Establish the Independent Football Regulator; to make provision for the licensing of football clubs; to make provision about the distribution of revenue received by organisers of football competitions; and for connected purposes.

B e it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 Purpose, overview and key definitions

1 Purpose and overview

(1)

The purpose of this Act is to protect and promote the sustainability of English
football.

(2)

For that purpose—

(a)

Part 2 establishes the Independent Football Regulator (referred to in
this Act as “the IFR”) and makes provision about the exercise of its functions;

(b)

Part 3 makes provision for the IFR to grant operating licences to
football clubs;

(c)

Part 4 provides for the IFR to make determinations about whether
persons are suitable to be owners or officers of football clubs;

(d)

Part 5 imposes various duties on football clubs, the owners and officers
of football clubs and the organisers of football competitions;

(e)

Part 6 provides a mechanism whereby the IFR can make an order
requiring the organiser of a football competition to distribute revenue received by that organiser;

(f)

Parts 7 and 8 make provision about the investigation and enforcement
powers of the IFR;

(g)

Part 9 makes provision about reviews of and appeals from decisions
of the IFR;

(h)

Part 10 makes general provision, including about the disclosure of
information by and to the IFR.

(3)

For the purposes of this section, English football is sustainable if it—

(a)

continues to serve the interests of fans of regulated clubs, and

(b)

continues to contribute to the economic or social well-being of the
local communities with which regulated clubs are associated.

(4)

For the meanings of “English football”, “regulated club” and for other key
terms used in this Act, see section 2 .

2 Key definitions

(1)

In this Act—

“
club” or “football club” means a body that operates a team;

“
competition”, in relation to football, means a league (or a division of a
league), a cup, a tournament or any other competition;

“
competition organiser” means a body that organises a competition;

“
English football” means all regulated clubs and all specified competitions,
taken together;

“
football” means association football;

“
the IFR” means the Independent Football Regulator;

“
licensed club” means a club that holds an operating licence;

“
operating licence” means a provisional operating licence or a full
operating licence (see section 15 );

“
regulated club” means a club that operates a relevant team (whether or
not the club is a licensed club);

“
relevant team” means a team that is entered into, is a member of, or
participates in a specified competition;

“
specified competition” means a competition specified in regulations
under subsection (3) ;

“
specified competition organiser” means a body that organises a specified
competition;

“
team” means a football team.

(2)

For the purposes of this Act, a club “operates” a team if it is responsible for
the team’s entry into, membership of, or participation in a competition.

(3)

The Secretary of State may by regulations specify a competition; but the
Secretary of State may not specify a competition unless the teams that are entered into it, or that are members of it, or that participate in it are exclusively or predominantly English teams.

(4)

For the purposes of subsection (3) , a team is an “English team” if the ground
at which the team customarily plays its home matches is in England.

(5)

Before making regulations under subsection (3) the Secretary of State—

(a)

must assess whether it would be appropriate to exercise the power
and, if so, how,

(b)

in carrying out the assessment, must consult—

(i)

the IFR,

(ii)

the Football Association, and

(iii)

any other persons the Secretary of State considers appropriate,
and

(c)

must publish and lay before Parliament a report on the outcome of
the assessment.

(6)

Subsection (5) does not apply in respect of the first regulations made under subsection (3) .

(7)

Sections 3 , 4 , 26 , 56 , 67 and 92 define other terms used in this Act.

3 Meaning of “owner” etc

(1)

In this Act, references to an “owner” of a club are to be construed in
accordance with Schedule 1 .

(2)

For the purposes of this Act, a club’s “ultimate owner” is—

(a)

where the club has only one owner, that owner;

(b)

where the club has more than one owner and one owner exercises a
higher degree of influence or control over the activities of the club than any other owner, that owner;

(c)

in any other case, each owner of the club who exercises a degree of
influence or control over the activities of the club that—

(i)

is the same as another owner, and

(ii)

where there are other owners, is a higher degree of influence
or control than any other owner.

4 Meanings of “officer” and “senior manager” etc

(1)

For the purposes of this Act, a person is an “officer” of a club if—

(a)

the person is a senior manager of the club, or

(b)

in any other case, the following table identifies the person as an officer
of the club—

Where the club is—	the person is an officer of the club if—
a company	the person is a director of the company
a body corporate other than a company	the person is an officer of the body whose functions correspond to those of a director of a company
a partnership	(a) in relation to a limited partnership, the person is a general partner as defined by section 3 of the Limited Partnerships Act 1907; (b) in relation to any other partnership, the person is a member of the partnership
an unincorporated body other than a partnership	the person is an officer of the body or a member of the body’s governing body

(2)

For the purposes of this Act, a person is also an “officer” of a club if the
person—

(a)

purports to act as an officer of the club (within the meaning of subsection (1) ), or

(b)

is a person in accordance with whose directions, instructions, guidance
or advice an officer of the club (within the meaning of subsection (1) or paragraph (a) ) is accustomed to act.

(3)

But a person is not to be regarded as an officer of a club by virtue of subsection (2) (b) by reason only that an officer of the club (within the meaning
of subsection (1) or (2) (a) ) acts—

(a)

on advice given by that person in a professional capacity;

(b)

in accordance with instructions, a direction, guidance or advice given
by that person in the exercise of a function conferred by or under an enactment;

(c)

in accordance with guidance or advice given by that person in their
capacity as a Minister of the Crown (within the meaning of the Ministers of the Crown Act 1975).

(4)

For the purposes of this Act, a person is a “senior manager” of a club if, in
relation to the carrying on of the club’s activities, the person carries out a senior management function specified, or of a description specified, for the purposes of this section.

(5)

For the purposes of this Act—

(a)

a function is a “senior management function” in relation to the carrying
on of a club’s activities if—

(i)

the function requires a person carrying out the function to be
responsible for managing one or more aspects of the club’s affairs, and

(ii)

those aspects are such that the way in which they are managed
could give rise to serious consequences for the club;

(b)

the reference in paragraph (a) (i) to managing one or more aspects of
a club’s affairs includes taking, or participating in the taking of, decisions about how one or more aspects of those affairs should be carried on.

(6)

In this section, “specified” means specified by the IFR in rules.

(7)

This section is subject to section 42 (9) (persons appointed as officers by the
IFR not to be treated as officers for the purposes of this Act).

Part 2 The Independent Football Regulator

The Independent Football Regulator

5 Establishment of the IFR

(1)

A body corporate called the Independent Football Regulator is established.

(2)

Schedule 2 contains further provision about the IFR.

6 The IFR’s objectives

The IFR’s objectives are—

(a)

to protect and promote the financial soundness of regulated clubs
(referred to in this Act as “the club financial soundness objective”);

(b)

to protect and promote the financial resilience of English football
(referred to in this Act as “the systemic financial resilience objective”);

(c)

to safeguard the heritage of English football (referred to in this Act
as “the heritage objective”).

7 The IFR’s general duties etc

(1)

The IFR must, so far as reasonably practicable, exercise its functions under
this Act in a way that—

(a)

is compatible with the purpose of this Act (see section 1 ), and

(b)

advances one or more of the IFR’s objectives (see section 6 ).

(2)

The IFR must have regard to the desirability of exercising those functions in
a way that avoids any—

(a)

effects on the sporting competitiveness of any regulated club against
another regulated club;

(b)

adverse effects on the competitiveness of regulated clubs against other
clubs;

(c)

adverse effects on financial investment in English football.

(3)

In exercising those functions, the IFR must also have regard to the following
(so far as they are relevant to the exercise of those functions)—

(a)

its regulatory principles (see section 8 );

(b)

its most recent state of the game report (see section 10 );

(c)

the most recent football governance statement published by the
Secretary of State (see section 11 );

(d)

any guidance published by it (see section 12 );

(e)

any guidance published by the Secretary of State (see section 13 ).

(4)

The IFR must keep under review the extent to which persons are complying
with obligations imposed on them under or by virtue of this Act.

8 The IFR’s regulatory principles

The IFR’s regulatory principles are that—

(a)

it should use its resources in the most efficient, expedient and economic
way;

(b)

it should, so far as reasonably practicable, co-operate, and proactively
and constructively engage, with

(i)

clubs,

(ii)

owners, senior managers and other officers of clubs, and

(iii)

competition organisers;

(c)

any requirement or restriction imposed by it on a person should be
proportionate to the benefits which are expected to result from that requirement or restriction;

(d)

it should act in a way that recognises the specific context of football
and the fact that clubs are subject to rules, requirements and restrictions imposed by competition organisers by virtue of teams operated by those clubs being entered into, being members of, or participating in competitions organised by those organisers;

(e)

it should act consistently (subject to it recognising the differences
between clubs and competitions and the differences between the circumstances affecting clubs and competitions);

(f)

it should act in a way that recognises the responsibilities of owners,
senior managers and other officers of clubs in relation to the requirements placed on clubs under or by virtue of this Act;

(g)

it should act as transparently as reasonably practicable.

9 Transfer schemes

Schedule 3 contains provision about schemes for the transfer of staff and
property, rights and liabilities to the IFR.

Reports, statements and guidance

10 State of the game report

(1)

The IFR must prepare and publish a report (a “state of the game report”) on
the state of English football so far as relevant to the exercise of the IFR’s functions under this Act.

(2)

A state of the game report must include—

(a)

an overview of the main issues that the IFR considers to be affecting
English football,

(b)

an assessment of whether any feature, or combination of features, of
English football jeopardises, or risks jeopardising, the IFR’s ability to advance one or more of its objectives, and

(c)

information about any other matters relating to the state of English
football, so far as relevant to the exercise of the IFR’s functions under this Act, that the IFR considers appropriate.

(3)

The first state of the game report must be published as soon as reasonably
practicable and in any event no later than the end of the period of 18 months beginning with the day on which the first regulations made under section
2 (3) come into force.

(4)

Each subsequent state of the game report must be published before the end
of the period of five years beginning with the day on which the previous report is published.

(5)

Before publishing a state of the game report, the IFR must—

(a)

publish a notice—

(i)

stating that it intends to prepare a report, and

(ii)

inviting suggestions about matters to be included in the report,

(b)

prepare a draft report, having regard to any suggestions made within
the period specified in the notice, and

(c)

consult the following about the draft report—

(i)

the Football Association;

(ii)

each specified competition organiser;

(iii)

such other persons as the IFR considers appropriate.

11 Football governance statement

(1)

The Secretary of State may prepare a statement (“a football governance
statement”) setting out the policies of His Majesty’s Government in the United Kingdom that relate to the governance of football.

(2)

But a football governance statement may not contain any policies that are
inconsistent with the purpose of this Act or with the IFR’s objectives.

(3)

The Secretary of State may revise any football governance statement.

(4)

But the Secretary of State may not revise any football governance statement
more frequently than every three years unless—

(a)

a Parliamentary general election has taken place,

(b)

there has been a significant change in the policy of His Majesty’s
Government in the United Kingdom relating to football, or

(c)

the Secretary of State considers that the statement, or any part of it,
is inconsistent with the purpose of this Act or with the IFR’s objectives.

(5)

The Secretary of State must publish any football governance statement, or
any revised statement, prepared under this section.

(6)

The Secretary of State must lay any football governance statement, or any
revised statement, published under this section before Parliament.

12 Guidance published by the IFR

(1)

The IFR must prepare guidance about the exercise of its functions under sections 21 to 25 (discretionary licence conditions).

(2)

Guidance prepared under subsection (1) must include a statement of the
outcomes the IFR expects or seeks to achieve in exercising those functions.

(3)

The IFR may prepare guidance about any of its other functions under this
Act.

(4)

The IFR may revise any guidance prepared under this section.

(5)

The IFR must publish any guidance, or any revised guidance, prepared under
this section.

