The conditions Burnley’s owners must meet to obtain regulator licence

The process for Burnley and other clubs to obtain a licence under the new independent football regulator (IFR) soon gets underway.

Under the IFR, established last year to strengthen oversight of the game, all clubs in England’s top five divisions must apply for a provisional licence ahead of the 2027/28 season.

While pilot exercises took place this summer, official licence applications will run from November until February 2027.

The timing is especially pertinent for the Clarets given Companies House has recently issued a compulsory strike-off notice over overdue financial accounts for Velocity Capital (UK) Holdings, the club’s parent company.

The warning means the company is at risk of being struck off the official register and dissolved.

Velocity, the sports investment arm of ALK Capital, has failed to file a single set of accounts since it was incorporated in March 2023. Its first accounts were due on Christmas Eve 2024.

The IFR has already confirmed to the Burnley Express it is seeking answers about the circumstances surrounding the notice.

The regulator is also in active discussions with the English Football League (EFL) as concerns grow over the club’s parent company and its failure to meet financial reporting deadlines.

ALK Capital, who have also been subject to similar warnings, insist they are in direct contact with Companies House and are "fully committed" to bringing their accounts up to date as quickly as possible.

This could well be a necessity given financial sustainability forms a core part of the regulator’s licensing conditions.

As part of the licensing application, Burnley’s owners must provide a financial plan covering funding sources, revenue and expenditure projections and stress-tested cashflow forecasts.

But what else is required? Here, we take a look:

What does a licence application involve?

Burnley will have to illustrate two core components. The first being a personnel statement, which identifies the individuals who will hold responsibility for the administration and management of the club. The second is a strategic business plan, setting out how the club intends to operate sustainably.

What are the licensing conditions?

There are four key conditions. These are:

Financial sustainability: clubs are required to demonstrate that their financial plans are realistic, stress-tested and backed by credible funding.
Corporate governance: clubs must comply with a governance code published by the IFR and publish an annual corporate governance statement
Fan engagement: clubs must meet minimum thresholds for meaningful supporter consultation, particularly around decisions affecting heritage assets such as the club name, crest, home colours and ground location
Diversity, equity and inclusion: clubs must demonstrate they have frameworks in place that seek to promote the fair treatment and full participation of all people

What happens if the Clarets don’t meet the conditions?

The IFR has stated that it is not in the business of forcing clubs to close. Where concerns exist about a club's readiness, the expectation is that transitional arrangements will be put in place to support the club in meeting the required standards. The regular does, however, have significant enforcement powers, including the ability to enter premises and request records without prior notice.

How long does the provisional licence last?

Provisional licences are expected to be the initial form of licence issued following the application window. They are anticipated to run for approximately three years, during which clubs will be expected to demonstrate ongoing progress and compliance. Permanent licences will follow once the IFR is satisfied that the club is well-run, complies consistently with the mandatory conditions and has no owners or officers who have been determined unsuitable. Licensing is not a one-off exercise though, it is an ongoing obligation that requires clubs to maintain and evidence their governance standards year on year.