Football Governance Bill [ Lords ] (Tenth sitting)

Debate between Max Wilkinson and Stephanie Peacock
Tuesday 17th June 2025

(4 days, 11 hours ago)

Public Bill Committees
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Stephanie Peacock Portrait Stephanie Peacock
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Clause 101 concerns the short title of the Bill. It makes certain that, once it has passed through Parliament, the Football Governance Bill will be cited as the Football Governance Act 2025. Finally, Government amendment 60 is technical and procedural; it removes the privilege amendment inserted on Third Reading in the Lords to clause 101. This was added in the other place to make it clear that they have not infringed on the financial privileges of this House.

Amendment 60 agreed to.

Clause 101, as amended, ordered to stand part of the Bill.

New Clause 3

Proposal stage

“(1) This section applies where mediation under section 60 comes to an end by virtue of the occurrence of an event within section 60(6)(b), (c) or (d).

(2) As soon as reasonably practicable after the occurrence of the event, the IFR must give notice to the two specified competition organisers.

(3) A notice under subsection (2) must—

(a) set out the question or questions for resolution,

(b) specify the qualifying football season or seasons to which that question relates or those questions relate,

(c) set out any findings in the IFR’s most recent state of the game report that the IFR considers relevant to that question or those questions,

(d) invite each of the two specified competition organisers to submit to the IFR and to each other a proposal as to how that question or those questions should be resolved,

(e) require any proposal to be accompanied by supporting evidence (including evidence as to how the proposal addresses the findings set out under paragraph (c)),

(f) specify the day on or before which proposals are to be submitted.

(4) A question for resolution may be set out in a notice under subsection (2) only if it is the question, or one of the questions, for resolution remaining unresolved when the mediation mentioned in subsection (1) came to an end.

(5) Where a notice under subsection (2) sets out a question for resolution that relates to relegation revenue (within the meaning given by section (Distribution orders)(9)), the notice must require the specified competition organisers to explain in a proposal how the proposal will promote the financial sustainability of clubs which operate teams relegated from a competition organised by the specified competition organiser distributing the relegation revenue.

(6) Subsection (7) applies if, on or before the day specified by virtue of subsection (3)(f), a specified competition organiser submits to the IFR a proposal which the IFR considers is not a qualifying proposal.

(7) The IFR may give both specified competition organisers a notice specifying a later day (falling not more than seven days after the end of the day specified by virtue of subsection (3)(f)) on or before which proposals are to be submitted.

(8) As soon as reasonably practicable after—

(a) the initial proposal deadline, or

(b) (if earlier) the day on which the IFR considers that both specified competition organisers have submitted qualifying proposals,

the IFR must give a notice under subsection (9) to the two specified competition organisers.

(9) A notice under this subsection must—

(a) state which of the two specified competition organisers (if any) has submitted a qualifying proposal before the initial proposal deadline,

(b) invite each such specified competition organiser to—

(i) confirm their proposal, or

(ii) make any permitted modifications to their proposal,

and submit the confirmed or modified proposal to the IFR and the other specified competition organiser, and

(c) specify the day on or before which the confirmed or modified proposal is to be submitted.

(10) The IFR may specify in a notice under subsection (2) or (9) the form and manner in which proposals and supporting evidence must be submitted.

(11) In this section—

(a) ‘the initial proposal deadline’ means—

(i) the day referred to in subsection (3)(f), or

(ii) where the IFR gives a notice under subsection (7), the day specified in the notice;

(b) a ‘qualifying proposal’ means a proposal which—

(i) explains how the question or questions for resolution should be resolved, and

(ii) complies with the requirements imposed by virtue of subsection (3)(e) and (5) (if applicable);

(c) a modification to a proposal is ‘permitted’ unless it results in the proposal no longer being a qualifying proposal.”—(Stephanie Peacock.)

This new clause substitutes clause 61 with a new clause providing for a revised procedure for the proposal stage of the resolution process.

Brought up, read the First and Second time, and added to the Bill.

New Clause 4

Distribution orders

“(1) This section applies where the IFR has given a notice under section (Proposal stage)(9).

(2) Before the end of the period of 60 days beginning with the day on which the notice under section (Proposal stage)(9) was given, the IFR must give the two specified competition organisers a notice of the distribution order it proposes to make.

(3) The IFR may extend the period in subsection (2) by up to a further 14 days if it considers it appropriate to do so.

(4) A notice under subsection (2) must—

(a) give reasons for the proposed distribution order,

(b) explain how the proposed order applies the principles mentioned in subsection (8),

(c) explain how the proposed order addresses the findings set out under section (Proposal stage)(3)(c),

(d) invite each of the two specified competition organisers to make representations about the proposed distribution order,

(e) specify the period within which such representations may be made, and

(f) specify the means by which they may be made,

and the IFR must have regard to any representations which are duly made.

(5) The period specified under subsection (4)(d) must be a period of not less than 14 days beginning with the day on which the notice is given.

(6) As soon as reasonably practicable after the end of the period specified under subsection (4)(d), the IFR must make an order requiring relevant revenue to be distributed in a way that the IFR considers appropriate for the purpose of resolving the question or questions for resolution set out under section (Proposal stage)(3)(a) (a ‘distribution order’).

(7) In making a distribution order the IFR must—

(a) apply the principles mentioned in subsection (8), and

(b) have regard to any proposal submitted under section (Proposal stage)(9)(b).

