In a major report released today, the Commons Culture, Media and Sport
Committee says big changes need to be made to the way football is run
in England to address financial instability and levels of debt in the
game, and to secure its future. Crucially, reform must be undertaken
without impinging on English footballâs many strengths. The Football
Association (FA) as the national governing body of English football is
the most appropriate agency to take the lead in addressing the
weaknesses of English football, but it needs urgent reform itself to
carry out its responsibilities effectively and meet the future
challenges of the game.
The Committee recommends:
* Imposing a rigorous and consistent formal licensing model
throughout professional English football to promote sustainable
forward-looking business plans and underpin self-regulation
measures introduced by the Premier League and the Football League,
and financial fair play regulations being introduced by UEFA.
* A strong fit and proper persons test consistently applied, with a
presumption against selling the ground unless it is in the clubâs
interest. The Committee says âthere is no more blatant an example
of lack of transparency than the recent ownership history of Leeds
Unitedâ and urges the FA to investigate if necessary with the
assistance of Her Majestyâs Revenue and Customs.
* Abolishing the Football Creditors Rule: the Committee says it
âepitomises the extent to which financial priorities are being
distortedâ and recommends that if the HMRC fails in its legal
challenge to the rule, and football authorities do not address it,
Government should consider scrapping it through legislation.
* Amending the Financial Services and Markets Act 2000 to recognise
the special nature of supporters trusts and help them overcome the
significant legal and bureaucratic hurdles they face when raising
funding - the Government should also consider legislation to
protect minority supporter stakes where they are facing a
compulsory purchase order.
* That the FA should review expenditure at the grass roots, with a
particular emphasis on coaching education.
The Committee recommends urgent reform of the Football Association
itself before it can take on the challenge of addressing the problems
of English football. Specifically, the Committee says:
The FA board should number ten, consisting of the Chairman; the General
Secretary; two further FA executive staff; two non-executives; two
professional game representatives; and two national game
representatives.
The reconstructed FA Board should reconsider whether the 50:50 divide
of surplus revenues should be scrapped to allow it to take strategic
decisions regarding the distribution of FA funds, and whether the
National game Board and Professional Game Board promote strategic
decision-making.
The FA should review the composition of the FA Council to improve
inclusivity and reduce average length of tenure, with the reformed
Council absorbing the shareholder role.
John Whittingdale MP, Chair of the Committee, said: âNo one doubts the
success of the Premier League in revitalising English football. But it
has been accompanied by serious financial problems throughout the
football league pyramid. Significant changes need to be made to the way
the game is run to secure the future of Englandâs unique football
heritage, and the economic and community benefits it provides.
âThe FA is the organisation for the job, but it has some way to go
getting its own house in order before it can tackle the problems in the
English game, and address the future. We need a reformed FA to oversee
and underpin a rigorous and consistent club licensing system and robust
rules on club ownership, which should be transparent to supporters.
âAlmost all our recommendations could be achieved without legislation,
through co-operation and agreement between the football authorities,
and we urge them to respond positively with an agreed strategy and
timetable for change. Legislation should considered only as a last
resort in the absence of substantive progress".
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