Football Governance Bill [HL]

Debate between Lord Addington and Baroness Brady

Committee stage
Wednesday 18th December 2024 Lords Chamber

[Lord Addington (LD)]

My Lords, I am not very bothered by having a muscular regulator; I want an efficient one that gets things done and looks after the lower clubs. There is a disagreement between us that has been there all through this Committee.

I regard the series of amendments from the noble Lord, Lord Bassam, as a smorgasbord from which we should select something that is actually going to get us to have a look at what is going on. There are lots of options and I have put my name to one of them. Making sure that we get the regulator right and get money going down to preserve something we regard as good is the primary objective. It is not just to take money off the Premier League; it is to make sure that the structures below survive.

If the Government think these amendments are not the right way to progress, hearing why from the Minister would be sensible. Nobody is quite happy with the backstop power in the regulation structure at the moment. Everybody is a little bit upset about it. People who were happy are now not happy. The Premier League and EFL are having great fun not talking to each other or disagreeing. I have no real objection to a slightly more muscular approach. I do not think it is a light touch that is required; it should be efficient.

[Baroness Brady (Con)]

My Lords, the amendments in this group cover a wide range of issues relating to the backstop. While I understand the intentions behind many of these amendments, I fear that they collectively risk making an already contentious and divisive mechanism even more complex and counterproductive.

I respect that Ministers believe they have designed a balanced mechanism that places incentives in the right place, but I think what we will come to unpack is that that is wholly mistaken. I believe this Committee will see that this backstop has not and will not incentivise industry-led agreements, which is supposedly its overreaching policy purpose. I believe we will see that it will not result in a balanced, pragmatic solution that will be good for football.

It will instead drive posturing, game playing and the development of extreme and damaging solutions. We will see that this backstop is legally untested and uncertain, and it could sink football and the regulator into a legal and political quagmire that could drag on for years. Worst of all, we will see that this backstop has already poisoned, and will continue to poison, the well of football bodies’ relationships, when we all need to work together for our continued collective success.

I will briefly address some of the amendments in this group. The proposal to expand the scope of the backstop to include multiple parties all at once—for example, the National League, or potentially the FA and, even in the future, the women’s game—is concerning. This risks creating division where none currently exists. The Premier League, far from being at odds with these stakeholders, has made intensive and carefully considered efforts to support them, just as it has with the EFL.

Just a few months ago, the Premier League announced a £12.6 million package for the National League system over three years, a substantial increase on previous arrangements. For the women’s game, the Premier League has provided significant financial assistance, including a £20 million interest-free loan to help the new Women’s Professional Leagues Limited in its formative years.

These are examples of proactive, voluntary agreements that demonstrate collaboration rather than conflict. This set of amendments would encourage all stakeholders to start competing, simultaneously claiming the Premier League’s revenues, fracturing relationships and introducing adversarial dynamics where none currently exist.

This is not the way to build a sustainable and co-operative football ecosystem. Indeed, I will make a prediction: it is far more likely that the National League will seek to trigger the backstop in relation to the EFL, which does not provide any financial support to the leagues below it. The idea of the IFR triggering the backstop mechanism independently is particularly troubling. The purpose of the backstop, as described in the Bill, is to act as a last resort when the parties fail to reach an agreement; it is not supposed to be a front- stop. Allowing the IFR to bypass this voluntary process would undermine its very purpose and disincentivise genuine negotiation.

The idea that any change—not even a reduction—in revenue received by one party could automatically trigger the backstop is, frankly, unworkable. Revenue distributions in football are dynamic and fluctuate according to complex interrelationships. The amounts change every year, almost always upwards. A mechanism that automatically treats any change as a potential trigger would, with the greatest of respect to the noble Lord, Lord Bassam, be absurd. It would trigger perpetual uncertainty, which is the last thing that football needs.

