will be published in the summer, commenting fans will have "a greater role for fans in the day-to-day running of clubs and have bigger say on changes to their club stadia, logo, name and kit via a 'golden share', in order to protect clubs and the central role they play as vital community assets".
There is also expected to be a change to the way the wealth is distributed across the football pyramid although it's suggested that the final decision will come down to the clubs themselves.
There is no timeline for the changes in which Crouch described as "worrying" but she was "exceptionally pleased" that the government have agreed to the changes in principle.
She said: “I am exceptionally pleased it has accepted or supported all the strategic recommendations of the review, including committing to legislation for a statutory independent regulator which will regulate financial resilience as well as ownership of clubs.
“This is an enormous step forward in providing much-needed reform for football. I am also very pleased by the commitment to a review of women’s football, as well as to the long overdue review of the outdated legislation relating to football supporters and the sale of alcohol.
“While fans will be reassured by the commitment to an independent regulator and its powers, they will remain nervous that this commitment will be delayed or watered down by the vested and conflicted interests in the game which have resisted the much-needed reform for so long.
“Fans fully recognise the complexities of the recommended reforms, but the unspecified time frame for implementation due to a white paper at some point in the summer is worrying. Further delays could be catastrophic for clubs, communities, and fans seeking a more secure and certain regulatory environment.”
A government statement read: “Football is nothing without its fans and for too long the football authorities have collectively been unable to tackle some of the biggest issues in the game.
“The government took decisive action to conduct the fan-led review and today we have endorsed every one of its 10 strategic recommendations and the approach set out by Tracey Crouch.
“We are now committed to fundamental reform, putting football on a more sustainable financial path, strengthening corporate governance of clubs and increasing the influence fans have in the running of the national game.”
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