Explanatory memorandum to statutory guidance on the meaning of significant influence or control in the context of the Football Governance Act 2025
Published 27 October 2025
© Crown copyright 2025
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1. Introduction
1.1. This Explanatory Memorandum has been prepared by the Department for Culture, Media and Sport (DCMS) and is laid before Parliament by Command of his Majesty.
1.2. This memorandum contains information for the House of Lords Secondary Legislation Scrutiny Committee (SLSC).
2. Declaration
2.1. Stephanie Peacock, Minister for Sport, Tourism, Civil Society and Youth at DCMS confirms that this Explanatory Memorandum meets the required standard.
2.2. Adam Crockett, Deputy Director for Football Governance, at DCMS confirms that this Explanatory Memorandum meets the required standard.
3. Contact
3.1 Laura Fleck at DCMS can be contacted at the following address with any queries regarding the guidance: football-governance-team@dcms.gov.uk.
Part One: Explanation, and context of the Guidance
4. Overview of the Guidance
What does the guidance do?
4.1. Paragraph 15 of Schedule 1 to the Act requires the Secretary of State to prepare and publish guidance about the meaning of “significant influence or control” for the purposes of Schedule 1. The guidance supports the Schedule 1 definition of an “owner” by explaining how “significant influence or control” should be interpreted, and provides non-exhaustive examples for practical application.
Where does the guidance extend to, and apply?
4.2. The guidance relates to the statutory regime established by the Act, which applies to England and Wales.
5. Policy context
What is being done and why?
5.1. The guidance sets out what is meant by the concept of “significant influence or control” and how individuals may be in scope of the Independent Football Regulator’s (IFR) tests under Part 4 of the Act. The guidance gives examples to help interpret the concept, however, it is not designed to be an exhaustive statement of what constitutes significant influence or control.
What was the previous policy, how is this different?
5.2. There was previously no statutory guidance on this concept in football regulation. The Act introduces the framework; the draft guidance provides interpretative detail and examples.
6. Legislative and legal context
How has the law changed?
6.1. No law change. This is statutory guidance produced following new primary legislation.
Why was this approach taken to change the law?
6.2. The draft guidance does not amend the law. It is issued under Schedule 1 to the Act and regard must be had to it when interpreting the phrase “significant influence or control” within that Schedule.
7. Consultation
Summary of consultation outcome and methodology
7.1. The Act does not require a formal consultation on the guidance. Officials carried out engagement with industry stakeholders at a formative stage, testing our approach to the guidance with: the Premier League, English Football League, National League, Football Association, Football Supporters’ Association and a range of clubs from each league. The final draft reflected feedback that was received.
8. Applicable guidance
8.1. There is no applicable guidance to go alongside the statutory guidance that is being laid.
Part Two: Impact and the Better Regulation Framework
9. Impact Assessment
9.1. A full Impact Assessment has not been prepared for the guidance because the guidance is simply supplementing and confirming the remit of the Act and the IFR. The Act had an Impact Assessment prepared for it, which concluded:
An increase in use and non-use value to fans and communities as a result of all clubs being run more in line with their interests (as opposed to the short term interests of owners), relative to those of only owners under the counterfactual (‘governance benefits’). There are a number of non-monetised benefits, meaning that the monetised benefits are likely a conservative estimate of the overall benefits.
9.2. With regards to this specific statutory guidance, however, there will be no additional effect to businesses as it will be used to interpret who is acting as an owner of football clubs. It will not change existing roles, but it may lead to individuals being tested under Part 4 of the Act by the IFR. The associated impact of strengthened, statutory tests was set out in the existing Impact Assessment.
Impact on businesses, charities and voluntary bodies
9.3. There is no, or no significant, impact on business, charities or voluntary bodies because the guidance imposes no new regulatory duties and serves only to clarify interpretation of provisions already set out in the Act.
9.4. The guidance does not impact small or micro businesses.
9.5. There is no, or no significant, impact on the public sector because the guidance creates no new legal obligations and serves only to clarify interpretation of provisions already set out in the Act.
10. Monitoring and review
What is the approach to monitoring and reviewing this guidance?
10.1. In line with paragraph 15 Schedule 1, Part 2 of the Act the Secretary of State may revise guidance published. In addition, section 96 of the Act requires a statutory review of the Act after five years from the coming into force of section 15; that review may consider whether the guidance remains appropriate in practice.