See also section 7 (in particular the IFR’s general duty to exercise its functions in a way that advances one or more of its objectives and to have regard to various matters).

(8) The principles referred to in subsection (7)(a) are that—

(a) the distribution order should not place an undue burden on the commercial interests of either specified competition organiser, and

(b) the distribution order should not result in a lower amount of relegation revenue being distributed to a club during the relevant period than would have been distributed to the club during that period had the order not been made.

(9) For the purposes of subsection (8)—

‘relegation revenue’ means revenue distributed by a specified competition organiser to a club in consequence of a team operated by the club being relegated from a specified competition organised by the specified competition organiser;

‘relevant period’, in relation to a distribution order, means the period of one year beginning with the final day of the first football season in respect of which relegation revenue would be distributed in pursuance of the order.

(10) A distribution order—

(a) must impose on the specified competition organisers such obligations as the IFR considers appropriate for the purpose of securing compliance with the requirements set out in the order, and

(b) may, where a distribution agreement is in force between the specified competition organisers in relation to the same qualifying football season or seasons to which the order relates, provide for that agreement to have effect subject to provision contained in the order.

(11) At the same time as making a distribution order, the IFR must give the two specified competition organisers a notice—

(a) including a copy of the order,

(b) giving reasons for the order,

(c) explaining how the order applies the principles mentioned in subsection (8),

(d) explaining how the order addresses the findings set out under section (Proposal stage)(3)(c), and

(e) including information about the possible consequences under Part 8 of not complying with the order.

(12) The IFR must, as soon as reasonably practicable after making a distribution order, publish the order or a summary of the order.”—(Stephanie Peacock.)

This new clause substitutes clause 62 with a new clause providing that the IFR may make a distribution order that distributes relevant revenue in the way that the IFR considers most appropriate for the purpose of resolving the question or questions for resolution.

Brought up, read the First and Second time, and added to the Bill.

New Clause 7

Duty not to promote or engage in advertising and sponsorship related to gambling

“A regulated club or English football competition must not promote or engage in advertising or sponsorship related to gambling.”—(Max Wilkinson.)

This new clause prevents regulated clubs and competitions from promoting or engaging in gambling advertising or sponsorship.

Brought up, and read the First time.

Max Wilkinson Portrait Max Wilkinson (Cheltenham) (LD)
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I beg to move, That the clause be read a Second time.

It is a pleasure to serve under your chairship, Mr Turner. We are not calling for a ban on gambling with the new clause, but we are calling for a ban on advertising it through one of our most culturally powerful platforms. The new clause is a proportionate, evidence-led measure to break the link between football and gambling harm. When we consider that 70% of young people are aware of being exposed to gambling advertisements, is it any wonder, when these adverts are emblazoned on football team shirts and plastered on the side of every pitch for everyone to see?

Gambling firms spend a huge amount of money every year on advertising. They do not lack influence or reach. Gambling has much wider impacts than simply in the football stadium. Since 2011, gambling losses in the UK have risen by 80%, and new data from the Gambling Commission indicates that up to 2.5% of adults in Great Britain may be suffering from gambling harms. Football is unique in its reach and influence. Unlike alcohol and tobacco, gambling is still embedded in the game. Club sponsorships, half-time adverts and pundit discussions all feature it. If we do not act here, we send a message that profits matter more than people’s wellbeing. We understand that the Government think this is outside the scope of the Bill, but it is an important discussion for us to have in the context of anything to do with football.

Max Wilkinson Portrait Max Wilkinson
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It is not about the money that this would take out of football, but the money that is taken out of the pockets of many football fans who are being exploited by predatory gambling companies every day.

Stephanie Peacock Portrait Stephanie Peacock
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I thank the hon. Member for tabling the new clause. The Government are clear that, wherever gambling advertising and sponsorship appears, it must be socially responsible. The Government do not believe that the regulator should have a role in commercial matters such as sponsorship, which are rightly decisions for clubs and competition organisers. We must be wary of scope creep that sees the regulator straying into matters that should be reserved for the industry, and stepping on the toes of industry authorities such as the FA. What constitutes the promotion of gambling could be interpreted extremely broadly, with significant consequences for clubs, and sport more widely.

For instance, the new clause could be interpreted as meaning that players could not take part in competitions that had gambling sponsors. Clearly, that would have significant unintended consequences for clubs and the sport more widely. All major football bodies have published their joint gambling sponsorship code of conduct, which sets minimum standards for socially responsible gambling sponsorship within football. We are working closely with sporting bodies to review the implementation and impact of the codes of conduct to ensure that they have a meaningful impact. This review will provide key evidence to inform the most appropriate next steps for gambling sponsorship. The Premier League has already made the decision to ban front-of-shirt sponsorship by gambling firms by the end of next season.

For the reasons I have set out, I am unable to accept the new clause, and I hope the hon. Gentleman will withdraw it.

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Max Wilkinson Portrait Max Wilkinson
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With new clauses 9 and 13, we are calling for an expansion of the crown jewels of sports broadcasting to ensure that key fixtures from the domestic football calendar are made available on free-to-air television. Members will have recently seen some of the coverage about dwindling viewership figures for this year on TNT and Sky. That should give us all cause for concern, particularly those who are involved in the finances of football. Specifically, we are calling for the free-to-air package to include 10 Premier League games a season, the League cup final, and the play-offs for the Championship, League One and League Two, in addition to those already free to air, such as the FA cup, World cup and the Euros.

