Football Governance Bill [HL]

Lord Goddard of Stockport Excerpts

Committee stage
Wednesday 27th November 2024 Lords Chamber

[Lord Goodman of Wycombe (Con)]

My Lords, I support the amendment moved by my noble friend on the Front Bench, and those spoken to by my noble friends Lord Maude and Lord Hayward. I will also offer some expression of sympathy to the Government, because it is not altogether clear what the origins of this word “sustainability” may be. I suggest that they go back to the original so-called fan-led review produced by Tracey Crouch, which I have here and which noble Lords will have read. The Bill is drawn expressly from the so-called fan-led review.

I say in parenthesis that “fan-led review” seems a strange title for it, since Dame Tracey emphasises in the report that its conclusions are hers alone. Although I pay tribute to the work she did and the consultation she undertook, she received 20,000 responses and there are some 33 million football fans, but we will leave that for a moment.

I will read the very opening of Dame Tracey’s foreword as it sets the tone for the Bill as a whole and for an element that is missing from it. She wrote in her introduction:

“For those who say that English football is world leading at club level and there is no need to change I would argue that it is possible simultaneously to celebrate the current global success of the Premier League at the same time as having deep concerns about the fragility of the wider foundations of the game. It is both true that our game is genuinely world leading and that there is a real risk of widespread failures and a potential collapse of the pyramid as we know it”.


So Dame Tracey made two points. One was about the success of the game and the other its fragility and the potential failures, but the oddity of the way the Bill is presented—my noble friends all picked this up and elucidated it in their speeches—is that the first part of the Bill refers only to the fragility of the system by using this word “sustainability”. There is nothing about success in it. I suggest to Ministers and to noble Lords that some reference to success would be a better reflection of what was originally in Tracey Crouch’s report and the balance that she gave between the fragility and the success of the game—for the two, after all, may be bound up together.

[Lord Goddard of Stockport (LD)]

My Lords, I apologise for missing Second Reading. I feel like I am coming on at half-time into this debate, but sometimes if you come on at half-time you have a little bit more energy.

I want to address the sustainability issue, because it is fundamental to what we are trying to do. I am not sure whether any other Member of this House has been in the unenviable position I was in as a leader of a borough, when the local football club came to me and said, “We’re going to go bankrupt and go bust unless you financially support us”, which I had to do at Stockport. We offered all our support, and we did it for a reason. It is more than just a football club, as other speakers have said; they are part of the fabric of society and of communities. They are economic drivers for towns. Most of these football clubs were built in town centres. They kick off at 3 pm on a Saturday because men, predominantly, used to work Saturday morning and they would go to the football in the afternoon. As we watch global football now, we see football matches at 5.30 pm, 8 pm and 10 pm. No one cares about the supporters. When Newcastle played West Ham the other night, the last train home from Newcastle left before the final whistle.

There is a bigger picture at stake here about how you regulate and control football, so my opening comment is that the sustainability bit—the bit that says a football club must be able to sustain itself—must be core to what we are trying to do. On all this saying, “The Premier League will look after itself”, I wish people would not keep bringing the Premier League in as the golden egg. It is the Championship, League One, League Two and the non-league teams—that is your pyramid. That is part of the regulator’s job: to secure their sustainability.

I say to all Members when they go through the Bill —some things in it are quite laudable and supportable—that the aim is not to get into the situation we have got into before, where the six that were going to join the European league could have collapsed the pyramid. That needs to be stopped again. Owners buy a football club like somebody buys a yacht or a hotel. That has to be stopped, as does changing the colours a team plays in and changing the ethos of a club. That is regulation, but at the heart of it is sustainability. That needs to be woven into the Bill somewhere, if not on the face of it: sustainability absolutely must be included in the regulator’s remit.

[Lord Birt (CB)]

My Lords, sustainability is an insufficient word to describe what the Bill should be trying to achieve. It is necessary but not sufficient. We need football to flourish, develop and innovate and the Bill should make that extremely clear. As I mentioned at Second Reading, I have been around a long time and remember when football was highly conservative. I remember when football bitterly resisted the notion of live broadcasting, which was completely and utterly to transform and create the modern game.

The regulator must not stop football developing, and that needs to be crystal clear in the Bill. Football needs to continue to innovate, as it has done over the last 30 years. The notion for the European super league was quite wrong and rightly kicked into touch, but there are other possibilities in the modern age for having European leagues based on merit and allowing the game to develop. Live-streaming games which are not broadcast live on a subscription service for fans would be a perfectly reasonable way to allow the game to develop. Let us ask the regulator not to stand in the way of the game continuing to improve as it has done so successfully over recent decades.

--- Later in debate ---

[Lord Goddard of Stockport (LD)]

The simplistic argument is, “Well, I can just sell a player”. Actually, you cannot just sell a player. We have a one-month window in January and the end of the season. If it is mid-October and that happens, you cannot sell a player. What do you do then? That is the point. You cannot run a football club on a shoestring because it makes them competitive. That is not the name of the game. The noble Lord’s argument seems to be that if we give them all the money, they will not try their hardest anymore. That is fanciful; it is not true. Football clubs need to be sustainable. They need to be able to pay their way. I could not buy a car if I could not afford the deposit. I could not buy a Rolls-Royce tomorrow saying, “I’ll give you the deposit, but I don’t have it with me today, so give me the car and, when I do quite well, I’ll give you the money”. That is not how life works. Football is a business like every other business. The noble Lord seems to want it to run in a way that is foreign to every principle of business.

[Lord Markham (Con)]

Speaking as a former chief financial officer of a FTSE 250 company, I would say that, in those examples, if you found yourself in a situation where you could not sell a player until the next window, that would be very poor financial management by the CFO, who would probably get sacked pretty darn quick if they led their cash flow into those sorts of situations. In extremis, if you needed to do that, the bank would lend the money against that because there are assets on the balance sheet that they can borrow against. Every FTSE 100 company is set up in that way. They meet their cash requirements by looking at their assets and raising debt where they need to against them.

--- Later in debate ---

[Lord Goddard of Stockport (LD)]

My Lords, I have been in this House for 10 years this year. For eight of those years, I was on committees for secondary legislation and primary legislation. It is a little bit rich for the Conservatives to start complaining about Henry VIII powers, when I spent most almost 10 years trying to stop Ministers from across the previous Government taking Henry VIII powers at every single opportunity. I think people need to put this into perspective.

I hear what the noble Lords, Lord Moynihan and Lord Maude, are saying. I believe they are saying it with the right intentions and from the heart. The noble Lord, Lord Bassam, has opened the tin a little bit by saying that the conversation going on between the Government and UEFA is about finances but not about this.

So is there an element of sabre rattling? I do not know, but we on these Benches would like clarification from the Minister—this can be clarified quickly—on whether any of these three amendments are true, can be true or can be dealt with in the Bill. If they can, we can put this to bed quickly, but, if they cannot, there is some mileage in considering the alternatives, which are the last things that anybody wants. I do not want Stockport County not to be able to play in the Champions League in 30 years because of an oversight in this Committee one night.

Finally, can we end this love-in with Brighton & Hove Albion? You beat Manchester City once; you did not win the World Cup.