The UK government will establish an independent football regulator when the Football Governance Bill is introduced in Parliament on Tuesday.
The legislation will grant powers to a standalone body - independent of both government and football authorities - to oversee the UK's national sport.
Rick Parry, chair of the English Football League , 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."
"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."New club owners and directors will face stronger tests to help prevent the possibility of them putting clubs out of business, as was the case with Bury and Macclesfield, while a licensing system covering clubs from the National League up to the Premier League has been proposed.
"The new regulator will set the game on a sustainable footing, strengthening clubs and the entire football pyramid for generations."The bill also includes new backstop powers around financial distributions between the Premier League and the EFL, so that if the two parties continue toThe government has long warned the football authorities that an independent football regulator would have such powers to intervene.