(6)

The IFR must consult such persons as the IFR considers appropriate before
publishing—

(a)

the first guidance about any of its functions, or

(b)

revised guidance about any of its functions, unless the revisions are
minor.

13 Guidance published by the Secretary of State

(1)

The Secretary of State may prepare guidance about the exercise of the IFR’s
functions under this Act.

(2)

The Secretary of State may revise any guidance prepared under this section.

(3)

But the Secretary of State may not revise any guidance prepared under this
section more frequently than every three years unless—

(a)

the Secretary of State considers that the guidance needs to be revised
because of an amendment, repeal or modification of any provision of this Act, or

(b)

the revision is agreed between the Secretary of State and the IFR.

(4)

The Secretary of State must publish any guidance, or any revised guidance,
prepared under this section.

(5)

The Secretary of State must consult the IFR and such other persons as the
Secretary of State considers appropriate before publishing—

(a)

guidance under this section, or

(b)

revised guidance under this section, unless the revisions are minor.

(6)

The Secretary of State must lay any guidance, or revised guidance, published
under this section before Parliament.

14 Annual report

(1)

As soon as reasonably practicable after the end of each financial year, the IFR
must submit to the Secretary of State an annual report on the exercise of its functions during the year.

(2)

The report must include—

(a)

a summary of the activities undertaken by the IFR during that year,
and

(b)

such other information as the Secretary of State may direct the IFR to
include in the report.

(3)

The IFR must arrange for a copy of every report under this section to be laid
before Parliament by the Secretary of State.

(4)

In this section, “financial year” means—

(a)

the period beginning with the day on which this section comes into
force and ending with 31 March in the following year, and

(b)

each successive period of 12 months.

Part 3 Operating licences

Operating licences

15 Operating licences

(1)

A club may not operate a relevant team unless it holds either—

(a)

a provisional operating licence, or

(b)

a full operating licence.

(2)

A provisional operating licence authorises a club to operate a relevant team
on a provisional basis prior to the grant of a full operating licence.

(3)

A full operating licence authorises a club to operate a relevant team on an
ongoing basis.

(4)

The IFR may, in accordance with the provisions of this Part—

(a)

grant a provisional operating licence to a club that applies for one
under section 16 ;

(b)

grant a full operating licence to a club that holds a provisional
operating licence (see section 18 ).

(5)

An operating licence must specify—

(a)

the club to which it relates,

(b)

each relevant team operated by the club,

(c)

the conditions attached to the licence by the IFR under section 20 ,

(d)

any conditions attached to the licence by the IFR under section 21 , and

(e)

such other information as may be specified by the IFR in rules.

(6)

The IFR must specify the form of an operating licence in rules.

16 Application for provisional operating licence

(1)

A club may apply to the IFR for a provisional operating licence.

(2)

The IFR must specify in rules—

(a)

the time by which an application must be made, and

(b)

the manner and form in which an application must be made.

(3)

An application must be accompanied by—

(a)

a personnel statement (see subsection (4) ) and a statement explaining
why the club considers the personnel statement to be accurate,

(b)

a strategic business plan (see subsection (5) ), and

(c)

such other information and documents as may be specified by the IFR
in rules.

(4)

A “personnel statement” is a statement—

(a)

identifying each of the club’s owners and officers,

(b)

identifying the club’s ultimate owner,

(c)

setting out the job title of, or a description of the role performed by,
each of the club’s officers, and

(d)

setting out the specified senior management functions performed by
each of the club’s officers who is a senior manager.

(5)

A “strategic business plan” is a document containing—

(a)

information, in respect of the relevant period, about—

(i)

the proposed operation of the club,

(ii)

the estimated costs of that operation,

(iii)

how those costs are to be funded, and

(iv)

the source of such funding, and

(b)

such other information as may be specified by the IFR in rules.

(6)

For the purposes of subsection (5) (a) , the “relevant period” means the period—

(a)

beginning with the day on which the application under this section
is made, and

(b)

ending no earlier than the end of the next football season after the
application is made.

17 Grant of provisional operating licence

(1)

This section applies where a club applies for a provisional operating licence
under section 16 .

(2)

The IFR must grant the club a provisional operating licence if it is satisfied
that the club would—

(a)

operate a relevant team,

(b)

comply with the mandatory licence conditions (see section 20 ), and

(c)

comply with sections 45 to 53 (duties on clubs).

(3)

The IFR—

(a)

must specify in the provisional operating licence the period for which
it has effect, which may be no more than three years;

(b)

must notify the club of the grant of the licence.

(4)

If the IFR is not satisfied of the matters in subsection (2) , it must give the
club a notice—

(a)

stating that it proposes to refuse to grant the provisional operating
licence,

(b)

explaining why it proposes to refuse to grant the licence,

(c)

inviting the club to make representations about the proposed refusal,
and

(d)

specifying the means by which, and the period within which, such
representations must be made,

and must have regard to any representations which are duly made.

(5)

The period specified in the notice for making representations must be a period
of not less than 14 days beginning with the day on which the notice is given.

(6)

After complying with subsection (4) , the IFR must—

(a)

grant the provisional operating licence and notify the club of the grant,
or

(b)

refuse to grant the licence and notify the club of the refusal, giving
reasons for it.

(7)

The IFR may not grant a club a provisional operating licence under this section
except as mentioned in subsection (2) .

(8)

Where the IFR grants a club a provisional operating licence under this section
the IFR must specify in the notice under subsection (3) (b) or (6) (a) (as the case may be) the day on which the licence comes into force, which may not be before the day on which the club operates a relevant team.

(9)

The IFR must specify in rules—

(a)

the period within which it must make the decision whether to grant
the club a provisional operating licence,

(b)

any circumstances in which it may extend that period, and

(c)

the maximum period for which that period may be extended.

18 Grant of full operating licence

(1)

Where a club holds a provisional operating licence, the IFR must decide
whether to grant the club a full operating licence—

(a)

before the end of the period specified by virtue of section 17 (3) (a) , or

(b)

if applicable, before the end of the further period specified by virtue
of subsection (6) (b) .

(2)

The IFR—

(a)

must grant a club a full operating licence if the full licence test is met
in relation to the club;

(b)

must notify the club of the grant of the licence.

(3)

The “full licence test” is met in relation to a club if—

(a)

the IFR is satisfied that the club—

(i)

is operating a relevant team,

(ii)

meets the threshold requirements set out in Schedule 4 , and

(iii)

complies and would continue to comply with the mandatory
licence conditions (see section 20 ) and sections 45 to 53 (duties on clubs), and

(b)

the IFR has not determined, and is not treated as having determined,
under Part 4 that any person who is an owner or officer of the club is not suitable to be an owner or officer of the club.

(4)

If the IFR considers that the full licence test is not met in relation to the club,
the IFR must give the club a notice—

(a)

stating that it proposes to—

(i)

refuse to grant the full operating licence, and

(ii)

take action under subsection (6) (b) or section 19 ,

(b)

explaining why it proposes to take such action,

(c)

inviting the club to make representations about the proposed action,
and

(d)

specifying the means by which, and the period within which, such
representations must be made,

and must have regard to any representations which are duly made.

(5)

The period specified by virtue of subsection (4) (d) must be a period of not
less than 14 days beginning with the day on which the notice under subsection
(4) is given.

(6)

Subject to section 19 , after complying with subsection (4) the IFR must—

(a)

where the IFR considers that the full licence test is met in relation to
the club, grant the club a full operating licence and notify the club of the grant, or

(b)

where the IFR considers that the full licence test would be met in
relation to the club within a reasonable period if more time is given for the test to be met, specify a further period for which the club’s provisional operating licence is to have effect.

(7)

A further period specified by virtue of subsection (6) (b) must be such period
as the IFR considers sufficient to enable the full licence test to be met in relation to the club.

(8)

The IFR may not grant a club a full operating licence under this section other
than where it considers that the full licence test is met in relation to the club.

(9)

Where the IFR grants a club a full operating licence under this section the
IFR must specify in the notice under subsection (2) (b) or (6) (a) (as the case may be) the day on which the licence comes into force, at which time the club’s provisional operating licence ceases to have effect.

19 Revocation and cessation of operating licence

(1)

The IFR may revoke a club’s provisional operating licence if—

(a)

the full licence test (as defined in section 18 (3) ) is not met in relation
to the club, and

(b)

the IFR considers that—

(i)

the club has persistently and without reasonable excuse failed
to take such steps as are reasonable for that test to be met in relation to the club, and

(ii)

there is no reasonable prospect of the test being met in relation
to the club within a reasonable period even if the club were given more time for the test to be met.

(2)

For the purposes of subsection (1) (b) (i) , a club’s failure is persistent if the
failure has occurred on a sufficient number of occasions for it to be clear that it represents a pattern of behaviour or practice.

(3)

Where the IFR revokes a club’s provisional operating licence under subsection
(1) the IFR must give the club a notice—

(a)

stating that it is revoking the club’s provisional operating licence from
a date specified in the notice, and

(b)

explaining why it is revoking the club’s licence.

(4)

Where a notice under subsection (3) is given during a football season, the
date specified for the purposes of subsection (3) (a) may not be a date before the end of that season.

(5)

See paragraphs 8 and 9 of Schedule 9 for further provision about the
circumstances in which the IFR can revoke a club’s operating licence.

(6)

An operating licence ceases to have effect if the club holding the licence ceases
to operate a relevant team.

Licence conditions

20 Mandatory licence conditions

Schedule 5 —

(a)

sets out the licence conditions (referred to in this Act as the “mandatory
licence conditions”) that the IFR must attach to each club’s operating licence, and

(b)

makes provision about those conditions.

21 Discretionary licence conditions

(1)

The IFR may attach licence conditions other than mandatory licence conditions
to a club’s operating licence.

(2)

A condition attached under subsection (1) is referred to in this Act as a
“discretionary licence condition”.

(3)

The IFR may attach a discretionary licence condition to an operating licence
only if the IFR is satisfied that compliance with the condition would—

(a)

in the case of a provisional operating licence, ensure that the club will
meet, or contribute towards the club meeting, the threshold requirements set out in Schedule 4 before the end of the period for which the provisional operating licence has effect;

(b)

in the case of a full operating licence—

(i)

ensure that the club will meet, or will continue to meet, or

(ii)

contribute towards the club meeting, or continuing to meet,

the threshold requirements;

(c)

in the case of a provisional or full operating licence, advance the IFR’s
systemic financial resilience objective.

(4)

The IFR may vary a discretionary licence condition where—

(a)

either—

(i)

the IFR considers that the condition is no longer effective, or

(ii)

there has been a material change in circumstances affecting the
club since the condition was attached to the operating licence or previously varied, and

(b)

the condition as varied meets a requirement in subsection (3) .

(5)

Subsections (3) and (4) are subject to sections 22 to 25 .

(6)

The IFR must—

(a)

remove a discretionary licence condition where the IFR considers that
the condition is no longer necessary, and

(b)

notify the club concerned about the removal.

(7)

A club may apply to the IFR for the variation or removal of a discretionary
licence condition.

(8)

An application under subsection (7) must explain why the variation or removal
is sought.

(9)

Where a discretionary licence condition is attached to an operating licence,
varied or removed, the IFR must specify in the licence the time from which the attached condition, variation or removal has effect.

22 Scope of powers to attach or vary discretionary licence conditions

(1)

A discretionary licence condition relating to the financial resources threshold
requirement (see paragraph 2 of Schedule 4 ) may only—

(a)

relate to debt management,

(b)

relate to liquidity requirements,

(c)

restrict the club’s overall expenditure, or

(d)

restrict the club’s ability to accept or receive funding which the IFR
reasonably suspects to be connected to serious criminal conduct.

(2)

A discretionary licence condition relating to the non-financial resources
threshold requirement (see paragraph 3 of Schedule 4 ) may only relate to—

(a)

internal controls,

(b)

risk management, or

(c)

financial reporting.

