Football Governance Bill [ Lords ] (Seventh sitting) Debate

Full Debate: Read Full Debate
Department: Department for Digital, Culture, Media & Sport
Louie French Portrait Mr French
- Hansard - - - Excerpts

I have woken everyone up there.

Clause 37 is an important safeguard, but without amendment 110, it lacks a clear and necessary line in the sand. Parliament has already determined that proscribed organisations represent a threat to public safety and national order. That same logic must apply here. I urge the Government to accept this modest but essential amendment and, in doing so, to help to ensure that our clubs are not just well run and financially sustainable, but led by people whose values are consistent with the country, communities and traditions that they are entrusted to serve.

Lincoln Jopp Portrait Lincoln Jopp (Spelthorne) (Con)
- Hansard - -

It is a pleasure to serve under your chairmanship, Ms Butler. I rise to support amendment 110. I suspect the Minister might say that we do not need to cover everything and that there is a general catch-all measure in the clause, so we do not need to make this amendment.

I will draw the Committee’s attention to a similar case in my own constituency, however, where a member of the public wrote to ask if I could please hurry up his EU settlement scheme application. When we checked with the visas and immigration service, it turned out that he had been subject to a deportation order in 2017, and had indeed been deported in 2017. He had somehow managed to get back into this country illegally and make an EUSS application. He is still subject to that deportation order, yet for some crazy reason, the Home Office still have to go through his application. That is the sort of thing that we should not have to legislate for and that we should not have to state, but sadly we do.

Joe Robertson Portrait Joe Robertson (Isle of Wight East) (Con)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairship, Ms Butler. I rise to add my support to the amendment that the shadow Minister discussed very well and clearly.

The point is that the list set out in clause 37(2)(a) to (f), which gives examples of things that would prevent a potential owner from having the requisite honesty and integrity to own a football club, is missing a provision about their being a member of a proscribed organisation such as a terrorist organisation. In football, which is the most international sport and which has very international ownership, it seems particularly sensible to have that provision.

I do not think a terrorist offence is captured by someone being

“convicted of a criminal offence”,

because, as we know, the Terrorism Act 2000 was put in place to introduce various provisions relating to terrorism where it had not necessarily been identified that a perpetrator had committed a criminal offence. The provision in the amendment would therefore be a fair addition to that list.

Of course, clause 37(2)(g) is a catch-all measure that refers to “such other matters”. Nevertheless, the point is that this matter is particularly important and we do not want to leave it to be swept up in a catch-all measure. Of course, if it is argued that it could be swept up in a catch-all measure such as clause 37(2)(g), why have the list in clause 37(2)(a) to (f) at all? I support the sensible and non-controversial amendment.

--- Later in debate ---
Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank my hon. Friend for his amendment. We have seen far too many examples of the damage that can be caused by unsuitable custodians of clubs, and that is why the Bill introduces a strengthened owners and directors test.

I believe that my hon. Friend hopes that the amendment will give reassurance to fans that, where a club fails to comply with regulation and loses its licence as a result, the regulator will be able to remove the owner. The aim is to hold those responsible to account. Let me reassure my hon. Friend that the regulator is already empowered to hold individuals to account for their actions. If the club’s non-compliance or its financial situation gives the regulator concern about the owner’s suitability, it can test them, and they could be failed on that basis. If they are found to be unsuitable, the regulator will have the power to remove them. That ability to isolate and remove unsuitable owners and officers should mean that a club never has to have its licence suspended or revoked on the basis of poor ownership. That means that a club’s fans should not have to suffer the consequences of bad leadership.

The revocation of a club’s licence is the very last resort. We hope the regulator will never have to do that, but I reassure my hon. Friend that if a club is so seriously and consistently non-compliant that the regulator has no choice but to revoke its licence, we would expect the regulator to consider very carefully whether any responsibility for that failure can be laid at the owner’s door, and if the owner is tested and found unsuitable, they can be removed on that basis. We believe that the Bill’s provisions are sufficient to protect fans and hold owners to account where necessary. We hope that they will ensure that a licence is never revoked.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

If a club has lost its licence, has it not therefore been taken beyond the purview of the regulator? How is the regulator still empowered to pursue the owner?

--- Later in debate ---
Louie French Portrait Mr French
- Hansard - - - Excerpts

The hon. Member for Sheffield South East has stolen some of my lines. As always, he picked up the ball and put it in the net, as would be expected of the chair of the football all-party parliamentary group. There are inconsistencies in what is being discussed, and he was right to highlight them.

