Football Governance Bill [ Lords ] (Eighth sitting) Debate

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Department: Department for Digital, Culture, Media & Sport

Football Governance Bill [ Lords ] (Eighth sitting)

Jim Dickson Excerpts
Stephanie Peacock Portrait Stephanie Peacock
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I have indeed—clearly.

These amendments therefore strengthen and clarify the process for setting the questions for resolution. They highlight the importance of a league proposing specific questions for resolution when it applies to the regulator. They emphasise that if the regulator agrees to trigger the backstop, it will not take a sweeping approach and try to rule on every possible aspect of distributions. It must set out specific questions that it will resolve, and its powers are then restricted to resolving those questions.

These amendments make it clear that questions must meet certain tests in order to be resolved through the backstop. Those tests are twofold. First, the regulator must consider that leaving the questions unresolved presents an apparent threat to the regulator’s objectives. Then they must consider that the questions could not be resolved within a reasonable time by the regulator exercising any of its other functions.

The amendments clarify that the regulator need not take forward all the questions proposed and that the regulator can modify the proposed questions. They will also require the regulator to take into account representations from the other league that accompany the application. That will give the regulator the flexibility to pick out which questions it is appropriate and within its remit to address, without forcing it to either accept every element of an application or reject the whole application outright.

The amendments also set out procedural requirements. They require the regulator to consult the FA before setting the questions for resolution, ensuring that the national governing body has a chance to raise any views about the scope of the backstop process. They will also ensure that the regulator transparently sets out what questions it has chosen and how it made that decision. The questions for resolution will then be taken forward into the mediation phase. That will ensure that all parties understand the specific aims of the mediation stage.

Jim Dickson Portrait Jim Dickson (Dartford) (Lab)
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The Minister is setting out how important it is to get the distribution arrangements right. This is the part of the Bill that may be the most critical in ensuring that the pyramid is sustainable, which is the objective. It is great that the Government are working hard to get the backstop arrangements right, as she said. Does she agree that, once the regulator is in place, it will be important to have the state of the game report already in place—with an analysis of what is going wrong in the financial distribution and how it could be put right—before a distribution agreement is made and the backstop powers are used to bring that about?

Stephanie Peacock Portrait Stephanie Peacock
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My hon. Friend is absolutely right, and he touches on something we will discuss later. It is important that the state of the game report takes place swiftly. That is an important part of the Bill. Of course, it is a backstop, and we are keen that a football-led solution is the priority and that people get round the table. I often quote Dame Tracey Crouch, who was one of my predecessors as sport Minister, and obviously we know how involved she was in the Bill. In the previous Bill Committee, she made a short but very focused speech, which I encourage hon. Members to read, on how the backstop should be a backstop. I often quote that speech.

For the reasons I have set out, the amendments are vital for supporting our new backstop model, and I hope that they will be accepted. I commend them to the Committee.

Amendment 28 agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.