Football Governance Bill (Second sitting) Debate

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Department: Department for Business and Trade
Tracey Crouch Portrait Dame Tracey Crouch (Chatham and Aylesford) (Con)
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Q Sharon, your passion is obvious, and I am sure that if the Clerks could craft an amendment to the Bill to have you cloned, we would all support it. Ian, you sort of answered this question, but I will ask it again: there has been a lot of scaremongering about the impact of the Bill and some of the unintended consequences—the duplication and so on—but is there anything in the Bill that you fear? That question is to both of you.

Ian Mather: The thing that I fear is that it does not work in key places. On the parachute payment clause, protecting that does not work. I know that Rick has made the point, but I would endorse it: we are not against the concept of parachute payments if they are right. I do not believe that they are right, but let’s have a state of the game review and find out whether they are right, or whether they are an impediment to fair competition in the football world as we want it. But do not then hamstring the regulator so that it cannot deal with that problem, if indeed it is a problem.

The problems here are few: they are about who can trigger it, the parachute payments and how often you do a review. Those are the key issues. It comes down to the money. The other bits in the Bill, such as those about protecting heritage, are really good. We were looking at introducing a golden share in Cambridge United to give fans protection against things such as stadium moves and so on, but the Bill probably makes those redundant.

Sharon Brittan: Tracey, what you said about unintended consequences is really interesting. I have looked at the situation closely, and I like to look at both sides of the story, so we get a clear, honest picture from the Premier League side and the EFL side. I do not even understand unintended consequences; I cannot work out what he is referring to, unless I am missing something. I can understand the EFL’s argument, which is very clear and concise. From the Premier League’s point of view, I have so far not been presented with anything or read anything that has made me think, “What they are saying actually makes sense.” They have put together a very weak argument —I do not think there is an argument—and have conducted themselves poorly. I do not think they have presented themselves in the right way. They are arrogant. They think they are an island, on their own, sailing off and forgetting that 14 of the clubs in the Premier League have come from the EFL.

On how the pyramid works together, we loaned two players over the last two seasons. Both of them—James Trafford and Conor Bradley—went back to their respective football clubs, and they are absolutely flying in the Premier League and talking about their time at Bolton Wanderers. I could bring players to the table who will say to you that they have never worked in such a culture. People need to work in the right culture to bring out the best in them. There is enough stress in the world today.

On unintended consequences, I would love to sit down with Richard and for him to explain it to me because I do not understand it. They are just words, and there is no substance or arguments behind the words. I have not yet come across a cohesive argument to which I can say, “Actually, that’s a fair point.” I am not going to talk about the numbers—we all know the numbers. In my opinion, that this goes back to greed, envy, jealousy and thinking about me, myself and I. I cannot comprehend how someone can view this through that lens when we are a football pyramid, and what we do as custodians affects this country and beyond. We should be cherishing what we have here.

Matt Rodda Portrait Matt Rodda (Reading East) (Lab)
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Q You have spoken so eloquently. I am looking at this from the perspective of my local club Reading, which has had very serious problems with the current owner. The previous owner was absolutely wonderful in creating a positive culture. My question is: how do we find more owners with the right intentions and motivation, and help them to play a bigger role?

Sharon Brittan: I completely agree with that. Even in the five years that I have been involved, I have seen better owners coming into the game because the EFL has changed the rules. You cannot having a bankrupt owning a football club, and you cannot have somebody who has been struck off; the rules are much more stringent. I do not want to talk about the numbers, and I do not like talking about them, but the problem we have is that in five years we have put a huge amount of money into the football club. Any sensible businessperson probably would not do that, because they would look at it and say that it does not make any financial sense.

Ian Mather: In direct answer to your question, I would say that it is the numbers. If an owner can look at a football club and think, “Broadly, if I run that club properly and well, with the income I get from running a football club and the sustainability payments from the Premier League, I can roughly break even. I may want to be ambitious and build a new stadium here, or improve the training ground, but broadly I can balance the books.” If you cannot balance the books, or worse, the books get more unbalanced each year, you are reducing the pool of people who can buy into being a football owner.

Sharon Brittan: I agree with Ian.

Damian Collins Portrait Damian Collins
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Q I think I have to ask this, given everything you have said in your very compelling evidence. How has Ipswich Town managed to do what you called the “near impossible”?

Sharon Brittan: Isn’t it fabulous? That is what I love about football: the near impossible can happen.

Ian Mather: I would also answer it by saying that a North American pension fund has provided—

Sharon Brittan: I did not want to say that!

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Stuart Andrew Portrait Stuart Andrew
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Q We have heard, in these sessions and beforehand, about the scope of the Bill. Some feel it goes too far; some feel it does not go far enough. Can you talk about your perspective of its narrowness in terms of financial regulation, and why that matters in relation to the relationships and statutes that FIFA and UEFA have?

David Newton: It is common knowledge around the room that 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 staff who have worked so hard on this Bill. 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. We continue to work closely with both those bodies and keep them abreast, along with DCMS, of where the Bill has got to, but I think the narrowness of scope is very important.

Matt Rodda Portrait Matt Rodda
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Q To return briefly to the point that Clive made, there is enormous strength of feeling among many fans and clubs about the replays. What is the process for reviewing that decision?

David Newton: The decision has been signed off, effectively, by the FA board for next season. Indeed, the fixture calendar is so full that the spare slots, if you like, have already been allocated. At the moment, there is no review of that position. We are obviously aware of the strength of feeling, and I hope I have gone some way towards explaining how we take that decision. We take the custody of the FA cup extremely seriously.

