Dear Leo,
Thank you for your correspondence of 16 January on behalf of your constituent regarding the future of Reading Football Club.
I understand and share your constituent’s concerns around the continued financial issues facing Reading FC. Any potential sale of the club is a commercial matter between the current owner and any prospective buyers of the club and subject to relevant league rules. However, we are working to ensure that these issues around financial sustainability within football, more generally, are addressed for the benefit of fans and local communities.
In February 2023, the Government published its white paper, ‘A Sustainable Future: Reforming Club Football Governance’.
https://www.gov.uk/government/publicati ... governance It set out a comprehensive plan to establish an independent regulator for English football, building on the recommendations of the Fan-Led Review of Football Governance, published in November 2021.
https://www.gov.uk/government/publicati ... mes-future Following the publication of the white paper, the Government subsequently undertook a targeted consultation period, including inviting comments from all 116 football clubs in the top 5 tiers of English football, the relevant leagues and existing footballing bodies, fan groups, legal experts, industry experts, leading academics and civil society organisations. The Government response to that consultation was published on 7 September 2023.
https://www.gov.uk/government/publicati ... n-response This work has led to the announcement of the Football Governance Bill as part of the King’s Speech on 7 November 2023. The Bill will establish a new Independent Football Regulator (IFR).
https://www.gov.uk/government/speeches/ ... peech-2023Football Governance Bill
The IFR’s primary purpose will be to ensure that English football is sustainable and resilient for the benefit of fans and the local communities football clubs serve. It will:
• Operate a licensing system where all clubs in the top 5 tiers of the men’s English football pyramid will need a licence to operate as professional football clubs.
• Establish a new, strengthened owners’ and directors’ test to make sure a club’s custodians are suitable and protect fans from irresponsible owners.
• Set a minimum standard of fan engagement and require clubs to comply with new FA rules on club heritage, giving fans a veto over changes to the badge and home shirt colours, as well as the strong existing protections for club names.
• Require clubs to seek regulator pre-approval for any sale or relocation of their stadium.
• Prevent clubs from joining breakaway leagues.
• Have targeted backstop powers to intervene in the distribution of broadcast revenue if necessary.
• Establish a compulsory ‘Football Club Corporate Governance Code’.
The Government is working at pace to establish an IFR on a statutory footing and will introduce the Bill as soon as Parliamentary time allows. I would welcome your support as we take this important legislation forward.
Thank you again for your letter.
Rt Hon Stuart Andrew MP
Minister for Sport, Gambling and Civil Society