This is not about undermining private broadcasters, but viewing figures are on the wane. We had a 17% drop in audience numbers last season. At the same time, there are signs that the value of Premier League broadcast rights has plateaued as more live games have been added to recent packages. This is an opportunity for broadcasters and leagues alike to innovate their offering. Our proposals could open the door to new forms of commercial engagement, such as sponsorship tied to mass viewership, broader brand exposure and appointment-to-view opportunities that bring in new audiences. That approach has worked elsewhere across Europe, most notably in La Liga, where one game a week is free to air, keeping the league accessible to all fans, regardless of their ability to pay.

Recent research shows that in general Premier League fans are more likely to come from lower-income backgrounds than those who regularly attend matches. The hon. Member for Spelthorne has referenced the eye-watering cost of his season ticket on a number of occasions in this Committee. For many supporters, attending games is unaffordable, and with the rising cost of living, stacking multiple sports subscriptions is out of reach for too many households. Increasing free-to-air coverage would not just make games more accessible; it would reignite national moments of the kind we see during the World cup or the Euros. Those moments build unity, inspire young people and renew grassroots interest in the game.

Stephanie Peacock Portrait Stephanie Peacock
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I thank the hon. Member for Cheltenham for tabling new clauses 9 and 13, which concern the televising of football matches as listed events and free to air. First, I want to be clear that it is not an issue for the Bill or the regulator, but I would like to use this opportunity to set out the Government’s position on the issue.

The Government are keen to ensure that sporting events of national interest are made available to the public as widely as possible. In domestic football, the present arrangements under the listed events regime have protected key moments such as the FA cup final, while ensuring that the Premier League, EFL and FA are able to raise billions of pounds annually, which is invested back into the pyramid. We all want to see more matches being televised free to air, but that must be balanced against that investment, and not risk it.

As for the Bill, there have been strong voices from all sides that the regulator must have a tightly defined remit, and must not intervene in areas where it is more appropriate for football authorities or others to lead. We agree with that, and I am sure the hon. Member will agree that the bar for statutory, regulatory intervention in any market should be very high. It would not be appropriate for the regulator to intervene in commercial decisions between the relevant broadcasters and rights holders. Decisions relating to the number of matches of specific competitions that are broadcast are determined through commercial negotiation and are subject to factors such as rights costs and scheduling considerations. Additionally, we do not feel it is right to expand the regulator’s remit by including it as a body that must be consulted on listed events.

Decisions relating to the coverage of certain sporting and other events of national interest are, again, a matter for the relevant broadcasters and rights holders. A widened regulatory remit considering broadcasting and commercial decisions would distract from the key responsibility of the regulator and widen the scope of the Bill. The regulator will ensure that there are financially viable clubs for fans to watch, both at their grounds and on television. For those reasons, I am unable to support the hon. Member’s new clause.

Max Wilkinson Portrait Max Wilkinson
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I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 10

Fan representation: mandatory golden share

“(1) A licensed club must, as a condition of holding a licence under section 15, issue a non-transferable golden share to a recognised Supporters’ Trust or equivalent democratic fan organisation.

(2) The golden share must confer on its holder the right to veto any proposal by the club to—

(a) relocate the club’s home ground outside its current local authority area,

(b) change the club’s name,

(c) materially alter the club’s primary colours or badge, or

(d) enter into or withdraw from any competition not sanctioned by The Football Association, the Premier League, or the English Football League.

(3) A licensed club must—

(a) consult the holder of the golden share on any material changes to the club’s ownership, governance, or strategic direction,

(b) provide the holder with access to relevant financial and governance information reasonably required to fulfil its function, and

(c) facilitate structured and regular engagement between the club and the holder of the golden share.

(4) The Regulator must monitor compliance with this section and may—

(a) issue guidance to clubs and Supporters’ Trusts on the operation of the golden share,

(b) impose licence conditions or financial penalties for non-compliance, and

(c) take enforcement action where a club fails to uphold the rights associated with the golden share.

(5) In this section—

‘Supporters’ Trust’ means a formally constituted, democratic, not-for-profit organisation that is recognised by the Regulator as representing the interests of a club’s supporters;

‘golden share’ means a special share or equivalent legal instrument issued to a Supporters’ Trust, entitling its holder to the rights and protections described in this section.”—(Max Wilkinson.)

This new clause would give fans a veto on club proposals, exercised through a recognised Supporters’ Trust or equivalent democratic fan body.

Brought up, and read the First time.

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Stephanie Peacock Portrait Stephanie Peacock
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My hon. Friend is a strong advocate for his constituency, and I am pleased that he has been able to represent his local fan trust. The Bill will require fan engagement at all clubs with the adequate and effective means in place to deliver the licensing requirement. The regime does allow for a bespoke approach to be taken at each club, based on what is best in each club’s specific circumstances. A supporter director was considered by the fan-led review and support for the concept was mixed. The review concluded that

“a fan director rarely delivers on fan expectations.”

Clubs are welcome to introduce any additional engagement strategy that they think will be of benefit to them and their fanbases. Many clubs have already responded to the fan-led review, made decisions to push themselves beyond the recommendations, and implemented fan engagement strategies that they think will work best for their club. I am grateful to my hon. Friend for making that case.

Max Wilkinson Portrait Max Wilkinson
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I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 11

Protection of assets of regulated clubs

“(1) Where any of the following assets belong to a regulated club, the asset must not be removed from the club’s ownership or used as collateral for a secured loan—

(a) any stadium,

(b) any training facility,

(c) any trophies,

(d) any car park,

(e) any hotel.