(3)

A discretionary licence condition relating to the advancement of the IFR’s
systemic financial resilience objective may only—

(a)

relate to debt management,

(b)

relate to liquidity requirements, or

(c)

restrict the club’s overall expenditure.

(4)

A discretionary licence condition attached in reliance on subsection (1) (c) or (3) (c) may not impose restrictions on expenditure of a particular kind or a
particular transaction.

(5)

The Secretary of State may by regulations amend subsection (1) , (2) or (3) to
add, vary or remove an item.

(6)

The Secretary of State may make regulations under subsection (5) only if
requested in writing to do so by the IFR.

(7)

A request under subsection (6) must explain why the IFR considers that the
making of regulations under this section is compatible with the purpose of this Act.

(8)

Before submitting a request under subsection (6) , the IFR must consult such
persons as the IFR considers appropriate.

23 Procedure for attaching or varying financial discretionary licence conditions

(1)

This section applies to a discretionary licence condition relating to—

(a)

the financial resources threshold requirement, or

(b)

the advancement of the IFR’s systemic financial resilience objective.

(2)

Before attaching or varying a discretionary licence condition to which this
section applies, the IFR must give a notice about the proposed condition or variation to—

(a)

the club, and

(b)

the specified competition organiser which organises a specified
competition in relation to which a relevant team is operated by the club.

(3)

The notice must—

(a)

give details of the proposed condition or variation,

(b)

explain why the IFR is proposing to attach the condition or make the
variation,

(c)

invite—

(i)

the club and the specified competition organiser to make
representations about the proposed condition or variation, and

(ii)

the specified competition organiser to give a commitment to
take action in lieu of the proposed condition or variation, and

(d)

specify the means by which, and the period within which, such
representations must be made or such a commitment must be given.

(4)

The period specified in the notice for making representations or giving a
commitment must be a period of not less than 14 days beginning with the day on which the notice is given.

(5)

The IFR must—

(a)

have regard to any representations which are duly made, and

(b)

where the specified competition organiser gives a commitment
mentioned in subsection (3) (c) (ii) within the period specified in the notice, consider whether to accept that commitment.

(6)

This section does not apply where—

(a)

a club applies for a variation under section 21 (7) , or

(b)

the IFR considers that compliance with this section would jeopardise,
or risk jeopardising, the IFR’s ability to advance one or more of its objectives.

24 Commitments in lieu of financial discretionary licence conditions

(1)

This section applies where a specified competition organiser gives a
commitment mentioned in section 23 (3) (c) (ii) (commitment to take action in lieu of the proposed condition or variation).

(2)

The IFR may accept the commitment if it considers that—

(a)

compliance with the commitment by the specified competition organiser
would mean that it would not be necessary to attach the proposed discretionary licence condition or make the proposed variation, and

(b)

accepting the commitment would not jeopardise, or risk jeopardising,
the IFR’s ability to advance one or more of its objectives.

(3)

Where the IFR accepts a commitment under this section—

(a)

the IFR may not attach the proposed discretionary licence condition
or make the proposed variation while the commitment is in force, and

(b)

the specified competition organiser that gave the commitment must
comply with it while it has effect.

(4)

Where the IFR does not accept the commitment under this section, the IFR—

(a)

must notify the specified competition organiser and the club concerned
and provide reasons for its decision, and

(b)

may without further notice attach the proposed discretionary licence
condition or make the proposed variation.

(5)

The IFR may, from time to time, accept from a specified competition organiser
a variation to a commitment accepted under this section, provided that the IFR considers that the commitment as varied would still meet the requirements in subsection (2) .

(6)

The IFR may release a specified competition organiser from a commitment
accepted under this section where it considers that—

(a)

the commitment is no longer necessary,

(b)

the commitment is no longer effective, or

(c)

the specified competition organiser has failed to comply with the
commitment.

(7)

Where, under subsection (6) (b) or (c) , the IFR releases a specified competition
organiser from a commitment accepted under this section, the IFR may—

(a)

without further notice attach the proposed discretionary licence
condition or make the proposed variation, or

(b)

attach an alternative discretionary licence condition or make an
alternative variation to a discretionary licence condition.

(8)

Before attaching an alternative discretionary licence condition or making an
alternative variation by virtue of subsection (7) (b) , the IFR must give the club a notice that—

(a)

notifies the club about the proposed alternative condition or variation,

(b)

invites the club to make representations about the proposed alternative
condition or variation, and

(c)

specifies the means by which, and the period within which, such
representations must be made,

and must have regard to any representations which are duly made.

(9)

The period specified in the notice for making representations must be a period
of not less than 14 days beginning with the day on which the notice is given.

(10)

A commitment accepted by the IFR under this section—

(a)

comes into force on the day specified in the notice given to the
specified competition organiser under paragraph 3 of Schedule 6 , and

(b)

ceases to have effect if the specified competition organiser is released
from the commitment under subsection (6) .

(11)

The fact that a commitment accepted under this section ceases to have effect
does not affect the exercise of any functions in relation to a failure, or possible failure, to comply with the commitment.

(12)

The IFR must keep under review—

(a)

the extent to which a specified competition organiser which gave a
commitment accepted under this section is complying with it,

(b)

whether a specified competition organiser should be released from a
commitment under this section (including whether to release a specified competition organiser from a commitment and attach or vary a discretionary licence condition to an operating licence instead), and

(c)

whether to take action in accordance with Part 8 in respect of a
specified competition organiser which fails to comply with a commitment.

(13)

Schedule 6 makes further provision about commitments mentioned in section
23 (3) (c) (ii) .

25 Procedure for attaching or varying other discretionary licence conditions

(1)

This section applies to a discretionary licence condition relating to—

(a)

the non-financial resources threshold requirement (see paragraph 3 of Schedule 4 ), or

(b)

the fan engagement threshold requirement (see paragraph 4 of Schedule
4 ).

(2)

Before attaching or varying a discretionary licence condition to which this
section applies, the IFR must give the club a notice that—

(a)

notifies the club about the proposed condition or variation (including
the threshold requirement to which the condition or variation relates),

(b)

invites the club to make representations about the proposed condition
or variation, and

(c)

specifies the means by which, and the period within which, such
representations must be made,

and must have regard to any representations which are duly made.

(3)

The period specified in the notice for making representations must be a period
of not less than 14 days beginning with the day on which the notice is given to the club.

(4)

This section does not apply where—

(a)

a club applies for a variation under section 21 (7) , or

(b)

the IFR considers that compliance with this section would jeopardise,
or risk jeopardising, the IFR’s ability to advance one or more of its objectives.

Part 4 Owners and officers of regulated clubs: suitability etc

Introductory

26 Part 4 : overview and interpretation

(1)

This Part makes provision—

(a)

requiring notices to be given to the IFR before a person becomes an
owner or officer of a regulated club, or where there is a change of circumstances relating to a person’s role as an owner or officer of a regulated club,

(b)

for the making of determinations by the IFR about the suitability of
a person to be an owner or officer of a regulated club, and

(c)

for action that may or must be taken by the IFR where it determines
or is treated as having determined that a person is not suitable to be an owner or officer of a regulated club.

(2)

Sections 27 to 32 deal with notifications by, and determinations relating to,
prospective owners and officers of clubs.

(3)

Sections 33 to 36 —

(a)

deal with notifications by incumbent owners and officers, and

(b)

confer a power on the IFR to make determinations relating to the
suitability of incumbent owners and officers to continue in their role.

(4)

Section 37 contains provision about matters to which the IFR must have regard
in making determinations under this Part.

(5)

Sections 38 to 44 make provision about the action that the IFR may or must
take where it determines, or is treated as having determined, that a person is not suitable to be an owner or officer of a regulated club, which may include—

(a)

making an order disqualifying the person from being an owner or
officer of a club;

(b)

giving a direction requiring the person to cease to be an owner or
officer of a club;

(c)

making an order removing the person as an owner of a club.

(6)

Subsections (7) and (8) apply for the purposes of this Part.

(7)

An individual meets the “individual ownership fitness criteria” if the
individual—

(a)

has the requisite honesty and integrity, and

(b)

is financially sound.

(8)

An individual meets the “officer fitness criteria” if the individual—

(a)

has the requisite honesty and integrity,

(b)

has the requisite competence, and

(c)

is financially sound.

Persons who become owners or officers of regulated clubs

27 Duties to notify IFR of prospective new owner or officer

(1)

A person who—

(a)

is not an owner of a particular regulated club, but

(b)

considers that there is a reasonable prospect of the person becoming
an owner of that club,

must notify the IFR of that fact.

(2)

An individual who—

(a)

is not an officer of a particular regulated club, but

(b)

considers that there is a reasonable prospect of the individual becoming
an officer of that club,

must notify the IFR of that fact.

(3)

A regulated club must notify the IFR where it considers there is a reasonable
prospect of—

(a)

a person becoming an owner of the club, or

(b)

an individual becoming an officer of the club.

(4)

In this section—

(a)

references to a prospective owner are to a person who is the subject
of a notification under subsection (1) or (3) (a) ;

(b)

references to a prospective officer are to an individual who is the
subject of a notification under subsection (2) or (3) (b) .

(5)

A notification under this section must—

(a)

identify the prospective owner or officer,

(b)

explain why the person giving the notification considers there is a
reasonable prospect of the prospective owner becoming an owner of the club or (as the case may be) of the prospective officer becoming an officer of the club, and

(c)

in relation to a prospective officer, state—

(i)

their proposed job title or a description of the job proposed to
be performed by them, and

(ii)

any senior management functions to be carried out by them.

(6)

A notification under subsection (1) , (2) or (3) must be given—

(a)

as soon as reasonably practicable after the duty under that subsection
arises, and

(b)

before the prospective owner or officer becomes an owner or officer
of the club.

(7)

Where a notification under this section is not given by the time mentioned
in subsection (6) (b) , the person or individual who, or club which, should have given the notification must notify the IFR of the fact that (as the case may be)—

(a)

the person has become an owner of the club, or

(b)

the individual has become an officer of the club,

and must do so as soon as reasonably practicable after becoming aware of that fact.

28 Determination of suitability required for new owner

(1)

A person may not become an owner of a particular regulated club unless, on
an application by the person to the IFR, the IFR determines that the person is suitable to be an owner of the club (an “affirmative determination”).

(2)

An application under subsection (1) must be made in accordance with rules
made by the IFR, which—

(a)

must require information about the following matters to be provided
with an application—

(i)

the proposed operation of the club;

(ii)

the estimated costs of that operation;

(iii)

how those costs are to be funded;

(iv)

the source of such funding;

(b)

may require information about other matters specified in the rules to
be provided with an application;

(c)

may make provision about the manner and form in which an
application is to be made.

(3)

Where an application is duly made under subsection (1) by a registered
society, the IFR must make an affirmative determination in respect of the applicant if the IFR considers that the applicant has sufficient financial resources.

(4)

Where an application is duly made under subsection (1) by an individual,
the IFR must make an affirmative determination in respect of the applicant if—

(a)

the IFR considers that the applicant—

(i)

meets the individual ownership fitness criteria, and

(ii)

has sufficient financial resources, and

(b)

the IFR does not have grounds to suspect that the applicant has any
source of wealth which is connected to serious criminal conduct.

(5)

Subsections (3) and (4) are subject to subsection (6) (b) .

(6)

The IFR—

(a)

may not make an affirmative determination in respect of the applicant
except as mentioned in subsections (3) and (4) ;

(b)

must not make an affirmative determination in respect of the applicant
if an order under section 38 (1) (disqualification from ownership) has effect in relation to the applicant.

(7)

If the IFR is not able to make an affirmative determination in respect of the
applicant, it must determine that the applicant is not suitable to be an owner of the club.

