The UK government will continue plans for an independent football regulator when the Football Governance Bill is introduced in Parliament on Tuesday.
The legislation would grant powers to a body, independent of both government and football authorities, to oversee clubs in England’s top five tiers.
The government announced plans to appoint a regulator in February 2023, following a fan-led review in 2022.
Prime Minister Rishi Sunak said it is “a historic moment for football fans”.
“It will make sure their voices are front and centre,” he added. “Football has long been one of our greatest sources of national pride.
“But for too long some clubs have been abused by unscrupulous owners who get away with financial mismanagement, which at worst can lead to complete collapse – as we saw in the upsetting cases of Bury and Macclesfield Town.”
After the Bill is introduced, it must go through a parliamentary process before it is made law.
The legislation follows a fan-led review, which said a regulator was necessary for the long-term financial stability of the men’s professional game after issues including financial mismanagement and plans for a breakaway European Super League.
Everton and Nottingham Forest have both been deducted points this season for breaching Premier League profit and sustainability rules (PSR).
The regulator will have powers revolving around three core objectives: improving the financial sustainability of clubs, ensuring financial resilience across the leagues and safeguarding English football’s heritage.
Rick Parry, chair of the English Football League (EFL), said: “If delivered on the right terms, this landmark legislation can help fix the game’s broken financial model by offering the independent input ultimately needed to help ensure that all clubs can survive and thrive in a fair and competitive environment.”
A Premier League statement read: “With our clubs, we have advocated for a proportionate regime that enables us to build on our position as the most widely watched league in the world.
“Mindful that the future growth of the Premier League is not guaranteed, we remain concerned about any unintended consequences of legislation that could weaken the competitiveness and appeal of English football.
“The Premier League remains fully committed to delivering its world-leading funding to the wider game, through £1.6bn distributed to all levels of football across the current three-year term.”