Football Governance Act 2025: A New Era of Oversight

Football Governance Act receives royal assent.

On 21st July 2025, the Football Governance Act finally received royal assent. This landmark law reforming the structure of English men’s football, represents the most significant statutory intervention in the sport since the formation of the Premier League in 1992. 

The Act has arisen out of former sports minister Tracey Crouch’s fan-led review of football governance in 2021, and a subsequent white paper proposal to replace self-regulation with an independent body that would ensure clubs are run in a sustainable and ethical manner.

What does this mean for the beautiful game?

1. Licensing framework

At the core of the Independent Football Regulator’s (IFR) mandate is the introduction of a statutory licensing regime. This requires clubs to hold a valid license to operate, with strict conditions imposed around financial health, governance standards, and fan engagement.

The licensing framework introduces legal enforceability where previous systems were largely reliant on voluntary codes or internal league governance.

Clubs that fail to meet licensing standards may face sanctions, including suspension of trading rights or, in extreme cases, loss of their license to compete in domestic competitions.

2. Owners’ and directors’ suitability

The Act also overhauls the Owners’ and Directors’ Test, replacing it with a more stringent legally mandated assessment of integrity, financial competency, and source of wealth. 

The IFR will have statutory investigatory powers, including the authority to compel the disqualification of unsuitable individuals, and, importantly, mandate the forced sale of clubs in cases of governance failure or criminal misconduct. This addresses long-standing concerns about opaque ownership structures and the use of clubs for reputational laundering or financial mismanagement.

3. Fan engagement

A notable feature of the Act is its focus on fan engagement, which now has a statutory footing.

Clubs must establish and maintain Fan Advisory Boards and consult supporters on key decisions such as stadium relocation, changes to club names, colours, and crests, and significant financial restructurings. 

These obligations go beyond moral expectations, becoming legal requirements enforceable under the terms of the club’s license. Failure to comply can trigger regulatory penalties.

4. Prohibition on competition

Another major legal implication is the prohibition on participation in unauthorised competitions, including breakaway “closed shop” leagues such as the European Super League concept. 

This prohibition is embedded in law and supported by a criminal liability framework for individuals or entities who knowingly support or facilitate such moves in breach of licensing conditions.

5. Revenue protection

The Act provides the regulator with “backstop” revenue-sharing powers, enabling it to intervene in the financial ecosystem of English football if voluntary agreements between the Premier League and lower leagues break down. 

These provisions reflect growing political consensus that unbalanced revenue flows threaten the long-term sustainability of the football pyramid. The IFR may, as a last resort, impose a mandatory redistribution formula to ensure fairness and protect smaller clubs from financial collapse.

So, what happens next?

The IFR is scheduled to begin operations later in 2025, during which it will issue guidance and regulations for club licensing and stakeholder engagement.