Considering the history of football songs and how similar lines have been used many times earlier to clearly insinuate that taking it up the arse is a shameful act, I don't know how anyone could argue it isn't homophobic. It clearly is.
Having said that - the personal abuse of players and managers and whatnot that isn't sanctioned is staggering. What's the reasoning behind allowing that? It must be quite damning to be hearing that when you're doing your job.
I think football chanting could easily be fun and tongue in cheek (as a lot of it is), without being straight up mean. You may call me a snowflake for that, of course, but just think of all the chants we have that don't target specific players in a negative way - it wouldn't really take anything away from the game. Not gonna happen anytime soon obviously, but it's bound to come at some point. I'm fudging sick of the Campbell song.