Football fans across the UK are celebrating as a significant crackdown on questionable owners has been officially announced in the King's Speech. Rishi Sunak, the Chancellor of the Exchequer, confirmed plans for the establishment of an independent regulator that will protect clubs from being driven into the ground or having their heritage destroyed by irresponsible proprietors. The new regulator will also have the authority to prevent teams from joining breakaway competitions, such as the ill-fated European Super League, and will consult with supporters regarding any major changes.

Protecting the Future of Football Clubs

During the King's Speech, King Charles expressed his commitment to preserving the future of football clubs for the benefit of communities and fans. Legislation will be introduced to establish safeguards against the detrimental effects caused by poor ownership.

Footie Charter Leaked Last February

Last February, HOAR obtained a leaked copy of the proposed footie charter in its entirety. However, concerns were growing that these plans were being delayed. Today's inclusion in the King's Speech confirms the Prime Minister's intention to implement the charter by the next election.

Stringent Criteria and Fan Engagement

The new regulator will require all clubs to obtain a license to play football, subject to meeting rigorous criteria. Additionally, an Owners' and Directors' Test will be conducted to vet potential buyers and prevent individuals with questionable sources of wealth, like Roman Abramovich, from taking ownership. Furthermore, a minimum standard of fan engagement will be enforced, providing supporters with a say in matters such as the team's kit and colors.

Saving Struggling Lower Leagues

In a significant move, the regulator will have the power to access funds from the Premier League and distribute them to lower leagues that are facing financial difficulties. This will ensure that struggling clubs receive the necessary support in the absence of a resolution between the clubs themselves.

Previous Examples of Ownership Issues

The need for stricter regulations is exemplified by previous incidents involving football clubs. Chelsea faced potential collapse last year when owner Roman Abramovich was sanctioned due to his connections to the Kremlin following Russia's invasion of Ukraine. The club was prohibited from generating profits and was only permitted to engage in a limited number of activities to ensure its continued participation in football. Smaller clubs like Bury FC have also suffered, with Bury being expelled from their league after owner Steve Dale failed to provide proof of funds and a takeover bid fell through.

The Impact on EFL Clubs

Since the establishment of the Premier League in 1992, over 60 football clubs have gone bankrupt. This has had a significant impact on EFL (English Football League) clubs, who earn a fraction of the revenue generated by their top-flight counterparts. For instance, in 2019, Huddersfield, which finished at the bottom of the Premier League and was subsequently relegated, received £97 million in funds, compared to the £8.5 million awarded to Championship winners Norwich.