Football Governance Bill [Lords] Debate
Full Debate: Read Full DebateJudith Cummins
Main Page: Judith Cummins (Labour - Bradford South)Department Debates - View all Judith Cummins's debates with the Department for Digital, Culture, Media & Sport
(1 day, 20 hours ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 2—Duty not to promote or engage in advertising and sponsorship related to gambling—
“A regulated club or English football competition must not promote or engage in advertising or sponsorship related to gambling.”
This new clause prevents regulated clubs and competitions from promoting or engaging in gambling advertising or sponsorship.
New clause 3—Free to air coverage—
“(1) The Independent Football Regulator must require that every season—
(a) at least ten Premier League football matches,
(b) the League Cup Final, and
(c) the Championship, League One and League Two playoff finals
are made available for live broadcast on free-to-air television channels in the United Kingdom.
(2) For the purposes of subsection (1)(a) the matches must include a representative selection across different clubs and times in the season, subject to reasonable considerations of scheduling and broadcasting logistics.
(3) In this section ‘free-to-air television’ means a service that satisfies the qualifying conditions of such a service defined by Section 2 of the 1996 Communications Act.”
This new clause would mandate a minimum of ten Premier League matches, the League Cup Final and the Championship, League One and League Two playoff finals on free-to-air television channels.
New clause 4—Fan representation: mandatory golden share—
“(1) A licensed club must, as a condition of holding a licence under section 15, issue a non-transferable golden share to a recognised Supporters’ Trust or equivalent democratic fan organisation.
(2) The golden share must confer on its holder the right to veto any proposal by the club to—
(a) relocate the club’s home ground outside its current local authority area,
(b) change the club’s name,
(c) materially alter the club’s primary colours or badge, or
(d) enter into or withdraw from any competition not sanctioned by the Football Association, the Premier League, or the English Football League.
(3) A licensed club must—
(a) consult the holder of the golden share on any material changes to the club’s ownership, governance, or strategic direction,
(b) provide the holder with access to relevant financial and governance information reasonably required to fulfil its function, and
(c) facilitate structured and regular engagement between the club and the holder of the golden share.
(4) The Regulator must monitor compliance with this section and may—
(a) issue guidance to clubs and Supporters’ Trusts on the operation of the golden share,
(b) impose licence conditions or financial penalties for non-compliance, and
(c) take enforcement action where a club fails to uphold the rights associated with the golden share.
(5) In this section—
(a) ‘Supporters’ Trust’ means a formally constituted, democratic, not-for-profit organisation that is recognised by the Regulator as representing the interests of a club’s supporters;
(b) ‘golden share’ means a special share or equivalent legal instrument issued to a Supporters’ Trust, entitling its holder to the rights and protections described in this section.”
This new clause would give fans a veto on club proposals, exercised through a recognised Supporters’ Trust or equivalent democratic fan body.
New clause 5—Protection of assets of regulated clubs—
“(1) Where any of the following assets belong to a regulated club, the asset must not be removed from the club’s ownership or used as collateral for a secured loan—
(a) any stadium,
(b) any training facility,
(c) any trophies,
(d) any car park,
(e) any hotel.
(2) But subsection 1 does not apply to a car park or a hotel where—
(a) the regulated club can demonstrate to the IFR’s satisfaction that the asset is causing financial loss or poses a material risk to the club’s financial sustainability, and
(b) the IFR has provided prior written approval for the disposal of the asset or the use of the asset as collateral.
(3) Where the current owner of a regulated club owns any asset listed in subsection (1)(a) to (c), the owner may not sell the club unless the owner has inserted the asset into the club’s ownership structure.”
This new clause would ensure that the club assets listed above are recognised as the inalienable property of the club rather than the club’s owners.
New clause 6—Financial abuse, mismanagement or fraud: protection etc—
“(1) The IFR must, in any strategy it publishes, set out measures aimed at achieving the financial abuse, mismanagement and fraud objective.
(2) Measures to be set out under subsection (1) must include oversight of—
(a) robust education for relevant players on matters relating to financial abuse, mismanagement and fraud,
(b) industry wide standards aimed at relevant players in relation to those matters, and
(c) an equitable system of support and redress for relevant players where they have been affected by those matters.
