Football Governance Bill

Part of the debate – in the House of Commons at 3:18 pm on 23 April 2024.

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Photo of Tracey Crouch Tracey Crouch Conservative, Chatham and Aylesford 3:18, 23 April 2024

I rise, unsurprisingly, in support of the Bill. I am pleased to see you in the Chair, Madam Deputy Speaker, because I know you take a keen interest in Doncaster Rovers, and although you are not able to speak in the Chamber on these matters, you have been a fine advocate for its views during this process. May I congratulate Thangam Debbonaire not just on completing the marathon on Sunday, but for standing up and sitting down without an audible “oof”? Two days after, that is pretty commendable.

I thank the ministerial team and the long-suffering officials at the Department for Culture, Media and Sport who have worked exceptionally hard on bringing forward this Bill. This detailed piece of legislation has been well worked through to ensure that it moves smoothly through Parliament and is in place as soon as possible. I also pay tribute to those who have campaigned on this issue for many years. I may have chaired the fan-led review, but the truth is that a blueprint for reform was created long before. I went down a Hansard rabbit hole, thanks to James in the Official Report team, and read some fabulous references from days past, including a glorious contribution from the much-missed Alan Keen in 1997 that highlighted:

“The Premier League and the Football Association govern themselves with no appeal beyond their confines.”—[Official Report, 27 June 1997;
Vol. 296, c. 1094.]

Given last week’s furore over FA cup replays, that still seems apt.

There are too many to list, but the likes of Richard Caborn, Andy Burnham, my hon. Friend Damian Collins, Kevin Miles and his team at the Football Supporters Association, David Bernstein, Gary Neville, Henry Winter and Peter Crouch—no relation—have been vocal campaigners for change. The truth is that for many years, Sports Ministers, including me, have stood at the Dispatch Box with crisis after football crisis and pleaded with the authorities, “Reform yourselves, or Parliament will”, and here we finally find ourselves.

The Secretary of State has already set out the context of this Bill. It is always important to remember that the Premier League asked the Government to intervene when six clubs sought to join the European super league. The pleas led to the then Prime Minister Boris Johnson promising a “legislative bomb”. That came on the back of high-profile financial problems in the football pyramid, including the demise of Bury, which my hon. Friend James Daly has spoken about many times in this Chamber. The fan-led review was the outcome of the request from the Premier League and the regulatory failings to prevent clubs from disappearing from our football landscape and the subsequent massacre of the community ecosystem that supported them. The review was a deep dive into the issues, and I shall remain forever grateful to those who participated in it.

In preparation for this speech, I re-read some of the submissions to the review. It was interesting to read in its submission that the Premier League thought that there could be a use for an institution with “step-in powers” and “a capacity to intervene” should it

“manifestly have failed to uphold rules”.

The submission went on to say that

“such a body could also set the general principles required for standards for governance and transparency, including for financial regulation;
strengthen the independent operation of the OADT;
support the principles of standards for owners’ responsibilities as custodians;
and protect decision making over key issues for fans”.

The same paragraph continued:

“Provided it operated in a proportionate way that respected the benefits of permitted well-run clubs and leagues to be nimble in their decision making and encouraged to innovate and take properly assessed risks, then this could make an important and positive contribution to maintaining and enhancing what is the world’s most dynamic and attractive football environment”.

This Bill is all those things, shaped brilliantly to reflect the words of the Premier League itself about what a great regulator could look like. It leaves many of us scratching our heads as to why the Premier League has spent the past few weeks lobbying to stop the Bill progressing.

I will say a few things about some of the specific clauses in the Bill. Clause 3 sets out to define an “ultimate owner” of a club. That is important, as part of the challenge in the past has been that that has not been as clear as it should. Clauses 5 to 8 set out the objectives and principles of regulation, making clear that the regulator should be nimble in its approach and can oblige good governance and real-time interventions, but is not obliged to guarantee zero failures. However, the Bill makes it clear that the regulator will be time-efficient, consistent and transparent. That is a departure, some might argue, from the current regulation.

