Friday briefing: English football regulator to have power to tackle parachute payments
Friday briefing: English football regulator to have power to tackle parachute payments
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Norwich City shareholders approve deal for Mark Attanasio to gain majority control
25 October 2024 - 4:30 AM
The new independent regulator for English football is set to be given “new powers", including over parachute payments, under the UK government’s Football Governance Bill.
The bill was introduced yesterday in the House of Lords in an attempt to speed up the legislation. In "major changes" to the bill, the Labour government is set to strengthen the regulator's remit, which will oversee clubs in the top five tiers of the game.
As reported by the BBC, as with the original legislation, the regulator will have 'backstop powers' to mediate a financial settlement if the Premier League and EFL continue to fail to reach agreement on a new funding deal.
But it will now be able to consider parachute payments when deciding how much money the Premier League should redistribute. The payments, which are given to relegated clubs, were excluded from the regulator's scope in the initial draft bill.
However, the sports minister Stephanie Peacock has insisted that parachute payments “can’t be abolished”. Whitehall sources told The Daily Telegraph that despite the new powers to potentially review the system, the regulator would intervene only if evidence emerged that “the system was destabilising and compromising financial sustainability”.
“Foreign and trade policy” clause dropped
In a further change to the initial bill, The Daily Telegraph also reported that the government has dropped a clause forcing the new regulator to “have regard to the foreign and trade policy objectives” of the government.
It follows a warning from UEFA over concerns that the clause could amount to state interference in football, leading to the England team being threatened with expulsion from Euro 2028, which will take place in the UK and Ireland.
Norwich City shareholders approve deal for Mark Attanasio to gain majority control
Norwich City have confirmed that joint majority shareholder Mark Attanasio will gain control of the club next year with an increase in the stake held by his group Norfolk FB Holdings to around 85 per cent.
In a statement, the EFL Championship club said the change, first announced in August, was approved by the “relevant shareholders” at an extraordinary general meeting on Wednesday evening and will go through on 1st March, 2025.
Under the agreement, longtime owners Delia Smith and husband Michael Wynn Jones will cut their shareholding in the club to 10 per cent and step down as directors. They first joined the club’s board in 1996 and will become honorary life presidents.
Loss of £14.4 million for 2023/24
Norwich reported a loss of £14.4 million for the year ending 30th June, 2024 following the £27.3 million deficit suffered in 2022/23. The team were relegated from the Premier League in 2021/22.
Turnover for 2023/24 fell to £73.1 million, down from £75.6 million the previous year, primarily due to the club moving to the second and final year of parachute payments from the Premier League. However, profit on player sales climbed to £13.4 million, up from £3.6 million.