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Small Clubs Face Uncertain Future Due to Football Governance Bill

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Fan Protests Erupt Over European Super League Failure; Concerns Raised Over Football Governance Bill’s Impact on Small Clubs

Fan protests erupted following the failed launch of a European Super League in 2021, and now, Dagenham & Redbridge chief executive Stephen Thompson is voicing concerns about the potential impact of the Football Governance Bill on small clubs.

The proposed legislation, set for its second reading in Parliament, aims to establish an independent body to oversee clubs in England’s top five men’s tiers. Thompson fears that the regulations and reporting requirements could be too burdensome for smaller clubs, potentially jeopardizing their survival.

Thompson highlighted the issue of club relegation and promotion between the English Football League (EFL) and the National League, emphasizing the importance of a consistent format throughout the leagues. He also expressed worries about the potential constraints the Bill could place on the Owners’ and Directors’ Test, potentially deterring investment in clubs.

West Ham United owner David Sullivan has also raised concerns, suggesting that the Premier League’s status as the world’s top division could be at risk if an independent regulator is introduced.

The proposed regulator would focus on improving financial sustainability, ensuring resilience across leagues, and safeguarding English football’s heritage. New club owners and directors would face stricter tests to prevent financial mismanagement, with a licensing system proposed to cover clubs from the National League to the Premier League.

The government has emphasized the need for an independent regulator to intervene in financial distributions between the Premier League and the EFL if agreements cannot be reached.

Premier League chief executive Richard Masters urged MPs and Peers to carefully consider the Bill to ensure that all of football benefits from the proposed changes, emphasizing the importance of continued investment in the sport for fans to enjoy. The goal is to maintain the success of the industry while addressing issues of financial stability and governance within the game.

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