Part 5

Duties on clubs and competition organisers etc

Duties on regulated clubs and formerly regulated clubs etc

Duty not to operate a team in relation to a prohibited competition
45
1
A club to which subsection (2) applies must not operate a team in relation to a prohibited competition.
2
This subsection applies to—
a
a regulated club, or
b
a club that is not a regulated club but has been a regulated club at any point within the previous 10 years.
3
In calculating the period of 10 years mentioned in subsection (2)(b), no account is to be taken of any time before the coming into force of this section.
4
A “prohibited competition” is a competition specified as a prohibited competition for the purposes of this section in rules made by the IFR.
5
In considering whether to specify a competition as a prohibited competition, the IFR must have regard to—
a
whether the competition—
i
is, or would be, merit-based,
ii
operates, or would operate, on the basis of fair and open competition,
iii
jeopardises, or would jeopardise, the sustainability of relevant competitions,
iv
jeopardises, or would jeopardise, the sustainability of clubs operating teams in relation to relevant competitions, and
v
harms, or would harm, the heritage of English football, and
b
any other factors that the IFR specifies in rules.
6
Before specifying a competition as a prohibited competition, the IFR must give the competition organiser a notice—
a
stating that it proposes to specify the competition as a prohibited competition,
b
explaining why it proposes to take such action,
c
inviting the competition organiser to make representations about the proposed action, and
d
specifying the means by which, and the period within which, such representations may be made,
and must have regard to any representations duly made.
7
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.
8
Before specifying a competition as a prohibited competition, the IFR must—
a
take reasonable steps to determine the views of fans in England and Wales of regulated clubs about the competition being specified as a prohibited competition, and
b
have regard to those views.
9
Before specifying a competition as a prohibited competition, the IFR must consult—
a
the Football Association, and
b
such other persons as the IFR considers appropriate.
10
The IFR may specify a competition as a prohibited competition—
a
whether or not any of the matches included in that competition are played, or are to be played, in England or Wales or in any other part of the United Kingdom;
b
whether or not the teams that are entered into it, or that are members of it, or that participate in it are, or are to be, exclusively or predominantly English teams.
11
For the purposes of this section—
- “English team” has the meaning given by section 2(4);
- “relevant competition” means any competition (other than a prohibited competition) where the teams that are entered into it, or that are members of it, or that participate in it are exclusively or predominantly English teams.

Duty not to dispose etc of home ground without approval
46
1
A body to which subsection (2) applies must notify the IFR where the body considers that there is a reasonable prospect of the body—
a
disposing of any freehold or leasehold interest that the body holds in its home ground or any part of the home ground, or
b
using any interest that the body holds in its home ground, or any part of the home ground, as security in respect of a loan or other liability.
2
This subsection applies to—
a
a body that is a regulated club, or
b
a body that is not a regulated club but has been a regulated club at any point within the previous 5 years (a “formerly regulated club”).
3
In calculating the period of 5 years mentioned in subsection (2)(b), no account is to be taken of any time before the coming into force of this section.
4
A notification under subsection (1) must be given as soon as reasonably practicable after the body considers the duty under that subsection to have arisen.
5
A body to which subsection (2) applies must obtain the approval of the IFR before it takes any step mentioned in subsection (1).
6
The IFR must grant approval for the taking of any step mentioned in subsection (1) if—
a
where the body is a regulated club, it is satisfied that the taking of the step would not undermine the financial sustainability of the club;
b
where the body is a formerly regulated club, it is satisfied that the body has taken all reasonable steps to ensure that a team customarily plays its home matches at the ground.
7
The IFR may not grant approval in any other circumstances.
8
The IFR must, as soon as reasonably practicable after the body has sought approval, decide whether to grant approval under subsection (6).
9
The IFR must notify the body of its decision to grant, or not to grant, that approval and give reasons for its decision.
10
In this section, “home ground”—
a
in relation to a body that is a regulated club, means the ground at which a relevant team operated by it customarily plays its home matches;
b
in relation to a body that is a formerly regulated club, means the ground at which a relevant team operated by it immediately before it ceased to be a regulated club customarily played its home matches.