(3) In this section, a ‘relevant player’ means a current or former player in English football who—
(a) has been a victim of financial abuse, mismanagement, or fraud, or
(b) is at risk of becoming a victim of financial abuse, mismanagement, or fraud.”
New clause 7—Human rights and modern slavery considerations—
“(1) When considering whether a person (‘A’) satisfies the requirement in section 26(7)(c), the Regulator shall have regard to (among other things)—
(a) whether A has been complicit in any egregious or consistent violation of international human rights law, whether of any international human rights treaty, customary law, or other instrument,
(b) whether A has been convicted, cautioned or reprimanded or complicit in any egregious or consistent violation of domestic human rights legislation, including breaching provisions in the UK Modern Slavery Act 2015 or equivalent national legislation,
(c) whether A has been subject to a Slavery and Trafficking Prevention Order,
(d) whether A has been found liable in a civil claim relating to a human rights violation,
(e) whether A has been convicted of an offence, cautioned or reprimanded for failing to comply with their human rights and modern slavery reporting and due diligence obligations under applicable domestic legislation,
(f) any representations made by A or the club in accordance with the notice.
(2) In subsection (1)—
(a) where A is a body corporate or other non-corporeal entity (including a government or nation state), the Regulator shall consider the actions of anyone who controls that body corporate or entity (and ‘control’ shall have the meaning given in section 255 of the Companies Act 2006), and
(b) the Regulator shall have absolute discretion to determine whether conduct falls within any of the categories in paragraphs (a) to (d).
(3) In respect of subsection (1)(c) and (d), a risk of disrepute shall not be valid grounds for disqualification of any person if such disrepute would, in the reasonable opinion of the Regulator, be unfounded.
(4) In accordance with Schedule 2, Part 2, paragraph 15, the Regulator may establish a committee or committees to discharge its functions under this Clause.”
New clause 8—Duty to address ticketing market practices—
“Regulated clubs and competition organisers must take reasonable steps to—
(a) monitor practices in the secondary ticketing market that may lead to excessive price mark-ups or unauthorised resale;
(b) provide transparent information about ticket pricing and resale policies, including the face value of tickets; and
(c) provide official ticket exchange channels where reasonably practicable.”
New clause 9—Prioritisation of competitions within English football—
“(1) This section applies where a regulated club is participating in a competition outside of English Football.
(2) Where the IFR considers that the regulated club’s participation in the competition is damaging to the heritage of English football, the IFR must take what measures it considers necessary to prevent that damage.
(3) Measures that the IFR might take include a direction to the club that it—
(a) prioritise any fixtures taking place in a competition within English football over those in the competition outside of English football;
(b) cease participation in the competition outside of English football.”
New clause 10—Player welfare—
“Within one year of the passing of this Act the Secretary of State must review how to improve the welfare of football players. This review should include consideration of—
(a) neurodegenerative diseases incurred by heading footballs;
(b) the number of games that footballers are required to play each season; and
(c) the impact on the welfare of current and former professional footballers as a result.”
New clause 11—Correspondence about the IFR—
“(1) The Secretary of State must publish any correspondence received by the Secretary of State from the Fédération Internationale de Football Association (FIFA) and the Union of European Football Associations (UEFA) about the IFR’s exercise of its functions.
(2) The IFR must publish any correspondence it receives from the Fédération Internationale de Football Association (FIFA) and the Union of European Football Associations (UEFA) about the exercise of its functions.”
This new clause would require correspondence between FIFA and UEFA and either the Secretary of State, or the IFR, with regards to the IFR’s regulatory functions, to be published.
New clause 12—Impact on Regulator of changes in Government administration—
“If the Department for Culture Media and Sport is abolished, or its functions in relation to football substantially relocated, the Government must automatically review the suitability of the continuation of the IFR and the impact that the abolition or relocation will have on the IFR.”
This new clause would require the Government to review the IFR in the instance that the Department for Culture, Media and Sport were abolished, or its functions substantially altered.
New clause 13—Neurodegenerative care scheme—
“(1) The IFR must establish and supervise a scheme aimed at providing a high standard of care and support to any person who has developed a neurodegenerative condition linked to their career in English football.
(2) The Secretary of State must make regulations setting out—
(a) minimum requirements for the scheme,
(b) a timescale for the scheme’s establishment, and
(c) arrangements and a timescale for a periodic review of the scheme.
