Will The “Fit And Proper Custodians” Test Improve English Football?

On 23 February 2023, the Government published its white paper on “A sustainable future – reforming club football governance” (White Paper).1 The White Paper sets out the government’s comprehensive plan to introduce an independent regulator for professional clubs in the English football pyramid (IREF). It has been described as the biggest change in football for decades.

The White Paper follows the Fan-Led Review of Football Governance (the Crouch Review)2 and its primary strategic purpose is to ensure that English football is sustainable and resilient, for the benefit of fans and local communities (for more information, please see this article3).

The failed attempt4 to form the European Super League, the winding up5 of historical clubs like Bury and the countless other clubs that have come close to liquidation due to mismanagement are listed in the White Paper as examples of why significant change is needed in how football is governed.

This article examines the White Paper’s proposals regarding the enhanced fit and proper custodians’ test:

• What are the White Paper’s key recommendations?

• Why has the “fit and proper custodians” condition been included?

• What does the White Paper propose?

  • Fitness and propriety test

  • Enhanced due diligence of source of wealth

  • Robust financial plans

• Will the new test deter investment into English clubs?

• What will the impact be on foreign investors?

• Is there a greater risk of exposure?

• The Premier League’s “Response"

For a broader analysis of the White Paper as a whole, the authors highly recommend Nick De Marco KC’s comprehensive article.6