Skip to content
Institute of Economic Affairs

Institute of Economic Affairs

Institute of Economic Affairs

Sunday May 22, 2022
  • twitter
  • facebook
  • rss
  • Institute of Economic Affairs
  • Home
  • About
  • Staff
  • Jobs
  • Epicenter
  • Contact Us
  • twitter
  • facebook
  • rss
  • Blog
  • Film
  • Coronavirus
  • Research
    • Publications
    • Economic Affairs
    • EA Magazine
    • Brexit Unit
    • Int. Trade & Competition Unit
    • SMPC
    • Paragon Initiative
  • Media
    • Media Coverage
    • Press Releases
    • Media Enquiries
    • About IEA Comms
  • Students
    • Internships
    • Events and Conferences
    • Essay Competition
    • Student Resources
    • IEA Budget Challenge
    • Economics101
  • Events
    • Forthcoming Events
    • Past Events
  • Donate
    • Donate Now
    • Donate Monthly
    • IEA Patreon
    • Other Ways to Donate
    • Legacy Gift
    • Donate from USA
    • Contact Us
  • Home
  • About
  • Staff
  • Jobs
  • Epicenter
  • Contact Us

Red Card: Why English Football doesn’t need an independent regulator

J. R. Shackleton and Victoria Hewson
21 March 2022
Institute of Economic Affairs > Publications > Publications > Research

Summary




  • The Fan Led Review of Football Governance calls for major changes in the way English football is run, with the government imposing an independent regulator (IREF). The government has indicated support for an IREF.

  • There is tension between the legal and commercial reality of football clubs as private businesses, and the way many fans understand the club they support as a more intangible community that ‘belongs’ to them. Private legal owners sometimes take actions that conflict with the wishes of these fans.

  • The Review proposes to address this by way of a formal, state-mandated regulatory system. But rather than protecting the equity stake and preferences of fans in the face of the commercial interests of private ownership, this may substitute the preferences of technocrats and drive out investment from the game.

  • Regulating an industry imposes many costs, including compliance costs and disincentives to investment and innovation. It hasn’t protected industries such as energy, water and financial services from regular problems and occasional crises.

  • The Review’s concern that football is inherently financially unstable ignores a history which shows very few clubs closing permanently. This industry is almost unique in that most businesses in operation a hundred years ago are still around today.

  • The Review recommends that, in addition to the creation of a regulator, the government should mandate a package of measures for an IREF to implement. Several involve substantial new restrictions on private property rights which may be challenged in the courts and could give rise to substantial compensation claims. If upheld, such measures could deter future investment in football and in the wider UK economy.

  • The ability and incentives for new owners to enter football and invest in clubs are crucial. Such investment enables movement up leagues, helps clubs remain competitive, and makes possible development of grounds and facilities.

  • As well as undermining property rights and disincentivising investment, the recommendation to give supporter organisations a veto on club decisions raises questions about the representativeness of these bodies in a globalised football environment where fanbases of large clubs are no longer simply local.

  • Enhanced checks on potential owners and directors, and mandatory training and qualification for these roles, plus requirements for detailed business plans and equality, diversity and inclusion programmes, will be costly and are particularly likely to deter investors and volunteer workers in smaller clubs.

  • The Review does not attempt a cost-benefit analysis; there is only an assertion of the benefits to be obtained from an IREF. The government should not have rushed to endorse the Review’s findings without better evidence of the claimed benefits and consideration of the associated costs.


Fullscreen Mode


Len Shackleton
  • email

Editorial and Research Fellow

Len Shackleton is an Editorial and Research Fellow at the IEA and Professor of Economics at the University of Buckingham. He was previously Dean of the Royal Docks Business School at the University of East London and prior to that was Dean of the Westminster Business School. He has also taught at Queen Mary, University of London and worked as an economist in the Civil Service. His research interests are primarily in the economics of labour markets. He has worked with many think tanks, most closely with the Institute of Economic Affairs, where he is an Economics Fellow. He edits the journal Economic Affairs, which is co-published by the IEA and the University of Buckingham.


Victoria Hewson
  • twitter
  • email

Head of Regulatory Affairs

Victoria joined the IEA’s International Trade and Competition Unit in Spring 2018. She is a lawyer and practiced for 12 years in the fields of technology and financial services, before joining the Legatum Institute Special Trade Commission to focus on trade and regulatory policy. She has published work on the implications and opportunities of Brexit in financial services and movement of goods and the issues in connection with the Irish border. Before entering the legal profession Victoria worked for Procter & Gamble in the UK and Germany.
Download
Share
GET the full report here
Download

SIGN UP FOR IEA EMAILS

Share this Story

previousBriefing PapersTransparency in the Subsidy Control Bill: Lowering the reporting thresholdMatthew Lesh9 March 2022
nextPublicationsVaper Trails: New nicotine products and the innovation principleVictoria Hewson and Christopher Snowdon14 April 2022
latestHealthcareRepeat Prescription? The NHS and four decades of privatisation paranoiaDr Kristian Niemietz22 May 2022
GET the full report here
Download
previous
Briefing Papers

Transparency in the Subsidy Control Bill: Lowering the reporting threshold

9 March 2022
next
Publications

Vaper Trails: New nicotine products and the innovation principle

14 April 2022
latest
Healthcare

Repeat Prescription? The NHS and four decades of privatisation paranoia

22 May 2022
Institute of Economic Affairs
BE PART OF THE IEA TODAY
  • Donate
  • Like
  • Follow
  • Watch

NEWSLETTER SIGN UP

Privacy Policy
© Institute of Economic Affairs
REGISTERED IN ENGLAND 755502, CHARITY NO. CC/235 351, LIMITED BY GUARANTEE
×
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. However you may visit Cookie Settings to provide a controlled consent.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Advertisement

Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.

Performance

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

Analytics

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.

Functional

Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.

Uncategorized

Undefined cookies are those that are being analyzed and have not been classified into a category as yet.

Save & Accept
Powered by CookieYes