Parry also expressed concern about “a whole raft of competition law cases that are impacting the way we run the game”.
He continued: “After many years of competition authorities being more or less free to set their own rules, they now seem to be saying: 'We don't think the people who run football are doing a particularly good job.' '.
“Constantly looking over our shoulders and having clubs challenge us when they don't like the rules… The game will come to a standstill if we don't find a solution to this.”
In September, Leicester City won an appeal against a possible points deduction for an alleged breach of financial rules when an independent panel found that the Premier League had no power to punish the club because it was relegated to the Championship during the reporting period ended. The ruling suggested that the wording in the Premier League regulations was not legally sound.
Last month, two aspects of the Premier League's related party transaction rules – which govern commercial dealings with club owners – were ruled unlawful by a court after they were challenged by Manchester City, which has since threatened further legal action.
“It will certainly be a lot more difficult,” Parry said.
“I have no problem with the fact that we need to become more professional and be at the top of our game because that's where we should be. But it’s the willingness of the clubs to challenge the entire system.”
“You have to ask yourself how long you can function effectively as long as that mentality exists, and we have to find a solution to that.”
“The way we ensure the consistency of financial regulation across the two leagues is not working. A single independent regulator will bring this consistency.”
The legislation will “explicitly require clubs to effectively engage” fans in changes to ticket prices and any proposals to relocate home stadiums. It will no longer be necessary to take into account the government's foreign and trade policies when approving club takeovers and there will be a “clear commitment” to do more to improve equality, diversity and inclusion.
Nineteen changes have been proposed by campaign group Fair Game, including excluding the possibility that a club's owner could be a state or a state-controlled body and requiring that player welfare be assessed when checking scores, along with an audit of multi-association ownership.
