Deloitte's Role in Establishing Football's Independent Regulator Raises Concerns and Sparks Debate

Introduction

Deloitte, the Premier League's auditor, has been awarded a key contract to help establish football's independent regulator. This move has raised concerns about a potential conflict of interest, as Deloitte previously signed off on the Premier League's annual accounts. The regulator's precise remit is still unclear, pending the publication of the Football Governance Bill. However, the EFL and campaign groups are advocating for the regulator to review any new deals between the Premier League and the EFL regarding the distribution of television cash.

Deloitte's Role

Deloitte's involvement in setting up the regulator will focus on providing support in designing and implementing the regulator's operating model. The firm will assess the structure, staffing, and infrastructure requirements of the regulator. It is important to note that Deloitte will not be involved in developing regulator policy or providing advice on it.

Managing Conflicts of Interest

The government sources have stated that any potential conflicts of interest will be managed in the usual way and were considered during the procurement process. The government and Deloitte have declined to comment further on the matter.

The Importance of Independent Analysis

EFL chairman Rick Parry emphasized the need for independent analysis by the regulator to ensure the right solution for financial distribution and cost controls. The EFL has expressed its desire for the regulator to have the power to intervene and correct any settlements agreed upon between the Premier League and the EFL.

Concerns and Misgivings

The deal being discussed between the Premier League and the EFL is 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. The 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 raises concerns about the competitiveness and sustainability of non-parachute clubs.

Moving Forward

The Premier League clubs are still in discussions on how to fund the additional support for the EFL, as well as implementing a new financial system to replace the profitability and sustainability rules. Further shareholder meetings are scheduled for February 29 and March 11, with the latter expected to be decisive in progressing this issue.

Conclusion

The involvement of Deloitte in setting up football's independent regulator has sparked debate and raised concerns about potential conflicts of interest. The regulator's role in ensuring financial sustainability and fair distribution of television cash is crucial for the future of the sport. The EFL and campaign groups are advocating for the regulator to have the power to intervene and correct any settlements that may be agreed upon. The discussions between the Premier League and the EFL regarding additional funding and a new financial system are ongoing, with further meetings scheduled to move the process forward.