Levelling the Playing Field: Controlling Subsidies in Football

In this insight piece for NRF, authors Nuala Canavan, Matthew Gregory, Susanna Rogers, Mark Tricker, Mark Mills & James Dempsey (Norton Rose Fulbright) look into how the UK’s subsidy control regime is becoming increasingly relevant to professional football. Introduced in 2023 to replace the EU state aid framework, the regime governs financial assistance provided by public authorities and requires subsidies to be proportionate, justified, and minimally distortive to competition. As legal challenges under the new framework begin to increase, football could become a significant testing ground.

The authors examine the long-running dispute over the distribution of broadcasting revenues across the English football pyramid. Under the Football Governance Act 2025, the Independent Football Regulator (IFR) has the power to impose a revenue-sharing arrangement if clubs cannot reach agreement. Because such redistribution may involve public authority intervention and significantly affect competitive balance, any regulatory framework could potentially fall within the scope of the UK’s subsidy control rules.

They also explore the subsidy control implications of public funding for stadium development and football infrastructure. While local authority support can generate wider economic benefits, grants and financial assistance may face legal scrutiny if the required subsidy control procedures are not followed. The authors highlight recent attention surrounding funding for Wrexham AFC and draw parallels with the long-running “Sky Blue” litigation involving Coventry City’s stadium under the previous EU state aid regime.

The article notes that, as financial pressures within football continue to grow and the IFR prepares to implement its licensing framework, subsidy control considerations are likely to become an increasingly important aspect of governance and regulatory decision-making. Both revenue redistribution and public investment in football facilities may therefore attract greater legal scrutiny, with clubs, regulators, and public authorities needing to carefully assess compliance with the UK’s subsidy control framework…

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