(3) The IFR must ensure that, as a condition of organising any competition specified pursuant to section 2(3), all specified competition organisers jointly operate, manage and fund the scheme in accordance with subsections (4) to (8).
(4) For the purpose of operating, managing and funding the scheme, all of the specified competition organisers must form a Joint Coordinating Committee (‘JCC’).
(5) Any current or former player who has at any time been registered as a professional footballer is eligible for the scheme.
(6) The scheme must provide care and financial support to any eligible person who suffers from a neurodegenerative condition which is deemed, pursuant to subsection (7)(a), to have been caused or contributed to by playing or training activities within English football.
(7) The JCC must, under the supervision of the IFR, appoint a panel of independent experts—
(a) to determine whether, on the balance of probabilities, a neurodegenerative condition of an eligible person has been caused or contributed to by playing or training activities within English football, and
(b) to determine the appropriate provision of care and financial support required in the case of each eligible person.
(8) The IFR must ensure that the JCC acts upon the panel’s determinations.
(9) Where—
(a) specified competition owners, through the JCC, cannot agree about the operation, management or funding of the scheme, or
(b) at any time, the scheme does not meet either—
(i) the aim under subsection (1), or
(ii) any requirements set out in regulations under subsection (2),
the Secretary of State may, having taken advice from the IFR, make a direction about the operation, management or funding of the scheme.”
New clause 14—Duty to vet financial investment in football clubs—
“(1) The IFR must review and approve all proposed financial investments in regulated clubs from funds which are located outside of the United Kingdom.
(2) A review under subsection (1) must include—
(a) assessing if any sources of revenue for such a fund is the result of money laundering;
(b) assessing if the owner of such a fund is charged with any breaches of UK or international law.
(3) If upon completing a review under subsection (1) the IFR has determined a source of revenue for a fund is the result of money laundering or the owner of a fund is in breach of UK or international law the IFR must direct the club to reject the investment.”
Amendment 14, in clause 2, page 2, line 31, leave out subsection (3) and insert—
“(3) For the purposes of this Act a ‘specified competition’ includes—
(a) the Premier League,
(b) the English Football League, and
(c) the National League.
(3A) The Secretary of State may by regulations made by statutory instrument subject to approval by both Houses of Parliament amend the competitions specified in section (3).”
This amendment would specify the leagues that are to be classed as “specified competitions” under Act.
Amendment 3, in clause 6, page 5, line 14, at end insert—
“(d) to ensure that the care and support of people who have developed neurodegenerative conditions linked to their career in English football forms part of any strategy published by the IFR, and to oversee an equitable and fair industry financial scheme to provide care for those people.”
Amendment 12, page 5, line 14, at end insert—
“(d) to take responsibility for the protection, financial welfare, and safeguarding of current and former players involved in English football who—
(i) have been victims of financial abuse, mismanagement, or fraud, or
(ii) are at risk of becoming victims of financial abuse, mismanagement, or fraud, (referred to in this Act as ‘the financial abuse, mismanagement and fraud objective’).”
Amendment 29, page 5, line 14, at end insert—
“(d) to ensure that the care and support of those who have developed neurodegenerative conditions linked to their career in English football is a central part of its approach to football governance, and to establish and supervise the scheme provided for under section [Neurodegenerative care scheme].”
This amendment places an objective on the IFR to establish and supervise a scheme to provide care and support to those who have developed neurodegenerative conditions linked to their career in English football (see NC13).
Amendment 25, in clause 7, page 5, line 27, at end insert—
“(d) conflicts with any regulations or rules of international football governing bodies, including FIFA and UEFA.”
This amendment requires the IFR to exercise its functions so as to avoid conflicts with the regulations and rules of international footballing bodies.
Amendment 1, in clause 10, page 7, line 6, at end insert—
“(d) an assessment of the impact that the IFR’s activities have had on the price of match tickets.”
This amendment would require the IFR to include in its state of the game report the impact that its regulatory activities have had on ticket prices.
Amendment 21, in clause 11, page 7, line 41, at end insert—
“(7) No football governance statement may have effect unless approved by resolution of both Houses of Parliament.”
This amendment would require the football governance statement to be approved by Parliament before it could have effect.
