Football Governance Bill [HL]

Debate between Lord Bassam of Brighton and Lord Evans of Rainow

Report stage
Tuesday 11th March 2025 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, I will not add very much to what my noble friend has already said about the importance and value of having players and fans recognised in the consultation process, except to say that it is probably the most important part.

I was worried at the outset of the legislation—with the Bill that the party currently in opposition put in place before the election—that there was absolutely no reference to players or fans. They are an essential part. Without them, where would the game be? We might not be able to define what fans are, but they are many things, in many different ways and places. We sort of know what they are without being able to define them.

My noble friend Lady Taylor and I also signed up to Amendment 18, because I think it is important that there is a clear statement in the legislation to the effect that the best way forward is usually without recourse to excessive bureaucracy and regulation. If the IFR can find a way to do things that does not have to resort to that, then all for the good. For that reason, while I am encouraged by the amendment of noble Lord, Lord Pannick, the noble Baroness, Lady Brady, and the noble Lord, Lord Birt, and it certainly touches on a rather important point, I think the Government have matched that point with their amendment. I am not sure it is easy to define “light-touch”—no doubt, the noble Lord, Lord Pannick, will tell me that it is—but it is not a term that is commonly used in legislation, certainly not regulatory legislation.

I am pleased that this issue is being properly surfaced, and I am delighted that the Government have responded to it in a really positive way. I hope that both fans and players will be pleased to see that they have been written into this legislation.

[Lord Evans of Rainow (Con)]

My Lords, I would like to ask the Minister on that point about engagement with fans. As I alluded to before the dinner break, sometimes those fans are in the tens of thousands. Can she share with us how the regulator will engage with those fans? If the regulator will refer to fan representatives, who would those representatives be on a case-by-case basis or club-by-club basis?

Football Governance Bill [HL]

Debate between Lord Bassam of Brighton and Lord Evans of Rainow

Committee stage
Monday 16th December 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

My Lords, I will speak to two groups of amendments within this group. Amendment 167 in my name and that of my noble friend Lady Taylor is about the removal of rogue owners. In a sense, this amendment poses the question: what is the point of a regulator that identifies bad practice and rogue owners but does not have clear powers and mechanisms to replace them? Our amendment seeks to incorporate within articles of association provisions that would oblige owners to give up their shares and make sure that those shares were given over to a new beneficial owner, subject, of course, to the usual checks.

Our argument is that the Bill must adequately address enforcement of the fit and proper owner test to enable the regulator to force an owner to sell their shares or force a director to resign from the board. In doing that, the regulator would be able to ensure that clubs have sufficient reserves to meet ongoing operational costs if an owner is disqualified.

At some point, it might be advantageous to consider having a central sinking fund in place to help cover interim costs. In the licence criteria, the regulator might also want to insist that clubs include in their articles of association a mechanism for the resignation of a director in those circumstances. That is important because we do not want situations such as Aston Villa found in 2016. In the mid-1990s Brighton & Hove Albion had owners not only who were deeply unpopular but who were not there because they had the best interests of that club at heart. More accurately, they were asset-strippers who eventually, without providing an alternative, sold the ground to a series of companies that set up a retail park. One of the saddest moments of my life was going to the last game there. We all knew what was going to happen to that site. It was going to end up as a Toys “R” Us. I have nothing against Toys “R” Us, but there were plenty of other sites in Brighton where it could have happily located.

I turn to Amendments 205, 208, 210 and 259, which are about protecting domestic competitions. Currently, the Bill does not require clubs to prioritise domestic over European or worldwide competitions. We feel that clubs should be property consulted before changes are made to competitions. The Bill should ensure that the regulator can designate European or worldwide competitions as restricted and not to be prioritised above domestic competitions. This would prevent clubs establishing a new entity to inherit the existing club’s identity and players—for example, the Man Cities of this world leaving the Premier League and calling themselves City Blues for the purposes of entering a restricted competition.

This is important because the ecosystem of competitions has been under pressure in the last few years. For instance, earlier this year moves were made to prevent replays in FA Cup matches. I think it would be fair to summarise that that was against the will of most clubs and largely for the convenience of the bigger clubs playing in European competitions. There is nothing wrong with them playing in Europe; it is very welcome and important for the success of our Premier League. We want to make sure that this carries on being the case, but the abolition of FA Cup replays went against the vast majority of clubs’ interests and has undermined the beauty of the competition in the sense that, periodically, replays provided much-needed funds for clubs in the lower leagues. It has also restricted the opportunity for lower-league supporters to see the bigger clubs when they enter the competition. It is important that the regulator has an interest in this and that we provide clubs with the certainty and security that they will be consulted about competition changes.

[Lord Evans of Rainow (Con)]

My Lords, I will speak briefly on Amendment 129 in the name of the noble Lord, Lord Mann. It is relevant to Amendment 93 which, your Lordships may recall, requires the new regulator to regulate football agents. My motivation for that amendment was to try to keep transfer fees within football. As I mentioned, it is very important that the grass-roots clubs that develop the players of the future get their fair share.

The amendment tabled by the noble Lord, Lord Mann, setting out all financial arrangements with external agents and other intermediaries involved in contracts, recruitment or both is an interesting one. My only question is: how will this work in practice? How will the regulator deal with highly confidential multi-million-pound transfers? The noble Lord mentions it being private and confidential and therefore not public, but potential leaks could affect these deals. What would the regulator do? How would he operate? How would he stop or block those transfers? The Premier League still has the best players. We still want to attract the best players. It is vital that we get this right to avoid the trap of unintended consequences. It is so important to protect the international reputation of the Premier League.

My amendment was tabled to ensure that no matter where the transfer comes from, that money stays within football. However, we would have to be careful about how that happened in practice.