Football’s New Regulator: protecting clubs or adding pressure?
This article has been co-authored by James Corner, Paralegal, Commercial and Tech
For decades, the Premier League and English Football League (EFL) have largely been responsible for overseeing their own clubs. However, concerns over financial mismanagement, club ownership and the long-term sustainability of the game prompted the Government to intervene.
The Independent Football Regulator (IFR) created in July 2025 following the Football Governance Act 2025 saw key statutory duties coming into force and the publishing of final licensing rules and guidance during the summer of 2026. This new era of regulation’s primary task is to oversee the top five tiers of English men’s football through the introduction of a new licence regime.
Independent Football Regulator: licence regime
All top five tier clubs are required to obtain an operating license from the IFR to compete in their respective leagues. Clubs must first secure a provisional license before progressing to a full license, which requires them to demonstrate that they meet the regulator’s standards of:
- Financial sustainability: clubs must prove they have sufficient financial resources to meet their financial obligations, manage cash flow, and withstand financial shocks.
- Corporate governance: clubs must ensure appropriate governance arrangements are in place.
- Protection of club assets: clubs must comply with requirements designed to protect important club assets, including their stadium.
Powers of the Independent Football Regulator
The IFR has statutory power to investigate clubs and scrutinise their finances, as well as assess the suitability of their owners and directors. Where clubs breach regulatory requirements, it can impose financial penalties or, in extreme cases, revoke their operating licence. If this occurs, sanctions will only take effect at the end of the season to avoid major disruption across English football. Furthermore, with the IFR reporting around two-thirds of EFL and National League clubs are unable to survive 90 days without additional owner funding, the IFR’s power to intervene in disputes over revenue distribution between the Premier League and EFL could prove highly impactful in addressing the financial imbalance across English football.
What does this mean for Premier League and EFL clubs?
The financial challenges facing English football cannot be understated and long-run cost controls appear likely. According to the IFR’s findings, 94 per cent of clubs across the top five divisions are operating at a loss, and over 60 per cent of EFL and National League clubs have liabilities exceeding the value of their assets. For Premier League clubs, the new regime means greater scrutiny of financial planning, ownership, and senior management, with the IFR able to look beyond formal corporate structures to identify those exercising significant influence over a club, as we are seeing in the Manchester City saga.
For clubs, the message is clear, financial sustainability cannot be deferred to a later date. Though the IFR aims to promote financial stability, the question remains whether clubs already struggling to balance the books can afford the additional burden of regulatory compliance, especially in the short term. The reality is they have no choice and now is the time to get their house in order.
How Hamlins can help
Hamlins provides a unique offering to the sports industry, delivering a combination of commercial, IP, corporate, regulatory, privacy and reputation management expertise. If you are in the football community and would like a conversation about your club’s approach to compliance with the latest regulations, please get in touch.