Amendment 2, in clause 14, page 9, line 3, at end insert—
“(aa) the impact that the IFR’s activities have had on the price of match tickets, and”.
This amendment would require the IFR to include in its annual report the impact that its regulatory activities have had on ticket prices.
Amendment 28, page 9, line 3, at end insert—
“(aa) the cumulative impact of the costs imposed on clubs through compliance with the IFR’s regulatory regime, and”.
This amendment would require the IFR to include in the annual report an account of the financial costs imposed on clubs through its regulatory requirements on them.
Amendment 26, in clause 17, page 11, line 27, leave out subsection (9) and insert—
“(9) The IFR must make the decision whether to grant a regulated club a provisional operating licence within the period of one month.
(10) The IFR may extend the period in subsection (9) by no more than two weeks if it requires more time to consider the application due to—
(a) unusual staffing pressures, or
(b) discrepancies or abnormalities with the application.
(11) If the IFR extends the period as per subsection (10), it must give a notice to the relevant club stating—
(a) that the period has been extended,
(b) the length of the extension, and
(c) the reasons for the extension.”
This amendment places a time limit of one month for the IFR to decide whether to grant a provisional operating license.
Amendment 15, in clause 37, page 28, line 28, at end insert—
“(fa) whether the individual is a member of a proscribed organisation as per section (3) and schedule (2) of the Terrorism Act 2000.”
This amendment requires that IFR, in determining whether an owner or officer has the requisite honesty or integrity, to consider whether the person is a member of an organisation proscribed under the Terrorism Act 2000.
Amendment 8, in clause 46, page 39, line 5, at end insert—
“(c) in the case of a disposal under subsection (1)(a), it has taken reasonable steps to establish that the majority of the club’s fans domiciled in England and Wales approve of the disposal.”
Amendment 9, page 39, line 5, at end insert—
“(6A) Before the IFR grants an approval under subsection (6) it must—
(a) consult the supporters of the body in question, the relevant competition organisers and persons representing the local community with which the body is associated, and
(b) have regard to the views expressed by those consulted.”
Amendment 24, in clause 53, page 42, line 3, at end insert—
“(1A) But the IFR may not require a club with fewer than 10 full time equivalent employees to pay the IFR a levy in respect of a chargeable period during which the club is a licensed club.”
This amendment would exempt clubs with fewer than 10 full time equivalent employees from having to pay the levy.
Government amendments 4 to 7.
Amendment 18, in schedule 2, page 87, line 12, at end insert—
“(3A) Any political interests of, and political donations made by, the prospective chair of the Board, must all be declared as part of the appointments process, and published before the chair’s pre-appointment hearing with the Culture, Media and Sport Select Committee.”
Amendment 19, page 87, line 37, at end insert—
“(5) No member may be appointed to the Board if they currently have any broadcast or media interests or any role in a television or media broadcast that relates to football.”
This amendment prohibits any person who currently has any interests or roles in a television or media broadcast that relates to football from being appointed to the Board.
Amendment 23, page 88, line 37, at end insert—
“(1A) But the number of persons in the employment of IFR (including any persons seconded to the IFR) must at no time exceed 50.”
Amendment 22, page 89, line 9, leave out subparagraph (3) and insert—
“(3) The IFR may pay a person appointed as the Chief Executive no more than £172,153 per annum.
(3A) Notwithstanding the remuneration of the Chief Executive Officer as per paragraph (3), the IFR must pay its employees such remuneration as may be determined by the non-executive members.”
This amendment limits the pay of the Chief Executive.
Amendment 20, page 93, line 5, at end insert—
“(4A) No member may be appointed to the Expert Panel if they currently have any broadcast or media interests or any role in a television or media broadcast that relates to football.”
This amendment prohibits any person who currently has any interests or roles in a television or media broadcast that relates to football from being appointed to the Expert Panel.
Amendment 16, in schedule 4, page 99, line 37, at end insert—
“(f) the club’s political statements and positions.”
This amendment ensures that clubs have to engage their fans on the political statements a club might adopt.
Amendment 10, in schedule 5, page 100, line 26, at end insert—
“(e) an Asset of Community Value condition.”
This amendment adds the requirement to attach an Asset of Community Value condition to each club operating licence.
Amendment 27, page 102, line 7, at end insert
“including the club’s official charity.”