(8)

Where the IFR makes an affirmative determination in relation to a person,
the determination has effect until—

(a)

the person ceases to be an owner of the club, or

(b)

if earlier, the IFR gives the person a notice under section 34 (10) (b) in
relation to the person’s suitability to be an owner of the club.

(9)

Where the IFR makes a determination under this section, the IFR must—

(a)

give notice of the determination to the applicant and to the club, and

(b)

publish the determination.

29 Determination of suitability required for new officer

(1)

An individual may not become an officer of a particular regulated club unless,
on an application by the individual to the IFR, the IFR determines that the individual is suitable to be an officer of the club (an “affirmative determination”).

(2)

An application under subsection (1) must be made in accordance with rules
made by the IFR, which may in particular include provision about—

(a)

the information to be provided with an application, and

(b)

the manner and form in which an application must be made.

(3)

Where an application under subsection (1) is duly made, the IFR must make
an affirmative determination in respect of the applicant if the IFR considers that the applicant meets the officer fitness criteria.

This is subject to subsection (4) (b) .

(4)

The IFR—

(a)

may not make an affirmative determination in respect of the applicant
except as mentioned in subsection (3) ;

(b)

must not make an affirmative determination in respect of the applicant
if an order under section 38 (2) (disqualification from being an officer) has effect in relation to the applicant.

(5)

If the IFR is not able to make an affirmative determination in respect of the
applicant, it must determine that the applicant is not suitable to be an officer of the club.

(6)

Where the IFR makes an affirmative determination in relation to an individual,
the determination has effect until—

(a)

the individual ceases to be an officer of the club, or

(b)

if earlier, the IFR gives the individual a notice under section 35 (5) (b) in relation to the individual’s suitability to be an officer of the club.

(7)

Where the IFR makes a determination under this section, the IFR must—

(a)

give notice of the determination to the applicant and to the club, and

(b)

publish the determination.

30 Becoming an owner or officer without a determination

(1)

Where the IFR becomes aware that a person has become an owner of a
particular regulated club without the IFR having first determined under section 28 whether the person is suitable to be an owner of the club, the IFR must give the person—

(a)

a notice requiring the person to make an application under section 28 by the date specified in the notice, or

(b)

a notice stating that the person is not suitable to be an owner of the
club.

(2)

But if the person is subject to an order under section 38 (1) (disqualification
from ownership)—

(a)

subsection (1) does not apply, and

(b)

the IFR must give the person a notice stating that the person is not
suitable to be an owner of the club.

(3)

Where the IFR becomes aware that an individual has become an officer of a
particular regulated club without the IFR having first determined under section 29 whether the individual is suitable to be an officer of the club, the IFR must give the individual—

(a)

a notice requiring the individual to make an application under section
29 by the date specified in the notice, or

(b)

a notice stating that the individual is not suitable to be an officer of
the club.

(4)

But if the individual is subject to an order under section 38 (2) (disqualification
from being an officer)—

(a)

subsection (3) does not apply, and

(b)

the IFR must give the person a notice stating that the individual is
not suitable to be an officer of the club.

(5)

Where the IFR has given a notice under subsection (1) (a) or (3) (a) (“the initial
notice”) to a person, the IFR may give the person a notice under this subsection (a “further notice”) stating that the initial notice is to be treated as if the date specified in it were a later date specified in the further notice.

(6)

The power conferred by subsection (5) may be exercised more than once.

(7)

Where a person to whom a notice under subsection (1) (a) or (3) (a) was given
fails to make the application required by the notice by the date specified (or treated as specified) in the notice, the IFR must—

(a)

in a subsection (1) (a) case, give the person a notice stating that the
person is not suitable to be an owner of the club;

(b)

in a subsection (3) (a) case, give the individual a notice stating that the
individual is not suitable to be an officer of the club.

(8)

Where—

(a)

a notice under subsection (1) (b) , (2) (b) or (7) (a) is given to a person,
the IFR is to be treated as having determined under section 28 that the person is not suitable to be an owner of the club in question;

(b)

a notice under subsection (3) (b) , (4) (b) or (7) (b) is given to a person,
the IFR is to be treated as having determined under section 29 that the person is not suitable to be an officer of the club in question.

(9)

Where the IFR gives a notice under this section to a person, it must give a
copy of the notice to the club in question.

(10)

The IFR must publish notice of any determination it is treated by virtue of subsection (8) as having made under section 28 or 29 .

31 Opportunity to make representations about proposed negative determinations

(1)

If the IFR is minded to determine under section 28 or 29 that a person is not
suitable to be an owner or officer of a particular regulated club, the IFR must—

(a)

give notice of that fact to the person and to the club, and

(b)

have regard to any representations made by the person or the club in
accordance with the notice.

(2)

If the IFR is minded to give a notice under section 30 (1) (b) or (3) (b) to a
person, the IFR must—

(a)

give notice of that fact to the person and to the regulated club of which
the person is an owner or officer, and

(b)

have regard to any representations made by the person or the club in
accordance with the notice.

(3)

A notice under subsection (1) or (2) must—

(a)

explain why the IFR is minded to make the determination or (as the
case may be) to give the notice,

(b)

invite the person or the club to make representations about the
proposed determination or notice, and

(c)

specify the means by which, and the period within which, such
representations must be made.

(4)

The period for making representations must be a period of not less than 7
days beginning with the day on which the notice is given.

32 Determinations under sections 28 and 29 : time limits

(1)

Where a person makes an application to the IFR under section 28 or 29 , the
IFR must make a determination under that section in respect of the person before the end of the determination period.

(2)

The determination period is—

(a)

the period specified in regulations made by the Secretary of State for
the purposes of this paragraph, or

(b)

in a case where the period mentioned in paragraph (a) is extended
(or further extended) under subsection (3) , the period as so extended.

(3)

If the IFR considers that it cannot make a determination under section 28 or 29 before the end of the determination period, it may (before the end of that
period) give the person who made the application a notice extending the determination period for the period specified in the notice.

(4)

The power under subsection (3) may be exercised more than once; but the
determination period may not be extended so that it exceeds the period specified in regulations made by the Secretary of State for the purposes of this subsection .

(5)

If the IFR does not make a determination under section 28 or 29 in respect
of a person before the end of the determination period, the IFR is to be treated on the expiry of that period as having determined under that section that the person is not suitable to be an owner or officer of the club (as the case may be).

(6)

Before making regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

Determinations relating to incumbent owners and officers

33 Duties to notify IFR of change in circumstances relating to incumbent owner or officer

(1)

An individual who is an owner or officer of a regulated club must notify the
IFR where the individual considers there has been, or may have been, a material change in circumstances which is relevant to whether the individual is suitable to be an owner or officer of the club (as the case may be).

(2)

A regulated club must notify the IFR where it considers that there has been,
or may have been, a material change in circumstances which is relevant to whether an individual who is an owner or officer of the club is suitable to be an owner or officer of the club (as the case may be).

(3)

A notification under this section must—

(a)

identify the owner or officer in question,

(b)

explain the material change in circumstances, and

(c)

explain why the person giving the notification considers that the
change in circumstances is relevant to whether the owner or officer in question is suitable to be an owner or officer of the club.

(4)

A notification under subsection (1) or (2) must be given as soon as reasonably
practicable after the duty under that subsection arises.

34 Incumbent owners

(1)

The IFR may determine whether an individual within subsection (3) meets
the individual ownership fitness criteria if the IFR is in possession of information that gives it grounds for concern about whether the individual meets those criteria.

(2)

The IFR may determine whether an individual within subsection (3) has a
source of wealth which is connected to serious criminal conduct if the IFR is in possession of information that gives it grounds to suspect that the individual does have such a source of wealth.

(3)

An individual is within this subsection if the individual is an owner of a
particular regulated club and either—

(a)

the individual has been an owner of the club since immediately
before—

(i)

the coming into force of this section, or

(ii)

if later, the time when the club became a regulated club, or

(b)

a determination under section 28 that the individual is suitable to be
an owner of the club has effect in relation to the individual.

(4)

Before making a determination under subsection (1) or (2) in relation to an
individual (“P”), the IFR must give notice to P and to the club of the fact that it proposes to make such a determination.

(5)

Where the only determination being made by the IFR is a determination
under subsection (1) , if the IFR finds that P meets the individual ownership fitness criteria—

(a)

the IFR must give notice of that finding to P and to the club, and

(b)

P may continue to be an owner of the club.

(6)

Where the only determination being made by the IFR is a determination
under subsection (2) , if the IFR finds that P does not have a source of wealth which is connected to serious criminal conduct—

(a)

the IFR must give notice of that finding to P and to the club, and

(b)

P may continue to be an owner of the club.

(7)

The IFR may make the finding referred to in subsection (6) only if the IFR—

(a)

has taken reasonable steps to establish whether P has any source of
wealth which is connected to serious criminal conduct, and

(b)

is not satisfied, on the balance of probabilities, that P has any such
source of wealth.

(8)

Where determinations under both subsections (1) and (2) are being made by
the IFR, if the IFR finds as mentioned in subsections (5) and (6) —

(a)

the IFR must give notice of those findings to P and to the club, and

(b)

P may continue to be an owner of the club.

(9)

Subsection (10) applies if—

(a)

in a case within subsection (5) , the IFR does not make the finding
mentioned in that subsection,

(b)

in a case within subsection (6) , the IFR does not make the finding
mentioned in that subsection, or

(c)

in a case within subsection (8) , the IFR does not make both of the
findings mentioned in subsections (5) and (6) .

(10)

If this subsection applies—

(a)

the IFR is to be treated as having determined that P is not suitable to
be an owner of the club, and

(b)

the IFR must give notice of that fact to P and to the club.

(11)

The IFR must publish notice of—

(a)

any finding it makes under this section;

(b)

any determination it is treated as having made under this section.

35 Incumbent officers

(1)

The IFR may determine whether an individual within subsection (2) meets
the officer fitness criteria if the IFR is in possession of information that gives it grounds for concern about whether the individual meets those criteria.

(2)

An individual is within this subsection if the individual is an officer of a
particular regulated club and either—

(a)

the individual has been an officer of the club since immediately
before—

(i)

the coming into force of this section, or

(ii)

if later, the time when the club became a regulated club, or

(b)

a determination under section 29 that the individual is suitable to be
an officer of the club has effect in relation to the individual.

(3)

Before determining under this section whether an individual (“P”) meets the
officer fitness criteria, the IFR must give notice to P and to the club of the fact that it proposes to make such a determination.

(4)

If, on making a determination under this section, the IFR finds that P meets
the officer fitness criteria—

(a)

the IFR must give notice of that finding to P and to the club, and

(b)

P may continue to be an officer of the club.

(5)

If, on making a determination under this section, the IFR does not find that
P meets the officer fitness criteria—

(a)

the IFR is to be treated as having determined that P is not suitable to
be an officer of the club, and

(b)

the IFR must give notice of that fact to P and to the club.

(6)

The IFR must publish—

(a)

any finding it makes under this section;

(b)

notice of any determination it is treated as having made under this
section.

36 Opportunity to make representations about proposed negative findings

(1)

If the IFR is minded to make a negative finding under section 34 or 35 in
relation to an individual, the IFR must—

(a)

give notice of that fact to the individual and to the club, and

(b)

have regard to any representations made by the individual or the club
in accordance with the notice.

(2)

In this section, “negative finding” means—

(a)

in relation to a determination under section 34 (1) , a finding that the
individual does not meet the individual ownership fitness criteria;

(b)

in relation to a determination under section 34 (2) , a finding that the
individual does have a source of wealth which is connected to serious criminal conduct;

(c)

in relation to a determination under section 35 (1) , a finding that the
individual does not meet the officer fitness criteria.

