Today I am updating the House on the introduction of the statutory deadline for the Independent Football Regulator’s suitability tests for prospective owners and officers. These deadlines must be set by statutory instrument under the Football Governance Act 2025. 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, the 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 that 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 section 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 continue to deliver on their 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.
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