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English football’s new independent regulator provides a “massive opportunity” to have a “proper reset”, says English Football League chairman Rick Parry.
It aims to prevent clubs going out of business, give fans greater input and introduce a more stringent owners’ and directors’ test.
“We welcome it,” said Parry.
Speaking on BBC Radio 5 Live, he added: “It is in line with our expectations. It is certainly in line with the fan-led review, which we welcomed.
“So we are pleased. Our purpose is making clubs sustainable, which is all about financial redistribution and regulation – the two have to go hand-in-hand.
“We see this as a massive opportunity to have a proper reset and secure the financial health of our pyramid.”
The main purposes of the proposed new regulator will be to stop English clubs from joining closed-shop competitions, such as the European Super League, as well as preventing a repeat of financial failings seen in the collapses of Bury and Macclesfield.
Fans will have the power to stop owners changing a club’s name, badge and traditional kit colours, while the regulator will also ensure a fair distribution of money down the English football pyramid from the Premier League.
The government’s white paper on football governance – a policy document which outlines the proposed legislation – is to be released later on Thursday.
Speaking on BBC Radio 4’s Today, Parry said the regulator was a “step in the right direction” and called for changes to be implemented “as soon as we can”.
“In many ways the game is in rude health,” he added. “The problem from our perspective is that there is too big a gulf between top and bottom.
“The first year of the Premier League, 1993, the gap in turnover between the Premier League and the EFL was £11m, it’s now £3bn.
“That’s the disparity, it’s getting wider all the time, and our goal, our mission, our purpose, is making clubs sustainable, long-term future, which means not making them wholly dependent on owner funding, and it means redistribution of revenues hand-in-hand with better regulation.
“So we’re completely in favour of the changes.”
‘It is about the greater good’
The Premier League was understood to be wary of a regulatory body when the proposals were announced in April last year.
Last year’s fan-led review was chaired by former sports minister Tracey Crouch following a number of high-profile crises in the sport.
The government initially promised a fan-led review in its 2019 general election manifesto after Bury were expelled from League One following the collapse of a takeover bid, but it was brought forward as a result of the Covid-19 pandemic and the failed attempted launch of the European Super League in 2021.
The review’s recommendations seek to address concerns over the financial disparity between the Premier League and the Championship, with clubs in the second tier breaching profitability and sustainability rules in attempts to gain promotion.
“There will be some fans – certainly some of Premier League clubs – that will wonder what all the fuss is about,” said Phil Young, the chairman of Bury AFC, the fan-owned phoenix club established after the demise of Bury FC.
“It’s a bit like buying an insurance policy and at the end of it complaining you didn’t need it because you didn’t use it – in some of these sorts of things you don’t realise there is a problem until you have experienced it and gone through it.
“Bury football supporters, Macclesfield, other clubs that have gone through the wringer of late – there is a growing number of them – all realise the value of this sort of thing. The value of protecting clubs for their communities going forward.
“It is about the greater good. It is about protecting football, not an individual football club. It is about looking after the interests of everybody.”
