The Independent Football Regulator (IFR) will begin work later this year after the Football Governance Act received Royal Assent to become law.

The IFR will act across the top five tiers of the men’s game to ensure clubs are run sustainably and are accountable to their fans.

Its powers will include:

• Tough new financial regulation to improve resilience across the football pyramid to ensure clubs are sustainable for the long term.
• Stronger, statutory Owners’ and Directors’ Tests to make sure club custodians are suitable and aren’t using illicit finances with powers to force rogue owners to sell up.
• New standards for fan engagement in club decision-making.
• Bars on clubs joining closed-shop competitions and breakaway leagues.
• Backstop powers to ensure a fair financial distribution between leagues.
• New statutory protections for key club heritage aspects like home shirt colours and club badges and stadium moves.

The Football Governance Act cleared the Commons earlier this month, with MPs voting in favour at third reading by 415 votes to 98, a majority of 317.

The Act follows a long journey to law, which began following the attempted breakaway European Super League, a series of high-profile cases of clubs – such as Bury – facing financial ruin and the impacts of Covid-19.

The IFR will consult the industry on its proposed rules, guidance and approach to licensing clubs before implementing the new regime.

A transition team, the Shadow Football Regulator, was established in 2024 to lead this process and is already engaging widely with industry and fan groups.

The process of appointing a senior leadership team is ongoing with the announcement of an Interim CEO and Board expected shortly.

EFL chair Rick Parry believes the IFR could have “transformational change in the way the game is governed at all levels”.

However, the Premier League raised concerns over the Bill’s financial powers, with chief executive Richard Masters asking in April 2024 for a “light touch, proportionate regulation”.

“The regulator borrows prudential regulation from the financial services, and I can’t see a parallel between the football industry and the banking system,” he added last year.

Football Supporters’ Association (FSA) chief executive Kevin Miles said: “We look forward to working with the regulator, as well as the FA and leagues it covers, to ensure that the supporter voice continues to be at the forefront of debate as fans are the beating heart of the game. Club owners can no longer mark their own homework.”

“Fans will welcome this news but work still to be done”

Sky Sports News’ Geraint Hughes

“A Shadow Regulator has been in place since January, laying the groundwork for the office of the Independent Regulator to start work, but that won’t happen immediately.

“While a stronger Owners and Directors Test can be implemented almost straight away, the work of the Independent Regulator to arbitrate over financial distribution cannot happen right away. It is still the belief and hope of the Secretary of State for Culture, Media & Sport Lisa Nandy MP, that the Premier League and EFL will come to an agreement themselves on any future financial distribution model. But if they don’t, when the Regulator takes office, they may arbitrate or intervene.

“The preferred candidate to lead the regulator – David Kogan – is not in place just yet, while the Shadow Regulator hasn’t completed the work required for an accurate timescale for anyone to say ‘the Regulator starts work today.’ Soon, but not quite yet, is the word coming from the Government.

“Many supporters groups, especially supporters of clubs in crisis, such as Morecambe, welcome this new legislation, with Lisa Nandy MP telling Sky Sports News that this Act ‘isn’t too late for Morecambe’.

“But with any new Law, and one that requires a Regulator, it is a balancing act.

“The Premier League has been actively and constructively working with the Shadow Regulator team since the New Year, but it will be hoping that the words ‘light-touch’ do ring true as a concern aired since the Bills’ inception was that any regulation could harm or devalue a huge financial and cultural asset that is the Premier League.”