Duty not to appoint administrator without approval
47
1
A body to which section 46(2) applies must notify the IFR as soon as reasonably practicable after the body considers that there is a reasonable prospect of an administrator of the body being appointed under paragraph 22 of Schedule B1 to the Insolvency Act 1986 (“the 1986 Act”) (including that paragraph as applied in relation to partnerships by an order under section 420 of that Act).
2
An administrator of a body to which section 46(2) applies may not be appointed as mentioned in subsection (1) without the approval of the IFR.
3
Approval under subsection (2)—
a
must be in writing, and
b
must accompany the notice of intention to appoint filed under paragraph 27 of Schedule B1 to the 1986 Act.
4
But in a case where the notice of intention to appoint mentioned in subsection (3)(b) is not required—
a
subsection (3)(b) does not apply, but
b
approval under subsection (2) must accompany the notice of appointment filed under paragraph 29 of Schedule B1 to the 1986 Act.

Duties on regulated clubs

Duty not to relocate without approval
48
1
A regulated club must notify the IFR where the club considers that there is a reasonable prospect of the club entering into arrangements whereby a relevant team operated by it would play its home matches at a ground other than the club’s home ground.
2
A notification under subsection (1) must be given as soon as reasonably practicable after the club considers the duty under that subsection to have arisen.
3
The club must obtain the approval of the IFR before it enters into the arrangements mentioned in subsection (1).
4
The IFR must grant approval for the club entering into those arrangements if it is satisfied that —
a
the arrangements would not undermine the financial sustainability of the club,
b
the arrangements would not cause significant harm to the heritage of the club,
c
the club has taken reasonable steps to determine the views of its fans about the effect of the arrangements on the relevant matters set out in paragraph 4(2) of Schedule 4, and
d
the club has had regard to those views in considering whether to enter into the arrangements.
5
The IFR may not grant approval in any other circumstances.
6
The IFR must, as soon as reasonably practicable after the club has sought approval, decide whether to grant approval under subsection (4).
7
The IFR must notify the club of its decision to grant, or not to grant, that approval and give reasons for its decision.
8
In this section “home ground”, in relation to a regulated club, has the meaning given by section 46(10)(a).

Duty not to change crest, home shirt colours or name without approval
49
1
A regulated club must not make any material changes to—
a
any emblem or crest of a relevant team operated by the club, or
b
the predominant home shirt colours of such a team,
unless the club has taken reasonable steps to establish that the changes are supported by a majority of the club’s fans in England and Wales.
2
A regulated club must not change the name of a relevant team operated by the club unless the change has been approved by the Football Association.

Duty to notify of changes in circumstances relevant to the IFR’s functions
50
1
A regulated club must notify the IFR where the club considers that there has been, or may have been, a material change in circumstances affecting the club that is relevant to the exercise of the IFR’s functions under this Act.
2
A notification under subsection (1) must be given as soon as reasonably practicable after the club considers that there has been, or may have been, such a change of circumstances.
3
A club is not required to notify the IFR under this section of any material change in circumstances that the club has notified to the IFR under or by virtue of any other provision of this Act.

Duty to keep fans informed of insolvency proceedings
51
1
A regulated club that is in relevant insolvency proceedings must take reasonable steps to keep its fans informed about the progress of the proceedings.
2
“Relevant insolvency proceedings” has the meaning given by paragraph 13(3) of Schedule 1.

