Football Governance Bill [ Lords ] (Third sitting) Debate
Full Debate: Read Full DebateLincoln Jopp
Main Page: Lincoln Jopp (Conservative - Spelthorne)Department Debates - View all Lincoln Jopp's debates with the Department for Digital, Culture, Media & Sport
(2 days, 18 hours ago)
Public Bill CommitteesThe Lib Dem spokesman makes an interesting comparison. As I said in the Committee’s debate on Tuesday, my focus is on football, and I am outlining with this amendment my concerns about the interactions of a sport with other international competitions. I will come on to explain why football in particular is interwoven with international principles. The majority of fans want to focus on the sport, rather than politics. I am sure that there are many more debates to be had on issues such as the ECHR in the rest of this Parliament. I will stick to football today, but I appreciate the hon. Gentleman’s comments.
UEFA’s ultimate sanction would be excluding the federation from UEFA and teams from competitions. That risk is very real: it has happened before and can happen again. In 2006, the Greek football federation was banned from European competition. People might argue that I am trying to scaremonger, but I am trying to highlight that this is a real risk.
It is important to clarify what FIFA and UEFA mean by “third-party interference”. It is not a casual term; it is clearly defined in their statutes. It refers to instances where public authorities, including Governments or regulators created by Government legislation, exert influence over how football is run in a way that compromises the independence of football associations and clubs. Examples include dictating the appointment or removal of club directors—which the Bill does—influencing the outcome of football disciplinary procedures and imposing governance models that conflict with internationally recognised standards.
Any new licensing requirements introduced by the IFR must be meticulously aligned with existing UEFA and national frameworks. It is therefore important that the IFR’s licensing criteria are complementary to football and created in full consultation with clubs and any other affected parties. Does the Minister accept that clubs, as entities directly impacted by licensing regulations, must have a full voice in the development and implementation of those requirements? What consultation are the Government or their regulator currently undertaking on these regulations?
Let me be clear: I understand that the creation of the IFR in and of itself is on the borderline of what constitutes third-party interference. We are taking great care to help the Government to redesign a regulator that is fully independent of Ministers and professionally competent. However, in the absence of clear statutory guidelines to avoid conflicts with international rules, there is a risk, or perhaps even an inevitability, that the Government’s regulator may, at some point in the future, cross a line drawn by UEFA or FIFA.
It is a pleasure to serve under your chairmanship, Mr Turner. The shadow Minister is making a pertinent and important point. If the independent football regulator were inadvertently to cross lines into the jurisdictions of UEFA or FIFA, it could be catastrophic for English football. Clearly, that is not the purpose of the regulator. Given the success of many English teams in Europe, that would have serious ramifications. I genuinely think that the shadow Minister’s amendment is meant to be helpful and is incredibly important.
I thank my hon. Friend for making that point. That is exactly what we are trying to do. This is not a wrecking amendment; we are just trying to tighten the Bill to ensure that no conflict arises that would damage the participation of English clubs or the national team in future competitions.
We know that UEFA is concerned about the potential for scope creep and that the Government’s regulator may expand its mandate beyond its loosely defined current competences. That expansion, intentional or otherwise, into broader aspects of football governance could undermine established structures and processes of the sport and amount to Government interference.
That is why my amendment is needed. It would place a duty on the regulator to abide by long pre-existing international frameworks within which English football exists. It requires the Government’s regulator to ensure that, in pursuing its objectives, it does not create legal or procedural clashes with the statutes of FIFA and UEFA. Legislation that compromises the FA’s autonomy as the primary regulator of football in England would be non-compliant with those international statutes, which are upheld and enforced rigorously across Europe and globally.
Some may ask why Parliament should concern itself with the rules of unelected international bodies. Why not simply legislate as we see fit and allow the regulator to act as robustly as necessary? On the surface, that is a fair political question, but we must recognise the reality of football governance. FIFA and UEFA are not advisory bodies; they are the organisations through which our clubs gain access to international competitions, including European competitions. They are custodians of the World cup, the European championship and the Champions League, to name just a few. Their statutes form part of the accepted legal architecture of the global game and all member associations, including the FA, are bound by them.
