The Premier League has issued a warning regarding the “unintended consequences” of football regulation through an advertisement placed on a prominent political news website.
Parliament introduced the Football Governance Bill last month, and a second reading is scheduled shortly after the Easter break. Preparatory work is already underway to ensure swift establishment of the regulator once the legislation is passed.
Top-flight clubs are expressing unease about the prospect of stricter controls. David Sullivan, co-chairman of West Ham, voiced concerns to BBC Sport last month, stating that anything with the potential to diminish Premier League revenue could jeopardize its status as the world’s most lucrative football competition.
Amid stalled negotiations with the English Football League (EFL) regarding a ‘New Deal’ funding model and as the Premier League seeks to amend its financial regulations, the league has placed an advertisement on the politico website. This move is aimed at reinforcing a message to parliamentarians.
“The Premier League is the world’s most-watched competition, the Championship is Europe’s sixth wealthiest league, and we have the best-attended and deepest pyramid in world football,” the advert says. “Yet the UK will soon become the first major country to regulate football.
“We must guard against unintended consequences that would put English football’s success at risk.”
The Premier League has stated its commitment to allocating £1.6 billion to support the wider football community and local areas from 2022 to 2025.
Efforts are underway to secure agreement among member clubs regarding new financial regulations by the league’s annual meeting in June.
These proposed changes would shift from the current profit and sustainability rules, which resulted in sanctions for Nottingham Forest and Everton this season, towards a system more aligned with UEFA’s, aiming for clubs to spend up to 70% of their income.
Further discussions are expected at the Premier League shareholders’ meeting scheduled for Thursday.
As part of these reforms, there is a possibility of agreeing to real-time financial reporting in shadow form during the summer.