Football’s new watchdog: The act that could change the game forever

Bristol grad Marcus Hopkins explains the creation of the Independent Football Regulator and what it means for England’s most popular sport

English football entered a new era on 21 July 2025 when the Football Governance Act received Royal Assent. The legislation creates the world’s first Independent Football Regulator (IFR), a body that is tasked with safeguarding the sport’s finances, giving supporters a stronger voice and keeping clubs anchored in their communities.

Its arrival follows years of turbulence. Bury FC were expelled from the EFL in 2019 following a failed takeover attempt, while Southend United slid from League One to the National League amid unpaid wages and received a 10 point deduction for missing a tax deadline, and Reading FC endured repeated points deductions before suffering relegation under previous ownership.

The turning point came in 2021 when the proposed European Super League provoked fierce backlash from fans, politicians and football authorities. The breakaway plan, involving the Premier League’s so called “Big Six”, was seen as a direct challenge to the domestic game’s integrity and spurred the government into action.

The Act stems from the 2021 a fan-led review of football governance, chaired by former sports minister Dame Tracey Crouch, which called for reforms in financial regulation, fairer revenue distribution, corporate governance, supporter engagement and protection of club heritage. These ideas shaped the Conservative government’s 2023 White Paper, ‘A Sustainable Future: Reforming Club Football Governance’, which gained rare cross-party backing.

After months of political debate, the Bill became law this summer, ushering in the most significant shake up in English football regulation in generations.

The regulator’s core powers

The IFR, led by newly appointed director David Kogan, will oversee the top five tiers of the men’s game. Every club within its scope must hold a licence to compete.

The licensing system is central to the reforms. All 116 clubs must now secure either a provisional or full operating licence. A provisional licence, valid for up to three years, allows teams to compete while working towards full compliance. Clubs must submit a strategic business plan, financial records, governance statements and a register of owners and key officers to qualify. A full licence requires ongoing compliance with mandatory conditions, such as proof of financial stability, robust governance and structured fan engagement. The IFR can impose extra conditions where necessary, and while full licences will not need to be periodically renewed, clubs will remain under continuous monitoring. Breaches can lead to fines, suspensions or even licence revocation.

A strengthened test for owners and directors will assess integrity, financial stability, funding sources and independence from improper influence. The IFR can block unsuitable takeovers or order the removal of owners or officers who fail the test after appointment. In severe cases, trustees may be appointed to run a club until new ownership is found.

Clubs will be barred from changing their name, badge, home colours or stadium location without majority fan approval. Regular consultations with supporters will be mandatory, providing protection against unpopular changes such as Cardiff City’s 2012 colour switch from blue to red or Hull City’s attempted rebrand to Hull City Tigers in 2013.

Closed or non-merit based competitions such as the European Super League will need IFR approval. The regulator can block participation if it believes such events threaten the sustainability or heritage of English football.

If negotiations between the Premier League and EFL over revenue sharing stall, the IFR can step in. These powers, which can extend to parachute payments, are intended as a last resort to prevent financial instability across the leagues and secure fairer funding for lower-league clubs.

What it means for the game

For clubs and owners: Compliance will now be a formal and ongoing requirement. Clubs must demonstrate robust internal controls, sustainable finances and active fan engagement. Failure to do so could lead to fines, licence suspension or forced sale. This represents a decisive shift from the game’s previously self-regulated model.

For leagues and the FA: The IFR adds a statutory layer above the Premier League, EFL and FA, making coordination essential to avoid conflicting requirements. Governing bodies will need to ensure that their financial reporting and regulatory frameworks align with the new system.

For fans and communities: The Act offers supporters a formal voice in decision-making. Through heritage protections and structured consultations, it seeks to preserve clubs as community assets and prevent sudden, unpopular changes. If implemented effectively, these measures could help restore trust between fans and club leadership, much of which was eroded by the Super League controversy.

Positive responses

The enactment of the Football Governance Act on 21 July 2025 was widely celebrated across the sport. Prime Minister Keir Starmer called it “a proud and defining moment for English football,” emphasising its importance in preserving clubs and their ties to local communities. EFL Chair Rick Parry hailed the legislation as “a watershed moment in the history of English football and [one that] lays the foundations for a transformational change,” pointing to its potential to rebalance finances and deliver long-term sustainability.

Criticisms and challenges

One of the most prominent criticisms of the Football Governance Act is the risk that its stricter regulatory framework could deter investment in the English game. The additional exposure to criminal or civil sanctions, public censure and the sharing of sensitive information with other regulatory bodies may make owning or investing in a club less attractive. Investors could instead choose to direct funds towards clubs in other European leagues, where such regulation does not exist.

The Premier League has been particularly vocal in warning of the potential consequences. In its formal response to the Bill, it described the proposals as introducing “rigid banking style regulation” that could “have a negative impact on the League’s continued competitiveness, clubs’ investment in world-class talent and, above all, the aspiration that drives our global appeal and growth.” This concern centres on the view that while financial sustainability is essential, over prescriptive rules could reduce the flexibility and ambition that have helped make English football a commercial powerhouse.

UEFA has warned of the risk of “scope creep” within the IFR. In a letter to Culture Secretary Lisa Nandy, UEFA General Secretary Theodore Theodoridis observed that while the IFR’s intended role is to safeguard clubs’ long-term financial sustainability and heritage assets, there is a danger it could, once established, extend its remit beyond what was originally intended. He emphasised the need for boundaries to ensure the regulator remains focused on its core purpose.

The Road Ahead

The Football Governance Act represents a bold step towards reshaping the way English football is run. Supporters, clubs, leagues and governing bodies now face a new reality in which financial stability, transparency and fan engagement are backed by statutory force rather than relying on self-regulation. Its success will depend on how effectively the IFR can balance its enforcement role with the need to preserve the competitiveness and global appeal of the game.

If implemented with care, the Act could provide long-term stability and protect clubs as vital community institutions. If mishandled, it risks creating a regulatory environment that stifles ambition and investment.

The Shadow Football Regulator has been in operation since 2024, with the IFR expected to begin formal operations in autumn 2025. A “State of the Game” report is scheduled for 2026 and will provide the first comprehensive assessment of the reforms in practice.

The coming years will reveal whether this new framework becomes a model for other countries or a cautionary tale of overreach in one of the world’s most celebrated sports.

Marcus Hopkins is a recent graduate from the University of Bristol and is currently a Sports Litigation Paralegal at Rylands Garth. Alongside this role, he runs Full Time Verdict, his own sports law blog. Marcus aspires to qualify as a solicitor specialising in sports law.