Finally, and more positively, the suggestion that the IFR could impose its own settlement deserves careful scrutiny. I have tabled my own, slightly different amendments to that effect, which will be debated in a later group. I fully agree with noble Lords that the binary mechanism in the Bill is unworkable for football. However, with respect, I am not sure that this particular amendment would place incentives in the right place. To allow the IFR to impose its own settlement only where both parties’ proposals are inconsistent with the IFR’s objectives would allow parties to offer unrealistic proposals. It would mean they could anchor with a very extreme demand, knowing that the IFR would be forced to step in and create a compromise. This would further entrench division.

What is striking about the amendments in this group is that they demonstrate a fundamental dissatisfaction with the mechanism in the Bill from all sides of the House, as well as the main competition parties involved. The Premier League has raised serious concerns about the divisive nature of the backstop, while the EFL has, I believe, inspired the amendments in this group. It too sees significant flaws in the process as designed. This really should give the Government significant pause for thought.

Let us not forget that English football’s success has been built on collaboration and solidarity. UEFA has made this very point about the deficiencies of the current Bill’s mechanism. A backstop requires thoughtful, proportionate regulation that respects the autonomy of its stakeholders. These amendments, and indeed the existing backstop mechanism, would disrupt that delicate balance. I urge the Government to reflect carefully on whether the backstop as designed is fit for purpose. It should be fostering co-operation, not driving division. If that requires revisiting the mechanism, we should do so without hesitation. Football’s future really does depend on getting this right.

Football Governance Bill [HL]

Debate between Lord Addington and Baroness Brady

Committee stage
Monday 9th December 2024 Lords Chamber

[Lord Addington (LD)]

My Lords, I have had my name down as a supporting figure on three occasions. I just cannot resist, with this talk of “should” and “must”. It does sound awfully like “may” and “shall”, which is something steady to go back to. My question for the Minister is: is there any difference legally between the two words? If there is not—in certain circumstances, there is not—can we just hear that?

On the amendments, I start with the amendment from the noble Lord, Lord Watson, which I supported. Yes, you should consult your players. They are your primary asset; they are what the fans come to watch. It would seem sensible; that is why I am in support. I realise that I might be backing two horses in the same race by putting my name to these two amendments, but the fact is that various fan groups need some interaction with the regulator. How that is done is incredibly important.

To return to the players, without them you have no product. You have no financial resource; you have nothing to come behind. Not consulting them is ridiculous, to be perfectly honest. Many people will tell me that they are overpaid namby-pambies or whatever. I do not agree, but people will tell you that. The fact is that every time you run around as a professional athlete, you are risking your career, or risking it being shortened. Every time you are told to play that extra game when you are not quite ready for it yet, or you are a little bit tired, you are risking your career and your professional value. You may be playing injured, for instance. We should hear from this group. They have short, often very productive careers.

Often, though, they do not. What we tend to do in this debate is think about the Premiership, but we are talking about the entire structure, going down. Many people are just making a living—sometimes a good living—for a short period of time. We must make sure that they are consulted as well. The entire structure going down is something that we are in danger of forgetting repeatedly in this Bill. So I hope that the Minister will give us some clarification here. Players must be consulted and there must be a way of talking to the fans. Is this just another one of the hardy perennials of Parliament going down the “may” or “shall” route? Does the wording change in the lead amendment make any difference?

[Baroness Brady (Con)]

My Lords, I support the amendment from the noble Lord, Lord Watson. I wholeheartedly agree that footballers are at the heart of football. Without them, we certainly could not achieve anything at all. The relationship with players is absolutely vital to football clubs. West Ham was one of the very few clubs during the pandemic where I and my footballers took a 30% pay cut to ensure that all other staff were paid in full and that nobody lost their job; that is part of the spirit and it is why footballers really must be consulted.

I also support Amendment 86, which would introduce vital principles to guide the regulator’s approach. These principles reflect a sophisticated understanding of how football actually works and what makes it successful. The existing principles in Clause 8 of the Bill appear largely defensive and process focused. In essence, they tell us that the regulator should use resources efficiently, co-operate with stakeholders and act proportionately. With respect, I would argue that these are descriptions of basic administrative competence, not meaningful regulatory philosophy. No one would argue for inefficiency or disproportionality, and that is really the test of whether these are real, consequential principles.