(2) But subsection 1 does not apply to a car park or a hotel where—

(a) the regulated club can demonstrate to the IFR’s satisfaction that the asset is causing financial loss or poses a material risk to the club’s financial sustainability, and

(b) the IFR has provided prior written approval for the disposal of the asset or the use of the asset as collateral.

(3) Where the current owner of a regulated club owns any asset listed in subsection (1)(a) to (c), the owner may not sell the club unless the owner has inserted the asset into the club’s ownership structure.”—(Max Wilkinson.)

This new clause would ensure that the club assets listed above are recognised as the inalienable property of the club rather than the club’s owners.

Brought up, and read the First time.

Max Wilkinson Portrait Max Wilkinson
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I beg to move, That the clause be read a Second time.

We cannot claim to be reforming football unless we tackle one of its most dangerous long-term trends—the creeping financialisation and asset-stripping of clubs. The hon. Member for High Peak has mentioned this on a number of occasions; he has experienced it in his former role as chair of the RamsTrust. New clause 11 would introduce protections to ensure that core assets such as stadiums, training grounds, trophies and, in some cases, commercial properties like car parks and hotels, remain in the club’s ownership, where they belong. Specifically, the new clause would ensure that assets cannot be sold off or used as security for loans without the prior written approval of the regulator; that the regulator may give its approval only if the asset is demonstrably causing financial loss or poses a material risk to the club’s financial health; and, critically, that if any of the assets are owned by another organisation rather than the club itself, they must be transferred back into the club’s ownership before any sale of the club can proceed.

The current system allows owners to move critical assets out of a club’s hands with little or no transparency. Once that happens, the club often faces high rent obligations to use its own stadium and training facilities, has weakened negotiating power in takeovers and insolvency, and potentially experiences a complete disconnection from its historical home. Derby County are not the only example of where that has happened. We think this concept is worth taking forward, and we hope the Government are listening.

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank the hon. Member for his amendment. He and I have a shared aim to ensure that there are sufficient protections for home grounds and other assets. We have already discussed the issue of protections for home grounds, so I understand the intention behind the amendment. However, the Government do not believe that it is a proportionate measure. The amendment would place significant blocks on any action to alter the financial arrangements of a long list of assets, and would substantially interfere with the property rights of clubs.

Clubs should be able to exercise commercial discretion over the use of wider club-owned assets. For example, the sale or refinancing of assets can sometimes be an acceptable and prudent way of improving a club’s liquidity, if necessary, but the amendment would remove that ability. There are other measures in the legislation to protect against the mismanagement of club assets, including the financial regulation provisions, regulatory oversight of financial plans, and an enhanced owners and directors test to ensure that owners are best placed to be the custodians of a club.

Last Thursday, I set out my understanding that the regulator could prevent the sale of training grounds through the use of discretionary licence conditions. I want to clarify that the regulator cannot directly block the sale of a training ground through licence conditions, but, where appropriate, it can act to discourage a sale and to mitigate any harmful financial impacts of a sale. The regulator can only set discretionary licence conditions in a limited number of areas. As per clause 22, which we have debated already, the regulator can only impose financial discretionary licence conditions that relate to liquidity requirements, debt management and overall cost reductions.

However, the regulator does have the levers to take action to protect a club’s financial sustainability if there ever arises a scenario in which the club intends to sell its training ground. By selling a valuable asset, a club may weaken its balance sheet and increase its financial risk. If there was a problem, the regulator could require the club to take mitigating action. For example, it could place a liquidity requirement on the club. The regulator could also use its powers to discourage the club from selling its training ground in the first place—for example, by indicating that if the club were to sell its training ground, the regulator would have no choice but to impose more significant financial restrictions on the club through discretionary conditions, thereby strongly steering the club away from that course of action. If that scenario were to arise because a bad actor sought to asset-strip the club, the regulator’s owners and directors test would kick in to remove that unsuitable custodian. For those reasons, I ask the hon. Member for Cheltenham to withdraw the motion.

Max Wilkinson Portrait Max Wilkinson
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I have heard what the Minister said. She seems to be implying that this issue can be dealt with by the Bill, and that the regulator will have an eye on these sorts of things. I am somewhat reassured, but I hope that when the regulator is introduced—and we hope it is introduced—it will be given a strong steer that it ought to make sure that the owners of clubs are not stripping assets. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 12

Duty not to stage home matches outside United Kingdom without approval

“(1) A regulated club must not stage any home fixture in a competitive match at a venue outside the United Kingdom without the approval of the IFR.

(2) The IFR may only grant approval under subsection (1) if the fixture is not part of a specified competition.

(3) For the purposes of this section, a ‘home fixture’ means any fixture where the club is designated as the home team by the rules of the relevant competition.”—(Max Wilkinson.)

This new clause would prevent a regulated club from staging a competitive home fixture outside of the United Kingdom. It will allow regulated clubs to stage non-competitive fixtures outside of the United Kingdom.

Brought up, and read the First time.

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Max Wilkinson Portrait Max Wilkinson
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The hon. Member makes an interesting point. The US has a franchise system, so every club can be moved wherever it wants. Someone who is an Oakland Raiders fan would probably also have been an LA Raiders fan. Where else did the Raiders play? There was definitely a third place, at least, in my lifetime, because clubs regularly move around the nation. When there is that franchise problem in America, hardcore elements of a National Football League club campaign against their club moving, and then campaign for it to move back to that city. The LA Raiders are a case in point.

