The U.K. government has proposed a Football Governance Bill aimed at establishing an independent regulator to address issues related to 'rogue owners and directors' in English football.

Notably, parachute payments, which provide financial support to relegated top-flight clubs, were initially excluded from the Bill but are now included to better assess financial resilience.

The independent regulator will consider these parachute payments in its evaluations of television cash settlements between the Premier League and the English Football League (EFL).

This Bill, which has been reintroduced in Parliament, seeks to enhance the financial stability of clubs across the football hierarchy.

Originally introduced earlier this year, the Bill was revived by the current Labour Government after failing to pass before the July General Election.

With enhanced powers, the regulator aims to ensure the financial stability of soccer clubs and prevent future breakaway league attempts, such as the proposed Super League in 2021.

EFL chairman Rick Parry has criticized parachute payments for distorting Championship competitiveness, a sentiment now echoed by the Government.

While the Premier League argues that these payments are crucial for newly promoted clubs to compete, it also expresses concerns about the regulator's potential overreach affecting league competitiveness.

Fans, like Chris Newby from Norwich, warn that without regulatory intervention, clubs may continue to overspend, risking financial collapse and harming local communities.

The updated legislation mandates clubs to engage effectively with fans regarding ticket pricing and stadium relocation plans, addressing concerns over high costs for loyal supporters.

Culture Secretary Lisa Nandy has emphasized the need for financial stability in football to protect clubs and fans from mismanagement, highlighting the sport's significance to national pride.

The Bill aims to avoid the fate of lower league clubs like Bury and Macclesfield, which collapsed due to financial mismanagement and reckless spending.