Clause 45 introduces a legal duty on clubs not to enter or operate a team in a competition deemed to be prohibited by the regulator. As has been discussed, the clause is clearly a response to the threat posed by breakaway leagues such as the attempted European super league a few seasons ago. While the intention behind the duty is understandable—to protect the structure and integrity of English football—the mechanism raises serious questions about competition and proportionality, as the hon. Gentleman just touched on.

First, on the principle, we agree that the pyramid structure of English football must be preserved wherever possible. Promotion and relegation are sacred principles of our game, and competition on and off the pitch must be upheld. The competitive nature of English football is what makes it so great. This season, certainly in the Premier League, has probably been slightly dimmer because it has been perceived to have not such great competition for the Championship and in relegation, as things were determined quite early in the season.

The Opposition have some sympathy with, in particular, the National League’s 3UP campaign, which has sought to close the gap between the National League and League Two. If we are looking at how to close the gap between the Premier League and the Championship, which has been the main argument from proponents of the Bill, we must also look at the bottom half of the pyramid to see how that competition can also be improved. That is a principle of fairness and competition for which I have a lot of sympathy.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

Does my hon. Friend agree with the analogy that, although we are all very proud of having the Special Air Service as our elite forces, the SAS cannot be created without a very large Army underneath? While the Premier League is the jewel in the crown, it simply cannot exist on its own; it absolutely needs the game beneath it.

Louie French Portrait Mr French
- Hansard - - - Excerpts

I will not question the experience of my hon. Friend, whose military background is far greater than one I could even dream of on a PlayStation, let alone in practice. He makes a valid point that English football is much more than just the Premier League. We take enormous pride in all the leagues in our country, as we do for British football more broadly. They are some of the most watched leagues in the world, with amazing clubs and competition. Competition across the pyramid is what we seek to promote and preserve going forward.

The proposed European super league rightly provoked outrage from fans, clubs and Parliament itself, and rightly collapsed after pressure from all those groups, but we must be cautious about giving a regulator the power to prohibit competitions on open-ended grounds. As the Minister has said, the Premier League probably would not exist in its current form if we had sought to prohibit it around 30 years ago.

Louie French Portrait Mr French
- Hansard - - - Excerpts

I completely agree with the hon. Member’s sentiment. We will seek to debate that when we come to our player welfare amendment, because we are concerned about increasing the length of the season to generate further revenues. The tournament in America and the Asia tour that has just taken place at Man United are probably the prime examples of the impact that can have on players. The English team, in their performance the other night, sadly looked quite tired. There is an issue around player welfare that we must all acknowledge, particularly given the demands to generate more revenues for the financial fair play rules. I thank the hon. Member for making that point; I am sure we will come back to it when we reach the player welfare amendment.

On definitions and discretions in the clause, the Bill defines a prohibited competition in quite vague terms, and it is ultimately left to the discretion of the regulator. The explanatory notes state that subsection (5) sets out some factors that the IFR must consider when deciding whether to specify a competition as prohibited. What are the criteria for a competition to be deemed prohibited? Will they be set in primary legislation, by guidance from the Secretary of State or by the regulator? Is there a right of appeal if a competition is believed to have been unfairly designated as prohibited?

On international alignment, there is another issue that we must highlight. We must accept that football operates in a global ecosystem, as we have discussed. English clubs routinely participate in international and cross-border competitions, whether that be the Champions League, the Europa League or the Club World Cup, as does the national team. How does the clause interact with UEFA and FIFA competition rules? What happens if, for example, a competition is sanctioned by UEFA but deemed prohibited by the football regulator, or vice versa? This is a real issue for the regulation. We would like some clarity from the Minister on how such a conflict would be resolved, because it would put clubs in a very confusing situation.

On enforcement and penalties, clause 45 creates a legal duty not to participate, but what are the sanctions if a club does so? One assumes that it would lead to licence revocation, but what else? Would there be fines or points deductions? What penalties will the regulator look to enforce? Will they be proportionate? Will clubs be given prior notice and the chance to make representations?

On unintended consequences, we must avoid stifling innovation and competitive evolution in the sport. Not every new competition is a threat; some may bring financial or structural benefits, or benefits for fans. As I and the Minister have highlighted, we must remember that the Premier League was technically a breakaway league from the old First Division. If that happened today, we believe that the Bill and the regulator would be responsible for preventing that league, and all the attributes and characteristics that we celebrate in this country, from existing. We have to look at innovation carefully, and the answer must not always be no if there are clear benefits to the country and to the game of football itself.