Duties on licensed clubs

Duty to publish a personnel statement
52
1
A licensed club must—
a
prepare a personnel statement (within the meaning of section 16), and
b
submit it to the IFR for approval.
2
A statement submitted to the IFR for approval must be accompanied by a statement explaining why the club considers the statement to be accurate (but this is subject to subsection (8)).
3
The IFR—
a
may approve the statement with or without modifications, and
b
may approve the statement only if satisfied that it is accurate.
4
Before approving the statement with modifications, the IFR must consult the club.
5
The club must publish the approved statement online as soon as reasonably practicable after the IFR approves the statement.
6
The first statement must be submitted to the IFR as soon as reasonably practicable after the club becomes a licensed club, subject to subsection (8).
7
A new statement must be submitted to the IFR as soon as reasonably practicable after the most recent approved statement becomes inaccurate in a material particular.
8
Where the first personnel statement submitted by a club to the IFR in accordance with subsection (6) would be the same as the personnel statement submitted by the club to the IFR under section 16, the club may require the IFR to treat the statement submitted under that section as its first personnel statement for the purposes of this section.

Duty to pay a levy
53
1
The IFR may require a club to pay to the IFR a levy in respect of a chargeable period during which the club is a licensed club.
2
The amount of the levy is to be calculated in accordance with rules made by the IFR (“levy rules”).
3
Levy rules must secure that the aggregate amount payable by virtue of this section in respect of a chargeable period does not exceed the sum of—
a
the costs which the IFR estimates it will incur in exercising its functions under this Act during that period, which may include an amount in respect of contingencies in relation to that period,
b
the amount of any financial reserves which the IFR considers it appropriate to raise in that period for the purpose of meeting any costs of exercising its functions under this Act in future periods,
c
where the IFR’s actual costs incurred in exercising its functions under this Act in the previous chargeable period exceed the IFR’s estimate of those costs, the amount by which the IFR’s actual costs in the previous period exceeded the IFR’s estimate,
d
where the IFR’s estimate of the costs it would incur in exercising its functions in the previous chargeable period exceeds the IFR’s actual costs incurred, the amount (expressed as a negative figure) by which the IFR’s estimated costs in the previous period exceeded the IFR’s actual costs, and
e
an amount in respect of any of the IFR’s initial costs, and any of the Secretary of State’s establishment costs, that have not been recovered before the beginning of the chargeable period.
4
“The IFR’s initial costs” are the costs incurred by the IFR before the first chargeable period—
a
in preparing for the exercise of any of its functions under this Act, and
b
in exercising any of those functions.
5
“The Secretary of State’s establishment costs” are such costs as are—
a
incurred by the Secretary of State in relation to the establishment of the IFR before the coming into force of section 5, and
b
notified by the Secretary of State to the IFR before the first chargeable period.
6
Levy rules must make provision about—
a
how the IFR is to estimate the costs which it expects to incur in exercising its functions under this Act during a chargeable period;
b
how the IFR is to calculate the costs which it actually incurs in exercising those functions during a chargeable period;
c
how the IFR is to calculate an appropriate financial reserve to raise in a chargeable period;
d
how the IFR is to calculate the IFR’s initial costs;
e
the number of chargeable periods over which the IFR’s initial costs and the Secretary of State’s establishment costs will be recovered (“recovery periods”);
f
the maximum percentage of the IFR’s initial costs and of the Secretary of State’s establishment costs that may be recovered in each recovery period;
g
how the aggregate amount payable in respect of a chargeable period is to be divided between clubs that are licensed clubs during that period;
h
the administration and payment of the levy.
7
Levy rules may make provision—
a
for a club that would otherwise be required to pay the levy to not be required to pay it where conditions specified in levy rules are met;
b
for interest to be charged, at a rate specified in or calculated in accordance with the rules, on any amount of levy not paid by the day on which it is due.
8
If levy rules make the provision mentioned in subsection (7)(b), they must provide—
a
for the rate at which interest is charged not to exceed an annual percentage rate of 5% plus the Bank of England base rate,
b
that the IFR may charge interest at a rate determined by the IFR that is lower than the rate that would otherwise be applicable under the rules, where the IFR considers that appropriate, and
c
that the IFR may disapply a requirement for interest to be charged, where the IFR considers that appropriate.
9
In making the provision mentioned in subsection (6)(g) the IFR must (among other things) have regard to—
a
the financial resources of each licensed club, and
b
the specified competition in relation to which a relevant team is operated by each licensed club.
10
An amount payable by a club in accordance with this section and levy rules is recoverable as a civil debt due to the IFR.
11
For the purposes of this section and section 54 a “chargeable period” means—
a
the period of 12 months beginning with such day as may be specified by the IFR by notice for the purposes of this subsection (which is the first chargeable period), and
b
each subsequent period of 12 months.