That link between clubs and communities has already been severed in America, so it is less of a concern that the Jacksonville Jaguars are effectively now London’s team. London has taken that club to its heart, just as people across the UK have taken many other NFL and American sports teams to their heart. The hon. Member raises an interesting point, but I am not sure there is a direct comparison.

We risk getting to that point where some English and Welsh football teams go abroad—although Merthyr Tydfil might like the idea of going on tour, if they get up to the level of league where they are regulated. We need to ensure that we do not get into the position where our teams go on tour around the world to play competitive Premier League games. That would clearly be a gross betrayal of what we hold dear as football fans.

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank the hon. Member for tabling this new clause. I know this is an incredibly important issue for many fans, and I am grateful to be able to address it today, after a number of Members made contributions. FIFA is currently reviewing its position on overseas league matches. It has committed to looking at how that may impact supporters as well as players, along with a number of other valuable considerations.

We appreciate this is an extremely important issue for fans and we do not want to see any developments that undermine the heritage or integrity of the game. It is crucial that fans are consulted and that their view is taken into account on any proposals that would take matches away from the local community in which they usually play.

The Government have spoken about this issue to the FA, which has a right to veto any such future proposals. It has assured us that it agrees that fans’ views must be taken into account when considering this important issue. To be clear, the Bill already ensures that by giving the regulator the power to ensure that clubs consult with their fans on operational and match day issues. We have not tried to list everything that might be considered a match day issue in the Bill, but let me be clear that moving matches abroad would be an operational and match day issue. Fully licensed clubs must have mechanisms in place to adequately and effectively consult their fans about this issue and they must take fans’ views into account when making decisions about it.

Given the importance of this developing issue, the Government will remain in conversation with the relevant governing bodies to ensure that fans’ voices continue to be heard. For those reasons, I ask the hon. Member to withdraw his new clause.

Max Wilkinson Portrait Max Wilkinson
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Hon. Members are all waiting for it—this was going to be the moment that we were going to force a vote, but given that the Minister has put on record the fact that this will be considered an operational and match day issue for the regulator, so fans must be consulted on it and would probably have a veto, we are content that we do not need to press the new clause to a vote. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 17 

Impact on regulator of changes in Government administration

“If the Department for Culture Media and Sport is abolished, or its functions in relation to football substantially relocated, the Government must automatically review the suitability of the continuation of the IFR and the impact that the abolition or relocation will have on the IFR.”—(Mr French.)

This new clause would require the Government to review the IFR in the instance that the Department for Culture, Media and Sport were abolished, or its functions substantially altered.

Brought up, and read the First time.

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Max Wilkinson Portrait Max Wilkinson
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Were DCMS to be abolished, which Department does she think the regulator would end up reporting into?

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I could not possibly speculate on such a hypothetical question.

I will say that clause 96, which we have already debated, mandates a review of the Act within five years of the licensing regime being fully commenced. Among other things, the review will look into whether the regulator has been effectively achieving its objectives, or whether those objectives might be better achieved in a different way. There are also other ways in which the regulator can be scrutinised and held to account by Parliament, such as through Select Committee hearings. I therefore hope that the hon. Member will withdraw his new clause.

Football Governance Bill [ Lords ] (Eighth sitting)

Debate between Max Wilkinson and Stephanie Peacock
Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank the shadow Minister for his points. Clubs will be subject to a number of rules from different football authorities. Failure to comply with them may indicate that the club is in some financial difficulty and may prompt the regulator to assess the risk profile of the club. Changes in a competition’s rules may lead to clubs taking additional risks or may threaten the financial soundness of the system. The regulator therefore needs to be aware of such changes so that it is in a position to reassess the long-term financial sustainability of clubs and whether, as a result of the rule change, additional regulation is needed.

The shadow Minister did accept that there is no veto in the clause. I reiterate once again that UEFA are happy with the Bill as drafted. He drew the Committee’s attention to a specific line in the Bill, but I remind him that it has not been changed from the previous iteration of the Bill.

Question put and agreed to.

Clause 55 accordingly ordered to stand part of the Bill.

Clause 56

Part 6: overview and interpretation

Max Wilkinson Portrait Max Wilkinson
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I beg to move amendment 76, in clause 56, page 45, line 39, after “organisers” insert

“or by a regulated club”.

Max Wilkinson Portrait Max Wilkinson
- Hansard - -

Clubs in the English football pyramid currently barter as a collective for funding from broadcasters, but it is not hard to imagine a future in which Liverpool, Manchester City, Arsenal, Chelsea—the hon. Member for Spelthorne has now gone so I can say that—or other big clubs decide that they are going to barter alone. That has happened in other European countries. In fact, Spain had to legislate to stop Barcelona and Real Madrid cashing in on their massive marketable machine that massively distorted the Spanish game.

These amendments are fairly simple. They build in a future failsafe to stop the threat of that happening. If it does happen, the revenue gained by those clubs will be taken into account in the redistribution of funds in the game. It seems like a logical failsafe to introduce to the Bill, which we hope will be accepted.

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank the hon. Member for his amendments. We understand the intent behind them but believe that the drafting of the Bill sufficiently captures the current primary sources of revenue in the game. We will discuss clause 56 more fully during the clause stand part debate, but to summarise briefly, among other things, it defines which revenue streams are in scope of the backstop process. Revenue in scope is called “relevant revenue” and is limited in the Bill to revenue received by a league for broadcast rights to league matches.