This amendment would make clear that the activities of a football club’s official charity can be counted towards it meeting the corporate governance code.
Amendment 17, page 102, line 13, leave out sub-paragraph (e).
This amendment removes the requirement for the corporate governance statement to cover what action the club is taking to improve equality, diversity and inclusion.
Amendment 13, page 102, line 33, at end insert—
“(1A) The IFR must ensure that the persons referred to in subsections 1(a) and 1(b) are representative of the majority of the club’s fanbase and represent the club’s key supporters’ groups.
(1B) If it is unclear which are a club’s key supporters’ groups the IFR must consult with the Football Supporter’s Association to determine which groups apply for the purposes of this paragraph.”
Amendment 11, page 103, line 20, at end insert—
“Asset of Community Value
11A The Asset of Community Value condition is a condition requiring a club to either—
(a) obtain and maintain Asset of Community Value status for its home ground; or
(b) incorporate into its Articles of Association a restriction which substantially mirrors the restrictions placed on Assets of Community Value under the Localism Act 2011,
and the Secretary of State may create regulations detailing further the implementation of the Asset of Community Value condition.”
The amendment defines the Asset of Community Value condition that clubs are required to obtain for their home ground and is consequential on Amendment 10.
I also put on record my thanks to Lord Tebbit for his life of service to both our country and our party. He will be dearly missed by us all. In opening today’s proceedings, I draw the House’s attention to my entry in the Register of Members’ Financial Interests.
It is a privilege to speak on Report for the countless fans who fill the stands week in and week out, wear their club’s shirt with pride and keep our clubs alive, come rain or shine. I put on the record my thanks to all right hon. and hon. Members for their contributions in Committee, and to everyone who has engaged with the process outside of Westminster. For all the high talk of regulators, quangos and corporate structures, let us never forget that football in this country is not an industry dreamed up by officials on neat PowerPoint slides or Excel spreadsheets, but a living tradition that is part of who we are and part of the fabric of our nation.
That is precisely why we must be so careful now: because this Bill, well-intentioned though it may be, risks replacing one danger—a minority of reckless owners—with another, namely reckless political interference that risks the independence of sport. This Bill, which wants to tackle cowboy owners, comes from an incoherent Government under investigation for appointing a Labour crony to be the new sheriff of football, and from a Department that has seen the Whip resign since the last meeting of the Bill Committee. We really are in “The Thick of It”.
Order. I understand that the shadow Minister may not have meant to say that the Secretary of State has deliberately misled the House; he may want to clarify that.
I will reflect on that comment, Madam Deputy Speaker—[Interruption.] And I withdraw it. [Interruption.] I have said that I withdraw it; I do not know what the problem is. Members can scream and shout all they want, but the reality is that in the Select Committee, the chair in question said very clearly that he had been approached by civil servants, not by the then Minister in question. The Minister in question, my right hon. Friend the Member for Daventry (Stuart Andrew), has already said on the Floor of the House that he did not approach the said gentleman. Perhaps the Secretary of State would also like to reflect on her comments. There is a revolving door of vested interests ready to leap in. We would not let the chairman of a rival club—[Interruption.] You are already under investigation; I am not sure you want to make it worse. We would not let the chairman of a rival club referee a cup final, so why let—
Order. I am sure the shadow Minister did not mean to infer that I was under investigation.
Of course, Madam Deputy Speaker. I apologise. You are not under investigation, but the Secretary of State and the Government are. That is a matter of public record. We would not let the chairman of a rival club referee a cup final, so why would we let people with political or commercial conflicts of interest sit at the very top of this new football referee? My amendments to schedule 2 are basic due diligence: they would mean no party hacks in the chair and full declarations of conflicts of interest, to avoid the mess that this Government have got themselves into. Amendment 18 would put a stop to the cronyism once and for all, and give the public proper transparency. It is not radical; it is responsible. If we do not accept it, the regulator will fail before the first whistle blows.
I am really grateful for that intervention. Again, I know that my hon. Friend has done a huge amount of work on this issue.
