Navigating the new rules: what the Football Governance Act 2025 means for football clubs

The Football Governance Act 2025 has changed the landscape for every professional men’s club in the top five tiers of English football. While many of its standards will be familiar to well-run clubs, the act replaces the old patchwork of league and FA rules with a single, statutory regime enforced by an independent regulator. For club directors, executives, and owners, this isn’t just another compliance exercise – it’s now the backbone of how clubs must approach governance, finance, and fan relations.

At the heart of the Act is the new Independent Football Regulator (IFR). Unlike the Premier League, EFL, or FA, the IFR is a statutory body with a broad mandate to protect the long-term health and integrity of the game. Once the shadow regulator hands over later this year, every club will need an IFR licence to operate. Losing that licence could mean unlimited fines, suspension, or even closure. Clubs should treat licensing as an ongoing process, not a once-a-year paperwork rush.

Financial sustainability is front and centre. Clubs must show the IFR they can pay their bills, that their budgets are realistic, and that they’ve planned for risks such as relegation or losing a key sponsor. The IFR will expect integrated financial statements – budgets, balance sheets, and cashflow forecasts – that are stress-tested and up to date. Clubs used to Premier League or EFL reporting will see familiar requirements but should expect more scrutiny and earlier intervention. The IFR can step in if there’s a “reasonable prospect” of insolvency, so boards need robust early-warning systems that meet the regulator’s standards.

The IFR will also look closely at club funding. Owner loans, complex financing, and rolling credit facilities are still allowed, but clubs must clearly document the terms and show that owners can and will honour their commitments. The new owners and directors test is stricter and now sits with the IFR. Any ownership change – even a minority stake – should be discussed with the IFR early, with all due diligence ready before deals are signed. If the IFR rejects a new owner, the consequences could be severe.

The Act sets clear expectations for governance. Every club must have a governance handbook outlining who is responsible for what, how decisions are made, and how risks are managed. Board meetings should be properly minuted, especially for major financial decisions or anything that changes the club’s identity. The IFR can inspect governance arrangements and may require changes, such as appointing independent directors or separating ownership from day-to-day management. Clubs with professional boards will find this easier; those with informal structures should act now to get up to speed.

Fan engagement is now a licensing requirement, not just best practice. Clubs must have a fan engagement plan showing how they consult supporters on key issues, from ticket prices to stadium moves. Any changes to “heritage assets” like the club name, crest, or colours require meaningful consultation and IFR approval. Boards may need to set up fan advisory groups and keep records of engagement. Skipping this step could lead to sanctions or even invalidate commercial deals.

Revenue distribution among clubs is one of the Act’s most debated areas. The IFR now has the power to step in if the leagues can’t agree on how money is shared. For lower-league clubs, this could mean a bigger slice of TV and commercial income – but until the details are final, this is speculation. Premier League clubs should prepare for possible reductions in central payments. The takeaway is that all clubs should budget cautiously until a new formula is agreed.

The act also blocks breakaway leagues unless the IFR gives explicit approval. Even informal talks about joining a new competition could risk a club’s licence. All commercial contracts should reflect that participation in unapproved leagues depends on IFR consent.

Transparency is a big part of the new regime. The IFR can require clubs to publish audited accounts, ownership details, and related-party transactions. Clubs should review their current disclosure practices and clean up any complicated ownership structures now. Voluntary transparency can help avoid bigger problems later.

Enforcement will be quick and public, at least that is the expectation. The IFR must publish details of fines, licence changes, and other sanctions. Clubs should assume that any serious breach will become public knowledge, so crisis plans should include IFR processes and communications.

The Act also protects whistleblowers. Anyone connected to the club – staff, contractors, even academy players – can report concerns directly to the IFR and are legally protected. Clubs should update their internal reporting systems and make sure concerns are handled quickly and confidentially.

So, what should clubs do now?

• Commission an IFR-readiness audit to see where you stand and what needs fixing
• Add IFR metrics – like financial ratios and governance actions – to regular board reports
• Appoint a senior executive to manage the relationship with the IFR and keep communication open
• Start structured fan consultation early, so you’re not scrambling when it becomes mandatory
• Review all commercial contracts to make sure they’re IFR-compliant, especially around revenue sharing and breakaway leagues.

For smaller clubs, the act could mean a bigger share of football’s wealth – but only if they meet the same high standards as the top clubs. For the biggest clubs, the challenge is adapting to more scrutiny and possible revenue changes while staying competitive. Either way, the act marks a permanent shift to statutory accountability in English football. Clubs that treat transparency, fan engagement, and sound management as strengths – not just obligations – will be best placed to succeed in this new era.