EFL chief welcomes new intervention that will have major impact for Coventry City New details have been released about the powers of an independent football regulator which could have the power to change how vast sums of money are distributed from the Premier League.
EFL chairman Rick Parry has welcomed a twist in the creation of a new role to help oversee and secure the future of football in England.
Plans have long been in the pipeline to introduce a new independent regulator to help supporters get the sport they want in this country. It was inspired amid fury when six top clubs tried to form a virtual closed shop breakaway European Super League while other clubs, such as Macclesfield Town and Bury, went bust and others, including Port Vale and Bolton Wanderers, went too close for comfort to the brink.
But the new Labour government has now revealed differences between their Football Governance Bill and the one that was put forward by the Conservatives when they were in power earlier this year. The bill drafted by the Tories insisted that a regulator should consider “the foreign and trade policy objectives” of the UK government when coming to decisions about who is allowed to own clubs. It was reported in 2022 that Boris Johnson’s government had pressured the Premier League to approve the takeover of Newcastle United by Saudi Arabia’s Public Investment Fund.
The regulator will, however, have greater influence on how the vast sums of money are distributed between the Premier League and the rest. The Premier League has refused to come to any agreement with the EFL about changes to the current model and Parry has called for help to force their hand. The regulator could demand a reform of parachute payments, which see teams coming down to the Championship pick up huge cheques in each of the first three years after relegation.
It is suggested that the current parachute payment system distorts competition in the EFL and does not address the huge financial chasm growing between the top division and the rest.
The regulator will also be able to demand that fans have more say in the setting of ticket prices and any relocation of stadiums.