(3)

A notice under subsection (1) must—

(a)

explain why the IFR is minded to make the negative finding,

(b)

invite the individual or the club to make representations about the
proposed finding, and

(c)

specify the means by which, and the period within which, such
representations must be made.

(4)

The period for making representations must be a period of not less than 14
days beginning with the day on which the notice is given.

Further provision about determinations

37 Matters relevant to determinations

(1)

In making a determination under this Part in relation to a person, the IFR
must have regard to any determination which—

(a)

has been made by a competition organiser in relation to the person,
and

(b)

the IFR considers relevant to its determination.

(2)

In determining for the purposes of this Part whether it considers that an
individual has the requisite honesty and integrity, the IFR must have regard to the following matters—

(a)

whether the individual has been convicted of a criminal offence or
subject to criminal proceedings, whether or not in England and Wales (in particular where the offence is or proceedings are in respect of serious criminal conduct);

(b)

whether, on the balance of probabilities, the individual has engaged
in conduct outside England and Wales which would, if done in England and Wales, amount to the commission of a serious offence;

(c)

whether the individual is or has been a party to proceedings (other
than criminal proceedings) in any court or tribunal;

(d)

any action of a regulatory or disciplinary nature that is being or has
been taken in relation to the individual (whether or not by the IFR and whether or not in England and Wales);

(e)

whether the individual is prohibited from entering the United
Kingdom;

(f)

whether the individual is a designated person as defined by section
9(2) of the Sanctions and Anti-Money Laundering Act 2018;

(g)

such other matters relating to honesty and integrity as may be specified
for the purposes of this paragraph in rules made by the IFR.

(3)

In determining for the purposes of this Part whether it considers that an
individual is financially sound, the IFR must have regard to the following matters—

(a)

the individual’s financial arrangements, including in particular whether
the individual has—

(i)

become bankrupt (in relation to England and Wales and
Northern Ireland) or made an arrangement with creditors,

(ii)

had their estate sequestrated (in relation to Scotland), or

(iii)

been subject to any similar procedure (whether or not in the
United Kingdom);

(b)

the financial situation of any body in relation to which the individual
holds, or has held, a position of responsibility (whether or not as an officer of the body);

(c)

such other matters relating to financial soundness as may be specified
for the purposes of this paragraph in rules made by the IFR.

(4)

In determining for the purposes of this Part whether it considers that an
individual has the requisite competence, the IFR must have regard to the individual’s qualifications, experience and training.

(5)

In making a determination referred to in subsection (2) , (3) or (4) , the IFR
may not have regard to any matter which is not referred to in that subsection (subject to subsection (1) ).

(6)

Rules made under subsection (2) (g) or (3) (c) must not have the effect of
authorising the IFR to make a determination in relation to any matter based solely on the individual’s connection with the government of any country or territory.

(7)

In this section, “serious offence” means an offence specified, or falling within
a description specified, in Part 1 of Schedule 1 to the Serious Crime Act 2007.

Disqualification orders and enforcement

38 Disqualification orders

(1)

The IFR may make an order disqualifying a person from being an owner of
any regulated club if under any provision of this Part the IFR determines, or is treated as having determined, that the person is not suitable to be an owner of a particular regulated club.

(2)

The IFR may make an order disqualifying a person from being an officer of
any regulated club if under any provision of this Part the IFR determines, or is treated as having determined, that the person is not suitable to be an officer of a particular regulated club.

(3)

Before making an order made under subsection (1) or (2) , the IFR must give
a notice to the person to whom the order would relate, and to the particular club referred to in that subsection—

(a)

giving details of the fact that the IFR proposes to make the order,

(b)

stating the reasons for the proposed order,

(c)

inviting the person and the club to make representations about the
proposed order, and

(d)

specifying the means by which, and the period within which, such
representations may be made,

and must have regard to any representations which are duly made.

(4)

The period for making representations must be a period of not less than 14
days beginning with the day on which the notice under subsection (3) is given.

(5)

As soon as reasonably practicable after the period for making representations
has ended, the IFR must—

(a)

decide whether to make an order under subsection (1) or (2) , and

(b)

publish a notice of its decision, giving reasons for it.

(6)

An order under subsection (1) or (2) must set out the period for which the
order has effect (which may be indefinite).

(7)

The IFR may revoke an order made under subsection (1) or (2) .

39 Removal directions: owners

(1)

This section applies in relation to a person (“P”) who is an owner of a
particular regulated club where—

(a)

the IFR has determined under section 28 , or is treated as having
determined under that section , that P is not suitable to be an owner of the club, or

(b)

the IFR is treated by virtue of section 34 (10) (a) as having determined
that P is not suitable to be an owner of the club,

and “deemed determination” in this section means a determination that the IFR is treated as having made as mentioned in paragraph (a) or (b) .

(2)

The IFR must give P a direction requiring P to take all reasonable steps to
cease to be an owner of the club before the end of the removal period.

This is subject to subsection (7) .

(3)

The removal period is—

(a)

the period specified in the direction, or

(b)

where the period mentioned in paragraph (a) is extended (or further
extended) under subsection (4) , that period as so extended.

(4)

A direction given under this section in relation to P (“the first direction”) may
be varied by a further direction so as to extend (or further extend) the period specified in the first direction.

(5)

Before giving a direction under this section , the IFR must consult—

(a)

(b)

the club, and

(c)

the specified competition organiser which organises a specified
competition in relation to which a relevant team is operated by the club.

(6)

At the same time as giving a direction under this section to P, the IFR must
give a notice to P and to the club including information about the possible consequences under this Part and Part 8 of not complying with the direction.

(7)

Subsection (2) does not apply in a case within subsection (1) (a) if, before the
end of the period of 3 months beginning with the applicable day, the IFR exercises its power to make an order under section 43 in relation to P (ownership removal order).

(8)

For the purposes of subsection (7) , the applicable day is (subject to subsections
(9) and (10) ) the day on which the IFR publishes—

(a)

its determination under section 28 in relation to P, or

(b)

notice of its deemed determination under that section in relation to
P,

as the case may be.

(9)

Where the determination or deemed determination is subject to a review
requested under section 82 , the applicable day is the day on which the IFR publishes—

(a)

the applicable reviewer’s decision under section 83 (3) , or

(b)

the decision that the applicable reviewer is treated as having made
under section 82 (5) or 83 (6) ,

unless the determination or deemed determination is then subject to an appeal under section 84 .

(10)

Where the determination or deemed determination is subject to an appeal
under section 84 (whether or not it has been subject to a review requested under section 82 ), the applicable day is the day on which the appeal is finally determined.

40 Removal directions: officers

(1)

This section applies in relation to an individual (“P”) who is an officer of a
particular regulated club where—

(a)

the IFR has determined under section 29 , or is treated as having
determined under that section, that P is not suitable to be an officer of the club, or

(b)

the IFR is treated by virtue of section 35 (5) (a) as having determined
that P is not suitable to be an officer of the club.

(2)

The IFR must give either or both of the following—

(a)

a direction to P requiring P to take all reasonable steps to cease to be
an officer of the club before the end of the removal period;

(b)

a direction to the club requiring the club to take all reasonable steps
to secure that P ceases to be an officer of the club before the end of the removal period.

(3)

The removal period, in the case of a direction under this section, is—

(a)

the period specified in the direction, or

(b)

where the period mentioned in paragraph (a) is extended under subsection (4) , that period as extended (or further extended) under
that subsection.

(4)

A direction given under this section in relation to P (“the first direction”) may
be varied by a further direction so as to extend (or further extend) the period specified in the first direction.

(5)

Before giving a direction under this section , the IFR must consult—

(a)

(b)

the club, and

(c)

the specified competition organiser which organises a specified
competition in relation to which a relevant team is operated by the club.

(6)

At the same time as giving a direction under this section, the IFR must—

(a)

in the case of a direction under subsection (2) (a) , give a notice to P
and to the club, and

(b)

in the case of a direction under subsection (2) (b) , give a notice to the
club,

including information about the possible consequences under Part 8 of not complying with the direction.

41 Directions relating to unsuitable owners and officers

(1)

This section applies where, under any provision of this Part, the IFR
determines or is treated as having determined—

(a)

that a person who is an owner of a regulated club is not suitable to
be an owner of the club, or

(b)

that a person who is an officer of a regulated club is not suitable to
be an officer of the club.

(2)

The IFR may give one or both of the following—

(a)

a direction to the person prohibiting the person (wholly or to an extent
specified in the direction) from carrying out such of the person’s activities, or exercising such of their rights, as an owner or officer as are specified or described in the direction;

(b)

a direction to the club requiring it to secure that the person does not
(wholly or to an extent specified in the direction) carry out such of those activities, or exercise such of those rights, as are specified or described in the direction.

(3)

A direction under this section may, among other things, contain provision
prohibiting or (in the case of a direction under subsection (2) (b) ) provision aimed at prohibiting the person to whom it relates from—

(a)

exercising any right, whether or not by virtue of the holding of shares,
stock or securities, to vote on any matter relating to the carrying on of the club’s activities;

(b)

appointing, terminating the appointment of, changing the terms of
appointment or the responsibilities of, any officer or employee of the club;

(c)

making changes to the corporate structure of the club;

(d)

doing anything specified or described in the direction without obtaining
the prior approval of the IFR.

(4)

A direction under this section—

(a)

comes into force at the time specified by or determined in accordance
with the direction;

(b)

has effect for the period specified in the direction;

(c)

may be varied or revoked by a further direction.

(5)

At the same time as giving a direction under this section, the IFR must—

(a)

in the case of a direction under subsection (2) (a) , give a notice to the
person and to the club of which the person is an owner or officer including information about the possible consequences under this Part and Part 8 of not complying with the direction;

(b)

in the case of a direction under subsection (2) (b) , give a notice to the
club including information about the possible consequences under Part 8 of not complying with the direction.

42 Orders and directions effecting alternative officer arrangements

(1)

This section applies where—

(a)

a direction under section 41 has effect in relation to a person or club,
and

(b)

the IFR considers that the ability of the club to operate effectively, or
to comply with conditions attached to its operating licence, is or is likely to be adversely affected by compliance with the direction.

(2)

The IFR may do either or both of the following if it considers that doing so
would mitigate or avoid the effect mentioned in subsection (1) (b) —

(a)

make an order appointing an individual identified in the order as an
officer of the club for a period specified in the order;

(b)

give the club a direction requiring it to redistribute amongst its existing
officers functions specified or described in the direction (whether of the person concerned or otherwise).

(3)

An order under subsection (2) (a) —

(a)

must specify or describe the functions to be exercised by the individual
appointed by the order;

(b)

comes into force at the time specified by or determined in accordance
with the order;

(c)

may be varied or revoked by a further order.

(4)

A direction under subsection (2) (b) —

(a)

comes into force at the time specified by or determined in accordance
with the direction;

(b)

has effect for the period specified in the direction;

(c)

may be varied or revoked by a further direction.

(5)

The IFR may make rules providing for—

(a)

costs incurred by it in connection with the appointment of an
individual by virtue of an order under subsection (2) (a) , and

(b)

costs incurred by an individual appointed by virtue of such an order,

to be payable by the club to which the individual is appointed.

(6)

Where an individual is appointed by virtue of an order under subsection
(2) (a) , the club, each owner of the club and each officer of the club must—

(a)

co-operate with the individual, and

(b)

give the individual such reasonable assistance as the individual
requests (including access to business premises, equipment, services, information and individuals),

in connection with the exercise of the individual’s functions under the order.

(7)

At the same time as making an order under this section, the IFR must give
a notice to the club, and to each owner and officer of the club, including information about the possible consequences under—

(a)

this Part (where the direction under section 41 relates to a person who
is an owner of the club), and

(b)

Part 8 ,

of not complying with the duty imposed by subsection (6) .

