Football Governance Bill [Lords]

Debate between Amanda Martin and Stephanie Peacock
Stephanie Peacock Portrait Stephanie Peacock
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I am grateful to the hon. Gentleman for his service on the Bill Committee. He is right that we had a very good debate, and the impact assessment was of course approved by the previous Minister for Sport.

On amendment 18, the governance code on appointments is clear that political activity is not a bar to appointment. David Kogan has been found appointable for the role by a panel that included a senior independent panel member agreed by the Commissioner for Public Appointments, and has now been endorsed by the Culture, Media and Sport Committee, adding a further layer of robustness. We will not set a new precedent with the football regulator by going further than the governance code on appointments, as the amendment proposes. More broadly, on amendments 19 and 20 on conflicts of interest, if the interests of a board or expert panel member might prejudice their ability to carry out their functions, the Bill already captures that as a conflict of interest.

On the owners and directors test, membership of a proscribed organisation is an offence under the Terrorism Act 2000, and that offence is included in paragraph 2A of schedule 1 to the Serious Crime Act 2007. Such offences would already be considered when testing an individual’s fitness, so amendment 15 is not required.

On amendment 17 on the corporate governance code, reporting on equality, diversity and inclusion is a key part of good corporate governance. Clubs will simply have to state what they are doing on the issue.

On amendment 27 on club charities, I know from my area of Barnsley the brilliant work that the Barnsley FC Community Trust does. Through changes made in the other place, the corporate governance code gives a club the flexibility to detail what action it is taking to contribute to the economic and social wellbeing of the community. That can include the work of the club’s official charity or wider work in the community, so the amendment is not needed.

New clause 1 calls for a consultation on lifting the ban on consuming alcohol in view of the pitch. That is outside the scope of the Bill, which focuses on the sustainability of clubs and the game overall. I have raised the issue with the Home Office, which is the policy lead, as I committed to doing in Committee.

Amanda Martin Portrait Amanda Martin (Portsmouth North) (Lab)
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Does the Minister agree with me and my hon. Friend the Member for York Outer (Mr Charters) that we do need to look at alcohol sales, but that we need to do it with all stakeholders in the round—not just throw it in as a gimmick to this Bill, which is about finance and governance?

Stephanie Peacock Portrait Stephanie Peacock
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My hon. Friend makes a good point, and I have reflected those comments to the relevant Home Office Minister, as I said.

I will turn to the amendments in the name of the Liberal Democrat spokesperson, the hon. Member for Cheltenham (Max Wilkinson). I thank him for his constructive approach to the scrutiny of the legislation and for his party’s support. Several of his amendments are outside the scope of the regulator, but I am sure that he will put on record some important and valid points.

On free-to-air TV in new clause 3, the Government believe that the current list of events works well and strikes an appropriate balance between giving access to sporting events and allowing sports to maximise broadcasting revenue. In domestic football, the present arrangements under the listed events regime have protected key moments such as the FA cup final, while ensuring that the Premier League, EFL and FA are able to raise billions of pounds annually, which is invested back into the pyramid. We all want to see more matches being televised free to air, but that must be balanced against investment, and not risk it.

On new clause 4 on the golden share, we expect that the regulator will welcome clubs taking any measure to improve fan engagement and protect club heritage, including a golden share, but it will not mandate them to do so. That brings me on to the issue of fan engagement, which has been raised by the hon. Member for Cheltenham and my hon. Friend the Member for Sheffield South East (Mr Betts) in their amendments. Let me be really clear: the Government have strengthened fan engagement. The previous Government’s Bill required clubs to have a framework in place to ensure that they regularly meet and consult with a representative group of fans on key strategic matters at the club and other issues of importance to supporters. We have improved that by requiring fan engagement to continue even if a club enters into insolvency, and by introducing a requirement for consultation on ticket prices. We have not prescribed a fixed, one-size-fits-all approach to fan engagement. We of course expect the regulator to consult the Football Supporters’ Association where appropriate on fan issues, and I know the shadow regulator is already engaging with it. We do not want to place an unmanageable burden on clubs unnecessarily, which is why new clause 4 is not needed.