Matt Rodda Portrait Matt Rodda
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Q What will you be able to do for seasons in the future?

David Newton: In fairness, I do not think the calendar shows any let-up. As has been mentioned, we have a FIFA Club World cup involving 32 teams in the summer next year. That will continue to sit in the calendar, as will the expanded Champions League format, with extra midweek matches. We still operate three domestic cup competitions, which all have to be accommodated as well.

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Brendan Clarke-Smith Portrait Brendan Clarke-Smith
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Q I want to ask quickly about grassroots football. My constituency has benefited from the Football Foundation, as I think most people’s around the table have. What positive role do you see this as having in encouraging more partners to work with organisations such as yourself? Is the Independent Football Regulator in a good place to help drive that, or is this again something where we are looking at the overarching security of other organisations that are going to be the ones pushing it? Is there a role for the football regulator to do more with your organisation?

Robert Sullivan: To be honest, I am not sure yet. I would be cautious about passing a judgment on that. If you pull back a level, what does the Football Foundation need? It needs two things really: it needs a very healthy and thriving elite end of the game that generates lots of excessive revenues that can be distributed back into the grassroots; and it needs the grassroots of the game to be excited, growing and wanting to have lots of kids getting out there and playing. To answer in a very broad sense, if the regulator is allowing that ecosystem of English football to continue to thrive—not only at the top end with more sustainability, and all the things that people talked about today, but with the game still generating crazy passion and demand from kids getting out there— that is brilliant for English football and the Football Foundation. There are going to be lots of people needing great pitches, and we are going to get out there and give everyone a great place to play.

Matt Rodda Portrait Matt Rodda
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Q Do you think the Bill does enough at the moment to ensure that fans have a meaningful say on what matters most to them? Also, are there areas where you would like to see the Bill go further, with further say for fans?

Niall Couper: I think there are gaps. We heard of one earlier, about the club heritage and the name. To my mind, these are simple amendments. Making sure that there is a proper fan consultation about a proposed name change is, to me, important. You strike on a cause that is close to my heart—I am an AFC Wimbledon fan. Today, 14 May, is a significant day for me: in 2002, the three-man FA commission began its deliberations about moving the club to Milton Keynes. I have had loads of messages about that—they all knew I was coming here—and for me, making sure that a club cannot move from its area is fundamental.

At the moment, that is not clear enough in the Bill, and I think it needs to be made fundamentally clear. It talks about financial considerations still being part of the conversation. As a Wimbledon fan, it was the financial considerations of a three-man commission that allowed us to lose the club. We would describe it as our place in the Football League being given to a town in Buckinghamshire. Effectively, that is what happened. For any other club, that needs to be addressed, and fans need to have their voice heard first in that particular conversation. At the moment—I will use this phrase, although I was trying desperately not to say it—the unintended consequence of the Bill is that it legitimises franchising. That is the bit that needs a red line put through it.

Matt Rodda Portrait Matt Rodda
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Q I will ask a second question about grassroots football. I was thinking about this, because I have two kids who used to play and had regular problems with waterlogged pitches and other issues: how would you describe the state of grassroots pitches and provision across the country?

Robert Sullivan: It is a huge challenge for the game, but we are definitely on an upward trend. For the first time, we have been able properly to map and record, and to improve grass-pitch quality by use of digital data. That has been a big change, because with 30,000 grass pitches in England, it is hard to get out to reach them all, but we can now use technology through phones, so we can assess those pitches remotely and help clubs to improve them, to do the simple things, and give them funding that can address some of the waterlogging situations.

We now have more than 8,000 of what we have rated as good-quality grass pitches. That is a big step forward on where we were five or 10 years ago, but we are perhaps only halfway through that journey. We are going to do everything we can to escalate that number as quickly as we can, and to build many more artificial grass pitches, because of the difference. On a good grass pitch that does not waterlog, we get maybe six hours of play; and on a good artificial pitch, we can get 60 hours of full-on community usage for kids, disability or vulnerable groups, older men who are coming for dementia classes, and whatever it might be. Those artificial grass pitches, which is what we want to invest in, are the game changers that will help us to support that growth in the women and girls’ game and all other parts of grassroots football.

Tracey Crouch Portrait Dame Tracey Crouch
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Q The original fan-led review had a transfer levy recommendation that was proposed to the panel by somebody from the Premier League. The Bill was not necessarily the right place to include that proposal but, presumably, given the fact that it was designed as a policy that would invest in grassroots sports, certainly further down the pyramid, is that something that you would still at some point be interested in seeing?

Niall Couper: Yes is the answer. I think it is something that we need to look at, considering that—in my mind—a lot of it depends on what happens with this Bill. It is important, because it is about redistribution and giving support to a lot of the clubs that are trying to do the right thing in the right way. Again, to go back, it needs to be caveated to make sure that it is ringfenced where possible to support the grassroots pitches.

I talk to clubs like Tonbridge Angels, Maidstone United, Sutton United and so on. Those clubs will talk about wanting to have the 3G pitches and their training pitches in there so that they can be put to community use—those 60 hours a week. That is really what they want, because that is where they see the big growth. That is where your club becomes a community hub. That is where it makes the difference.

For me, the money that you talk about from the transfer levy, if you give it to those sorts of pitches and so on, is where you can make a real fundamental difference. Where it will go, I do not know, Tracey. It is one perhaps that we can talk about once we are post the Bill. It was something that I was really excited about when you proposed it—it really appealed to me. It is something that came a bit from left field, but it is something that we should look at in the months and years ahead.