Football Governance Act 2025 · Licensing from 2027/28
Independent Football Regulator vs SCR: who regulates what
The IFR and SCR side by side
The two are designed to stack, not compete. A club can pass the Premier League's SCR Compliance Test and still be told by the IFR that its finances depend too heavily on an owner who might walk away; equally, a well-run club can breach SCR and lose points without the regulator taking any interest. It is the same pattern as the UEFA rule and the Premier League's SCR: different regulators, different questions, the same club.
Licensing timeline
| Date | What happens |
|---|---|
| 21 July 2025 | Football Governance Act 2025 receives Royal Assent; the IFR exists in law. |
| 1 July 2026 | The IFR publishes its final licensing rules. Ground, relocation and heritage protections also take effect. |
| 2 November 2026 | The Independent Football Regulator opens its application window for clubs to obtain a provisional operating licence under the Football Governance Act 2025, running until 26 February 2027. Every club in the top five men's divisions needs a provisional licence to compete in 2027/28, alongside - not instead of - each competition's own SCR/SCMP financial rules. |
| 26 February 2027 | Last day for the 116 clubs in the top five men's divisions to apply to the Independent Football Regulator for a provisional licence. Clubs promoted into the National League from National League North or South apply after promotion instead, within five days of the season's end or the play-off final. |
| End of May 2027 | The Independent Football Regulator expects to decide every provisional-licence application by the end of May 2027, before the leagues' AGMs. It has three months from a complete application and can extend that, so this is the IFR's stated aim rather than a fixed deadline. |
| 2027/28 season | All provisional licences take effect on the same date; no club can compete in the top five divisions without one. |
| From June 2028 | Earliest move to a full licence, after a year of reporting. A provisional licence lasts up to three years, so the latest is the end of 2029/30. |
Every SCR and IFR date in one calendar →
What a club needs for a licence
Every provisional licence carries four Mandatory Licence Conditions:
- A financial plan setting out how the club will fund itself.
- A corporate governance statement against the IFR's Football Club Corporate Governance Code.
- Fan consultation: a standing way of consulting supporters on matters that affect them.
- An annual declaration of compliance, which also confirms the club's non-financial resources are appropriate.
To move to a full licence a club must meet three Threshold Requirements: financial resources, non-financial resources and fan engagement. Separately, owners and directors face a test of honesty, integrity and financial soundness (and competence, for directors and senior managers).
What the IFR does not do
- It does not run SCR, PSR or SCMP. Those are the leagues' own rules and the leagues still enforce them.
- It cannot deduct points. The Act's sanctions are censure, financial penalties (up to 10% of a club's total revenue) and suspending or revoking a licence.
- It sets no league-wide spending cap. A spending restriction can only be a condition on one club's licence, covering its overall spending rather than a particular kind of cost or a particular deal.
- It does not set how TV money is shared, unless a competition asks it to. Its backstop on distributions can only be triggered by a competition organiser, and starts with mediation.
Parachute payments and the State of the Game report
The IFR's first State of the Game report covers how money flows through the pyramid, including parachute payments, solidarity payments and the "cliff-edges" between divisions. As of 2 October 2026 no draft had been published: the IFR says it will consult on one later this year and must publish the report by May 2027. Parachute payments matter to SCR because they inflate a relegated club's revenue, and with it the 85% limit, for two or three seasons after it goes down.
Grounds, badges and breakaways
Since 1 July 2026 a club needs IFR approval to sell or borrow against its home ground, or to move. A material change to its crest or main home colours needs evidence that most fans support it, and a name change needs FA approval. Clubs are also barred from joining any competition the IFR names as prohibited, a duty that follows a club for ten years after it leaves the regulated tiers.
Frequently asked questions
What is the Independent Football Regulator?
The Independent Football Regulator (IFR) is a statutory body created by the Football Governance Act 2025, which received Royal Assent on 21 July 2025. It licenses the 116 clubs in the top five tiers of the English men's game (Premier League, Championship, League One, League Two and the National League) and judges whether each club is financially sustainable, well governed and listens to its fans.
Does the Independent Football Regulator replace SCR or PSR?
No. The Premier League's and the EFL's own financial rules, including the Squad Cost Ratio (SCR) and League One and Two's SCMP, carry on and are enforced by the leagues. The IFR sits above them as a licensing regulator. The Act gives it censure, fines and licence suspension or revocation, but no power to deduct league points.
When do clubs apply for an IFR licence?
The provisional licence application window runs from 2 November 2026 to 26 February 2027. The IFR expects to decide every application by the end of May 2027, before the leagues' AGMs, and clubs need a provisional licence to compete from the 2027/28 season.
What happens if a club does not get an IFR licence?
A club without a licence cannot compete in the top five divisions. The IFR describes refusing a licence as a last resort.
Can the IFR cap a club's spending?
Not league-wide. It can attach a discretionary licence condition to a single club that restricts its overall spending, among other financial conditions (debt management, liquidity), but such a condition may not target a particular kind of expenditure or a particular transaction (Football Governance Act 2025, section 22).
Will the IFR change parachute payments?
Not directly yet. Parachute and solidarity payments are in scope of its first State of the Game report, which it must publish by May 2027. If the leagues cannot agree how money is shared, only a competition organiser can ask the IFR to step in under its backstop powers.