The Athletic FC Podcast: "Will the Independent Regulator Fix Football?"

Release Date: February 6, 2025
Host: Ayo Akimwaleere
Guests: Matt Slater (Senior Football News Reporter), Phil Hay (Lead Writer for Athletic FC Newsletter), Lisa Nandi (UK Secretary of State for Culture, Media and Sport)

1. Introduction to the Governance Crisis in English Football

[01:08] Ayo Akimwaleere opens the discussion by highlighting the pressing issues within English football, including financial mismanagement, questionable ownership, and a lack of accountability. He introduces the British government's proposal to appoint an independent regulator aimed at addressing these challenges. The episode seeks to explore why the Premier League and its member clubs oppose this plan and whether fan concerns are genuinely driving the initiative.

2. Historical Context and the Catalyst for Change

[02:02] Matt Slater delves into the history leading up to the current governance crisis. He pinpoints the 2021 European Super League as a pivotal moment that exposed the fragility and governance issues within English football. This crisis captured Boris Johnson's attention, who saw it as an opportunity to connect with northern voters by addressing football governance.

Key Points:

• Fan-Led Review: Initiated by former sports minister Tracy Crouch, this review emphasized the need for an independent regulator focused on financial sustainability and the protection of club heritage.
• Legislative Journey: Initially supported by the Conservative government, the proposal gained cross-party backing and was further advanced under Prime Minister Rishi Sunak, a known football enthusiast.

Notable Quote:

"The Premier League hates the idea. You know, they've kind of been kind of dragging and screaming and, you know, they sort of say they accept it, but then they keep fighting it."
— Matt Slater [05:00]

3. The Proposed Football Governance Bill

[07:53] Ayo Akimwaleere introduces Lisa Nandi, the UK Secretary of State for Culture, Media and Sport, who provides an overview of the government's intentions with the governance bill.

Lisa Nandi explains that the bill aims to:

• Centralize Fan Involvement: Ensuring fans are at the heart of club decisions.
• Ensure Financial Sustainability: Mandating that clubs maintain robust business plans and responsible ownership.
• Regulate Club Ownership: Implementing stringent tests for prospective owners and directors to safeguard club integrity.

4. Premier League and EFL Reactions

Matt Slater raises concerns about Premier League clubs claiming insufficient consultation and alleges that post-government change, attempts to meet with officials were declined.

[10:12] Lisa Nandi refutes these claims, asserting continuous engagement with all clubs:

• Regular Meetings: She cites recent meetings with Premier League executives, emphasizing openness to dialogue.
• Bill Progression: Acknowledges varying degrees of support and opposition within the leagues but maintains that the bill's passage is inevitable given Labour's majority.

Notable Quote:

"We're trying to achieve those two things, and we're confident that we're in the right place."
— Lisa Nandi [32:28]

5. The Controversy Over Parachute Payments

Phil Hay introduces the topic of parachute payments, highlighting their role in exacerbating financial disparities between the Premier League and the English Football League (EFL).

Discussion Points:

• Impact on Competition: Parachute payments provide relegated Premier League clubs with significant financial boosts, affecting competitive balance.
• Legislative Adjustments: Labour's bill removes previous carve-outs, allowing the regulator to scrutinize parachute payments' implications on the football pyramid.

Notable Quote:

"They're not asking the regulator to decide whether parachute payments should exist or not. But we do think it's right that they should be able to consider them."
— Lisa Nandi [18:30]

6. Ownership and the Owners and Directors Test

Lisa Nandi emphasizes the importance of safeguarding club ownership to prevent mismanagement and protect club heritage.

Key Initiatives:

• Enhanced Vetting: Introduction of stringent ownership and director tests to ensure responsible stewardship.
• Retrospective Powers: The regulator can intervene in ownership matters if significant concerns arise post-acquisition.
• Protection Against Political Bias: The bill removes any clauses that might allow the regulator to be influenced by UK foreign policy, ensuring decisions are based solely on football's best interests.