Section 53: consultation and publication
54
1
Before making, amending or replacing levy rules the IFR must consult—
a
the Secretary of State,
b
the Treasury,
c
all regulated clubs, and
d
such other persons as the IFR considers appropriate.
2
Subsection (1) does not apply in relation to amendments to or replacements of levy rules if the IFR considers the changes to be minor.
3
The consultation must include a draft of the proposed levy rules.
4
As soon as reasonably practicable before the start of a chargeable period (“period A”) the IFR must publish—
a
an estimate of the costs which it expects to incur in exercising its functions under this Act during period A;
b
the actual costs of exercising those functions during the chargeable period immediately before period A (unless period A is the first chargeable period);
c
the amount of financial reserves which it considers it appropriate to raise in period A (if any);
d
the amount to be recovered in period A in respect of the IFR’s initial costs and the Secretary of State’s establishment costs (if any);
e
the amount of the IFR’s initial costs and the Secretary of State’s establishment costs that it has not recovered before the start of period A (if any);
f
the amount payable by each licensed club in respect of period A;
g
such information as it considers appropriate to explain how those costs and amounts are determined.
5
Where the IFR by notice specifies a day for the purposes of section 53(11) the IFR must, as soon as reasonably practicable after specifying the day, publish that notice.
6
In this section “the IFR’s initial costs” and “the Secretary of State’s establishment costs” have the same meanings as in section 53.

Duties on specified competition organisers

Duties to notify and consult the IFR
55
1
A specified competition organiser must notify the IFR where—
a
the organiser considers that there is a risk of the IFR’s ability to advance its club financial soundness objective or its systemic financial resilience objective being jeopardised,
b
the organiser has failed to comply with a commitment accepted by the IFR under section 24 or the organiser considers that there is an immediate risk of it failing to so comply, or
c
the organiser considers or suspects that a club has breached a relevant rule of a specified competition.
2
A notice under subsection (1) must—
a
explain why the specified competition organiser considers the duty under that subsection to have arisen, and
b
be given as soon as reasonably practicable after the specified competition organiser considers the duty under that subsection to have arisen.
3
A specified competition organiser must also notify the IFR before a penalty, sanction or other requirement (whether financial or otherwise) is imposed, whether by the organiser or another person, on a club that breaches or is suspected to have breached a relevant rule of a specified competition.
4
Where a notice under subsection (3) is not given before a penalty, sanction or other requirement is imposed, the specified competition organiser must notify the IFR of the fact that a penalty, sanction or other requirement has been imposed as soon as reasonably practicable after becoming aware of that fact.
5
A notice under subsection (3) or (4) must explain why the penalty, sanction or other requirement is being or has been imposed.
6
A specified competition organiser must consult the IFR before—
a
adding or removing a relevant rule of a specified competition, or
b
varying a relevant rule of a specified competition, unless the variation is not material.
7
A consultation under subsection (6) must—
a
explain why the specified competition organiser is proposing to add, remove or vary the relevant rule of a specified competition;
b
include a draft of the additional or varied rule.
8
In this section, “relevant rule of a specified competition” means a rule of the specified competition organised by the specified competition organiser that is relevant to the exercise of any of the IFR’s functions under this Act.
S. 45 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 46 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 47 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 48 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 49 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 50 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 51 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 52 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 53 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 54 in force at Royal Assent for specified purposes, see s. 100(2)(g)
S. 55 in force at Royal Assent for specified purposes, see s. 100(2)(g)