Commenting on the revival of plans to set up a new independent
football regulator, Professor Len Shackleton, IEA Editorial and
Research Fellow, and author of the report Red Card, said:
"It appears that the government is to resuscitate Tracey Crouch’s
scheme to impose an ‘independent’ regulator on the country’s most
successful export ever, professional football.
"Regulating an industry imposes compliance costs and
disincentives to investment and innovation. It hasn’t protected
industries such as energy, water and financial services from
regular crises and increased costs to consumers. There are
usually unintended and unforeseen consequences which create new
problems. Football will be no different.
"The Crouch Review was concerned that football is inherently
financially unstable as clubs overspend. But it ignored a history
which shows that very few clubs ever close permanently: the
industry is almost unique in that most businesses in operation a
century ago are still around today.
"Crouch recommended a package of measures which would impose
substantial restrictions on property rights which would likely be
challenged in the courts. They include arbitrary ‘taxation’ of
Premier League clubs, fundamental changes to governance
structures, and restrictions on ownership on non-economic
grounds.
"These measures have long been advocated by the political left
and are now being hyped by vote-seeking Conservative politicians.
They are unlikely to generate the benefits lobbyists have
suggested.
"The imposition of supporter organisation vetos would
encourage the worst sort of populist politicking, and raise
serious questions about the representativeness of these bodies in
a globalised football environment where fanbases transcend
national frontiers.
"Governments over the years have ruined many successful
domestic industries. Interference in football could well have the
same doleful effect. We have enough problems for the government
to sort out before it interferes in yet another area of economic
and social life."
ENDS
IEA spokespeople are available for live and pre-recorded
broadcast
Contact: media@iea.org.uk / 07763
365520
Notes to Editors
In March 2022, the IEA published Red Card, which
argued against proposals for a state football regulator. The
paper can be read here: https://iea.org.uk/publications/red-card-why-english-football-doesnt-need-an-independent-regulator/
