The reintroduced Football Governance Bill will also give the new regulator “backstop powers”, which could be used to intervene between the Premier League and the English Football League (EFL) after their failure to agree a funding deal. Talks over a so-called ‘New Deal’ collapsed in March, with the two organisations unable to agree a funding plan.
In his letter, Theodoridis told Nandy that “the concept of a backstop power introduces significant concerns regarding the balance of power within football governance”.
He wrote: “Mandating redistribution which effects the competitive balance in the game and wider European competition would be of concern to us. We also fear that having a third party intervene in redistribution would likely prevent amicable solutions being found.
“As we see it, the ‘backstop’ power, while intended as a safety net, should be carefully reconsidered to avoid undermining these fundamental principles.”
In a statement, the Department for Culture, Media and Sport (DCMS) said: “The Football Governance Bill will establish a new Independent Football Regulator that will put fans back at the heart of the game, and tackle fundamental governance problems to ensure that English football is sustainable for the benefit of the clubs’ communities going forward.”
Privately, officials are said to believe there is no risk of England being banned by Uefa.
In May, David Newton, the FA’s head of football operations, told MPs: “Uefa and Fifa have statutes of their own, which basically prevent state interference in the running of football and football competitions.
“We have worked closely with Uefa and Fifa, and with the DCMS… They have been taken through where we have got to.
“Although we have not had a definitive view as such, it is reasonably clear that a tightness of the bill relating to football governance is not likely to present huge or significant problems, subject to any changes that may occur.
“However, anything wider would increase the risk of Fifa or Uefa intervention. That is obviously a place we do not want to be, because of the sanctions that may flow, in theory, from that.”
Last month, the Premier League said it “looked forward” to working with the new government, but that “it was critical that the regulation was proportionate and effective”.
Uefa declined to comment.