Comments for the Football Governance Bill


On Wednesday 13th November there was a discussion about the “Football Governance Bill [HL] – Second Readingin the House of Lords and a number of members of the House of Lords made comments.

Pete Wilcox the Bishop of Sheffield spoke, then Steve Bassam the Labour Lord Bassam of Brighton and later Jenny Jones the Green Baroness Jones of Moulsecoomb contributed.

Fiona Twycross was the minister to respond to the comments

Their comments are below, and the whole discussion can be obtained from here and the first few words from Fiona are below:

Baroness Twycross: Moved by Baroness Twycross Welsh Legislative Consent sought. That the Bill be now read a second time.

My Lords, football brings joy to fans right across the country, as well as a shared sense of community. It is an essential part of the social fabric of our country. Growing up, I lived within earshot of the Manor Ground, Oxford United’s former home. My dad, who was a season ticket holder, took me and my siblings to games, including to Wembley when Oxford won the Milk Cup.

Loyalty to clubs runs through families and creates a sense of pride within communities across the generations. With apologies to noble Lords who support Bolton, I was delighted when my niece Talullah and nephew Winston got to experience the same euphoria I did as a teenager—and in May as well—when we went to see Oxford win the League One play-off final at Wembley earlier this year.

English football goes beyond family loyalty and local communities. It is a global success story and one of our greatest cultural exports. It is an industry we want to protect, for its economic value and for the fans who turn out to support every week, even when their team is down on its luck.

Then after a few others, the comments are from Bishop of Sheffield

My Lords, I congratulate the Department for Culture, Media and Sport and the Minister for securing this debate, and thank the previous Government for their efforts to ensure that the sport of football—a national treasure beloved of so many—is more effectively regulated.

I realise that I cannot claim that football was made in Sheffield but, in addition to the codification referred to by the noble Lord, Lord Parkinson, in London in 1863, a second codification of the beautiful game took place in Sheffield in 1867—another early governance document for the sport that was influential for decades across the north. The city is home to the oldest football club in the world, Hallam FC, as well as to the two much better-known professional football clubs, Sheffield United and Sheffield Wednesday.

As Bishop of Sheffield, it gives me great pleasure to contribute to this important debate. It is a particular privilege to follow the noble Baroness, Lady Grey-Thompson. I want to say, first, something about the relationship between football clubs and their communities; secondly, something about financial stability; and thirdly, something about the responsibility of football clubs in relation to the climate emergency.

On football clubs and their communities, we are right to celebrate the off-field successes of English football, including club community programmes and the work of the Football Foundation to support grass-roots pitches and facilities. In addition to the tens of thousands of jobs and billions of pounds of investment that the football pyramid channels into the UK economy, its social impact is profound. A recent report compiled by Substance using data from 2019-22 revealed that English football generated over £101 million for community investment, bolstering physical health, mental well-being, education and employment.

Football clubs have a clear and undeniable duty to their fans and their localities. In any conversation about the future of football, I hope these two groups will take centre field. Fan investment is the lifeblood of the sport and I applaud the Government’s intention to place fans back at the heart of the game. To name just one example, I was pleased to see that the Bill will ensure that fans are consulted on changes to ticket prices. I hope the Bill might also require football clubs to take their civic responsibilities extremely seriously. These go above and beyond those of charity foundations and extend to local regeneration schemes.

As a mildly obsessed fan of Newcastle United, I have rejoiced to see how the 2021 takeover of the club, following the deeply unpopular ownership tenure of Mike Ashley, has led to a wonderful reconnection of the football club with the fan base and with the city. Having said that, I acknowledge that the 2021 takeover raised significant concerns about the application of the owners’ and directors’ test, and I hope very much that the new Bill will tighten up that process.

Secondly, on financial stability, while acknowledging that the majority of football clubs are stable, the Bill rightly recognises the need to protect fans, players and club staff from costly club closures and the irresponsible mismanagement of club finances. My right reverend friend the Bishop of Derby, the Church of England’s lead bishop for sport, wishes she could be here to discuss the Bill. I know how much she cares about the high-profile collapse of Derby County Football Club in 2022. Ultimately, the club was, thankfully, rescued by local businessman and lifelong supporter David Clowes, but the turbulent negotiations with investors abroad exposed serious concerns and vulnerabilities. I hope the Bill will help to prevent such collapses in future.

Finally, and briefly, on the climate emergency, I particularly welcome the enhanced provisions in the Bill to improve transparency and accountability by requiring football clubs to publish what actions they are taking to improve equality, diversity and inclusion. May I suggest that this responsibility is extended to include actions that clubs take to reduce their carbon footprint and to move towards net zero? I look forward very much to hearing the views of other noble Lords and to following the progress of the Bill in the coming months.

