Minister for Sport, Media, Civil Society and Youth (): Today I am updating the
House on the introduction of the Statutory Deadline for the
Independent Football Regulator's (IFR's) suitability tests for
prospective owners and officers. These deadlines must be set by
Statutory Instrument (SI) under the Football Governance Act 2025
(“the Act”). The Regulations, which are subject to the made
negative procedure were laid before both Houses today.
Setting a statutory deadline for these tests in law represents a
significant milestone in one of the primary duties of this new
and unique Regulator: to ensure the long-term sustainability of
our football clubs, keeping them at the heart of their
communities.
Fans are bound to be apprehensive whenever their club's ownership
or executive leadership changes hands. The IFR's new tests for
prospective owners and officers will better protect clubs from
unsuitable custodians. The tests will reassure fans of the
financial resilience and source of wealth of new incoming owners,
as well as the honesty and integrity of both new owners and
officers. Clear statutory deadlines will also ensure that tests
are carried out in a timely manner. This will give fans the much
needed transparency they deserve.
Under the new Regulations, once a new owner or officer test is
commenced, the IFR will have an initial determination period of
90 days. Where necessary, this may be extended by a maximum of 60
days, giving a total possible period of 150 days.
The Government conducted a six-week targeted consultation to
ensure the policy was informed by stakeholder views and ensure
the determination period is appropriate for both the IFR and the
industry it regulates. The proposals were shared with all
leagues, the Football Association, Football Supporters'
Association, industry lawyers and all 116 clubs that will fall
within the scope of the regulatory regime. While consultation
responses were mixed, there was widespread agreement that the
extension period and maximum time should only be seen as a
longstop for complex applications. This is in line with the IFR's
intent to progress applications promptly and efficiently, as far
as practicable.
I acknowledge some stakeholders considered the deadline too long,
noting the risks of uncertainty for investors and impact on clubs
in crisis who require timely investment. However, a shorter
period would reduce the IFR's operational flexibility to cater
for the variances in complexity of owner and officer applications
across 116 clubs. The IFR must have sufficient time to request
additional information and carry out its assessment. If the
period is too short it could lead to more applications failing,
which may also deter investment. In addition to this, we believe
the statutory deadline provides certainty to investors and that
the full time will not be used in every case, specifically where
a club is at risk.
However, a limited number of respondents suggested the deadline
was too short to deal with complex cases. Our view is that a
longer statutory period would risk creating a slow, cumbersome,
anti-investment process. To ensure that the statutory
determination period is used for the substantive assessment of an
application, the Regulations provide that the period begins only
once an application is ‘duly made' in accordance with sections 28
or 29 of the Act and the IFR's rules. This means that all
information required for an application to be validly submitted
must be provided before the determination period starts.
The deadline set by the Regulations encourages the IFR to make
timely decisions when testing the suitability of new owners and
officers in a fast-paced industry. It also balances effective
scrutiny while ensuring an investment in English football remains
an attractive one for the right owner.
This Government continues to deliver on its election promises, to
combat the poor governance and financial mismanagement of
football clubs in this country, and to put fans back at the heart
of English Football.