Clauses 12 and 13 are key to how the regulator will evolve. Good guidance will be essential to its success, as we have heard in contributions and interventions. I already foresee strong guidance required on the role of fan advisory boards and on fan engagement, such as that set out in schedules 4 and 5, along with certain technical challenges, such as pitch ownership if that is different from club ownership. Timely but thought-through guidance done in consultation with key parties will be much needed if the regulator is to hit the ground running. Equally important is the need not to overload on guidance and create regulation by proxy. The whole point of the regulator is to improve governance and to be open and transparent, yet agile in relation to change.

Clause 26, and in particular subsections (7) and (8), which I refer to in my notes as the Martin Samuel measures—Martin is a journalist, but he would regularly ask me whether the honesty and integrity test would prevent Boris Johnson from running a football club—clarify that the test is defined by crimes under the Serious Crime Act 2015. Offences covered by fixed penalty notices are therefore not relevant, which will be a relief to those involved in football who might have been issued with a speeding fine or other such fine.

Clause 37(2) relates to the regulator having regard to foreign and trade policy objectives. That has become a slight distraction from the argument on the independence of the regulator. With that in mind, I suggest an amendment to the clause to change the word “must” to “may”. It is boringly technical to the outside world, but incredibly important if we are to impress on it the value of the regulator’s independence.

Part 5 of the Bill is an important aspect for the domestic fan base, covering prohibited competitions and the protection of club heritage, including ground disposal. For the fans, it is the soul of the Bill. When we published the review, I explained that its order was crafted like a good album. We put all the chapters about governance first, before we got to the redistribution of revenue. The way I see it is that the Premier League gives a substantial amount of money to the wider pyramid, but without the necessary structures of good governance. It is akin to having the heating on with the windows open. Putting in proper regulatory structures should give the Premier League and its clubs confidence that its money is going to good owners with proper business plans in place and real-time financial monitoring that gives significant protection. The Bill follows that same mindset. We get the structure right, then we distribute the finances, and that is what part 6 of the Bill does.

On part 6, I have some key points to make. First, there is an argument to be had on whether the regulator should have the ability in principle to trigger the backstop. I am sympathetic to that, but it needs to be done carefully. Secondly, although colleagues have focused on parachute payments, clause 55 is drafted so broadly that both domestic and international broadcast revenue could be deemed “relevant revenue” and available for distribution. That is not the case at the moment. I am slightly surprised that the Premier League has not included that in its list of things that it wants to amend. It is important that we seek to clarify precisely what is considered “relevant revenue” at the earliest opportunity. Thirdly, it is essential that we define, either on the face of the Bill or at some point in parliamentary proceedings, the definition of “material change”. What might seem material to the EFL might not seem material to the Premier League.

Fourthly, the powers of the regulator will extend to the national league, as presumably will the redistribution of funding. However, I note that the National League has said that it opposes the regulator. It is in the gift of the Secretary of State to define the reach of the regulator, so she could, if she felt it necessary, remove the national league from the Bill, and in so doing, remove it from the redistribution of finances and instead allow it to continue its existing arrangement via the Football Association.

It is right that we put these powers in the Bill, but it is disappointing that, two years on from the review, the football authorities have not done a deal on distribution. The solid recommendations in the review would have moved this debate much further forward than it is now, but they were ignored, so here we are, with the regulator requiring powers to intervene that were promised over and over again.

Clause 94 means that all fines received are paid into the consolidated fund. Although it may not be popular with the Chancellor, I propose that, in order to ensure that the regulator is deemed independent of Government, that clause be amended so that moneys raised above and beyond the regulator’s costs are diverted directly back into grassroots football, which I am sure would be much appreciated as we look to continue the growth in participation and investment in facilities in the run-up to and long after the Euros in 2028.

I do not wish to test the tolerance of the House, Madam Deputy Speaker, so I shall wind up. I love football, and although the Premier League continues to cast me and others who support the Bill as the enemies of success, investment, growth and international competitiveness, I would argue that quite the opposite is true. The premier league is one of our finest exports, and nothing in my review or in the Bill changes that. Instead, the Bill protects the pyramid from the vulnerabilities and fragilities that have challenged football over the years. It protects football clubs from owners who forget that they are merely custodians of something greater than a trinket. It serves to protect fans, clubs and entire communities from losing their heart and soul. For those reasons, I hope that the whole of Parliament will come together to support the Bill and get it into statute as quickly as possible.