Fan-led government review calls for Premier League clubs to pay transfer tax | football

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The fan-led government review, in one of 47 recommendations to protect the future of the game, said Premier League clubs should pay a stamp tax on every transfer fee to help prop up the English football pyramid.

The highly anticipated report, led by Conservative Representative Tracy Crouch, was prepared this year in response to ongoing governance crises. Its proposals set out, according to Crouch, “a sustainable long-term position for English football”. The government will make a statement on the report in Parliament on Thursday, with the next spring legislation likely to be announced in the Queen’s Speech.

The review emphasized the recommendation that the English game should be supervised by an independent regulator. Because it is able to grant licenses to compete in the Football League, the regulator will have oversight of the club’s finances and decide whether owners and managers are suitable to take on their role, including the application of a new integrity test.

The rules regarding owners’ responsibilities and financial obligations under the report’s recommendations will be strengthened, in line with more common practices applied to banks or media companies. Meanwhile, the transfer tax could result in a tax of up to 10% on Premier League deals, with the money redistributed. The review calculated that in the past five years, a 10% tax would have raised about £160m a year.

Other suggestions include:

A golden stake, held by fans, can veto some of the major changes in a football club – from a name change to the sale of the stadium.

Shadow councils consist of fans who must be consulted by the clubs on major decisions.

Restrictions on the amounts of money owners can put into the club, to prevent unsustainable practices and stop distorting competition, in accordance with the size of the club’s current financial resources.

A reassessment of the parachute payments between the Premier League and the Football League will be decided – and if there is no solution, by the regulator.

Conditions for compulsory relegation and promotion in player contracts.

Mandatory Equality, Diversity and Inclusion schemes for each club, based on the success of the FA’s Leadership Diversity Code and the Premier League’s Premier League Standard.

A review of the future of the women’s game.

Experiments to allow the consumption of alcohol while watching the match.

“I really think what we said in the report is good for the game,” Crouch said. “It will define a sustainable long-term position for English football.

“I think it will encourage growth and investment and I think it will drive improvements across the game that have been needed for many years, decades in fact.”

The government is understood to support the regulator’s main recommendation, but Crouch cautioned that such a change would not be enough. “I think it’s really important to say that this is a whole bunch of reforms,” ​​she said. “An independent regulator is one thing but if you don’t have proper prudential regulations, good corporate governance, backer involvement, and a gold stake, it’s basically just a group of people issuing a license.”

The review was widely welcomed across football. “This is potentially a huge step forward for football management,” said Kevin Miles, chief executive of the Football Supporters’ Association. “The government has committed to a fan-led review that listened to fan voices. It is now up to the government to implement the recommendations.”

Rick Barry, chairman of the English Football League, said the review was a “really comprehensive work” which “comprehensively recognized the financial challenges” within the game. “We believe that reform in football should revolve around making clubs sustainable,” he said. “We support both redistribution and regulation within the game.”

The Premier League said it welcomed the review and commended Crouch and its panel of experts for their work. “We recognize the vital importance of fans and the need to restore and retain their confidence in the management of football,” a statement said. “We also acknowledge the call for some form of independent regulation to protect the core strengths of English football.

“The Premier League, along with English football as a whole, is a global success. We have a proven track record of achievement on and off the field, including a positive impact on youth development, communities and the wider game, of which we are proud. It is important to everyone that no reforms harm our game or its balance competitiveness or current investment levels.

The Football Association said it understands the importance of the review and will work with the government on the recommendations.

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