I would argue very strongly that when the English football team finally wins the World cup, it will get much more out of FIFA than this country would ever get out of the European Union.
English football does not exist in a vacuum, but the Bill acts as if it does. The global football ecosystem is fantastically complex, but the Bill is simple, clunky and—I am afraid to say—full of holes, which would potentially leave English football to drown among its international competition. I also fear that it will create even more legal cases, whereby clubs end up spending more time in courts than they do focusing on the football matches themselves.
To act as if we can disregard those international rules, or to suggest that a domestic regulator can impose conditions without reference to them, would be to invite precisely the sort of jurisdictional collision that could see English football punished because of the good intentions of Members of this House. We cannot just pander to the politics; we must be practical about the potential havoc that the Bill will wreak across the English football pyramid.
If FIFA or UEFA were to exclude English clubs or the national team from international competitions as a result of perceived third-party interference, the consequences would be nothing short of catastrophic. As hon. Members will know, the Premier League generates more than £6 billion in revenue annually, with over £1.8 billion coming from overseas broadcasting rights alone. In fact, I understand that the Premier League is the first sporting competition in Europe to generate more from its international broadcasting rights than it does from its domestic rights.
I suspect that Government Members will oppose the amendment. Given that, does my hon. Friend think that it would be reasonable of me to ask the Minister the extent to which UEFA has seen the Bill and signed it off as something that does not constitute political interference either way?
I thank my hon. Friend for that intervention. That is something that we discussed at some length during the Committee’s first sitting. It is disappointing that all members of the Committee, including my hon. Friend, do not have access to that information to help them to make informed decisions.
I appreciate some of the what-aboutery and counter-arguments that are made, but, as I have said, I will defend the right of Committee members to have full access to information. It is so important, in particular given the Committee’s function in respect of this legislation, that its members should have full and frank information. It is disappointing that that has not been disclosed so that we can fully understand all the risks.
The Premier League’s broadcasting rights are in no small part predicated on English clubs’ participation in the Champions League and the Europa League. Exclusion from those competitions would make our top clubs less attractive to global audiences and sponsors, shrinking the broadcast value of the league and undermining its international appeal.
Without wishing to confuse my sporting metaphors, that would have a knock-on effect further down the pyramid. If the Premier League makes less money, there is less money to distribute to the English Football League or the National League, which we will come on to when we consider other parts of the Bill. The Champions League alone contributes more than £300 million each season to English clubs, not including the knock-on commercial benefits. For top clubs, it accounts for up to 20% of their total revenue. Stripping that away would lead to cost-cutting, player sales and job losses, not just in clubs themselves but across the local economies that depend on matchday trade and revenue.
The FA also receives critical funding linked to England’s participation in international tournaments, as I know a number of pubs do; for example, when we are in the Euros in the summer, that normally means that the economy receives a boost. A ban from the World cup or the European championship would not only harm national pride but cut investment in grassroots football, which is often funded in part through FIFA’s global redistribution programmes or revenues generated by the national team.
Mr Turner, you will have seen the declaration of interests that I made on Tuesday. I seek the Committee’s indulgence; this is the only gratuitous intervention that I will make. Can the shadow Minister remind the Committee of the identity of the only team who have won every major European trophy, having recently won the UEFA Conference League?
I agree with the shadow Minister. I suppose there is a not-too-fanciful theoretical situation in which the football regulator makes a decision on the ownership of a club that has otherwise qualified for the Champions League, and that decision was made by a body headed up by someone who had donated to the Prime Minister of the country. I think that that would be a problem. However, if clause 7 were amended, he would have to recuse himself, or the body would have to deal with it in a different way. My hon. Friend demonstrates perhaps the most likely scenario and the most powerful justification for backing the amendment. I urge all Members to do so.
I ask the Minister to respond to this simple question: has the Bill as drafted been shared with UEFA? Is UEFA satisfied that it does not represent political control?
I thank the hon. Member for that intervention. As I said, it really is about transparency. We believe that we, as elected Members of this House, need to have an understanding of the impact that the regulator will have on the ultimate person, which in this case is the club’s fans. That is what the amendment seeks to do.