More concerning is what these principles admit. They say nothing about preserving what makes English football successful; nothing about maintaining the competitive tension that drives our game’s appeal; and nothing about enabling the responsible ambition that has created the world’s most watched sporting competition.

Let me begin with the fundamental point that I believe is captured by this excellent amendment: the need for clearly identified harm and least-intrusive measures. Football thrives on calculated risk taking and sporting ambition. A regulator consistently intervening without clear necessity will suffocate the very qualities that make our game exciting. This is not about weakening regulation; it is about making it effective.

Consider how successful football regulation actually works. The Premier League has developed sophisticated mechanisms for maintaining financial sustainability while preserving competitive tension. When issues arise, they are typically best addressed through existing structures that understand football’s unique dynamics. This amendment would ensure that the regulator works with those proven systems rather than creating unnecessary parallel requirements.

The principles around competitive tension and ambitious ownership are particularly crucial. The Premier League’s success rests on maintaining genuine competition, where any club can succeed through good management and investment. Aspiration can happen because clubs are empowered and incentivised to take measured risks in pursuit of sporting achievement. The amendments focus on commercial autonomy and innovation, reflecting another vital truth: football’s success comes from constant evolution. The Premier League leads the world precisely because it enables responsible innovation in everything from broadcasting arrangements to community engagement. Overly prescriptive regulation risks spoiling this competitive advantage that we have developed.

Most importantly, these principles would ensure that the regulator maintains proper focus by requiring clear evidence of harm and demonstration that the existing structures cannot address issues. We would avoid unnecessary intervention while maintaining proper oversight. This would help us enhance, rather than inhibit, what makes English football successful.

Football Governance Bill [HL]

Debate between Lord Addington and Baroness Brady

Committee stage
Wednesday 4th December 2024 Lords Chamber

[Lord Addington (LD)]

My Lords, I will make some brief comments. As I read the Bill, the Secretary of State providing some finance might be necessary, particularly in starting up. One of the things we do not want is an underresourced regulator blundering around making mistakes. A bad regulator is the worst outcome you can have, and that is usually because it lacks resources. When the Minister responds, can she give us some idea about when the power to give extra money would be used? This being done badly would be the worst result.

When the noble Lord, Lord Markham, talked about regulation, I am afraid I kept thinking about Fulham and Al Fayed. Are your internal control structures right? Are you doing something wrong? The damage that could be done by bad organisation immediately catches in the back of my throat. The regulation will not be straightforwardly financial; it is also about reporting structures, the care of your workforce, et cetera. Surely that should be covered by the Bill. These are questions about where you draw the line. If we have a regulator, does it regulate the whole thing? I think it has to; it cannot be just financial. If these are socially important structures—this is what we keep coming back to—we have to look at this question.

The noble Lord, Lord Hayward, has a point about the costs involved. I hope that we will get an answer when the Minister responds—at least a rough ballpark figure—because it will clarify what we will do. Those of us who approved the idea of a regulator think that it has to be properly resourced and that it has to cover the whole thing. I hope that the Minister can give us a little more guidance about what will happen and what the Government’s thinking is at this point, because they should have an answer by now.

[Baroness Brady (Con)]

My Lords, my understanding from the Premier League is that the Government’s estimated cost of the regulator is £10 million a year, and the Premier League considers that to be very low. We have heard a lot about how the regulator has been based on banking regulation, but the FCA costs £762 million a year and Ofcom costs £127 million a year.

It is worth noting that there are two critical but unrealistic assumptions in the impact assessment. First, it assumes perfect compliance, and, secondly, it focuses solely on ongoing compliance costs, such as information-gathering and engagement with the regulator and supporters. It does not account for the potential costs associated with, for example, licence conditions enforcement action that may arise through the commitments procedures. I completely agree with the noble Lord, Lord Hayward.

In earlier debates in Committee, I read out what Mark Ives, the general manager of the National League, said:

“We are concerned about the costs … The expectation of how much it is going to cost clubs at a National League level is a huge concern—it may be a small amount of money, but it is a lot to the clubs”.


He went on to say that many clubs in the National League are run by volunteers. We should give the clubs an idea of what it will cost, so they can work that into the budget. Each club should know whether it will be fully funded and fully staffed, so it can do the right job.

