Football Governance Bill [Lords] (Fourth sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Thursday 5th June 2025 Public Bill Committees

[Stephanie Peacock]

I am grateful to my hon. Friend for that comment. The intention of the regulatory principle is not to list every possible stakeholder that the regulator should ever engage during the course of regulation. That would be a slippery slope to an enormous list that risks missing persons off. Rather, the broader group of those affected by decisions are captured by this provision, even if they are not explicitly mentioned. That is why I am very pleased to give those assurances to my hon. Friend the Member for Sheffield South East.

[Mr Dillon]

I am grateful to the Minister for her response, and I thank the hon. Member for Sheffield South East for drawing that conclusion from the Minister in his useful remarks. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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

[Stephanie Peacock]

The state of the game report will allow the regulator to better understand the finances and economics of the industry and its individual clubs. This, in turn, will inform the regulator’s approach and decision making across the regulatory framework.

Clause 10 requires the regulator to publish the report and sets out the topics that it must cover, including an overview of the main issues affecting English football and whether any features of the industry are jeopardising the regulator’s ability to deliver its objectives. These are deliberately broad and non-specific topics, affording the regulator some discretion as to what to cover. In essence, this means that the regulator can cover any matter that it considers relevant at the time, providing it relates to the functions of the Bill.

I would like to take this opportunity to provide further reassurance to my hon. Friend the Member for Sheffield South East on his earlier amendment. We would expect at this stage for it to include distributions, and powers lie within the Bill for the regulator to do that. I want to put that on record once again, further to our earlier debate. It will depend on which issues and features of the market are relevant to its objectives and the regulatory regime at any given time. However, the report is still constrained by its link to only matters relevant to the regulator’s function, so I reassure the Committee that this cannot be an avenue for scope creep.

The clause also requires the regulator to publish its first report no longer than 18 months after the competitions and scope of the regulation have been specified by the Secretary of State, as we have discussed. Subsequent reports must be published at least every five years after this but, as we have just debated, they could be more frequent if the regulator considers it appropriate. These timeframes balance the importance of a timely first report with giving the regulator time to undertake the necessary in-depth analysis.

Finally, the clause sets out clear consultation requirements, including an open process of inviting suggestions about the issues to be included in the report, as well as targeted consultation on a draft report, which I hope speaks to some of the comments from the hon. Member for Newbury on his previous amendment.

--- Later in debate ---

[Stephanie Peacock]

I thank my hon. Friend the Member for Sheffield South East and the hon. Member for Cheltenham for tabling new clauses 2 and 6. The Government recognise the intent behind them, and we agree that the regulator should help clubs to comply with regulation as much as is reasonably possible. It is in everyone’s interests for clubs to become compliant quickly and with as little additional burden as possible. It is vital that the regulator helps clubs get to grips with its regulatory regime, which is why we have been very clear that the regulator will operate an advocacy-first approach, and why provisions for a collaborative approach are already in the Bill.

For example, the regulatory principle of clause 8(b) encourages the regulator to co-operate and constructively engage with clubs. Regulatory principles (c) and (d) encourage the regulator to ensure that any action is proportionate to the benefits expected from it.

In relation to the specifics of the new clauses, we disagree with any provision that would require the regulator to provide financial assistance to clubs to comply with requirements imposed by the regulator. That would amount to redistribution by the back door, given that the Independent Football Regulator would be levying some clubs in order to provide financial assistance to others. That is not the regulator’s role, and we do not believe it should be. On training, the regulator can work with clubs to ensure that they fully understand the regulation and what is expected of them. Of course, in cases where this is necessary, the regulator can appoint a skilled person to assist the club in resolving issues in respect of a relevant infringement. For the reasons that I have outlined, I am unable to accept the new clauses and I hope that they will be—

[Mr Dillon]

I seek further clarification from the Minister. Subsection (1)(c) of both new clauses refers to

“unregulated clubs who are reasonably likely to become regulated clubs in the next football season.”

They would stand outside the remit of the Bill if unamended, but would the Minister’s view be that the regulator should engage with those clubs that may be just about to come into the regulated area?

[Stephanie Peacock]

That is a really good question. The regulator can engage with clubs outside of scope, such as those in the National League North and South, to assist with the application process. I hope that answer gives clarity. It is a very good question from the hon. Gentleman. However, for the reasons that I have set out, I am unable to accept the new clauses, and I hope that they will be withdrawn or not pressed.

Football Governance Bill [ Lords ] (First sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Mr Lee Dillon (Newbury) (LD)]

I sold my shares in Manchester United to the phoenix fund, which exists to buy the club if it ever comes back on the market.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)]

For clarity, my interests are declared in the ministerial register.