Prime Minister Rishi Sunak has signed off on the bill which will bring forward football’s independent regulator, in the week where Premier League clubs backed away from a new funding deal with the EFL.
Sources close to the Premier League had expressed hope that clubs would vote to make an offer – previously said to be worth an extra £900million over six years – to the EFL at their shareholders’ meeting in London on Monday but it failed to materialise, with the 20 clubs now prioritising new cost control measures to replace the existing profitability and sustainability rules (PSR).
Bloomberg first reported earlier on Tuesday that the Football Governance Bill had been given Sunak’s full backing, and the PA news agency understands this is the case, and that the Bill could be published as early as this month.
Culture Secretary Lucy Frazer has previously warned that the regulator will have ‘backstop’ powers to impose a deal on the Premier League and the EFL if they cannot agree one themselves.
A spokesperson for the Department of Digital, Culture, Media and Sport (DCMS) said: “The Government is on the side of football fans, and we continue to engage with leagues and clubs ahead of the introduction of the Football Governance Bill.
“We have a clear plan to deliver a sustainable future for football, with fans at its heart, and our forthcoming legislation will deliver this through a tough new independent regulator.”
Dame Caroline Dinenage, the chair of the Culture, Media and Sport select committee, earlier accused the Premier League of making an “empty promise” to the EFL over funding.
The delay has already faced criticism from former Manchester United captain Gary Neville, and now Dinenage has spoken out.
“The longer this deadlock goes on, the more the stated commitment from Premier League clubs to striking a deal with the rest of the pyramid looks like nothing more than an empty promise,” Dinenage told the PA news agency.
“With the richest teams in the country continuing to park the bus to block a financial settlement, the Premier League’s number should now be up and the Government must urgently introduce its much-trailed legislation to bring an independent regulator into play.
“Every day that goes by without an agreement threatens the financial sustainability of clubs in communities up and down the country.”
The Government has warned the new regulator will have the power to impose a deal on the Premier League and the EFL if they cannot agree one themselves.
The squad cost control measures the Premier League is looking at are not set to be voted on until the league’s annual general meeting at the earliest.
The EFL is set to discuss the matter at a board meeting on Thursday. Until a new deal is signed off, the EFL will not give ground on Carabao Cup semi-final second legs or FA Cup replays.
Premier League clubs today agreed to prioritise the swift development and implementation of a new League-wide financial system.
Clubs also re-confirmed their commitment to securing a sustainably-funded financial agreement with the EFL.
— Premier League (@premierleague) March 11, 2024
That is set to create major congestion next season with UEFA’s club competitions due to expand.
The CMS committee quizzed Premier League chief executive Richard Masters and EFL chairman Rick Parry over the lack of an agreement back in January.
Masters admitted at that time that there had been disagreement over both the size of any offer to the EFL, and where any extra money should come from.
However, Premier League sources had indicated at the last meeting on February 29 that there was reason to be optimistic that a deal would be offered.