Broadcast revenue is undisputedly the main source of revenue in English football, but we acknowledge that that may not always be the case. Football’s financial landscape is dynamic and its economic model may not remain static. That is why the Bill already allows for the definition of “relevant revenue” to be amended if necessary. The Secretary of State can amend the definition by making regulations, but only after consultation with the leagues, the regulator and the FA. That flexibility future-proofs the definition of “relevant revenue” against potential changes in the structure of the industry while ensuring that the definition remains firmly rooted in the current reality.

We expect that, throughout the distributions process, the leagues will effectively represent the interests of their constituent clubs. However, the backstop process, including the final proposal stage, is ultimately about resolving distributions between the leagues. It is about how money earned by the leagues flows from one league to another, not between individual clubs. It is therefore right that, given how finances currently flow, it is revenue received by the leagues as a whole, not individual clubs, that should be considered. I am therefore unable to accept the amendments.

Max Wilkinson Portrait Max Wilkinson
- Hansard - -

We recognise the numbers—although we Liberal Democrats now outnumber the official Opposition—so we will not press this to a vote. However, it is worth considering that, in future, we might end up in a situation where some of our bigger clubs start to try to negotiate on their own for their broadcast revenue. The Minister did not reassure me that that could not happen. As I understand it, we do not have legislation that would stop that. There is nothing in the game to stop that apart from Arsenal, Manchester United, Chelsea and Manchester City deciding to play together nicely.

Although we are not reassured, there is no point in forcing this to a vote. But we hope that the comments may be taken forward and taken into account by the regulator in future, and perhaps we will have this discussion again as and when those big clubs decide that they are going to kick up a stink and try to ruin the rest of football for everyone else. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Football Governance Bill [ Lords ] (Sixth sitting)

Debate between Max Wilkinson and Stephanie Peacock
Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

Clause 23 already tightly constrains the regulator’s ability to set discretionary licence conditions, and the shadow Minister’s earlier amendment sought to tighten that further, but it would have left the regulator unable to act as necessary to ensure financially sustainable clubs. It would have been unable to manage unsustainable debt or spiralling spending.

The regulator must act in accordance with its objectives and duties at all times, which include transparency and consistency. It can tailor regulation to clubs that will not breach UEFA statutes. I draw hon. Members’ attentions to page 14 of the Bill, which outlines in detail the scope of the powers to attach or vary licence conditions. Of course, a discretionary licence condition relating to the financial resource threshold requirement may only, as I said earlier,

“relate to debt management…relate to liquidity requirements…restrict the club’s overall expenditure, or…restrict the club’s ability to accept or receive funding which the IFR reasonably suspects to be connected to serious criminal conduct.”

We expect the regulator to work with clubs. If they are acting in good faith, we have said all along that the regulator will work with them. I think that answers the shadow Minister’s points.

In my opening remarks on this clause, I outlined in detail that there is a process available to come to a football-led solution. If the regulator thinks that giving a club notice or allowing for representations would jeopardise or risk jeopardising one of its objectives, it can apply the licence condition immediately, without prior notice. However, there is scope within the Bill and the regulator’s powers to reach football-led solutions in which it works together with clubs.

Question put and agreed to.

Clause 23 accordingly ordered to stand part of the Bill.

Clause 24 ordered to stand part of the Bill.

Schedule 6 agreed to.

Clause 25 ordered to stand part of the Bill.

Clause 26

Part 4: overview and interpretation

Max Wilkinson Portrait Max Wilkinson (Cheltenham) (LD)
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I beg to move amendment 75, in clause 26, page 19, line 20, at end insert—

“(c) respects and promotes the protection of human rights and prevents modern slavery (as set out in section [Human rights and modern slavery considerations]).”

This amendment is linked to NC8.

Football Governance Bill [ Lords ] (Fifth sitting)

Debate between Max Wilkinson and Stephanie Peacock
Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I will begin with a couple of brief points in response to the shadow Minister. However, as Sir Jeremy has just outlined, some of the shadow Minister’s points relate to schedule 4 more broadly, which falls under group 38, and the points on fan engagement fall under group 48. I will make some quick comments, but I am happy to take some points away and elaborate further when we come to those groups.

The shadow Minister asked a specific question about what constitutes “adequate” and “effective”. The Bill is intentionally designed to allow for each club to have its own approach to fan engagement. That is why a specific form of fan engagement is not mandated in order to meet the benchmark of adequate and effective. Instead, we expect that the regulator will look at a number of factors to assess fan engagement at clubs, and publish guidance for clubs on what will be expected. Across all of that, the regulator will look to uphold proportionality, taking into account the size and make-up of each club and what is appropriate. We will revisit those issues when we move on to groups 38 and 48. Of course, the debate on ticket pricing has been well rehearsed. This Government added an obligation to consult fans on ticket prices, which will strengthen the fan voice on that issue.

Amendment 104 seeks to add a requirement for a club to consult fans on any political statements or positions that it makes or takes, and new clause 16 seeks to mandate fan approval prior to any political statement or political activity being made by the club, its players or staff. It is not the place of a statutory regulator tasked with financial sustainability to limit or add additional approval processes for political speech or action. Clubs and leagues here and abroad take positions on a variety of issues that could be deemed political, and that is their right.

