A new era of financial oversight is coming to English football, with the Independent Football Regulator (IFR) set to enforce a licensing system for all clubs in the top five tiers by the 2027-28 season. This marks a significant shift in the governance of the sport, with the IFR taking a proactive role in ensuring the financial sustainability, corporate governance, and fan engagement of clubs.
The licensing system, a key component of the Football Governance Act 2025, will require clubs in the Premier League, English Football League (EFL), and National League to demonstrate adherence to a set of strict criteria to secure a provisional license. These criteria include the soundness of their financial plans, the quality of their engagement with supporters, and their compliance with corporate governance standards.
According to the IFR, the licensing regime will "go further than anything currently in place by assessing the full financial picture of a club and adopting a preventative, risk-based approach". Clubs will likely be asked to apply for a provisional license in early 2027. Those approved can then have their licence upgraded to a full licence after three years of abiding by its terms. A pilot scheme for selected clubs is expected to run from next summer, ahead of a full application window between November 2026 and February 2027. Licenses would then be issued ahead of the leagues' annual general meetings, so that the three competitions have certainty over which clubs are licensed to compete and which are not.
The IFR will have the power to enforce these requirements, with a range of sanctions available for clubs that fail to comply. These may include capping a club's spending, limiting their use of debt, and requiring them to place money in escrow that can only be released with the IFR's blessing. The regulator might also require clubs to hold a minimum liquidity buffer or keep cash in a separate account accessible only with IFR permission for specific expenses. For higher-risk clubs, the IFR may require in-season reporting, providing more frequent updates to monitor their financial situation. Clubs experiencing financial distress can expect real-time engagement with the IFR.
In the most serious breaches of the Football Governance Act, owners could face criminal consequences, including imprisonment. Specifically, the destruction or disposal of information or documents required by the IFR is deemed a criminal offense; so are the provision of misleading information and obstructing the IFR from exercising its rights to enter business premises. Pursuit of criminal sanctions would be viewed as a last resort for when civil sanctions, such as financial punishments, are considered inadequate. The heaviest would lead to miscreants being fined between 8% and 10% of their club's revenue from the previous financial year. The ability to levy sanctions on individuals, as well as organizations, is regarded as a significant pillar of the test.
The establishment of the IFR and the implementation of the licensing system are intended to address long-standing concerns about the financial sustainability and governance of English football clubs. The aim is to prevent clubs from overspending, accumulating excessive debt, and engaging in risky financial practices that could jeopardize their future. The IFR will also work to ensure that clubs are engaging with their fans and acting in the best interests of their communities.
David Kogan, chair of the IFR, said that the latest consultation sets out the new requirements clubs will have to meet on financial regulation, fan consultation, and corporate governance. He described it as a transformational change for football and stated that the IFR will support clubs at every step to reinforce these higher standards. Richard Monks, chief executive of the IFR, said his full focus will be on building the organization and regulatory regime that delivers the right result for the football pyramid and its millions of fans, and supporting clubs throughout the process.
