Football Governance Act 2025

Part 3 E+W Operating licences

Operating licences E+W

15 Operating licences E+W

(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.

Commencement Information

I1 S. 15 in force at Royal Assent for specified purposes, see s. 100(2)(g)

16 Application for provisional operating licence E+W

(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.

Commencement Information

I2 S. 16 in force at Royal Assent for specified purposes, see s. 100(2)(g)

17 Grant of provisional operating licence E+W

(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.

Commencement Information

I3 S. 17 in force at Royal Assent for specified purposes, see s. 100(2)(g)

18 Grant of full operating licence E+W

(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.

Commencement Information

I4 S. 18 in force at Royal Assent for specified purposes, see s. 100(2)(g)

19 Revocation and cessation of operating licence E+W

(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.

Commencement Information

I5 S. 19 in force at Royal Assent for specified purposes, see s. 100(2)(g)

Licence conditions E+W

20 Mandatory licence conditions E+W

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.

Commencement Information

I6 S. 20 in force at Royal Assent for specified purposes, see s. 100(2)(c)(g)

21 Discretionary licence conditions E+W

(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.

Commencement Information

I7 S. 21 in force at Royal Assent for specified purposes, see s. 100(2)(g)

22 Scope of powers to attach or vary discretionary licence conditions E+W

(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—

(a) all regulated clubs,

(b) each specified competition organiser, and

(c) such other persons as the IFR considers appropriate.

Commencement Information

I8 S. 22 in force at Royal Assent for specified purposes, see s. 100(2)(g)

23 Procedure for attaching or varying financial discretionary licence conditions E+W

(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.

Commencement Information

I9 S. 23 in force at Royal Assent for specified purposes, see s. 100(2)(g)

24 Commitments in lieu of financial discretionary licence conditions E+W

(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).

Commencement Information

I10 S. 24 in force at Royal Assent for specified purposes, see s. 100(2)(g)

25 Procedure for attaching or varying other discretionary licence conditions E+W

(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.

Commencement Information

I11 S. 25 in force at Royal Assent for specified purposes, see s. 100(2)(g)