West Ham vice-chairman Karren Brady’s analysis of the Independent Football Regulator (IFR) appears to be wide of the mark.

The IFR was established last summer to promote sustainability within the English football pyramid and will be fully operational in the next two years.

Brady has voiced apprehension about the project, predicting it would discourage outside investment and be detrimental to the sport.

This directly affects West Ham, given recent speculation about a takeover by Czech billionaire Daniel Kretinsky.

However, IFR Chief Executive Officer Richard Monks and football finance expert Adam Williams have now dismissed Brady’s take on the situation.

Karren Brady raised concerns about the Independent Football Regulator

Karren Brady questioned the introduction of the Independent Football Regulator at the Hammers Business Network Event at London Stadium last January.

The vice-chairman argued that the football industry is already prosperous and that, therefore, “unprecedented and untested” regulation could create problems.

“Actually, football is very successful,” Brady said, via City AM. “Certain issues that have happened in football, those clubs have come back, and they have reemerged.

“This sort of scaremongering that every club is about to go bankrupt is simply not supported by the facts. So, regulation for regulation’s sake seems slightly odd to me.”

Brady also sounded the alarm about the IFR’s potential ability to take money away from Premier League clubs at their own discretion.

She added: “The biggest issue for me probably is the backstop power, where the regulator has the power to go into Premier League revenues, take their money — even if it then forces clubs to breach their own Premier League financial rules.”

Brady’s scepticism culminated in her disapproval of the IFR’s risk-averse approach, which could deter new investors and create a ‘closed shop’.

“All our thoughts are consumed with ‘how can we make West Ham better?’” she concluded. “If you’re handicapped for being able to do that because a regulator wants to take the least risky option, that would be terrible for football.”

If West Ham are relegated, just how worried are you about our finances?

The club has lost HUNDREDS OF MILLIONS over the last two seasons…

Independent Football Regulator CEO disagrees with Karren Brady stance

In contrast to Brady, CEO Richard Monks recently rejected the idea that the IFR will discourage investment in English football.

He insisted that not only would investors welcome the imminent changes, but many English teams (assumedly not including West Ham) would also support the regulation.

“Put yourself in an investor’s shoes,” Monks explained, as per The Athletic. “Would you want to invest in a club that has proper financial plans, clarity about how they’re funded, and robust plans in place in case things go wrong? I think if you’re an investor, you’d want this.

“It’s a positive for investment, and our regime is just common sense… This could be a very different regime, where the IFR is restricting clubs’ expenditure, but we’re absolutely not doing that.

“What we’re saying is, ‘If you want to spend, you can go ahead and do that,’ but we need to make sure the club is protected because that investment could dry up. I actually think that’s a positive message to investors and the engagement we’re doing with clubs would, so far, back that up.”

Would you take relegation if it meant that David Sullivan would leave?! 🤔

Not a nice position to be in – but what would YOU choose if you had to?

We are staying up! We are staying up! What a brilliant team performance v man city just a shame Summerville was fit and we could’ve won then with a goal on the break! COYI

Football finance expert believes regulation would actually benefit West Ham

Football finance and governance expert Adam Williams has now entered the debate over the potential impact of regulation on investment in the English game.

He fully supports the IFR’s rollout over the next few seasons, especially after Chelsea received the largest Premier League fine ever (£10.75 million) for financial breaches earlier this week.

Williams told Hammers News: “Investors want one thing above all else: certainty. There is a reason investors have historically flocked to the US and the West: those markets have been tightly and reliably regulated in the past. You know what you’re getting.

“I hope the Independent Regulator doesn’t overreach in the Premier League and EFL, but I see no reason in principle why the same logic wouldn’t apply in English football.”

Concerning West Ham, Williams is convinced that regulation would help the club secure investment, regardless of whether they avoid relegation or go down to the Championship.

“With West Ham, you’re probably talking about an investment worth £1 billion,” Williams continued. “If you’re putting up that much, you want to know what the rules of the game are and that the rules will be applied even-handedly.

“The Premier League has tried to prove that it can self-regulate, but it has failed. Look at the City case, Chelsea this week, state influence at Newcastle, private equity, and leveraged buyouts. The list goes on and on. As a commercial entity, the Premier League is a miracle. But as a regulator, it’s useless.

“If the Independent Football Regulator can ensure that there is a fair distribution of money throughout the pyramid, the cliff edge between the Premier League and Championship won’t be as pronounced.

“If they stay up this season, West Ham might have to give away more money to the EFL, but the club might also be able to operate more self-sufficiently, which is ultimately in their interests. The inverse is also true – if West Ham are relegated, a fairer distribution between the top and second flights would make them a significantly lower risk for an incoming investor.

“So the regulator might make investing in a club like West Ham more complex in the short term, but, in the long term, it will create a better ecosystem, which will make them even more investable.”

Williams’ expertise gives Hammers fans reason to believe that the impending regulation of the Premier League and the EFL is not an immediate cause for concern.