(8)

At the same time as giving a direction under this section, the IFR must give
the club a notice about the possible consequences under Part 8 of not complying with the direction.

(9)

References in this Act to an officer of a club do not include references to an
individual appointed as an officer of the club by virtue of an order under subsection (2) (a) .

43 Ownership removal orders

(1)

The IFR may make an order containing such provision as the IFR considers
appropriate to secure that, by the end of the period specified in the order, a person who is an owner of a regulated club (“P”) has ceased to be an owner of the club.

(2)

But the power to make an order under subsection (1) is exercisable only
where—

(a)

the IFR has determined under section 28 , or is treated as having
determined under that section, that P is not suitable to be an owner of the club,

(b)

P fails without reasonable excuse to comply with a direction given to
P under section 39 ,

(c)

P fails without reasonable excuse to comply with a direction given to
P under section 41 , or

(d)

a direction under section 41 has effect in relation to P and P—

(i)

fails to co-operate with or assist an individual appointed by
an order under section 42 in connection with the exercise of the individual’s functions under the order, or

(ii)

otherwise obstructs such an individual from carrying out those
functions,

and P does not have a reasonable excuse for the failure or obstruction.

(3)

An order under this section may, among other things, include provision—

(a)

for the appointment of trustees;

(b)

conferring functions on trustees appointed by virtue of the order
(including functions of taking action on behalf of P or any other person);

(c)

requiring P or any other person to take action (including action directed
by trustees appointed by virtue of the order).

(4)

The provision that may be made by virtue of subsection (3) (b) includes
provision authorising trustees appointed by virtue of the order to take any steps they consider appropriate to achieve the purpose for which the order is made.

(5)

A trustee appointed by virtue of an order under this section—

(a)

must not have a conflict of interest, and

(b)

must have the necessary skills to discharge their functions under the
order.

(6)

Where a trustee is appointed by virtue of an order under this section, the
club, each owner of the club and each officer of the club must—

(a)

co-operate with the trustee, and

(b)

give the trustee such reasonable assistance as the trustee requests
(including access to business premises, equipment, services, information and individuals),

in connection with the exercise of the trustee’s functions under the order.

(7)

A trustee appointed by virtue of an order under this section must—

(a)

provide the IFR with regular reports on the exercise of their functions
under the order and on any co-operation or assistance provided by P or the club;

(b)

obtain the IFR’s approval before making any contractual or other
arrangements that would result in P ceasing to be an owner of the club.

(8)

The IFR may withhold approval for arrangements described in subsection
(7) (b) if—

(a)

the IFR considers that the arrangements would result in any person
becoming an owner of the club without the IFR having first determined under section 28 that the person is suitable to be an owner of the club, or

(b)

where the arrangements would involve the disposal of an interest in
the club, the IFR considers that any party to the proposed disposal is acting in bad faith.

44 Orders under section 43 : procedure, costs and liabilities

(1)

Before making an order under section 43 , the IFR must publish a notice—

(a)

stating—

(i)

that the IFR proposes to make the order, and

(ii)

the reasons for doing so,

(b)

summarising the provision the IFR proposes to include in the proposed
order,

(c)

inviting the making of representations about the proposed order, and

(d)

specifying the means by which, and the period within which, such
representations may be made,

and must have regard to any representations which are duly made.

(2)

The period for making representations must be a period of not less than 14
days beginning with the day on which the notice under subsection (1) is published.

(3)

As soon as reasonably practicable after the period for making representations
has ended, the IFR must—

(a)

decide whether to make an order under section 43 , and

(b)

publish a notice of its decision, giving reasons for it.

(4)

At the same time as making an order under section 43 , the IFR must—

(a)

where the order imposes requirements on P (within the meaning of section 43 ), give a notice to P and to the club including information
about the possible consequences under Part 8 of not complying with those requirements;

(b)

where the order imposes requirements on the club, give a notice to
the club including information about the possible consequences under Part 8 of not complying with those requirements;

(c)

give a notice to the club, and to each owner and officer of the club,
including information about the possible consequences under Part 8 of not complying with the duty imposed by subsection (6) of section
43 .

(5)

An order under section 43 —

(a)

comes into force at the time specified by or determined in accordance
with the order,

(b)

has effect for the period specified by or determined in accordance with
the order, and

(c)

may be varied or revoked by a further order.

(6)

The IFR may make rules providing for—

(a)

costs incurred by the IFR in exercising functions under section 43 or this section , and

(b)

costs incurred by a trustee appointed by virtue of such an order,

to be payable by P (within the meaning of section 43 ).

Part 5 Duties on clubs and competition organisers etc

Duties on regulated clubs and formerly regulated clubs etc

45 Duty not to operate a team in relation to a prohibited competition

(1)

A club to which subsection (2) applies must not operate a team in relation to
a prohibited competition.

(2)

This subsection applies to—

(a)

a regulated club, or

(b)

a club that is not a regulated club but has been a regulated club at
any point within the previous 10 years.

(3)

In calculating the period of 10 years mentioned in subsection (2) (b) , no account
is to be taken of any time before the coming into force of this section .

(4)

A “prohibited competition” is a competition specified as a prohibited
competition for the purposes of this section in rules made by the IFR.

(5)

In considering whether to specify a competition as a prohibited competition,
the IFR must have regard to—

(a)

whether the competition—

(i)

is, or would be, merit-based,

(ii)

operates, or would operate, on the basis of fair and open
competition,

(iii)

jeopardises, or would jeopardise, the sustainability of relevant
competitions,

(iv)

jeopardises, or would jeopardise, the sustainability of clubs
operating teams in relation to relevant competitions, and

(v)

harms, or would harm, the heritage of English football, and

(b)

any other factors that the IFR specifies in rules.

(6)

Before specifying a competition as a prohibited competition, the IFR must
give the competition organiser a notice—

(a)

stating that it proposes to specify the competition as a prohibited
competition,

(b)

explaining why it proposes to take such action,

(c)

inviting the competition organiser to make representations about the
proposed action, and

(d)

specifying the means by which, and the period within which, such
representations may be made,

and must have regard to any representations duly made.

(7)

The period specified in the notice for making representations must be a period
of not less than 14 days beginning with the day on which the notice is given.

(8)

Before specifying a competition as a prohibited competition, the IFR must—

(a)

take reasonable steps to determine the views of fans in England and
Wales of regulated clubs about the competition being specified as a prohibited competition, and

(b)

have regard to those views.

(9)

Before specifying a competition as a prohibited competition, the IFR must
consult—

(a)

the Football Association, and

(b)

such other persons as the IFR considers appropriate.

(10)

The IFR may specify a competition as a prohibited competition—

(a)

whether or not any of the matches included in that competition are
played, or are to be played, in England or Wales or in any other part of the United Kingdom;

(b)

whether or not the teams that are entered into it, or that are members
of it, or that participate in it are, or are to be, exclusively or predominantly English teams.

(11)

For the purposes of this section—

“
English team” has the meaning given by section 2 (4) ;

“
relevant competition” means any competition (other than a prohibited
competition) where the teams that are entered into it, or that are members of it, or that participate in it are exclusively or predominantly English teams.

46 Duty not to dispose etc of home ground without approval

(1)

A body to which subsection (2) applies must notify the IFR where the body
considers that there is a reasonable prospect of the body—

(a)

disposing of any freehold or leasehold interest that the body holds in
its home ground or any part of the home ground, or

(b)

using any interest that the body holds in its home ground, or any part
of the home ground, as security in respect of a loan or other liability.

(2)

This subsection applies to—

(a)

a body that is a regulated club, or

(b)

a body that is not a regulated club but has been a regulated club at
any point within the previous 5 years (a “formerly regulated club”).

(3)

In calculating the period of 5 years mentioned in subsection (2) (b) , no account
is to be taken of any time before the coming into force of this section .

(4)

A notification under subsection (1) must be given as soon as reasonably
practicable after the body considers the duty under that subsection to have arisen.

(5)

A body to which subsection (2) applies must obtain the approval of the IFR
before it carries on an activity mentioned in subsection (1) .

(6)

The IFR must grant approval for the taking of any step mentioned in
subsection (1) if—

(a)

where the body is a regulated club, it is satisfied that the taking of
the step would not undermine the financial sustainability of the club;

(b)

where the body is a formerly regulated club, it is satisfied that the
body has taken all reasonable steps to ensure that a team customarily plays its home matches at the ground.

(7)

The IFR may not grant approval in any other circumstances.

(8)

The IFR must, as soon as reasonably practicable after the body has sought
approval, decide whether to grant approval under subsection (6) .

(9)

The IFR must notify the body of its decision to grant, or not to grant, that
approval and give reasons for its decision.

(10)

In this section , “home ground”—

(a)

in relation to a body that is a regulated club, means the ground at
which a relevant team operated by it customarily plays its home matches;

(b)

in relation to a body that is a formerly regulated club, means the
ground at which a relevant team operated by it immediately before it ceased to be a regulated club customarily played its home matches.

47 Duty not to appoint administrator without approval

(1)

A body to which section 46 (2) applies must notify the IFR as soon as
reasonably practicable after the body considers that there is a reasonable prospect of an administrator of the body being appointed under paragraph 22 of Schedule B1 to the Insolvency Act 1986 (“the 1986 Act”) (including that paragraph as applied in relation to partnerships by an order under section 420 of that Act).

(2)

An administrator of a body to which section 46 (2) applies may not be
appointed as mentioned in subsection (1) without the approval of the IFR.

(3)

Approval under subsection (2) —

(a)

must be in writing, and

(b)

must accompany the notice of intention to appoint filed under
paragraph 27 of Schedule B1 to the 1986 Act.

(4)

But in a case where the notice of intention to appoint mentioned in subsection
(3) (b) is not required—

(a)

subsection (3) (b) does not apply, but

(b)

approval under subsection (2) must accompany the notice of
appointment filed under paragraph 29 of Schedule B1 to the 1986 Act.

Duties on regulated clubs

48 Duty not to relocate without approval

(1)

A regulated club must notify the IFR where the club considers that there is
a reasonable prospect of the club entering into arrangements whereby a relevant team operated by it would play its home matches at a ground other than the club’s home ground.

(2)

A notification under subsection (1) must be given as soon as reasonably
practicable after the club considers the duty under that subsection to have arisen.

(3)

The club must obtain the approval of the IFR before it enters into the
arrangements mentioned in subsection (1) .

(4)

The IFR must grant approval for the club entering into those arrangements
if it is satisfied that —

(a)

the arrangements would not undermine the financial sustainability of
the club,

(b)

the arrangements would not cause significant harm to the heritage of
the club,

(c)

the club has taken reasonable steps to determine the views of its fans
about the effect of the arrangements on the relevant matters set out in paragraph 4 (2) of Schedule 4 , and

(d)

the club has had regard to those views in considering whether to enter
into the arrangements.

(5)

The IFR may not grant approval in any other circumstances.

(6)

The IFR must, as soon as reasonably practicable after the club has sought
approval, decide whether to grant approval under subsection (4) .

(7)

The IFR must notify the club of its decision to grant, or not to grant, that
approval and give reasons for its decision.

(8)

In this section “home ground”, in relation to a regulated club, has the meaning
given by section 46 (10) (a) .

49 Duty not to change crest, home shirt colours or name without approval

(1)

A regulated club must not make any material changes to the crest or
predominant home shirt colours of a relevant team operated by the club unless the club has taken reasonable steps to establish that the changes are supported by a majority of the club’s fans in England and Wales.

(2)

A regulated club must not change the name of a relevant team operated by
the club unless the change has been approved by the Football Association.

50 Duty to notify of changes in circumstances relevant to the IFR’s functions

(1)

A regulated club must notify the IFR where the club considers that there has
been, or may have been, a material change in circumstances affecting the club that is relevant to the exercise of the IFR’s functions under this Act.