Notable Quote:

"There is a power for the regulator also to be able to intervene retrospectively, but we're being very cautious about that because what we don't want to do is to deter people from coming forward to own our clubs."
— Lisa Nandi [25:33]

7. International Implications: FIFA and UEFA

The discussion addresses potential conflicts with global football bodies like FIFA and UEFA regarding government intervention.

Insights:

• Collaborative Approach: The UK government has engaged in continuous dialogue with FIFA and UEFA to ensure alignment and mitigate conflicts.
• Regulatory Harmony: Efforts are made to maintain consistent rules across all football levels, avoiding a convoluted regulatory environment for clubs.

Notable Quote:

"We're very confident that we're in the right place and that we're all in agreement on that and that there are no risks associated with it."
— Lisa Nandi [31:13]

8. Leadership and Implementation of the Regulator

Matt Slater raises concerns about the qualifications and incentives for leading the independent regulator, questioning whether professionals will be attracted to the role given competitive salaries elsewhere.

Lisa Nandi responds by outlining the desired attributes for the regulator's leadership:

• Passion for Football: A genuine commitment to placing fans at the center of decisions.
• Regulatory Expertise: Ability to manage complex football governance issues with a "light touch."
• Bridging Divides: Capability to unify disparate football stakeholders, fostering consensus.

Notable Quote:

"I think the balance in favor of fans... they're handed down through generations."
— Lisa Nandi [27:57]

9. Additional Topics: Stadium Redevelopment and Economic Growth

In the latter part of the discussion, Lisa Nandi touches upon the government's support for major stadium projects, using Manchester United's Old Trafford redevelopment as a case study. She underscores the economic benefits such projects bring to local communities and the broader UK economy.

Key Points:

• Economic Potential: Stadium redevelopments can act as catalysts for local economic growth.
• Government Support: Focus on unblocking planning restrictions to facilitate timely and efficient project completions.
• Grassroots Investment: Parallel efforts are made to support grassroots football, ensuring long-term sustainability and community engagement.

Notable Quote:

"These are part of our civic inheritance... they've faced challenges that cannot be traced back to one single body."
— Lisa Nandi [36:08]

10. Conclusions and Future Outlook

As the episode wraps up, Lisa Nandi reiterates the government's commitment to reforming football governance to prioritize fans and ensure the sport's sustainable future. She expresses confidence in the proposed bill's ability to bring necessary balance and protect the football pyramid's integrity.

Final Remarks:

• Regulator Appointment: The search for a suitable regulator leader is ongoing, with a focus on finding a candidate who embodies the desired qualities.
• Bill Progression: Despite minor delays in the House of Lords, the government is pushing forward to implement the regulatory framework promptly.
• Fan-Centric Vision: The overarching goal remains to restore fan trust and ensure that football clubs operate transparently and sustainably.

Notable Quote:

"This is a once in a Lifetime opportunity to put fans at the heart of the game and ensure the sustainability of the whole football pyramid for years and years to come."
— Matt Slater [05:00]

Key Takeaways

• Independent Regulation: The UK government's initiative to establish an independent football regulator aims to address deep-seated governance issues, focusing on financial sustainability and fan-centric policies.

• Resistance from Premier League: Premier League clubs express significant opposition, citing concerns over insufficient consultation and potential interference, though the government maintains ongoing dialogue.

• Parachute Payments Scrutiny: There's a concerted effort to evaluate and potentially regulate parachute payments to mitigate financial disparities within the football pyramid.

• Ownership Oversight: Enhanced vetting processes for club owners and directors seek to prevent mismanagement and ensure responsible stewardship of football clubs.

• Collaborative International Relations: The government is mindful of maintaining harmonious relations with FIFA and UEFA, ensuring that national regulations do not conflict with international football governance.

• Economic and Community Impact: Beyond governance, initiatives like stadium redevelopment are highlighted for their potential to stimulate local economies and support grassroots football.

This comprehensive summary encapsulates the multifaceted discussions from the episode, providing listeners and non-listeners alike with an in-depth understanding of the current state and future prospects of football governance in England.