This summer has seen a lot of coverage for football clubs – and not just in relation to their performance on the pitch.

Various regulatory changes are on the cards for football clubs in the UK and bring the potential for further scrutiny. Here is a round up of upcoming changes, and how football clubs can stay onside.

Alcohol licensing for football stadiums

A Scottish Professional Football League (“SPFL”) pilot scheme has seen alcohol sold in Scottish football stadiums for the first time in over 40 years. Seven clubs across four divisions will be participating in the project, including Arbroath, Queen of the South, and Stirling Albion. These clubs require to have an alcohol licence in place, granted by their local licensing board. Police Scotland will work with licensing boards and local authorities to ensure close oversight of the pilot scheme. Fans will not have view of the pitch in the designated areas where alcohol will be sold.

Local authorities have significant leeway in how the licensing scheme is framed, and the specific processes to be followed. For some clubs a new licence will be required in order to implement the scheme, and other clubs will now be considering the terms of their licences to ensure suitability for future pilots.

Campaigners for the removal of the blanket ban on the sale of alcohol within football stadiums argue that football fans should have the same right to drink alcohol as other sports’ fans and believe that the ability to purchase alcohol would reduce the last-minute rush often seen before matches. However, there remain persisting concerns about increased disorder between fans, increased alcohol consumption and the exposure of children and young people to alcohol consumption. The Scottish Government has stated that there are no plans to remove the existing restrictions, but it regularly engages in discussions with football authorities. Feedback on the pilot project has been positive so far.

The Football Governance Bill

The UK government has recently passed the Football Governance Bill (“the Bill”), which is now awaiting Royal Assent. It is estimated that compliance could cost clubs up to £35 million.

The Bill will establish the Independent Football Regulator (the “IFR”) for English football. The IFR’s powers will extend over clubs in the top five tiers – comprising 116 teams – of men’s English football. The IFR will have to advance one or more of its three primary objectives in every action it takes. The objectives are to protect and promote the financial soundness of football clubs, protect and promote systemic financial resilience of English football, and safeguard the heritage of English football. The IFR will have the power to impose sanctions including financial penalties (up to a maximum of 10% of a body’s annual revenue for clubs and competition organisers), censure statements, and suspension or revocation of licensing in extreme cases. Sporting sanctions, such as points deductions or transfer bans, will not be available to the IFR. This adds another layer of regulation to clubs, who already fall within the remit of a wide range of regulators, including the Competition and Markets Authority (CMA), and Union of European Football Associations (UEFA).

The Bill will also establish a licensing regime that clubs will require to comply with in order to continue competing in competitions. Clubs must first apply for a provisional operating licence, by satisfying the IFR that it will meet the duties on regulated clubs as well as the mandatory licence conditions. The provisional period will last for a fixed period of three years, which may be extended by the IFR if necessary. A full operating licence can then be obtained automatically, without an application being made. The criteria are to continue meeting the duties on regulated clubs and mandatory licence conditions, meeting the threshold requirements, and having owners and directors that are deemed suitable. The full licence will last indefinitely, but clubs will be continually monitored and supervised to ensure compliance. There is also the potential for discretionary licence conditions to be imposed by the IFR if considered necessary.

A rise in legal challenges being brought by football clubs means that the IFR will have to be prepared for close scrutiny of its actions. For example, Premier League commercial deal rules, and profitability and sustainability rules have recently been challenged by Manchester United and Leicester. Licensing schemes are open to challenge, both in principle and in implementation.  

Stadium accessibility standards

The accessibility of football stadiums for disabled fans has been highlighted in recent public discussions. Scottish Greens councillor, Kayleigh Kinross O’Neill, has called for minimum standards for disabled facilities in football stadiums to be set by the Scottish Government, and for government funding to be provided to clubs to help these improvements be made.

Disability organisations have expressed concerns on a wide range of aspects to the football experience. For example, disabled seating being separate and having capacity for only one carer; lack of accessible toilets; difficulty in purchasing refreshments; and poor transport options to and from the stadium. Ms Kinross recommends access and inclusion be mandated by the Government, rather than leave the responsibility to individual clubs. She has also suggested the introduction of a national sport access card, which would ease problems encountered by disabled people when trying to buy tickets.  At this stage there is no proposed legislative change, however there may be enhanced scrutiny on clubs and on what measures they take to promote accessibility.  

These recommendations come at a time when other clubs are increasing their provisions for their disabled supporters following scrutiny from their fans. In Liverpool, Everton have updated their parking regulations surrounding their stadium, following backlash that the existing regulations do not consider disabled people, local businesses or residents.  Clubs are increasingly looking beyond required changes and seeking to implement higher standards of accessibility for their fan base.

Football clubs face money laundering risks

A UK government report published this summer assessing money laundering risks highlighted football as a particular sector with vulnerabilities to money laundering, fraud, and bribery. The UK Football Policing Unit is collaborating with the National Crime Agency to consider and respond to these risks. To date, football clubs have not been subject to specific anti-financial crime obligations or prescriptive requirements around legal and compliance frameworks: that is changing.

The risk to clubs comes from a range of factors, one of which is the lack of consistency in how clubs are structured.  There are a range of operating models for clubs, some with offshore elements or owners. That complexity and lack of standard structures means entities must be vigilant to ensure full compliance with their obligations in terms of money laundering, and anti-corruption. Financially distressed clubs may also be particularly susceptible to exploitation. Clubs should be ensuring they have implemented robust policies and processes, particularly as this risk is now under scrutiny. With existing legislation under the UK Bribery Act 2010 and the potential for corporate criminal liability for financial crimes, including the new failure to prevent fraud offence in the Economic Crime and Corporate Transparency Act 2023, the tools the regulators could use to affect enforcement are growing.

These developments and ongoing discussions demonstrate that the regulatory playing field is changing for football in the UK. With football increasingly recognised as a high-risk sector for financial crime, it is important to respond ahead of forthcoming changes to ensure compliance, and in some instances to proactively engage with regulators in advance of such changes.

Our sports team advise across a wide range of sports and regulatory issues, including licensing, lobbying, compliance, and governance. We have particular experience in managing sector developments, and we can help you stay compliant. Get in touch if you’d like to discuss how we can help your organisation.   

Related News, Insights & Events