Part of Football Governance Bill [HL] - Report (1st Day) (Continued) – in the House of Lords at 9:00 pm on 11 March 2025.
My Lords, I support the Government’s Amendment 18, which introduces a regulatory principle focused on necessity, proportionality and minimising regulatory burden. The Government deserve credit for this amendment. It is an attempt to recognise the concerns, expressed across the House during Committee, that this Bill outlines an overly complex and intrusive regulatory framework for football.
Indeed, I recall that the Government expressly ruled out a light-touch “watchdog” option in their impact assessment, in justifying the need for a more interventionist approach. We should bear in mind that this Bill overall is not easily described as “light touch”, but the Government’s amendment is an attempt to clarify Ministers’ intentions, which I believe are for a light-touch framework. We should note the obvious point that it is not an attempt to change the overall licensing framework, existing regulatory model, extensive range of powers, or broad suite of sanctions. Nevertheless, short of a wholesale change of approach and a much slimmer Bill, the tension this principle introduces is how the regulator exercises those powers, so it is welcome.
But I, for one, would like the Government to go further, both in the Bill and in guidance and their engagement with the shadow regulator. That is why I supported my noble friend Lord Pannick’s additional amendment detailing light touch, which I know he has now not moved. What I would like to suggest today is that Ministers enhance their amendment further by explicitly enabling different types of intervention approaches for different leagues, guiding towards greater reliance on leagues where appropriate.
The football pyramid is diverse, with varying risk profiles and governance capabilities. What is appropriate for Maidenhead United in the National League is very unlikely to be appropriate for Manchester United. The Premier League, for instance, has developed robust governance and regulatory structures over many years. It has built financial monitoring systems that effectively maintain competitive balance while ensuring club sustainability. I have not heard a single Minister or Peer in this House express any concern over the sustainability of Premier League clubs.
Steering the regulator more explicitly to tailor its approach to intervening based on a league’s governance standards, rulebooks and enforcement practices would be a very sensible approach. It would ensure regulatory resources target genuine areas of risk in the pyramid and would really help to bring about what I would describe as a “right-touch” regime—light touch where effective systems already operate, but more interventionist where they do not. I think this could deliver a more efficient model, as well as create positive incentives for leagues to strengthen their own governance frameworks.
Perhaps when the Minister responds, she could commit to working with me, the football authorities and the shadow regulator to encourage this common-sense approach, recognising the practical benefits that would be realised by working more closely with the leagues, by acknowledging the natural differences within our diverse football pyramid, and by steering the regulator to adopt a targeted, risk-based approach.