Then the comments from Lord Bassam of Brighton

My Lords, it is an honour and a privilege to speak in the debate on the Football Governance Bill, which is fundamentally a good Bill and one that the Government should be proud of. We should give thanks in that pride to the previous Government for doing much of the hard work in preparing it. I also personally thank the Minister for her careful introduction to the Bill and the Premier League, the EFL, Fair Game, Women in Football, the LSE, Civitas, the LCP, the FSA and the PFA for their informative briefings. I apologise to anybody I have missed out.

Many of us have waited a long time for this Bill and then, of course, we get two Bills in a year. Both major parties have edged towards increasing the level of regulation of our beautiful game. Some say that we do not require it, others that existing regulation does not go far enough. But, for those of us who have been watching football for a long time, the current system is failing both clubs and fans and is no longer financially sustainable.

The desire for a degree of regulation to make the game more sustainable has a long history. Back in the 1990s, Labour had a mini-manifesto for the game. Once elected, our efforts were of necessity focused on countering disorder and hooliganism. Tackling racism and violence were a priority for me in my role as the football hooligan Minister back in the late 1990s, and our actions were key to ensuring that we were able, as a nation, to continue participating in international tournaments.

In 2019, both the Tory Party and Labour made a commitment to football regulation in their manifestos. As we know, to their credit, the new Tory Government invited Tracey Crouch to lead the fan-led review, and this in turn led to a White Paper and, earlier this year, the first iteration of the governance Bill. Now it falls to Labour, as ever, to complete the job. The post-election gap has enabled the improvement of the Bill in several respects, including the regulation of the financial distribution payments system across the football pyramid and the issue of parachute payments. Changes relating to fan engagement and the equalities, diversity and inclusion provisions are also welcome, as is the shortening of the time for the production of the first “state of the game” report, which will help put football on a more sustainable financial footing.

While we produce some of the world’s best clubs and fantastic football, the Premier League is becoming a closed shop, dominated by the money generated by TV rights. The top of the league is the preserve of a few clubs, primarily the richest. The rest of the Premier League is made up of clubs trying to get into two of the three European competitions or struggling to retain their place in the Premier League. In 2022-23, 25 clubs, 20 Premier League clubs and five EFL clubs, received 92% of the distributable revenues of the English game, £3 billion, while the other 67 clubs shared just 8%, £245 million. The football regulator’s task will be to ensure that there is a more equitable distribution of football revenues across the pyramid.

Football must remain a sport about risk, reward and fair competition. The current relegation payments scheme prevents this. In the last seven seasons, two of the three promoted teams from the Championship have been those relegated the season before, bolstered as they were by their financial protection following relegation. Back in 2010-11, parachute payments were just £30 million. By 2020-21, they had grown to £233 million, an eightfold increase at a time when wages had merely doubled. In the Championship, the non-parachute payment clubs are forced to overspend on players to compete effectively for promotion, creating a risk of bankruptcy, relegation and often a long, painful recovery period. We need the regulator to come up with a system that softens the financial blow of relegation, but in a way that does not distort competition. Change will need to be gradual and carefully managed, so that club viability and competitiveness are preserved, and the strength of the leagues protected.

I welcome greater fan engagement and the protection of the heritage and culture of clubs. The devil will be in the detail on how best to achieve this. The prevention of breakaway competitions will, of course, benefit players and clubs at a time when I think we are reaching the limit of what extra competitions can bring to the game.

Finally, where would I like to see improvements and changes? The first “state of the game” report will set the tone for the future development of the regulator. The last Bill gave the regulator three years to complete this work. That was too long, so I am pleased that it has been reduced to 18 months, but see no reason at all why it should not be six months or perhaps, at most, a year. Shadow staff, already in place, will have access to data and football market intel sufficient to hit the ground running. There are urgent issues to be resolved and, if they want to demonstrate change by the time of the next election, the Government would be wise to listen to those supporting faster progress. A shorter period for the initial report would justify a longer gap before the second.

In relation to the regulator’s scope, I am strongly sympathetic to bringing the clubs in the top two women’s leagues into the regulatory framework. The rapid growth in women’s football brings with it the same issues and risks, and with this Bill we have an opportunity to address these before they become a problem. It might also help tackle discriminatory behaviour and the macho culture that can impact on the game. It does seem odd, having strengthened the EDI commitment, to then exclude the women’s game from the regulatory framework. Access to even a small element of the solidarity payments produced currently would be transformational for the game.

Similarly, we should look to include the regulation of all clubs in National League North and National League South. It seems odd to regulate one-third of the National League clubs and leave the sixth tier unregulated. Some of these clubs are significant community assets and businesses with turnover figures of £4 million, £5 million and £6 million a year. More fans are turning to watch grass-roots football, and here again is an opportunity to ensure consistency in our approach at all levels.