I have heard the calls from Members across the House, and indeed from retired footballers, and the Secretary of State and I recently met a small group of affected families and ex-footballers, including individuals associated with Football Families for Justice, to discuss player safety and welfare for those suffering with dementia. The Government are committed to looking further at this issue and supporting the families and football authorities to come together to address the lifelong consequences from concussion, as well as post-career mental health and financial crises. I am afraid that these measures are not within the tight regulatory scope of the Bill, although that does not mean that the Government are not aware and sympathetic to the calls being made on this issue, both in this House and from many former players and their families.
The Bill is focused on the financial sustainability of football clubs up and down the country. Too many fans have watched as their clubs make changes on which they have no say, from selling their stadium and changing club colours to, in the worst case, collapsing under inadequate ownership. This is unacceptable. It is devastating for fans and for local communities.
It is this Bill, delivered by this Labour Government, that will help to protect one of our great sporting assets and ensure that fans can focus on what is happening on the pitch, rather than off it. Today, Members across this House can vote with football fans, or they can vote against them. Today, we can deliver an independent football regulator. I commend this Bill to the House.
We welcome this Bill, as did Members across the House until a few short months ago. [Laughter.] Indeed, some of those Members even came up with the idea. Like many in the Chamber today, we are disappointed that the consensus remains broken, after an apparent direction from the Leader of the Opposition, and that the Conservatives have chosen to turn their backs on the sustainability of football quite so dramatically—perhaps it is time to sack the manager. While their time in government left much to be desired, the Conservatives had the chance to claim a statement win today. After all, as I said, this Bill was their idea: Dame Tracey Crouch initiated the fan-led review, and the previous Government started this process.
Now, however, the Conservatives have spectacularly missed an open goal, much like Ronnie Rosenthal at Villa Park in 1992. If I was generous, I would say their performance on this Bill has been like Man United in 1998—throwing away a massive points lead only to finish with nothing. Instead, I fear for the shadow Minister that they are more like Spurs in 2016, somehow managing to finish third in a two-horse race—although, I suppose coming third is the sort of result the Conservatives need to get used to.
Throughout this process, we have been clear on our position: we are in favour of the principles of protecting the heritage of our national game, of greater financial sustainability, and of greater fan involvement in the game. We applaud the Government’s approach in delivering that, and we will support the Bill on Third Reading later today, because we remain consistent in our view.
None the less, we think that the Bill could go further. Let me begin with the issue of free-to-air coverage. In new clause 3, we are calling for key fixtures from the domestic football calendar to be made available on free-to-air television. This includes a selection of 10 premier league matches each season, the league cup final and the play-off finals in the championship, league one and league two. As a Charlton Athletic fan, the shadow Minister might have an interest in this one, because his team might make the play-offs one day. These would complement the existing free-to-air marquee events such as the FA cup, the World cup and the Euros. This proposal is neither about undermining private broadcasters, whose viewing figures sadly are already declining, nor about devaluing the broadcasting rights on which clubs rely, which are showing signs of plateauing, despite the addition of so many more live games to broadcast packages. Rather, this is an opportunity for broadcasters and the football leagues to innovate and to consider a more direct route to accessing fans without a paywall.
By introducing more free-to-air games, broadcasters could explore wider sponsorship opportunities tied to larger audiences, generate new appointment-to-view moments, and engage fans who are currently priced out of football not just in the stadium, but on television, too. This approach is already proving successful in other countries. For example, La Liga broadcasts one Spanish top-flight match per week free to air, helping to maintain widespread public engagement with the sport. With the rising cost of living and the growing number of subscription services required to watch live football—now totalling around £700 a year—making more matches available without a paywall would ensure the game remains accessible.
Order. Starting with an immediate 6-minute time limit, I call Chris Evans.
I am imposing an immediate five-minute time limit. I call Clive Betts.
Thank you, Madam Deputy Speaker—not for the time limit but for calling me.
The Bill is crucial because football has failed to regulate itself. It is key to ensuring the sustainability of our great game. The first aspect of it that I really commend is the move to give the regulator powers to ensure a fairer redistribution of money throughout the football pyramid—it is clearly totally unfair that money is concentrated in a handful of clubs at the top while other clubs struggle at the bottom—and to remove the enormous cliff edge between the premier league and the championship. I thank the Secretary of State and the Sport Minister for listening to the concerns raised about the powers of the regulator with regard to the backstop. In improving the backstop in terms of scope and process during the Bill’s passage, they have listened and acted, which is welcome indeed.