Draft Statutory Guidance on the Meaning of “Significant Influence or Control” Debate
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(1 day, 7 hours ago)
Lords ChamberMy Lords, my noble friend Lady Debbonaire said that the Bill originated as a Tory proposal when she was a shadow Minister. I do not think she had joined your Lordships’ House a year ago when we were going through this Bill and had the marvellous sight of the noble Lord, Lord Parkinson, who had moved the Bill for the Tory party prior to the election, turning handstands to say why it was not suitable, why we really did not need it and why all sorts of changes had to be introduced before it could make any progress—the text for, “We don’t really want it to make any progress at all”. I understand that that was not always personal on the part of the noble Lord, Lord Parkinson, and that there were forces behind him, shall we say. In many cases, they were influenced by connections with Premier League football clubs.
I say to the noble Lord, Lord Moynihan, whom I hugely respect, particularly in sporting matters—I am loath even to question his motives—that I wonder why he is doing this. Is it not rerunning some of our debates a year ago, when there was opposition to the Bill per se? I am not suggesting that he is acting on behalf of anyone else—he is well capable of speaking for himself—but it seems to me that, when he gave the Leeds United example, that was personal. He unpicked the layers, almost like an onion, of who controls the club, and I understand why there were questions there: but that seems to be more about Leeds United than about the Bill and this guidance.
I cannot understand why the noble Lord thinks the guidance is unclear. Paragraph 2.7 talks about
“significant influence or control … For example, absolute decision or veto rights”
relating to eight examples. It is quite clear. We can look too closely at what “significant influence or control” actually means: it is usually quite clear, and those involved know whether they have that. The noble Lord, Lord Moynihan, talked about effectively turning people away from football because of the test they will have to meet. I suggest that, if people are not prepared to be open and transparent about what they are doing and perhaps why they are doing it, they will not be any loss to football, because there is more to that than just the financial terms.
I will make one last point. The noble Lord cited his own football club, which I think I am right in saying was not a Premier League club at this time last year, when the Bill was going through. But it seemed that the main thrust was about Premier League clubs, rather than EFL clubs. If we are declaring our interests, I declare that I am a proud part-owner and season ticket holder at AFC Wimbledon, further down the pyramid. The noble Lord said, “We didn’t think the guidance was about existing owners; it was about new owners hoping to come into the game”. Well, I did not get that impression when we had the discussions a year ago. Look at the clubs at level 2—Reading, Cardiff City and Sheffield Wednesday, which he mentioned—which could not get rid of owners who were really dragging those clubs down. It is not just about the Premier League; it is about clubs at a lower level that may have aspirations to get to the Premier League. There are more mundane examples than the high-fliers that hope to be the Arsenals of this world. So, again, like my noble friend Lord Hunt, I am not sure what the noble Lord, Lord Moynihan, is seeking to achieve, other than to undermine the force of the Act.
My Lords, when I saw that we were going to pray against the Bill, I thought, “Oh, this is interesting”, because I know that the noble Lord, Lord Moynihan, is good at this. He casts the fly across the water and drags it out to see what will rise and bite. Well, this trout is biting—not at the fly but at the line. The Bill is going through and we will have precedent and case law very quickly on how this is operating. We will have to let the regulator get on with it.
I agree with the noble Lord on one point: the ownership of these national bodies is incredibly complicated. The noble Lord, Lord Watson, has just mentioned it. If you think this is complicated, look down the chain. The origins of many of these institutions go back to the Victorian period, and they have been through many evolutions, changes and traumatic experiences along the way, wrapped around them. There is a great mess about these institutions, which is why they get into so much trouble and why we need the regulator.
You will have to have a series of general terms, which will be defined by experience, case law and the attitude of the regulators. I hope the current regulator is a success. Let us face it, the regulator has not exactly arrived to universal fanfare, but I hope it is a success and we set a precedent for how this should be done, because we need that. It is too complicated to get the definitions and clarity the noble Lord seeks here. I know he opposed the regulation of this sport and is worried about other bits. I happen to disagree with him on this; I may agree with him on something else tomorrow, but on this I disagree with him. We should let the regulator get on with it and observe. We have other things coming in the “state of the game” report, and the Government cannot look away from this. We have to make sure that it happens independently. I hope that we just let the regulator get on with it because, let us face it, we have talked about this enough.
My Lords, I apologise for speaking when the Front Benches have started speaking—I was going to stand up, but the noble Lord, Lord Addington, jumped up far too quickly.
When it comes to football, I want to use a phrase that the late Bishop of Southwark, Roy Williamson, applied to me. We had been working hard to get the Holy Trinity Church restored; it was a very poor congregation and fundraising was really very difficult, but we managed to do it. He came to open this amazing refurbished place, with the organ returned to its great glory. The church was full, and he said, “Your vicar, John Sentamu, can almost be compared to a Yorkshire terrier—never letting go, or only doing so in order to get a firmer grip”. That is how I see the noble Lord, Lord Moynihan: when it comes to football, he is like a Yorkshire terrier. He does it not wanting to control or anything but just because he loves football, and he knows a lot about football. He is doing this with an honest attitude. I do not think he is doing it to prevent regulations and all that is happening. But because he is like a terrier, I think this is the moment he needs to let go.
This stands on a three-legged stool. The first is what we passed here in your Lordships’ House—an Act of Parliament, the primary legislation. If you go there, you discover that the Secretary of State has power to do what he has just done. He is not doing it out of any reason other than that the Act that we passed gave him that power. The noble Lord, Lord Pannick, said exactly the same thing.
Secondly, there is the regulator, with powers given, again, by an Act of Parliament. The third leg is guidance—but I always look at guidance not as the key driver of things, which is why it cannot be clearly defined on every occasion. As the noble Lord, Lord Pannick, said, guidance always has to be understood in context. You cannot simply talk about what happens to my little club, which is not in paradise. York City Football Club is climbing up slowly, but it fell out of League Two a long time ago. You cannot say to the people of York City that paragraph 1.6 should not apply to them, when it says that
“regulated football clubs will be required to submit and publish a personnel statement identifying all owners. The definition of ownership, including the concept of significant influence or control, will ensure this statement publicly identifies the correct persons as owners, providing transparency to fans and the wider public”.
That will also apply to my little York City Football Club. Therefore, I do not see those phrases needing to be more precise.
This three-legged stool of the Act, the regulator and the guidance provided by the Secretary of State will, I am sure, make even my little club of York City feel emboldened that it actually knows who really owns it and who those people are. I think this is a good thing. I beseech the highly admired noble Lord, Lord Moynihan, that this is the time to drop the Motion. He can continue to be keen on football, but this is not the time—otherwise, you are going to play a game that is not going to take you anywhere.