Football Governance Bill [HL]

Debate between Baroness Jones of Moulsecoomb and Baroness Brady

Report stage
Tuesday 11th March 2025 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

Thank you very much.

Amendment 13 is quite an important amendment for me, because a noble Lord challenged me earlier, saying, “Surely you’re not going to bother to push this to a vote; otherwise, it could be in every Bill”. Well, yes, of course: as a Green, I would like an awareness of the Climate Change Act to be inherent in every Bill. Unfortunately, it is not at the moment. That is why this amendment is so important.

I am a football fan. Despite being a Green and despite all its flaws, I absolutely love football. I am well aware of the power that football clubs have over their fan base and their sphere of influence into wider society. We all know now that we have to limit our impact on the planet, that we need to use less plastic and that everything can be polluted by plastic—our own lungs, the sea, absolutely everything. Some clubs are trying very hard, but many, many fail.

Amendment 13 tries in particular to acknowledge the link between environmental and financial sustainability and the urgent need for the games regulator to be empowered to drive greener practices. The idea that the independent football regulator’s remit should include consideration for environmental sustainability is backed by Pledgeball and fellow sport and sustainability organisations Sports for Climate Action and Nature at Loughborough University, the Cool Down Sport for Climate Action Network, and the Football and Climate Change Newsletter.

In 2021, in response to a number of high-profile crises that had arisen in the sport, there was the fan-led review, which has been discussed already, chaired by the former Sports Minister, Tracey Crouch. Many of the review’s 10 findings focused on financial stability at the clubs, fan input, equality, inclusion, diversity and welfare, but it is also crucial that a focus on environmental standards and sustainability is part of the regulator’s remit.

In Committee, Ministers resisted amendments about environmental sustainability on the basis that such measures would put a burden and cost on the regulator and on the clubs. Ministers also argued that voluntary sustainability efforts by clubs and leagues were, and would continue to be, sufficient. However, although some clubs are doing commendable work in this area, progress is inconsistent, erratic and lacks enforcement. Without regulation, football will have fragmented, inadequate responses to climate threats.

It has been predicted that, at the current rate of climate change, one in five English clubs could be at high or very high risk of flooding by 2050. The average grass-roots pitch already loses around five weeks of play every season due to adverse weather. Approximately 120,000 fixtures are called off each year due to unplayable conditions of various kinds.

Additionally, government policy already links financial stability to climate risk. The Bank of England’s Financial Policy Committee is required to consider climate risks in its financial stability assessments. Defra has also asked several major UK regulators, including Ofcom, to submit a report on how climate risks are affecting the sector. Football should be no different.

My Amendment 13 would ensure that clubs comply with the Climate Change Act 2008 to secure the long-term environmental sustainability of English football. I simply feel that this is too important to leave, so I will move it later.

[Baroness Brady (Con)]

My Lords, my Amendment 25 seeks to address a key issue: how the new regulator will operate in practice and the transparency with which it will exercise its powers. But first, I welcome the Government’s decision to adjust the frequency of the Secretary of State’s statement on football governance from every three years to every five. This sensible change now aligns the timing of various key processes across the Bill, ensuring consistency, clarity and practical efficiency. I thank the Minister for listening to the points raised in Committee and responding positively with her amendment.

On guidance and consultation and my amendment, the Bill currently requires guidance only for discretionary licence conditions, leaving many critical regulatory functions without similar obligations. I want to briefly highlight three key areas where greater clarity is essential and guidance should, in my view, be mandatory.

First, financial sustainability is the regulator’s primary purpose, yet there is no obligation for the regulator to define how it will assess soundness or resilience through guidance. Clubs making long-term investment decisions deserve clarity on how these will be evaluated. Can the Minister please confirm that the regulator will define these incredibly important terms, which influence the overall approach the regulator takes and therefore what regulated parties should expect, in the “state of the game” report?

Secondly, the owners’ and directors’ test—vital for responsible investment—lacks detail in the legislation itself. Without requirements to consult clubs and existing and potential investors on its design, we risk creating unnecessary uncertainty. There is a requirement to consult on the definition of “significant influence or control” within the ownership rules, but no consultation requirements for the test itself.

Thirdly, the backstop power over financial distributions could fundamentally alter football’s economics, yet the regulator need not explain its approach or methodology ahead of a determination. For a mechanism with such profound implications, this seems to represent an obvious gap in procedural and legal safeguards. This uncertainty around guidance could create practical problems. The Premier League’s broadcast deal runs to 2030. Clubs like mine are making infrastructure decisions spanning similar timeframes or even longer.

How can responsible planning occur without regulatory clarity? Surely mandatory guidance across a whole range of areas in this Bill would be conducive to generating greater clarity and regulatory certainty. These amendments would require the regulator to provide guidance across all functions and to consult appropriately. I am not seeking to constrain the regulator’s authority, just to ensure that powers are exercised transparently and coherently. If, as the Minister assures us, this will be a collaborative regulator, I ask her to commit to embedding that principle more comprehensively in the legislation itself.