However, it is not appropriate for an independent statutory regulator to take subjective positions, or opine on the positions of others, in the same way—especially not a regulator tasked only with a tight mission of financial sustainability, to which political statements bear no relevance. It may be that clubs wish to consult their fans in this regard as part of their regular fan engagement. We would not expect the regulator to have any issue with that, but it is not something that it will require of clubs.

The Bill is intended to ensure that fans have a voice in key decisions regarding their club, but we must ensure that this is proportionate. That is why we have not listed every possible issue on which clubs should engage their fans in minute detail. We also do not want to inhibit the free speech of players or any representatives of the club. It is also notable that many sporting personalities have used the attention that the sport gets to protest relevant issues that concern them. We do not want to inhibit the free speech of any of those individuals.

Max Wilkinson Portrait Max Wilkinson
- Hansard - -

Is the Minister concerned about inhibiting the free speech of Members of the House of Lords, for example Baroness Brady, who made significant and very valuable comments in the debate on the Bill in the other place, and then repeatedly made similar statements in the press and other media? She is, of course, a representative of West Ham and the Conservative party, as was noted by the hon. Member for Portsmouth North. Would we seek to retain her freedom of speech and freedom of expression by voting down new clause 16?

Football Governance Bill [ Lords ] (Third sitting)

Debate between Max Wilkinson and Stephanie Peacock
Max Wilkinson Portrait Max Wilkinson
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It is a pleasure to serve under your chairship, Mr Turner—I got it right this time.

We support the amendment. We believe it is in the interests of the game to redistribute money further from the top to the Football League and further down the pyramid. We believe the only way that will be achieved is if, via the mechanism of the football regulator, there is regular reporting that then demonstrates what we know is true—that an increasing amount of money is being hoarded by the Premier League, while those lower down tend to miss out.

We know that over the past few years or decades, since the inception of the Premier League, more and more money floating around in football is being retained by the Premier League as a proportion of the amount of money that is available. That is not a good thing for football. It is not a good thing for the sustainability of the game. We believe that this simple reporting mechanism will give further oxygen to the discussion about why that is harmful, and will hopefully, over time, result in further redistribution. That is why we support and welcome the amendment.

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I thank my hon. Friend the Member for Sheffield South East for the amendment. I understand its aims. We do not consider it necessary, as we are confident that the Bill already covers the issue. Per clause 10, the regulator will be obliged to look into the main issues affecting English football and any features of the market that risk jeopardising its objectives. If the existing distribution arrangement meets either of those criteria, the regulator will cover it in the state of the game report. I reassure my hon. Friend that the regulator has the ability to address distributions in the sector if the current scenario reaches a threshold, and we will discuss those powers when we get to part 6.

In general, we have not taken the approach of being overly prescriptive and listing every issue the regulator could and should look at here in the Bill.

Football Governance Bill [ Lords ] (Second sitting)

Debate between Max Wilkinson and Stephanie Peacock
Max Wilkinson Portrait Max Wilkinson
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Does the Minister find it strange that, in this room, a Liberal Democrat spokesperson and a Labour Minister are arguing with the Conservatives about letting the market decide someone’s salary?

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

I absolutely agree, and the Liberal Democrat spokesperson puts an important point on the record.

We expect a significant benchmarking exercise to be undertaken in determining the appropriate level of remuneration for the CEO of the regulator. That should be consistent with other regulators of a similar size and regulatory remit. We believe that an arbitrary constraint would be problematic. Safeguards are also in place already requiring approval for any public sector salary that exceeds £150,000, as per the senior pay controls process.

--- Later in debate ---
None Portrait The Chair
- Hansard -

Apologies to the Minister, as I should have called her a moment ago.

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

That is quite okay, Sir Jeremy. I have done a lot of talking today. I thank the hon. Member for Cheltenham for moving the amendment and for giving us the opportunity to discuss it. I will explain why we are not able to accept it, but it is important to say first that the safety, wellbeing and welfare of everyone taking part in sport is absolutely paramount.

I am very aware of this issue—I participated in a debate on it in the Chamber in September 2023, and I care greatly about the subject—and the hon. Gentleman, and indeed other Members across the House, spoke very movingly, giving a number of examples of the terrible experiences that footballers and their families have had.

I pay tribute on the record to the work of Football Families for Justice in supporting ex-players and their families. I commend it for its excellent work. Again, I echo the shadow Minister’s comments, as he made an important point about directing people to the fund and making it clear that the money is available.

The Government absolutely agree that this area requires further work, and we have committed to looking at these issues. I do not believe these measures are appropriate for this Bill, but I am fully aware of the importance of prioritising player welfare and ensuring that former players and their families have the support they need.

National governing bodies are responsible for the regulation of sports and for ensuring that appropriate measures are in place to protect participants from harm, including head injuries. The Government expect national governing bodies to take the health and safety of players as a top priority.

The Secretary of State and I recently met a small group of affected families and ex-footballers, including individuals associated with Football Families for Justice, to discuss player safety and welfare for those suffering with dementia. We heard, at first hand, about players’ experiences and the views of the group on how safety and welfare could be improved at all levels of the sport.

We are considering what is required, including how to support football to come together to address the problems raised. We are committed to supporting the families and football authorities to come together to address those issues, and our officials are in the process of arranging meetings to further explore the issue.

That has hopefully outlined how the Government and I care very much about these issues. I will briefly say why we do not feel we can accept these measures. I thank my hon. Friend the Member for Caerphilly (Chris Evans) for tabling them, and I thank the hon. Member for Cheltenham for introducing them—he spoke very powerfully.