(2)

A notification under subsection (1) must be given as soon as reasonably
practicable after the club considers that there has been, or may have been, such a change of circumstances.

(3)

A club is not required to notify the IFR under this section of any material
change in circumstances that the club has notified to the IFR under or by virtue of any other provision of this Act.

51 Duty to keep fans informed of insolvency proceedings

(1)

A regulated club that is in relevant insolvency proceedings must take
reasonable steps to keep its fans informed about the progress of the proceedings.

(2)

“Relevant insolvency proceedings” has the meaning given by paragraph 13 (3) of Schedule 1 .

Duties on licensed clubs

52 Duty to publish a personnel statement

(1)

A licensed club must—

(a)

prepare a personnel statement (within the meaning of section 16 ), and

(b)

submit it to the IFR for approval.

(2)

A statement submitted to the IFR for approval must be accompanied by a
statement explaining why the club considers the statement to be accurate (but this is subject to subsection (8) ).

(3)

The IFR—

(a)

may approve the statement with or without modifications, and

(b)

may approve the statement only if satisfied that it is accurate.

(4)

Before approving the statement with modifications, the IFR must consult the
club.

(5)

The club must publish the approved statement online as soon as reasonably
practicable after the IFR approves the statement.

(6)

The first statement must be submitted to the IFR as soon as reasonably
practicable after the club becomes a licensed club, subject to subsection (8) .

(7)

A new statement must be submitted to the IFR as soon as reasonably
practicable after the most recent approved statement becomes inaccurate in a material particular.

(8)

Where the first personnel statement submitted by a club to the IFR in
accordance with subsection (6) would be the same as the personnel statement submitted by the club to the IFR under section 16 , the club may require the IFR to treat the statement submitted under that section as its first personnel statement for the purposes of this section.

53 Duty to pay a levy

(1)

The IFR may require a club to pay to the IFR a levy in respect of a chargeable
period during which the club is a licensed club.

(2)

The amount of the levy is to be calculated in accordance with rules made by
the IFR (“levy rules”).

(3)

Levy rules must secure that the aggregate amount payable by virtue of this
section in respect of a chargeable period does not exceed the sum of—

(a)

the costs which the IFR estimates it will incur in exercising its leviable
functions during that period, which may include an amount in respect of contingencies in relation to that period,

(b)

the amount of any financial reserves which the IFR considers it
appropriate to raise in that period for the purpose of meeting any costs of exercising its leviable functions in future periods,

(c)

where the IFR’s actual costs incurred in exercising its leviable functions
in the previous chargeable period exceed the IFR’s estimate of those costs, the amount by which the IFR’s actual costs in the previous period exceeded the IFR’s estimate,

(d)

where the IFR’s estimate of the costs it would incur in exercising its
leviable functions in the previous chargeable period exceeds the IFR’s actual costs incurred, the amount (expressed as a negative figure) by which the IFR’s estimated costs in the previous period exceeded the IFR’s actual costs, and

(e)

an amount in respect of any of the IFR’s initial costs, and any of the
Secretary of State’s establishment costs, that have not been recovered before the beginning of the chargeable period.

(4)

The IFR’s “leviable functions” are its functions under this Act other than its
functions under—

(a)

section 42 (2) (a) (orders and directions effecting alternative officer
arrangements);

(b)

section 43 (ownership removal orders);

(c)

Part 6 (distribution of revenue);

(d)

section 66 (reports on clubs by expert reporters).

(5)

“The IFR’s initial costs” are the costs incurred by the IFR before the first
chargeable period—

(a)

in preparing for the exercise of any of its functions under this Act,
and

(b)

in exercising any of those functions.

(6)

“The Secretary of State’s establishment costs” are such costs as are—

(a)

incurred by the Secretary of State in relation to the establishment of
the IFR before the coming into force of section 5 , and

(b)

notified by the Secretary of State to the IFR before the first chargeable
period.

(7)

Levy rules must make provision about—

(a)

how the IFR is to estimate the costs which it expects to incur in
exercising its leviable functions during a chargeable period;

(b)

how the IFR is to calculate the costs which it actually incurs in
exercising its leviable functions during a chargeable period;

(c)

how the IFR is to calculate an appropriate financial reserve to raise in
a chargeable period;

(d)

how the IFR is to calculate the IFR’s initial costs;

(e)

the number of chargeable periods over which the IFR’s initial costs
and the Secretary of State’s establishment costs will be recovered (“recovery periods”);

(f)

the maximum percentage of the IFR’s initial costs and of the Secretary
of State’s establishment costs that may be recovered in each recovery period;

(g)

how the aggregate amount payable in respect of a chargeable period
is to be divided between clubs that are licensed clubs during that period;

(h)

the administration and payment of the levy.

(8)

Levy rules may make provision—

(a)

for a club that would otherwise be required to pay the levy to not be
required to pay it where conditions specified in levy rules are met;

(b)

for interest to be charged, at a rate specified in or calculated in
accordance with the rules, on any amount of levy not paid by the day on which it is due.

(9)

In making the provision mentioned in subsection (7) (g) the IFR must (among
other things) have regard to—

(a)

the financial resources of each licensed club, and

(b)

the specified competition in relation to which a relevant team is
operated by each licensed club.

(10)

An amount payable by a club in accordance with this section and levy rules
is recoverable as a civil debt due to the IFR.

(11)

For the purposes of this section and section 54 a “chargeable period” means—

(a)

the period of 12 months beginning with such day as may be specified
by the IFR by notice for the purposes of this subsection (which is the first chargeable period), and

(b)

each subsequent period of 12 months.

54 Section 53 : consultation and publication

(1)

Before making, amending or replacing levy rules the IFR must consult—

(a)

the Secretary of State,

(b)

the Treasury,

(c)

all regulated clubs, and

(d)

such other persons as the IFR considers appropriate.

(2)

Subsection (1) does not apply in relation to amendments to or replacements
of levy rules if the IFR considers the changes to be minor.

(3)

The consultation must include a draft of the proposed levy rules.

(4)

As soon as reasonably practicable before the start of a chargeable period
(“period A”) the IFR must publish—

(a)

an estimate of the costs which it expects to incur in exercising its
leviable functions during period A;

(b)

the actual costs of exercising its leviable functions during the
chargeable period immediately before period A (unless period A is the first chargeable period);

(c)

the amount of financial reserves which it considers it appropriate to
raise in period A (if any);

(d)

the amount to be recovered in period A in respect of the IFR’s initial
costs and the Secretary of State’s establishment costs (if any);

(e)

the amount of the IFR’s initial costs and the Secretary of State’s
establishment costs that it has not recovered before the start of period A (if any);

(f)

the amount payable by each licensed club in respect of period A;

(g)

such information as it considers appropriate to explain how those
costs and amounts are determined.

(5)

Where the IFR by notice specifies a day for the purposes of section 53 (11) the
IFR must, as soon as reasonably practicable after specifying the day, publish that notice.

(6)

In this section “the IFR’s initial costs” and “the Secretary of State’s
establishment costs” have the same meanings as in section 53 .

Duties on specified competition organisers

55 Duties to notify and consult the IFR

(1)

A specified competition organiser must notify the IFR where—

(a)

the organiser considers that there is a risk of the IFR’s ability to
advance its club financial soundness objective or its systemic financial resilience objective being jeopardised,

(b)

the organiser has failed to comply with a commitment accepted by
the IFR under section 24 or the organiser considers that there is an immediate risk of it failing to so comply, or

(c)

the organiser considers or suspects that a club has breached a relevant
rule of a specified competition.

(2)

A notice under subsection (1) must—

(a)

explain why the specified competition organiser considers the duty
under that subsection to have arisen, and

(b)

be given as soon as reasonably practicable after the specified
competition organiser considers the duty under that subsection to have arisen.

(3)

A specified competition organiser must also notify the IFR before a penalty,
sanction or other requirement (whether financial or otherwise) is imposed, whether by the organiser or another person, on a club that breaches or is suspected to have breached a relevant rule of a specified competition.

(4)

Where a notice under subsection (3) is not given before a penalty, sanction
or other requirement is imposed, the specified competition organiser must notify the IFR of the fact that a penalty, sanction or other requirement has been imposed as soon as reasonably practicable after becoming aware of that fact.

(5)

A notice under subsection (3) or (4) must explain why the penalty, sanction
or other requirement is being or has been imposed.

(6)

A specified competition organiser must consult the IFR before—

(a)

adding or removing a relevant rule of a specified competition, or

(b)

varying a relevant rule of a specified competition, unless the variation
is not material.

(7)

A consultation under subsection (6) must—

(a)

explain why the specified competition organiser is proposing to add,
remove or vary the relevant rule of a specified competition;

(b)

include a draft of the additional or varied rule.

(8)

In this section, “relevant rule of a specified competition” means a rule of the
specified competition organised by the specified competition organiser that is relevant to the exercise of any of the IFR’s functions under this Act.

Part 6 Distribution of revenue

Introduction

56 Part 6 : overview and interpretation

(1)

This Part makes provision for a specified competition organiser to apply to
the IFR for the triggering of a process under which—

(a)

specified competition organisers are required to enter into mediation
in connection with the distribution of relevant revenue received by one of the organisers, and

(b)

if those organisers do not reach agreement during that process, the
IFR may make an order as to the distribution of that revenue.

(2)

In this Part , “relevant revenue” means revenue received by a specified
competition organiser—

(a)

as a result of the sale or acquisition of rights to exploit the broadcasting
of football matches included in a competition organised by the specified competition organiser, or

(b)

from any other source specified, or of a description specified, in
regulations made by the Secretary of State.

(3)

Before making regulations under subsection (2) (b) , the Secretary of State must
consult—

(a)

the IFR,

(b)

the Football Association, and

(c)

each specified competition organiser.

(4)

The Secretary of State may not make regulations under subsection (2) (b) unless
there has been a material change in circumstances relating to the sources of relevant revenue received by a specified competition organiser since—

(a)

the day on which this section came into force, or

(b)

where regulations under subsection (2) (b) have been made, the day
on which such regulations were last made.

(5)

For the purposes of this Part —

“
distribution agreement” means an agreement between two specified
competition organisers that provides for the distribution of relevant revenue received by one or both of those organisers (and includes an agreement entered into before the coming into force of any provision of this Part );

“
distribution order” means an order under section 62 (1) or (3) ;

“
qualifying football season”, in relation to an application under section
57 , means—

(a)

either—

(i)

the football season during which the application is
made, or

(ii)

where the application is not made during a football
season, the next football season after the application is made, and

(b)

any subsequent football season up to and including the fifth
subsequent season;

“
the resolution process” means the process set out in sections 60 to 62 .

(6)

For the purposes of this Part , a distribution agreement or a distribution order
relates to a qualifying football season if the agreement or order provides for the distribution of relevant revenue in or in respect of that season.

(7)

In this Part references to “the question or questions for resolution” are to be
construed in accordance with section 57 (1) .

Applications for resolution process to be triggered

57 Applications for resolution process to be triggered

(1)

A specified competition organiser may apply to the IFR for the resolution
process to be triggered where—

(a)

one or more questions have arisen between that organiser and another
specified competition organiser, and

(b)

the question or questions relate to the distribution, in or in respect of
one or more qualifying football seasons, of relevant revenue received by one of those organisers.

(2)

But a specified competition organiser may apply to the IFR under subsection
(1) only if one or more of the following conditions are met in relation to the
qualifying football season or seasons to which the application relates.

(3)

Condition 1 is met in relation to a qualifying football season if—

(a)

no distribution agreement is in force between the two specified
competition organisers in relation to the season, and

(b)

no distribution order has effect in respect of the two specified
competition organisers in relation to the season.