I understand the hon. Member’s point, and I did say that the causes of price increases are complex. I will not read out all the figures, but clubs’ costs have increased just this year, whether because of energy bills, national insurance or wages. We are concerned about the burdens and requirements that the regulator will impose on clubs increasing their costs and about those being passed on to the end fan, who is already under significant pressure.
Ticket prices are not an incidental issue; they are a barometer of whether the game remains accessible to its core community. We know that regulation drives up prices, through compliance costs, as I have said, and by reducing investment and squeezing margins even further. The Government must have the courage to recognise that and to adjust course if necessary by ensuring greater transparency about costs. Requiring the regulator to report on that, in its general state of the game report and its annual report, would embed an essential feedback loop in statue. It would ensure that the impact on fans was not an afterthought, but a standing obligation for the regulator.
It is not enough for the Government’s regulator to simply say, “We have improved governance and we ensure sustainability,” if we then learn, in the same breath, that the average family can no longer afford to attend any more games. Football cannot become financially sustainable by pricing out its own supporters: I suspect all Members would agree on that point. I would add that ticket affordability is a deeply traditional concern. It goes to the very heart of football’s place in English lives. Fans must not be priced out of their favourite club in the name of regulation. If we forget that, we forget the point of the Bill, which is the fans.
Let me also stress that the amendment does not restrict the regulator. It does not tie its hands; it simply requires transparency. It says to the Government’s regulator: “If your actions are driving up the cost of entry to the game, tell us, tell the fans and tell Parliament.” Then, we can at least have an honest discussion in this House about whether those actions are justified or proportionate. That is especially important when we consider that many of the regulator’s decisions, whether on licensing, financial rules or ownership models, will almost certainly have financial consequences. Clubs will find ways to balance their books, as the hon. Member for Cheltenham just intervened to say, and if the regulation increases their fixed costs, the easiest lever to pull is ticket price. That is not conjecture; it is basic economics—although we know that some members of the Labour party struggle with that.
In the end, these two amendments ask only that we shine a light on the question that supporters ask every season: “Why is it getting more expensive to watch my club?” If relegation is part of the answer—[Interruption]—or rather if regulation is; relegation is definitely part of the answer—then we have a duty in this House to know and to ensure that we make laws that shine a light and ensure transparency for everyone to understand.
I rise as someone who currently has an invitation in my inbox to renew my season ticket for an eye-watering £950. I would love to know where all that money goes, as the shadow spokesman said, and why the price has gone in the direction it has.
The amendment should not be seen as counter to the regulator. There was significant pushback from the Government Benches when we tried to amend the regulator in terms of size and pay, and we also discussed the budget. If, in a regulated environment, the ticket price went up from £950 to, say, £980, then this amendment would ensure that fans were made aware that that 30 quid had gone on being part of a regulated industry. That is a perfectly reasonable thing for us to want to communicate with the viewing public. Equally, it would create a relationship between the fan and the regulator that might not otherwise be there, so I support the amendment.
We are strongly opposed to the amendment, for a few reasons. First, it will be impossible for the regulator to know whether its actions and costs are being reflected in ticket prices. It must be absolutely obvious to everyone that the cost of the regulator per club is dwarfed by the salaries of the first team of a Premier League club alone. A bit of back-of-a-fag-packet maths tell us that. I am aware that the hon. Member for Isle of Wight East is not keen on this, but it is important for us just to use some simple logic. It will be impossible for the regulator to know, so it will have to go to the football clubs and ask the owners, who, let’s face it, might have an interest in blaming the regulator for increased ticket prices, whether or not the actions of the regulator have been the cause.
The Liberal Democrat spokesman talks about dodgy owners. My season ticket is for a Premier League club; a season ticket for, say, Ashford Town (Middlesex) FC for the forthcoming season is £130. I think part of the function of this amendment is to make the regulator aware of the costs that it puts on well-run but smaller clubs. Simply making decisions and acting under this legislation without any sense of the financial impact and imposition that it is making on those clubs would be a very worrying way to do business, but the amendment would slightly redress the balance between club and regulator.
It is not clear to me that Ashford Town (Middlesex) would be one of the clubs covered by the regulator. I am not sure what division they are in, but I do not think they are in the top five at the moment, although I wish them well in the forthcoming season and their efforts for promotion.