A new regulator will be created to oversee English football, with powers to block clubs from joining "unpopular breakaway leagues" and aiming to prevent clubs and fans from "unscrupulous owners".
Following a fan-led review of football governance, led by MP Tracey Crouch, the government said it intends for the new regulatory body to be established in law, overseeing the game's financial sustainability and implementing a new licensing system from the Premier League down to the National League.
After dodgy owners came close to wrecking Derby County, Bury and Macclesfield Town in recent leagues, while clubs like Brighton and Blookpool were essentially asset stripped by former owners, the new regulations will include tougher tests for owners and directors, with stronger due diligence on sources of wealth and robust financial planning.
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A football club corporate governance code will also be introduced, which will "remain proportionate and adaptive" in its approach with checks and balances embedded in its design, the Department for Digital, Culture, Media & Sport said.
The regulator will have the power to prevent clubs from joining new competitions that do not meet certain criteria that will be decided after further consultation with the FA and fans, potentially to stop clubs from participating in closed-shop breakaway competitions such as the European Super League proposed in 2021.
A revamped European Super League of 60-80 teams was back on the agenda earlier this year, with more than 50 clubs said to have been consulted by its Madrid-based backers.
As part of the announcement, Crouch said it was "a big day for football in this country" and she was pleased the government has acted on the key recommendations in her review.
"The introduction of a new independent regulator of football will strengthen our incredible pyramid, giving investors, fans and communities confidence in the governance of our clubs, enabling them to thrive in the best leagues in the world."
Kevin Miles, CEO of the Football Supporters Association, said, "we warmly welcome the historic commitment from the government to introduce an independent regulator of English football. The football governance white paper clearly addresses our key concerns around ownership, rogue competitions and sustainability and of course we support any proposals that offer fans a greater voice in the running of their clubs."
Some observers noted that the ownership rules would perhaps be like closing the stable door after the horse has bolted, with several questionable owners currently in charge of clubs large and small.
The Premier League was also cautious in its reaction, saying its clubs will "carefully consider" the plans, which it noted would see England "become the first major nation to make football a government-regulated industry".
It added: "The Premier League recognises the case for change in football governance and continues to implement stronger and more independent regulation. We are strengthening our ownership rules and are already providing £1.6bn in financial support to the wider game in this current three-year cycle."
And went on: "It is vital that regulation does not damage the game fans love to watch in the deepest professional pyramid in the world, or its ability to attract investment and grow interest in our game."