LawDeb and LCP call for boardroom reforms as new football governance era begins

A new report published today by sports experts at LCP and governance specialists The Law Debenture Corporation plc (“LawDeb”) warns that meaningful reform in football governance must start in the boardroom.

The report, Football Governance in Transition, follows the Football Governance Bill receiving Royal Assent, confirming the creation of the Independent Football Regulator (IFR).

Drawing on analysis of the boards of the 116 clubs in the English men’s football pyramid, which will be regulated by the IFR, the report highlights crucial gaps in corporate governance. These include clubs with inadequate board size, poor gender diversity, a lack of younger representation, and a limited understanding of the unique structure and culture of English football.

These issues have contributed to many of the problems and failures at clubs, highlighted by three recent examples covered in the report at Reading FC, Scunthorpe United and Southend United. Recognising, however, that many clubs are run well, with good governance at boardroom level, the report also includes a case study of Lincoln City FC.

Key highlights from the report include:

• Over 30% of club directors are now from overseas, with nearly 20% of directors from North America
• More than 15% of clubs (18) have fewer than three directors, which raises concerns around board capacity and scrutiny
• Fewer than 10% of directors are women, with two thirds of clubs (77) having all-male boards
• Fewer than 10% of directors are under the age of 40

To address these issues, LCP and LawDeb are urging three key recommendations to support good and effective governance across the men’s football pyramid:

A minimum of three directors on every board
Football clubs are important community organisations with multiple stakeholders, including fans and local businesses. A legal requirement for regulated clubs to have at least three directors would reduce risks associated with small boards, ensuring better scrutiny and the capacity to undertake the range of roles needed to run a club.

Training and qualifications for directors
A common cause of governance failures is a lack of understanding by owners and directors of English football’s unique regulations, structure and culture. LCP and LawDeb recommend that all directors should be required to have a minimum level of knowledge and understanding of the laws, regulations, structure and culture of the game. This should be facilitated by the Independent Football Regulator providing a training programme or toolkit, similar to what is seen in other regulated industries such as pensions.

Additionally, they suggest that at least one director on each board should hold a formal qualification based on this training.

The Independent Football Regulator to set targets to improve diversity in football club boardrooms
The current landscape reveals a significant gender imbalance, with most boards dominated by men, despite many clubs operating associated women’s teams and serving diverse fanbases. The IFR should set clear targets to monitor and promote greater diversity across football club boardrooms as a whole.

Patrick Davis, Head of UK Corporate Secretarial Services at LawDeb added:

“It has been a privilege to partner with LCP on this comprehensive review of governance within football club boardrooms. It’s clear from our research that the governance landscape is a tale of two cities: while some clubs are managed effectively, a significant number continue to operate with limited board sizes and insufficient diversity. We believe that implementing stronger codes of conduct and enhancing corporate governance practices are essential steps in raising standards across the sport and ensuring clubs are better equipped for sustainable success.”

Aaryaman Banerji, Head of Football Governance, at LCP said:

“The introduction of the Independent Football Regulator marks a watershed moment for the game. It offers a real opportunity to drive meaningful change in protecting clubs, fans, communities and the wider football industry. At the heart of this change must be good governance at a club level. As the report shows, this needs to start by resetting boardroom standards, ensuring these can operate effectively and that directors are appropriate and well-informed.”

Bart Huby, Head of Sport Analytics and Advisory at LCP, said:

“It’s been a real pleasure working with LawDeb on this analysis of football club boardrooms and governance. While many clubs are well run, our analysis shows there are also far too many where the board is too small and/or lacks diversity – and we believe our recommendations would go a long way to improving the quality of boardroom decision-making and reducing the risk of clubs failing.”

Read the report in full here