Independent football regulator to charge English clubs up to £1.8 million annually

The Independent Football Regulator (IFR) has put forward a proposal for an annual levy to be charged to clubs from the top five divisions of men's football in England. The projected budget for the organisation stands at £20.3 million, with plans for the funding system to be in operation by the 2027/28 season.

The proposed fees will be tiered based on the clubs' revenues and the divisions in which they compete. As expected, the financial burden will weigh heaviest on the wealthiest Premier League teams, while lower league clubs will contribute significantly less.

How much will English clubs pay?

The IFR has shared preliminary calculations regarding the annual fees for various divisions.

According to the regulator, even the richest Premier League clubs' fees will amount to less than 0.25% of their annual revenue. For most teams, the proposed payment is expected to represent around 0.1% of their income.

What constitutes the IFR budget?

The proposed budget of £20.3 million includes three main components:

• £18.3 million – annual operating costs of the regulator.
• £1 million – a reserve for potential legal costs related to regulatory actions.
• £1 million – reimbursement of costs incurred by the government and IFR in establishing the organisation in the first year of the levy.

The costs associated with the regulator's setup are expected to be repaid over a ten-year period. The IFR estimates the total budget will account for around 0.22% of the collective annual revenue of the English football sector, valued at £9 billion.

Richard Monks outlines the aim of the new fee

IFR chief executive Richard Monks described the proposal as a significant step towards establishing an independent regulatory framework for English football.

He stated that the regulator has already begun verifying the owners and directors of clubs and has prepared a report on the current state of the football industry.

Monks believes this proposed model will allow for a fair distribution of costs among clubs and will help create a more sustainable football system, protecting the interests of fans, teams, and local communities.

When will the new rules come into effect?

The proposal will be discussed over a six-week consultation period, during which clubs can voice their opinions on the fee amounts and funding mechanism.

Following the consultation, the IFR aims to focus on developing a licensing system for the 116 clubs under its regulation.

The 2027/28 season will mark the proposed launch of the new funding model, which is set to replace the current system of government funding for the regulator; however, the final terms may still evolve as a result of the consultation.