Draft Statutory Guidance on the Meaning of “Significant Influence or Control”

Lord Parkinson of Whitley Bay Excerpts

Tuesday 2nd December 2025 Lords Chamber

[Lord Sentamu (CB)]

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.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I for one am grateful to my noble friend Lord Moynihan for giving us the opportunity to consider this guidance in full and for acting, if I follow the metaphors correctly, like a trout-fishing terrier who loves football too much but did not read the Tory manifesto with enough diligence. Of course, had my noble friend not brought this Motion, I doubt we would have had quite as many people here, or quite as many speeches, or spent such a long time looking at the guidance that is before your Lordships’ House—and I am glad that we have, because much has changed even since the debates we had on the Bill before it left your Lordships’ House and went to another place.

For instance, we saw just yesterday the sanctions that the EFL has handed to Sheffield Wednesday, following multiple breaches of its regulations relating to payment obligations. The EFL has given that club a six-point deduction and banned its former owner from owning any club in the English Football League for three years. Had we known that example at the time of the Bill’s passage, we might have taken it into consideration when discussing the amendments allowing some of the regulation to be delegated to the leagues themselves—but that debate has passed.

We are also meeting this evening after the Commissioner for Public Appointments appeared before a Select Committee in another place, where the appointment of the chairman of the Independent Football Regulator was likened to a

“mafia appointment in Sicily sometime in the 1950s”.

[Baroness Debbonaire (Lab)]

Come on.

[Lord Parkinson of Whitley Bay (Con)]

Well, those were the comments of the chairman of the Select Committee in another place. But rather more pertinent are the comments not by a politician but by the commissioner, Sir William Shawcross himself, who spent the morning giving evidence to a Select Committee of Parliament and who said that he had never seen an appointment with as many breaches of the Governance Code on Public Appointments as this one. He said that it was

“not easy to set those breaches aside”

and called that very disappointing. I am sure we all agree that it has been a very disappointing process.

[Baroness Debbonaire (Lab)]

I thank the shadow Minister for giving way, but are we not somewhat straying from the subject of this Motion? We appear to be now discussing the football regulator and some very flowery language used by the chair of the Commons Public Accounts Committee this morning, which was wholly unfair and wholly unreasonable, when we are actually supposed to be discussing the guidance. Are we not just using a political opportunity to have a go?

[Lord Parkinson of Whitley Bay (Con)]

This is guidance and this is a Bill that is to be enforced by a new independent regulator. We did not know the name of the Government’s preferred candidate for the regulator when the Bill went through, regrettably. We know now who is entrusted with applying this new regime, and we know that the Commissioner for Public Appointments has criticised not just the Government but this morning Mr Kogan himself for a lack of transparency. It is straying from the guidance, but I wonder whether the Minister, when she rises, will have anything to say about the comments made by the Commissioner for Public Appointments today.

The noble Baroness, Lady Debbonaire, is right: the focus of this debate is the guidance before us. On this too, my noble friend Lord Moynihan has raised a number of pertinent questions, some of which we touched on during our scrutiny of the Bill and some of which are raised by the guidance that has now been published. Under particular consideration today is an issue that we spent considerable time on. When we were looking at the Bill, we were provided with rather scant information about what significant influence or control would mean in practice. We now have draft guidance—but, as my noble friend Lord Moynihan says, that appears to raise rather more questions than it answers.

As my noble friend pointed out during our scrutiny of the Bill, there is no requirement in the legislation to consult before publishing the guidance, which has now been published. I think that is regrettable. I see from some of the comments that there has been informal consultation with some in football, but maybe the Minister can set out in a bit more detail the consultation and discussions that were had, which led to the drawing up and publication of this draft guidance.

A second and rather more serious point of contention regarding the new owners’ test, again raised by my noble friend in his speech and his Motion today, is the significant departure from the current concepts of ownership employed by the Premier League, the EFL, UEFA and others in football. The noble Lord, Lord Pannick, made some remarks about obscenity—not obscene remarks, I note carefully—drawing attention to other areas of law, both in this country and in the United States, where different tests are made. But in a football context alone, the Premier League’s handbook uses the notion of control and control only, whereas here in the guidance we see the new concept of significant influence or control. So this is introducing some new thoughts into this particular sphere of football regulation. The draft guidance states:

“The right to exercise significant influence or control over a club may result in that person being considered an owner for the purpose of the Act, regardless of whether or not they actually exercise that right”.


Surely the combination of this broader interpretation of the meaning of owner and the fact that one does not actually have to do anything to be considered as such, under the Act, means that this guidance would capture a far greater number of people than one might initially anticipate.

