Struggling Football Clubs Warned of Insufficient Board Members, Report Reveals
The Independent Football Regulator (IFR), recently rubber-stamped by Parliament, is set to revolutionise boardroom governance in English professional football clubs. The move comes in response to concerns about poor governance, financial instability, and a lack of diversity within club boards.
Aaryaman Banerji, Head of Football Governance at LCP, emphasised the importance of good governance at a club level. He stated, "At the heart of this change must be good governance at a club level." The report, published by LawDebenture and LCP, highlights the need for resetting boardroom standards, ensuring effective operation, and ensuring directors are appropriate and well-informed.
One of the key recommendations is to establish minimum board sizes. The report suggests that clubs should have at least three to four directors to avoid undersized boards that risk poor governance and decision-making. While some commentators suggest four directors may be preferable for operational effectiveness, the minimum threshold ensures a more robust decision-making process.
Another crucial aspect is diversity. The report calls for measurable diversity targets to improve gender balance and broader inclusion, reflecting the diverse fanbase and the growth of women's football. Current boards are predominantly male, which does not accurately represent their stakeholders. The IFR is advised to mandate formal training and suitability testing for directors to ensure a thorough understanding of the sport’s operational and cultural aspects.
Moreover, the report recommends that the IFR requires at least one board member per club to pass a formal qualification in English football. This measure aims to raise overall board competency and improve the quality of boardroom decision-making.
The report also addresses the issue of clubs facing financial difficulties. Both Sheffield Wednesday and Morecambe FC are currently grappling with grave financial issues. The recommendations are designed to reduce the risk of clubs failing by promoting more effective, knowledgeable, and representative boards.
Patrick Davis, Head of LawDeb's Sport Analytics and Advisory, stated, "Implementing stronger codes of conduct and enhancing corporate governance practices are essential steps in raising standards across English football." Bart Huby, Head of Sport Analytics and Advisory at LCP, concurred, believing that the recommendations would improve the quality of boardroom decision-making and reduce the risk of clubs failing.
The reforms arise from the 2025 UK Football Governance Bill and the Football Governance Act, underpinning the IFR’s authority to enforce suitability tests on club officers and owners while promoting transparency, accountability, and fan engagement in the governance process. By addressing the identified governance weaknesses around board size, diversity, and expertise, the IFR will enhance the governance standards of clubs, protect their long-term sustainability, and align governance practices with the modern realities of English football.
The introduction of the Independent Football Regulator is seen as a watershed moment for the football industry, offering a chance to drive meaningful change in protecting clubs, fans, communities, and the wider football industry.
- The report, published by LawDebenture and LCP, proposes that the IFR requires at least one board member per club to pass a formal qualification in English football, a measure aimed at raising overall board competency and improving the quality of boardroom decision-making, aligning with the modern realities of sports and finance in football business.
- In addition, the report calls for sufficient board sizes in football clubs, advocating for a minimum of three to four directors to ensure a more robust decision-making process, reflecting the need for good governance in both the sports and finance sectors.