We have heard throughout Committee that the powers will be extended. The more that the powers are extended then the more complicated the Bill will be, the more staff they will need and the more costs there will be. Each club has to pay that cost because it has to have a licence. The way that you discharge the cost of the regulator is to add it to the licence. All 116 clubs, even though they are not listed in the Bill, will need to obtain one of those licences to operate.

Cost is a huge concern. It appears from what has been said that the Premier League would be picking up the majority of that cost. There is a big difference in the Premier League between those at the very top and those at the very bottom; they have very different pressures on their finances. I can only endorse what my noble friend Lord Hayward said and urge the Minister to give us an indication.

Football Governance Bill [HL]

Debate between Lord Addington and Baroness Brady

Committee stage
Monday 2nd December 2024 Lords Chamber

[Lord Addington (LD)]

My Lords, I have the last amendment in the group, which seems to be where my amendments are occurring today. I think we should have somebody at each club who addresses this issue. I am with the noble Lord, Lord Deben, on this; it is an undeniable thing. You could probably quote one person who has said, “No, it isn’t”, but you cannot list everyone else who says that climate change is real without being here all week. They will then disagree about its extent, but they will not disagree on the fact that it is real.

There should be somebody at each club doing exactly these things to make sure that the business is sustainable, and to address the various problems. If it is just one person, as was suggested, it is simply a question of saying, “Please pay attention: can we raise the issue and see what is going on?” This could be someone who is managing the flood risk; the fact that grounds are being flooded is unarguable. Someone should be saying things such as, “What is the least damaging type of cup?” All of these issues will be important at different levels to different groups, but they are important. If other regulations are coming up to deal with this, you would be an absolute fool not to bring them into your plan.

The noble Lord, Lord Deben, is probably right on this, and it is nice to see him on the Bill.

[Baroness Brady (Con)]

My Lords, like the noble Baroness, Lady Fox, I rise to strongly oppose the idea of adding environmental sustainability to the regulator’s remit, as this group of amendments seeks to do. I do so not because this issue is unimportant: of course, it could not be more significant for us all. My objection is both practical and principled, because barely has the ink dried on this revised Bill, and already we are seeing a litany of attempts to extend the regulator’s scope. This, I am afraid, is what many of us who work in football are so worried about. We are the first major country to introduce a government regulator for football, and immediately there is pressure to have it solve every challenge on the spectrum.

Let me remind noble Lords: this Bill already gives enormous power to the regulator. It can decide who can own a football club; how the club can spend its money; how it should organise itself as a business; how it must engage with its supporters; in what circumstances it can move location; the approach it should take to equality, diversity and inclusion; the overall flow of money; and even the continued existence of key competition tools throughout the ecosystem. However, even that does not seem to be enough. Today it is environmental sustainability; tomorrow it will be something else. We already have amendments tabled to mandate specific kinds of corporate social responsibility; to add the women’s game to the IFR’s scope; to meddle with free-to-air listed events; to require regulator consultation on political statements made by clubs; and even to govern football clubs’ relationships with sports betting.

It is a well-known phenomenon that all regulators significantly expand their scope and size over time but, if we start before it has even begun, imagine what this regulator would look like in a decade. Where will it end? I do not expect it to be anywhere positive for our currently world-leading football pyramid.

The Premier League and its clubs, as well as many EFL clubs, are already taking substantial action on environmental issues, as all responsible businesses should do. We already have comprehensive environmental regulations that apply to all businesses, as well as the aggressive targets of a country reaching net zero. In addition to serious and often innovative action to reduce their own carbon footprints, many clubs also campaign and donate substantial resources to environmental campaigns.

Premier League clubs also do a huge amount to help other clubs in this regard. Let me give one example: the Premier League has put in place a brilliant programme to provide grants of up to 70% of the costs associated with installing modern LED floodlights at stadiums across the National League system and women’s football pyramid. This has already helped dozens of community clubs both to lower their running costs and to minimise the impact they have on the environment, but it is fair to point out that Premier League clubs make these sorts of voluntary contributions while facing already unprecedented financial demands. Again, I will give one example.