The regulator will be a specialist regulator with a precise focus on financial regulation, corporate governance, fan engagement and heritage, as we have heard throughout today’s debates. It will be aimed at addressing the main issues that came out of Dame Tracey Crouch’s fan-led review.

We have heard at length, in this House and the other place, about the importance of a tight regulatory scope focused on the market failures that the industry cannot address itself. Even if we wanted to accept this change, we feel it would open the door to other amendments, and indeed to scope creep, which we do not want. But that is certainly not in any way a reflection of how seriously we take this issue—we take it very seriously. We look forward to meeting and working with campaigners, and indeed with everyone in football, to come to a solution on this issue.

Max Wilkinson Portrait Max Wilkinson
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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 Portrait Stephanie Peacock
- Hansard - - - Excerpts

Clause 6 sets out the regulator’s objectives, which are its primary aims and also the limits of its statutory remit. As clause 7 sets out, the regulator may act only if the action taken, so far as reasonably practicable, advances one or more of those objectives. I will speak briefly to the objectives, and then we can debate them further.

The first objective is club financial soundness—the ability of individual clubs to continue meeting their debts and liabilities even in the face of challenging circumstances, new risks and financial shocks. The second is systemic financial resilience, which relates to the wider financial resilience of English football. That involves issues that, individually, pose a small problem, but that, when aggregated or multiplied, pose a significant threat to groups, clubs and the pyramid as a whole.

The third objective is safeguarding club heritage and the heritage of English football. Clearly, financial collapse is a risk, but so is the potential for clubs to become unrecognisable to their fans and communities. As we know, the Bill grew out of the fan-led review, which highlighted myriad problems facing football in this country. There are a number of areas where action is needed, but not all the problems are for a statutory regulator to fix. We have been clear about the areas where the regulator would need to act; some relate to issues of sustainability, where we believe that the market has failed, or remains ill equipped, to act.

We believe that the three objectives are the right focus. When I talk about the Bill, I always say—and I said it when I opened today—that at a very basic level clubs have to do three things: be a fit and proper owner, have a business plan and consult their fans. Many are doing that, and doing it well, and in that case there will be no need for duplication. At a very basic level, that is what the Bill and the regulator aim to do.

Football Governance Bill [ Lords ] (First sitting)

Debate between Max Wilkinson and Stephanie Peacock
Max Wilkinson Portrait Max Wilkinson
- Hansard - -

No, we accept the numbers in the room.

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

Stephanie Peacock Portrait Stephanie Peacock
- Hansard - - - Excerpts

This clause, as is standard procedure, sets out the key definitions used throughout the Bill. It gives the Secretary of State power to make a statutory instrument to specify competitions, as we have just debated. Those specified competitions can then define the regulated population.

Defining the scope in this way is an important part of future-proofing the Bill, as was seen when the old First Division became the Premier League in 1992. Before making any changes to the specified competitions, the Secretary of State must carry out an assessment on whether it would be appropriate to do so. In carrying out that assessment, the Secretary of State must consult the regulator, the FA and any other stakeholders who the Secretary of State considers relevant. A report of that assessment must also be laid before Parliament. I commend the clause to the Committee.

Oral Answers to Questions

Debate between Max Wilkinson and Stephanie Peacock
Thursday 16th January 2025

(5 months ago)

Commons Chamber
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Max Wilkinson Portrait Max Wilkinson (Cheltenham) (LD)
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Sport and physical activity must play a bigger part in the debate on our nation’s collective health and the future of health services. Sport England reports that almost one in three children are classed as inactive. More than a third of adults do not meet the chief medical officer’s recommendations for physical activity. Sedentary lifestyles are associated with one in six deaths, and obesity costs the economy £58 billion per year. Those are truly shocking statistics that we should all be ashamed of. What conversations are Ministers in the Department having with colleagues in other Departments, most notably Health, to ensure an increased focus on physical activity to improve our nation’s physical and mental health?

Stephanie Peacock Portrait Stephanie Peacock
- View Speech - Hansard - - - Excerpts

I am grateful to the hon. Gentleman for that important question. Through our health missions, and the health mission board, we work really closely across Government. This is a pivotal issue. Sport plays a huge part in getting people more active. I know that from my own area: over 30% of people in Barnsley are inactive. Just yesterday, I met with the Richmond group of charities, which works on this sort of issue, and I continue to have both Government meetings and meetings with stakeholders. We really want to make progress in this area.

Oral Answers to Questions

Debate between Max Wilkinson and Stephanie Peacock
Thursday 17th October 2024

(8 months ago)

Commons Chamber
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Max Wilkinson Portrait Max Wilkinson (Cheltenham) (LD)
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From grassroots to professional, the number of women’s teams has more than doubled over the past seven years. Cheltenham Town Women have a thriving team, with junior and adult sections. Sadly, one place above them in the table this season are Lewes FC, who are running the “Equal FA Cup” campaign. Does the Minister agree that it is time for equality of prize money across the men’s and women’s FA cups?

Stephanie Peacock Portrait Stephanie Peacock
- View Speech - Hansard - - - Excerpts

I am incredibly grateful to the hon. Gentleman for asking such an important question. The Government are fully committed to supporting and growing women’s sport, and to ensuring that it is on an equal footing with men’s sport. The ambition to have equal prize money across sport, where possible, is absolutely right. I know that the Football Association took steps last season to double the prize fund for the women’s FA cup, and we will pay close attention to see what happens next.