(4)

Condition 2 is met in relation to a qualifying football season if there has been,
or will be, a material reduction in the relevant revenue received by one specified competition organiser in or in respect of that season compared to the relevant revenue received by that specified competition organiser in or in respect of any preceding season in relation to which (as the case may be)—

(a)

the last distribution agreement entered into between the two specified
competition organisers had effect, or

(b)

the last distribution order made in relation to those organisers had
effect.

(5)

Condition 3 is met in relation to a qualifying football season if, in relation to
the relevant revenue received or to be received by either or both of the specified competition organisers in or in respect of that season, there has been or will be a material change in circumstances since (as the case may be)—

(a)

the day on which the last distribution agreement was entered into
between those organisers, or

(b)

the day on which the last distribution order was made in relation to
those organisers.

(6)

Condition 4 is met in relation to a qualifying football season if—

(a)

a distribution agreement is in force between the two specified
competition organisers in relation to the season,

(b)

the distribution agreement has been in force for at least five years,
and

(c)

no distribution order has effect in respect of the specified competition
organisers in relation to the season.

58 Applications under section 57 : procedural and other requirements

(1)

Before making an application under section 57 , a specified competition
organiser (“the notifier”) must—

(a)

notify the other specified competition organiser (“the respondent”)
that the notifier intends to make the application, and

(b)

send a copy of the notification to the IFR.

(2)

A notification under subsection (1) (a) must—

(a)

specify the qualifying football season or seasons to which the
application relates,

(b)

explain why the notifier considers that at least one of the conditions
in section 57 is met in relation to that season or those seasons,

(c)

set out details of the question or questions for resolution,

(d)

invite the respondent to make representations about the content of
the notification, and

(e)

specify the means by which, and the period within which, such
representations must be made.

(3)

The period specified in the notice for making representations must be a period
of not less than 14 days beginning with the day on which the notice is given.

(4)

An application under section 57 must not be made before the end of the
period of five days beginning with the last day on which representations may be made.

(5)

An application under section 57 must—

(a)

specify the qualifying football season or seasons to which the
application relates,

(b)

explain why the notifier considers that at least one of the conditions
in section 57 is met in relation to that season or those seasons,

(c)

set out details of the question or questions for resolution, and

(d)

be accompanied by copies of any representations made by the
respondent about the content of the notification under subsection
(1) (a) .

59 Decisions by the IFR on applications under section 57

(1)

Where an application is made under section 57 , the IFR must decide whether
the resolution process should be triggered in relation to the qualifying football season or seasons to which the application relates.

(2)

The IFR may decide that the resolution process should be triggered in relation
to a qualifying football season only if the IFR—

(a)

is satisfied that at least one of the conditions in section 57 is met in
relation to that season, and

(b)

has reasonable grounds to suspect that its ability to advance at least
one of its objectives would be jeopardised if the resolution process were not triggered.

(3)

In deciding whether the resolution process should be triggered, the IFR may
have regard to the purposes for which the distributed revenue would be used.

(4)

In deciding whether the resolution process should be triggered in reliance on
the condition in section 57 (3) , the IFR may have regard to whether the situation described in section 57 (3) (a) (no distribution agreement in force) has arisen as a result of bad faith on the part of either of the specified competition organisers.

(5)

If the IFR decides that the resolution process should be triggered, the IFR
must—

(a)

notify the two specified competition organisers and give reasons for
its decision, and

(b)

set out in the notice—

(i)

the qualifying football season or seasons to which the resolution
process relates, and

(ii)

the question or questions for resolution.

(6)

If the IFR decides that the resolution process should not be triggered, the IFR
must notify the two specified competition organisers and give reasons for its decision.

(7)

The IFR must make the decision under subsection (1) within the period of 28
days beginning with the day on which the application is made.

(8)

The IFR may extend the period in subsection (7) by up to a further 28 days
if it considers there are special reasons for doing so.

Resolution process

60 The mediation stage

(1)

This section applies where the IFR gives a notice under section 59 (5) .

(2)

The two specified competition organisers to which the notice was given must
appoint a mediator before the end of the period of 14 days beginning with the day on which the notice was given.

(3)

If the period mentioned in subsection (2) ends without an appointment having
been made by the specified competition organisers, the IFR must appoint a mediator as soon as reasonably practicable after that period has ended.

(4)

The IFR may extend the period in subsection (2) by up to a further 28 days
if it considers there are special reasons for doing so.

(5)

A person appointed as a mediator under subsection (3) must be a person
who the IFR considers to have appropriate skills and experience.

(6)

A mediator appointed under this section must mediate negotiations between
the specified competition organisers on the question or questions for resolution until whichever of the following events occurs first—

(a)

the specified competition organisers resolve the question or questions
for resolution (whether by entering into a distribution agreement or otherwise);

(b)

the end of the period of 28 days beginning with the day on which the
mediator is appointed;

(c)

the specified competition organisers agree to terminate the mediation;

(d)

the mediator notifies the specified competition organisers that the
mediator considers—

(i)

that there is no reasonable prospect of the specified competition
organisers resolving the question or questions for resolution (whether by entering into a distribution agreement or otherwise) within the period mentioned in paragraph (b), or

(ii)

either of the specified competition organisers is acting in bad
faith.

(7)

A notification under subsection (6) (d) must include reasons for the decision.

61 Final proposal stage

(1)

This section applies where mediation under section 60 comes to an end by
virtue of the occurrence of an event within section 60 (6) (b) , (c) or (d) .

(2)

As soon as reasonably practicable after the occurrence of the event, the Chief
Executive Officer must establish a committee of the Expert Panel (see paragraph 26 of Schedule 2 ).

(3)

Once established, the committee must give notice to the two specified
competition organisers.

(4)

A notice under subsection (3) must—

(a)

specify the qualifying football season or seasons in question,

(b)

set out the question or questions for resolution,

(c)

invite each of the two specified competition organisers to submit to
the committee a final proposal as to how that question or those questions should be resolved,

(d)

require any final proposal to be accompanied by supporting evidence,

(e)

specify the day on or before which final proposals are to be submitted
to the committee, and

(f)

state the period by the end of which the committee must make a
decision (see section 62 (5) ).

(5)

A notice under subsection (3) may, where the committee considers it relevant
to the question or questions for resolution, require the specified competition organisers to explain in a final proposal how the final proposal will promote the financial sustainability of clubs which operate teams relegated from a competition organised by the specified competition organiser.

(6)

The committee may specify in the notice the form and manner in which final
proposals and supporting evidence must be submitted.

(7)

Subsection (8) applies if, on or before the day specified by virtue of subsection
(4) (e) , a specified competition organiser submits to the committee a final
proposal which the committee considers does not explain how the question or questions for resolution should be resolved or does not comply with a requirement imposed by virtue of subsection (4) (d) or (5) (if applicable).

(8)

The committee may give both specified competition organisers a notice
specifying a later day (falling not more than seven days after the end of the day specified by virtue of subsection (4) (e) ) on or before which final proposals are to be submitted to the committee.

62 Distribution orders

(1)

Where, on or before the final proposal deadline, the committee of the Expert
Panel receives final proposals from both specified competition organisers under section 61 —

(a)

if the committee considers that both final proposals are consistent with
the principles in subsection (2) , the committee must make an order requiring the relevant revenue to be distributed in accordance with whichever proposal the committee considers to be more consistent with those principles;

(b)

if the committee considers that one final proposal is consistent with
the principles in subsection (2) but the other is not, the committee must make an order requiring the relevant revenue to be distributed in accordance with the proposal that is consistent;

(c)

if the committee considers that neither final proposal is consistent with
the principles in subsection (2) , the committee must—

(i)

terminate the resolution process, and

(ii)

notify the specified competition organisers that it has done so.

(2)

The principles in this subsection are that the final proposal—

(a)

should advance the IFR’s objectives,

(b)

should not place an undue burden on the commercial interests of
either specified competition organiser, and

(c)

should not, if a distribution order were made in accordance with the
final proposal, result in a lower amount of relegation revenue being distributed to a club during the relevant period than would have been distributed to the club during that period had such a distribution order not been made.

(3)

For the purposes of subsection (2) —

“
relegation revenue” means revenue distributed by a specified competition
organiser to a club in consequence of a team operated by the club being relegated from a specified competition organised by the specified competition organiser;

“
relevant period”, in relation to a final proposal, means the period of
one year beginning with the final day of the first football season in respect of which relegation revenue would be distributed in pursuance of any distribution order made in accordance with the final proposal.

(4)

Where the final proposal deadline has passed and the committee has received
a completed final proposal from only one specified competition organiser—

(a)

if the committee considers that the proposal is consistent with the
principles in subsection (2) , the committee must make an order requiring the relevant revenue to be distributed in accordance with that proposal;

(b)

if the committee considers that the proposal is not consistent with the
principles in subsection (2) , the committee must—

(i)

terminate the resolution process, and

(ii)

notify the specified competition organisers that it has done so.

(5)

Where the final proposal deadline has passed without the committee receiving
a completed final proposal from either specified competition organiser, the committee must—

(a)

terminate the resolution process, and

(b)

notify the specified competition organisers that it has done so.

(6)

Where subsection (1) (a) or (b) or (4) (a) applies, the committee must make the
order on or before the last day of the period of 28 days beginning with the final proposal deadline.

(7)

The committee may extend the period in subsection (6) by up to a further 28
days if it considers there are special reasons for doing so.

(8)

A distribution order—

(a)

must impose on the specified competition organisers such obligations
as the committee considers appropriate for the purpose of securing compliance with the requirement imposed by virtue of subsection
(1) (a) or (b) or (4) (a) , and

(b)

may, where a distribution agreement is in force between the specified
competition organisers in relation to the same qualifying football season or seasons to which the order relates, provide for that agreement to have effect subject to provision contained in the order.

(9)

The committee must, as soon as reasonably practicable after making a
distribution order, publish the order or a summary of the order.

(10)

At the same time as making a distribution order, the committee must give
the specified competition organisers a notice—

(a)

summarising the question or questions for resolution,

(b)

including a copy of the order,

(c)

giving reasons for the order, and

(d)

including information about the possible consequences under Part 8 of not complying with the order.

(11)

For the purposes of this section —

(a)

“the final proposal deadline” means—

(i)

the day referred to in section 61 (4) (e) , or

(ii)

where the committee gives a notice under section 61 (8) , the
day referred to in the notice;

(b)

references to a “completed” final proposal are to a final proposal which
the committee considers—

(i)

explains how the question or questions for resolution should
be resolved, and

(ii)

complies with the requirements imposed by virtue of section
61 (4) (d) and (5) (if applicable).

63 Duration and revocation of distribution orders

(1)

A distribution order comes into force at such time as the order may specify.

(2)

A distribution order ceases to have effect—

(a)

on such day as may be specified in the order, or

(b)

if revoked under subsection (3) or (4) .

(3)

The IFR may revoke a distribution order if it considers that there are
exceptional circumstances that make it appropriate to do so.

(4)

The IFR must revoke a distribution order where it is satisfied that the two
specified competition organisers have, after the making of the order, entered into a distribution agreement relating to the same qualifying football season or seasons to which the distribution order relates.

(5)

Where the IFR revokes a distribution order, it must give a notice to that effect
to the specified competition organisers.

(6)

The notice must include the reasons for the IFR’s decision.

(7)

The notice may include transitional, transitory or saving provision in relation
to the revocation of the distribution order.

Miscellaneous

64 Review of distribution orders, payment of costs, etc

(1)

The IFR must keep under review—

(a)

the extent to which specified competition organisers are complying
with a distribution order which has effect in respect of them,

(b)

whether to take enforcement action under Part 8 in respect of a
specified competition organiser which does not comply with a distribution order, and

(c)

whether to revoke a distribution order.