We support the aim of preserving the integrity of English football, but the clause must be clearly defined, tightly drawn and fairly enforced. A law designed to stop the next European super league must not become a tool for bureaucratic overreach or political intervention by the regulator. The game belongs to its fans and its communities, not to the regulator or the governing body. I am interested to hear the Minister’s comments on my questions, particularly those about how the international system would interact with a prohibited competition.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

I wish to build on my hon. Friend’s themes. Football has the unfortunate concept of the friendly; frequently, they are not very friendly at all. When I read the Bill, it was clear to me that the drafters had in mind the prevention of another flyaway European super league, which we have debated.

I would like the Minister to look at look at the example of a one-off friendly match. Many of our teams tour in the far east and in America, in their off-season, to generate additional revenues and expand their fan base and brand. Let us envisage a set of circumstances in which a North Korean has somehow managed to purchase an English football team, and they have the bright idea that they would like to play a “friendly” match in North Korea. It is a one-off match, but the Government in North Korea decide that they want to make a big deal of it, so it becomes the Pyongyang cup—a one-off match between the English team and the North Korean team. In the Minister’s view, would the regulator be justified in considering whether such a one-off match was a competition and therefore within the purview of the regulator?

Lee Dillon Portrait Mr Lee Dillon (Newbury) (LD)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Ms Butler. Pre-season friendlies constitute cup competitions all the time. There is the Audi cup; any major brand we could name will have sponsored friendly cups. When the Minister gives the hon. Gentleman assurance on the Pyongyang cup, perhaps she might also cover the friendly cups that actually exist.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

The hon. Member makes a pertinent point. As I said, the word “competition” seems to refer to the sort of flyaway league we have discussed; are one-off friendlies competitions under the terms of the Bill?

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I am grateful to Members for their contributions and will take their points in turn.

The clause applies both to existing and to new competitions. If any competition breaches the criteria, it can be prohibited, but matters such as scheduling are for competition organisers.

On shadow Minister’s points, we will come on to player welfare, to which we are all very sympathetic, just as we are sympathetic to the 3UP campaign, but it is outside the Bill’s scope and is for organisers. He asked some specific questions on the criteria; that will be for the regulator to determine. It is expected to do so based on a predetermined, proportionate, objective and transparent framework based on factors listed in the clause. For example, if a competition is not merit-based, jeopardises the sustainability of existing domestic competitions, and is not supported by the fans, we would expect it to be prohibited.

--- Later in debate ---
Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

I hope the Minister can take this seriously; it is a worry that the Bill does not quite go far enough at present. The reality is that this legislation tries to deal with bad owners and anticipate how they might behave. The more restrictions that we can build around bad behaviour, and possibilities for controlling it, the better.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

I appreciate the desire to legislate for bad owners, but is the hon. Gentleman not concerned about good owners who might find money very tight? They have assets beyond the home ground and team itself that they might have to consider selling, including a training ground, to remain financially viable and therefore be on the right side of the regulator in their business plan. Is he not concerned that, by extending even further the regulator’s purview into all properties, he might overly constrain good owners from doing what they want to save their clubs?

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

I do not believe that is the case. I understand the hon. Gentleman’s concern, but I think what we are saying here is that this gives the regulator the power to look at that situation. The worry is that some owners will try to exploit not for good football purposes but because they can see themselves making a profit on the side. That can damage the competitive ability of the clubs that they own. Unfortunately, some owners take that capricious view, and it is for them that we must legislate. I do not believe my amendments would adversely affect good owners, as I do not think the Bill does either.

--- Later in debate ---
Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

Yes, I believe that there is provision in the Bill to do that. For those reasons, I ask my hon. Friend to withdraw the amendment.

Lincoln Jopp Portrait Lincoln Jopp
- Hansard - -

The Minister knows—I have approached her about this—that a club in my constituency of Spelthorne has gone into administration. It has no home ground, but it does have a training ground, which is a community asset. I am intrigued to know whether, in the potential conflict between the purview of the regulator and the enactment of companies law in dealing with the administration of the company, the provisions in the clause give the regulator power to influence the administrator on the manner of the administration and whether clubs’ training grounds can be bought or sold. What is the hierarchy of legislative authority between companies law and the clause?