Preparing for the new Independent Football Regulator
Following the Royal Assent of the Football Governance Act 2025 (Act) on 21 July 2025, the multi-billion-pound football industry in England, which has previously been self-regulating, is now set for independent review through a new Independent Football Regulator (IFR).
The IFR's primary concerns will be protecting the financial sustainability of English football, safeguarding clubs' heritage and promoting fan engagement.
Solicitor in our sports team, Tom Seed, explains some of the changes to be expected once the IFR comes into force.
What is the IFR and what is set to change?
Clubs in the following men's leagues will be subject to the IFR's regulation directly:
1) Premier League (currently self-governed)
2) Championship (governed by the English Football League (EFL))
3) League One (governed by the EFL)
4) League Two (governed by the EFL)
5) National League (currently self-governed)
The 116 clubs in these leagues, and the leagues themselves, will be subject to detailed statutory requirements and supplementary rules to be made by the IFR. Lisa Nandy, Secretary of State for Culture, Media and Sport, has said that the aim of the IFR is to “ensure sensible, light-touch regulation helps to strengthen financial sustainability and put fans back at the heart of the game”. The actual wording of the Act provides the IFR with more sweeping powers than some of those involved in the implementation have indicated in their initial statements.
New rules and regulations
There are three main objectives which the regulation will relate to: financial soundness, systemic financial resilience and heritage.
Professional clubs will be expected to meet governance standards beyond what is currently expected of them, with greater independent oversight through a new Football Club Corporate Governance Code. The IFR is set to create rules and regulations, practical guidance, codes of practice, new fit and proper persons tests, financial planning, transparency expectations and risk management.
Clubs will be required to achieve these standards and participate in a new regulator-distributed club licensing system. All clubs in the top five divisions will need to acquire a Provisional Operating License for the first three years of regulation, before upgrading to a Full Operating License, which will have more stringent requirements and will not expire. While this will only impact the top five divisions initially, the standards ingrained are designed to protect (and possibly trickle down to) the football pyramid as a whole.
The IFR is expected to spearhead the coordination of certain regulations across the top five divisions in England and beyond. The existence of different governing bodies for the top five leagues has led to inconsistencies in things like owners' and directors' tests, financial sustainability and, more importantly, the distribution of funding. For a long time, lower leagues have felt aggrieved at the apparent power and domination of the Premier League. The IFR has the potential to bridge this gap between the Premier League and everyone else over time, unlocking more funding for lower-league and grassroots football.
Fan engagement and Club Community Organisations (CCOs)
Despite some clubs' scepticism, there has been broad support for the IFR from football supporters representing a range of club colours.
The IFR will block clubs from changing aspects of a club's “heritage” such as club colours, crest and name, or relocating, unless they have first properly consulted with fans.
Clubs will also be required to demonstrate how they have engaged with fans in advance of any crucial decisions, including holding meetings with fan representatives and providing evidence that a majority of fans support changes before they are made. Many clubs in the top flight and below already operate with Fan Advisory Boards to partly perform this function.
This emphasis on community engagement and the IFR's focus on financial sustainability, good governance and responsible ownership is likely to benefit clubs' charitable arms (CCOs), with many seeing greater involvement and potentially increased funding.
Reception
English Football League Chairman Rick Parry has been an advocate for an IFR. On the other hand, the Premier League fears an IFR could impact English football's international competitiveness and investment potential, though the Act requires that the IFR must seek to avoid compromising these elements of the game. Despite these reservations, Premier League clubs will be required to foot most of the bill for funding the IFR.
In 2024, the EFL made a proposal for £900 million to be distributed across a six-year period. The Premier League counter-offered with £358 million over three years. It is disputes like this that the IFR will aim to resolve and, if necessary, use its backstop powers to secure a fair distribution of funding.
When will the IFR be in force?
The IFR is expected to begin its operations this Autumn, with provisional licensing decisions to be made in May 2027 following a ‘pilot’ period in the 2026-2027 season. A shadow regulator has been in place since 2024 to prepare for full implementation.
The Government has named media executive David Kogan as chair of the IFR. Kogan has said it will be his job to "create a dynamic framework that will ensure the game is on a sound financial footing" while demonstrating an understanding of the fans by recognising that "our professional clubs, whatever their size, are a source of local and national pride".
The impact of the IFR at all levels of the national game is yet to be felt, though it is crucial that clubs are deeply familiar with the emerging IFR regulations to avoid falling foul of the new regime.
For more information on anything discussed in this article, please contact Tom Seed via 0191 211 7907 or [email protected]