Deloitte's Involvement in Setting up Football's Independent Regulator Raises Concerns

Introduction

Deloitte, the Premier League's auditor, has been awarded a key contract to help set up football's independent regulator, according to sources. However, concerns have been raised about a potential conflict of interest, as Deloitte signed off on the Premier League's most recent annual accounts. The regulator's precise remit is still unclear, as the publication of the Football Governance Bill is awaited.

Deloitte's Involvement

The involvement of Deloitte in setting up the independent regulator has raised eyebrows. The EFL and campaign groups want the regulator to review any new deal between the Premier League and the EFL regarding the split of television cash. They want to ensure that the deal aligns with the regulator's aim of promoting financial sustainability in the sport. However, there are concerns about potential conflicts of interest due to Deloitte's previous role in signing off on the Premier League's accounts.

Government's Response

Government sources have stated that Deloitte's contract will focus on providing support for the design and implementation of the regulator's operating model. They emphasize that Deloitte will not be involved in developing regulator policy or providing advice on it. The government also assures that any potential conflicts of interest will be managed in the usual way and were considered during the procurement process.

The Role of the Regulator

The regulator's core objectives include overseeing football's finances and rewarding well-run clubs. The EFL chairman has stressed the importance of independent analysis by the regulator in reaching the right solution for financial distribution and cost controls. However, there are concerns that the proposed backstop powers of the regulator can only be triggered by the Premier League and the EFL authorities. This raises questions about the regulator's ability to intervene and correct any settlement that is agreed upon.

The Deal Under Discussion

The deal being discussed between the Premier League and the EFL is believed to be worth an additional £900 million over six years for the EFL's clubs. However, the EFL has reservations about the cost control measures attached to the deal. Championship clubs are expected to be capped at spending around 70% of revenue on squad costs, while relegated clubs will be capped at 85% during the receipt of parachute payments. This discrepancy in spending limits could widen the gap between the top two divisions.

Conclusion

The involvement of Deloitte in setting up football's independent regulator has raised concerns about potential conflicts of interest. The regulator's precise remit is still unclear, and there are worries about its ability to intervene and correct any settlement agreed upon by the Premier League and the EFL. The deal under discussion between the two leagues includes additional funding for the EFL's clubs, but there are reservations about the attached cost control measures. The publication of the Football Governance Bill, which will establish the regulator, is still awaited.