I have a small but significant point for the Minister. Can we ensure that, among the statutory consultees, we include the players’ union, the PFA? Try having a football match without its staff.

The Minister will no doubt have read the press coverage of the Fair Game report pressing for changes and the strengthening of the Bill. I am sympathetic to many of these, some of which I have referred to. I hope she will continue her already-begun engagement with Peers so that we can improve the Bill as it goes through its Lords stages.

The Government are to be congratulated on the progress so far. This Bill is a bit like a Brighton and Hove Albion substitution at half-time: a potential game-changer. It works. When I reflect on how close my club was to going out of business for the want of effective regulation in the mid-90s, I do not want to see other clubs and their fans put through that experience. It is my belief that this legislation, with its owners and directors test, a licensing and financial control regime, and a commitment to a system of fairer competition and financial fair play, will go a long way to putting an end to the era of irresponsible club ownership.

And later on this was the comments from Baroness Jones of Moulsecoomb

My Lords, it is a pleasure to follow the noble Baroness, Lady Morris of Bolton. I did not realise she was a football fan. It is amazing how all these football fans have crawled out of the woodwork today. I am delighted I am one of them—I support Arsenal. I am sad to say that I am mostly reduced to listening to matches on the radio these days. Life is too full to do much else.

The Green Party welcomes this Bill but it wants, as others have said, the regulator to address the unfairness of the Premier League clubs getting nearly all the money, when 67 professional clubs share just 8% of the revenue. That does not seem like a logical place to be. We agree with the English Football League that there is enough money in football to ensure that all levels of the game are sustainable and thriving.

As other noble Lords have said, football in this country is part of nearly every park, sports hall, school playground, beach, empty piece of tarmac and patch of grass. It matters to the hundreds of thousands of parents, children and young adults who go along to play on their local pitch, or who travel for a couple of hours to the next match. It matters to the coaches and others who give hours and days to make it happen. It matters to the women’s teams. It matters to the pub teams. Whether it is pensioners or people with Parkinson’s, football is part of their lives and identities.

The Green Party wants to see football grow from the grass roots up. That means reversing the damage done by the last Government at a local level, with nearly 1,000 football pitches being lost since 2010. We want local authorities given the power to invest in their local professional football clubs and to reinvest the dividends back into sports facilities in their communities. We want to ensure that local authorities are able to maintain key sporting infrastructure, such as swimming pools, sports halls and playing fields, that can be used by all sections of the community.

Being a Green, I am going to bring climate change into this. Then noble Lord, Lord Hannan, is not in his place any more, but I agreed with one thing he said: he did not like the idea of net zero. I do not like net zero either. We are way past the time for net zero; we have to think about real zero. I know that this Labour Government have a real problem with understanding climate change. I am very happy to help them out at any time, with tutorials from scientists or meteorologists. In the meantime, this Bill fails to prepare football for one of the biggest challenges that it will face in the future.

Climate change needs to be part of this legislation, because the adapting of facilities to deal with flooding, drought and excessive heat is already starting to be a regular feature of football life. If you think this is a side issue, you should go and talk to soccer schools in Valencia, which are covered in cars, fish and mud.

There are 23 professional teams that can expect partial or total annual flooding of their stadiums by 2050. That probably sounds a long way off, but others will be vulnerable in the meantime. Zurich Insurance found that nearly one in four of the biggest stadia face major building work or crippling insurance bills simply because of trying to face up to climate change. Both the Bundesliga of Germany and the Ligue de Football of France include environmental sustainability as part of their licensing. Why are we not including climate change as a specific issue that our new regulator has to consider and deal with?

When Carlisle United’s Brunton Park was devastated by flooding caused by Storm Desmond in 2015, the club’s insurance covered its substantial losses. Following that claim, the club said it found it nearly impossible to renew its insurance. Climate change is happening, and it is already having a big impact at grass-roots level, where local clubs will need help to find the resources to cope. The chair of the FA, Debbie Hewitt, revealed that:

“We have something like 120,000 games a season cancelled because the pitches are not playable”.

In recent years, grass-roots teams have swung from cancelling games because the ground is baked like concrete to pitches being regularly flooded.

Giving the new regulator of the professional game a specific remit to consider climate change is a reasonable thing to do. It would send a signal to the Football Association that grass-roots football is also going to need resources to adapt to what is now happening to our climate.

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I am passionate about the need for public policies to be made accessible to everyone, especially those who want to improve the wellbeing of their communities. I am particularly interested in issues related to crime and policing as well as health services and strategic planning.
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