The Budget increases to employers’ national insurance contributions will cost Premier League clubs an additional £56 million annually. That is an extraordinary new burden—more than £0.25 billion over the rest of this Parliament. This new bill also comes on top of the £1.6 billion in pyramid support that we already provide, as well as our significant investment in youth development and community programmes, and the constant need to maintain expensive infrastructure and build new facilities. The Government want us to spend even more on grass-roots pitches and, through the Bill, they may force us to give even more to the well-funded Football League.

All of this is before Premier League clubs can focus on their most basic and fundamental requirement—of which the Bill takes so little account—to keep their own teams strong and competitive on the pitch. Let us remember that that is what the fans really care about. It is our ability to do that which underpins the overall health and sustainability of English football.

We must not compel this regulator to interfere in areas far beyond its core purpose, adding yet more cost and complexity to what is already a set of implementation challenges. Every additional requirement we add dilutes its focus and risks its effectiveness, so this group of amendments surely cannot adhere to the basic principles of good regulatory design. Effective regulators need clear, focused remits. They need to do specific things very well, not everything poorly. Let us not undermine this regulator’s clarity of purpose before its work even begins.

Football Governance Bill [HL]

Debate between Lord Addington and Baroness Brady

Committee stage
Wednesday 27th November 2024 Lords Chamber

[Lord Addington (LD)]

My Lords, when trying to sum up these several hours of debate, I felt at times that we were dancing on the head of a pin. Sustainability —what actually does it mean? What do the Government think it means? That is the one question I would give to the Minister. Does it mean sustaining a successful Premier League? Well, I would hope so. Is sustainability making sure—remember, this Bill encapsulates it—that those five tiers of professional football are functioning? That is what is in this Bill—five tiers of professional football. That is what has allowed the resurrection of teams which got it wrong—there was somewhere to go.

Making sure that that is sustainable means that the fans want something. I hope I never cross the noble Lord, Lord Mann, on this subject because there was a great deal of fire in the belly there; my noble friend Lord Goddard might have got close at times, but I think we will give the noble Lord that one on points. The fans want something and are hugely emotionally and physically invested in this structure. That is what is behind the Bill. Football is not another business; it is not even another sports business. It is not—and may all that is holy be thanked—WWE. It is not something that we will throw away; it is embedded in the identity of much of our society. I say that as a rugby player. The noble Lord, Lord Hayward, is my friend—I will say yes to him and “sir” when he is refereeing, but only then.

So it is that that comes through. The question here is about the word “sustainability”. What do the Government envisage it is? Let us get it out here now. Where will this be backed up? Where will it be shown so that we can know what is going on? Pepper v Hart is clearly not enough here. If we can get that, we can move on, but we must remember that we do not want the Premier League to be damaged, because it provides the money for the other good things to happen. That is the balance we must achieve—or at least get close to.

We cannot guarantee that it will be the best league in the world for ever. Will there be government intervention to make sure that it is successful? That would be a strange position for many noble Lords who have spoken.

[Baroness Brady (Con)]

The point is that the government regulator should not make it less successful by over- regulating, mission creep and making it so difficult to keep it competitive that it ends up having a detrimental effect.

[Lord Addington (LD)]

My Lords, we come back to semantics, definition and interpretation. How do you interpret success? Is it by lack of regulation or by intervention? I do not think FIFA and UEFA would be terribly happy if it was felt that it was possible for a regulator to interpret success.

I hope that the Minister, who will have better access to this information than anybody else here—at least, I really hope she will—will be able to say what sustainability is, where does it go and what is the Government’s vision? That is what has happened here.

The Bill is about keeping five tiers of professional football functioning, with an escape route when it goes wrong, if we want to be terribly mercenary, for the top clubs. It gives a chance to rebuild and come back. That is difficult—Leeds have done it briefly; the noble Lord, Lord Mann, is smiling at me—but that is what is behind the Bill. It is not just about the Premier League, it is about the whole thing. I hope that the Minister will be able to correct—or rather, clarify—these points.