Clarity, proportionality and director training key to football’s new governance era

In response to three consultations from the newly established Independent Football Regulator (IFR), LCP’s sports advisory practice has made several recommendations to ensure that the new IFR guidance is proportionate, clear, and that adequate training is provided.

The new Regulator was established in July this year and has issued its first three consultations, covering Information Gathering and Enforcement, the Owners, Directors, and Senior Executives (ODSE) Regime, and Sanctions. These consultations are designed to shape the IFR’s regulatory framework and ensure it can effectively uphold standards across English men’s football. 

In their response, LCP highlighted three areas that need to be focused on to ensure that the guidance is effective and targets the right issues:

Mandatory training for club directors 

As part of its assessment of “competence” for directors and senior executives, the IFR should facilitate an online training programme, focused in particular on directors of regulated football clubs.

LCP believe there should be a requirement that all regulated club directors should have a minimum level of knowledge and understanding of the regulations, structure and culture of the football industry in this country. This should be facilitated by the IFR providing an online training programme or toolkit, and LCP believes that all incoming directors who cannot otherwise demonstrate competence should be required to do the training and pass an assessment. 

Clarification of dual role executives

The ODSE guidance currently lacks clarity on the position of individuals whose roles span both sporting and financial responsibilities, such as sporting directors involved in transfer negotiations and player contracts. LCP therefore recommends that the IFR guidance should clarify how to determine whether such individuals need to be included in the ODSE notification and approvals process.

Proportionality in compliance requirements

Given the diversity in club sizes and financial structures, LCP recommends that the IFR provide more detailed guidance on how it will assess proportionality. Specifically, the Regulator should outline the key metrics used to determine a club’s financial position and how these will influence compliance expectations.

Aaryaman Banerji, Head of Football Governance at LCP, commented, “It is encouraging to see that the guidance prescribed in the consultation is clear and strong, but, in our experience of navigating challenging regulator landscapes in a range of industries, clarity, proportionality, and the right training are crucial to make sure regulations are effective. We believe sharpening up some of these aspects of the draft guidance will help improve it. ”

Bart Huby, Head of Sport Analytics and Advisory at LCP, added: “The structure and culture of football in this country is unique, meaning that owning and running a football club differs greatly from owning or running other organisations. The emotional and financial significance of clubs to their fans and communities means owners and directors face intense scrutiny. 

“A lack of understanding of this dynamic has regularly led to serious issues developing. That’s why we’re calling for mandatory training and assessment for directors, to ensure they’re equipped to navigate the complexities of the game. We believe our proposals will further prepare the Regulator to support and deal with the realities of the football industry.”

You can read LCP’s full consultation responses here.