Football Governance Bill [HL]

Debate between Lord Goddard of Stockport and Baroness Taylor of Bolton

Report stage
Monday 17th March 2025 Lords Chamber

[Baroness Taylor of Bolton (Lab)]

My Lords, I start by reminding the House that the Bill will not abolish parachute payments or change the architecture in the way that has just been suggested. When the noble Lord, Lord Markham, talked about the need to have confidence, so that clubs can invest in new players and have confidence in the strong club structure and financial position, he mentioned only the Premier League. He did not refer at all to the rest of the football pyramid. The Bill needs to make sure that we have sustainability, not just of those clubs in the Premier League, but of the whole English football pyramid. It is important to bear that in mind because, while parachute payments may have a place—as most people have acknowledged, certainly at the moment—there is no doubt that the level of parachute payments is such that it distorts competition in the Championship. I asked the noble Baroness, Lady Brady, when we were in Committee, whether she would acknowledge that, and she declined to comment.

If we look at the actual figures involved, there is no doubt that the current arrangements distort competition. At the moment, clubs that are relegated receive, in year one, £48.9 million. Other clubs receive £5.3 million. The redistribution that is often talked about from the Premier League to the EFL does not help all the clubs in the EFL equally. It distorts competition, which is something we should bear in mind when we are talking about parachute payments. Although they may help a few, they do not help the sustainability of the whole pyramid, as they could—and should—if we had a fairer system of distribution.

[Lord Goddard of Stockport (LD)]

I support the noble Baroness, Lady Taylor of Bolton, especially after Saturday’s result between Bolton and Stockport County—thereby hangs a tale.

I was following the thread from the noble Lord, Lord Markham, really well until he mentioned that every game is competitive. Ipswich Town supporters would not agree with that this season. The evidence suggests that is not the case. If we look at leagues across Europe, they have jeopardy. There are last games of the season where relegation and promotion come to the edge. It is not the be-all and end-all.

It is right that you need a fairer distribution than this endless three up, two down, three down, and that money needs to go further down the pyramid to encourage further clubs to be able to compete. It looks as if the three that came up this season are going to go down. If that continues to happen, it will have a detrimental effect on the Premier League—it must have. It gets more and more difficult every year to sustain. The Brightons and the Bournemouths have burst through, as have other teams, and they are managed really well. But there are unintended consequences if we do not look at these things in totality and just isolate them. If we say, “Leave the parachute payments alone—everything is all right with it”, that is not making progress, and we need to make progress. That is why we need to look at this within the bigger picture. It is not in the Bill but it needs looking at.

Football Governance Bill [HL]

Debate between Lord Goddard of Stockport and Baroness Taylor of Bolton

Committee stage
Wednesday 18th December 2024 Lords Chamber

[Baroness Taylor of Bolton (Lab)]

My Lords, Amendment 219 relates to Clause 46 and the question of the disposal of home grounds, and the kinds of approvals that are going to be required. I have just three points to make. First, are the words “home ground” sufficient? We suggest that we should say “specified properties”. This relates very much to what I was saying the other night about assets of community value. I said that when my own club, Bolton Wanderers, made its ground an asset of community value, it covered not just the ground itself, the pitch and the stands but the concourse. We have to talk about whether it should cover a training ground and even advertising hoardings, car parks and the fan zone. If we simply say “home ground”, will that cover an item such as a fan zone? That is why the amendment I have tabled suggests that we should have specified properties. They may be different in the case of different clubs, but a home ground is more than just what is on the pitch or even within the boundaries of the stadium. That is something that I hope the Minister will consider.

My second point is that this should relate to the assets of a club being used as security for a loan by the owner. There is clearly potential danger there if the loan is called in but the owner does not have the wherewithal to cough up the money that he has borrowed. Could that situation jeopardise the heritage of a club if it is vulnerable because it has been given as security? That is a valid consideration.

The third point is the need to make sure that fans are fully consulted and engaged in any discussion about the disposal of the specified properties. Often, when we are talking about which properties might be involved, it is the fans themselves, especially if there is a fan zone, who have a clear vested interest. We have talked on the Bill about moving five miles. In any circumstances, the fans have to be involved and, therefore, I hope the Government will consider the amendments that we have tabled.

[Lord Goddard of Stockport (LD)]

I support the noble Baroness, Lady Taylor of Bolton, and the noble Lord, Lord Bassam of Brighton, because I have walked this tightrope. When I was leader of Stockport Council, we had to financially advise and support Stockport County on several occasions. In the end, in 2013, we acquired the freehold and leased it back to the new owner of Stockport County, Mark Stott, for 250 years. That enabled him to get investment in and get the football club moving back into the league and climbing the divisions. That is where we start from: the position of the club and its value as a loan against something.

If we can get local authorities and other people to get hold of the freeholds, that will save Toys-R-Us from being built on certain football grounds on the south coast and give the clubs real opportunities to move forward. So we should support the amendments. We should also probably be thinking about how we can strengthen that in future. There is more involvement in the community value and the asset to a town and area of a football club, so we could be a bit more imaginative about how we protect that, rather than just arguing over how we should cover a loan against the ground.