The hon. Member for Cheltenham has also tabled amendments on protections for home grounds, which my hon. Friend the Member for Sheffield South East has also raised and we have recently discussed. Home grounds are vital assets for clubs, which is why the Bill introduces protections to prevent inappropriate stadium sales and relocations. Clauses 46 and 48 require a club to get approval from the regulator before they sell or relocate their stadium.

On the sale of a home ground, let me first clarify that the legislation uses the term “disposal” rather than “sale” for technical legal reasons. For example, a club might sell a portion of the stadium, rather than the whole stadium. That is because a club might divest a shareholding, or transfer interest, in the stadium without it amounting to a full sale. Under clause 46, the regulator’s approval is needed in all instances for the sale of a stadium by a club. A sale can be approved only if it would not undermine the sustainability of the club. If a sale might mean that the club will have nowhere to play a few years down the line, that means the club may not be sustainable and the regulator is unlikely to approve the sale.

Football Governance Bill [Lords] (Fourth sitting)

Debate between Amanda Martin and Stephanie Peacock
Stephanie Peacock Portrait Stephanie Peacock
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I take that point, but both the hon. Gentlemen stood on a manifesto that committed to introducing the Bill.

Amanda Martin Portrait Amanda Martin (Portsmouth North) (Lab)
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I believe that the Conservative Whip, the hon. Member for Kingswinford and South Staffordshire (Mike Wood), who previously represented Dudley South, while highlighting the Bill’s alignment with Conservatives prior to the last election, said he believed that this is a Bill that every single Conservative Member stood on at the last election in their manifesto, which was a ringing endorsement of the Bill.

Stephanie Peacock Portrait Stephanie Peacock
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Indeed, a number of Conservative Members are on record as supporting this policy; it is just sad that the ones sitting opposite seem to have forgotten the manifesto they stood on.

Football Governance Bill [ Lords ] (First sitting)

Debate between Amanda Martin and Stephanie Peacock
Amanda Martin Portrait Amanda Martin
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It is a pleasure to serve under your chairmanship, Sir Jeremy. I refer Members to my entry in the Register of Members’ Financial Interests. As a Pompey fan and season ticket holder, and as an elected member of Portsmouth supporters trust board, ownership is a very painful subject in my city, because bad ownership has almost cost us our club on more than one occasion. I welcome the definitions in schedule 1, because there has been a series of owners—some have been the subject of international arrest warrants, some have had their assets frozen by the Government, some have been imprisoned, and no one could prove that one of them even existed, as I have said before in the House. That string of horrendous owners had a devastating impact not just on the football club, but on the community. Assets were sold off to areas of the owners’ other companies, and local businesses and employees lost thousands of pounds. The Bill and the regulator, and clause 1 and schedule 1, can protect clubs from poor ownership and will therefore mean that football clubs up and down England will never have to experience what Pompey fans had to experience.

Stephanie Peacock Portrait Stephanie Peacock
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I will attempt to respond to the various questions from the Opposition spokesperson, my hon. Friends the Members for Portsmouth North and for High Peak, and the hon. Member for Isle of Wight East. The Opposition spokesperson broadly welcomed the provisions, but he asked some specific questions. He made points on financial regulation, and I think he used the word “banking-style”. The Bill draws on precedent from a range of previous regulation. Some elements are from financial regulation. A previous amendment of his dealt with financial sustainability, and the Bill, as drafted, is all about that. We would not term it as “banking-style”, but it does draw on previous legislation and existing regulation.

The hon. Gentleman broadly welcomed the provisions on owners and directors. He mentioned that it has been four years since he was elected to this place, and in 2023, he asked the then Sport Minister to strengthen the ownership test, so I am really pleased that he welcomed the changes that we have made. He also said that he would prefer this to have been implemented without legislation. Of course, we all would, but we are where we are, and that is why both parties stood on a manifesto to introduce a football regulator Bill.

The Opposition spokesperson made some broad points on the owners and directors test, and we will have a further debate on that when we come to part 4. ODTs have to be applied clearly and consistently. If the owner has appropriate financial resources and meets other aspects of the test, our ODT would not prevent multi-club ownership. Concerns around multi-club ownership are to do with conflicts of interest and competition, which is why the leagues and UEFA have rules around multi-club ownership. Clubs competing in those competitions will be required to abide by any applicable rules, but we can come back to that point on part 4 when we will debate this issue at length.