[Lord Pannick (CB)]

Of course the guidance goes further than addressing ownership. That is because the legislation which Parliament enacted requires attention to “significant influence or control”. That is the whole point.

[Lord Parkinson of Whitley Bay (Con)]

My question to the Minister is: will that capture more people than one might imagine? I think the lay person looking at this imagines a single owner of a club, but as in the legislation that Parliament has passed, a number of people can be considered an owner and to have “significant influence or control”, and I will come on to a few more examples of that. For instance, on page 7 of the guidance, paragraph 2.11 states:

“A person might exercise significant influence or control if their recommendations or instructions are always or almost always followed by other owners and/or officers, due to the financial relationship of the person to the club”.


What does that mean, for instance, for a club sponsor? They have a clear financial relationship with the club, and they might make recommendations to the club which are often followed by the officers of the club. Does that mean, under these regulations and the Act that we have passed, that they could be considered to have “significant influence or control”? Would a sponsor in any circumstance count as an owner under these regulations?

[Lord Sentamu (CB)]

I do not like interrupting the noble Lord, because he always puts the facts as he wants to put them, but the question that the noble Lord, Lord Pannick, asked was: would it catch everybody? Yes, if they are regulated football clubs. Paragraph 1.6 states that

“regulated football clubs will be required”,

so it will catch everybody. Everybody must do what paragraph 1.6 says.

[Lord Parkinson of Whitley Bay (Con)]

My point was a broader one about whether, under the definitions in paragraph 2.11, a club sponsor could be considered to have “significant influence or control”. It seems to me, on a reading of the guidance, that they might, but I look forward to the Minister’s response. It certainly seems that there is quite an expansive list of people that the regulations might apply to. Paragraph 2.12 states that a former owner who sold his or her shares to a close friend could still be considered an owner if he or she makes recommendations on how to vote to the person to whom he or she sold those shares. So, under the guidance, a person with no current financial stake in the club at all could actually count as an owner. I would be grateful for confirmation of that from the Minister. I see her nodding, but I look forward to her confirmation.

My noble friend Lord Moynihan set out, through the history of Leeds United, the complicated arrangements by which football clubs are owned. Another example might be Bournemouth. In 2022, Turquoise Bidco Ltd obtained 100% of shares in Bournemouth Football Club. Turquoise was then renamed Black Knight Football Club UK Ltd, which is a UK-based holding company wholly owned by Black Knight Football Club US based in Nevada. That American entity is in turn owned by Cannae Holdings, Inc. According to the US Securities and Exchange Commission, Cannae owned 44.3% of Black Knight, but Cannae is in turn owned by institutional investors, including BlackRock and the Vanguard Group. An American businessman, Bill Foley, owns 7.7% of Cannae, meaning that his beneficial ownership of Bournemouth is 3.4%, but a filing in April this year disclosed that his economic interest in Black Knight is 28%. That adds to the example of Leeds given by my noble friend Lord Moynihan of the complexity of even the most straightforward football clubs and the difficulty that will be involved in setting out all the people that might need to be regulated, investigated and brought before the regulator.

I conclude by echoing the question that my noble friend asked, as the Minister would expect, given my roots in Tyneside. The question that my noble friend posed will be of great interest to my friends and family there: would she advise the Crown Prince of Saudi Arabia to continue to invest in Newcastle United, through the Saudi Public Investment Fund, given what this might mean for him and for the club? That is just one of many questions of great interest to football fans, which is not made clear through this guidance. I am very grateful to my noble friend for giving us the opportunity to probe those in a rather fuller House than I think we would have had in Grand Committee.

--- Later in debate ---

The plight of clubs, including Sheffield Wednesday, shows why the Government were right to establish the regulator. For too long, fans have had to suffer seeing their football clubs mismanaged and their views disregarded. The guidance being debated today plays a key role in giving the regulator the tools to tackle unsuitable custodians. The sooner the regulator can get started, the sooner the regime as a whole will work to improve the financial stability of the game and make the English game an even better proposition for investment. Let us not delay this process any further and let us allow the Government to take decisive action to protect and preserve our national game. I hope that this reassures the House and the noble Lord and that, in light of these assurances, the noble Lord will withdraw the Motion.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the Minister for answering the questions that were posed. I apologise if I missed this, but does she accept that, under paragraph 2.11, it might be possible for a sponsor of a club to be considered as part of the new owners and directors test, if the sponsor’s recommendations are usually followed by the club? That is the test that paragraph 2.11 shows.

[Baroness Twycross (Lab)]

I will have to defer to the Box on that point, but I will be happy to pick that up with the noble Lord afterwards.