Football Governance Bill [HL]

Debate between Lord Hannan of Kingsclere and Baroness Brady

Committee stage
Wednesday 15th January 2025 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

My Lords, I support my noble friend Lord Goodman’s amendments and the principle of a sunset clause.

“The delegation of particular tasks to separate bodies, while a regular feature, is yet only the first step in the process by which a democracy … relinquishes its powers”.


So wrote FA Hayek in chapter five of his magnum opus The Road to Serfdom in 1944. Think of how much truer it is today than it was then. By one account, we have had a new quango every week since the election, and it is a one-way system. They are never undone, and they are not undone because of the dynamic that, once an organisation like that exists and is in place, its primary purpose becomes the defence of its own existence and its own budget. That is why we have sunset clauses at all. It is the only way in which, realistically, you can put in a hedge in case the calculation on which you passed legislation or created a quango turns out to be false.

In this case, it may or it may not. The noble Baroness, Lady Taylor of Bolton, tells us that the legislation is terrifically popular and that the fans are demanding it and want immediate action; the noble Lord, Lord Hannett of Everton, says that it has been polled and everyone is in favour of it. That may be—I do not know, as I am not any kind of expert—and I am perfectly happy to accept the possibility. Equally, we should be cognisant of the figures that the noble Baroness, Lady Fox, cited: 20,000 people of the 2 billion who watch Premier League games is one in 100,000—someone will tell me if my maths is off. It may be that that is a self-selecting and unrepresentative sample.

It is certainly the case, as any pollster will tell you, that people are very bad predictors of how they will feel in a hypothetical situation. If people are asked for an opinion now, and polled in the abstract on whether they think there should be some regulation of football, they might think that it would be a way of preventing rogue owners driving clubs into bankruptcy and so it seems a good idea. But what happens if, two or three years from now, the regulator does what almost every other regulator in this country’s history has done and expands its remit well beyond the powers laid down and discussed in your Lordships’ House? What if fans are then looking at a regulator that is doing things that were never envisaged? There are regulators laying down rules on net zero and gender quotas—and we have already had demands for clubs to monitor the diversity of their season ticket holders and so on. Fans will realise that, hang on, this is not what they signed up for. What then will be the mechanism and check on this legislation?

The only way of doing that is to have some kind of automatic lapsing; in other words, to allow this House and the other House to come back and say either that the legislation is working, so it should be renewed, or that it is not working, so it should be allowed to lapse. This should not be a controversial proposal. I do not doubt for a second the sincerity of noble Lords on all sides who have argued that this is a popular and necessary Bill. If it is, they should have the courage of their convictions. If it is, there will be no question—for all the reasons that my noble friend set out at the beginning—but that the regulator should remain in operation or that the Minister will keep it that way.

We must allow for the possibility that we may have got this wrong. It costs very little and would satisfy all sides. It is something that ought to be able to command consent in this Committee and beyond. I hope that the Minister will give it serious consideration.

[Baroness Brady (Con)]

My Lords, before I speak to the amendments in this group, I want to address the accusation from the noble Lord, Lord Watson, that West Ham United has put its season ticket prices up mid-season. That is categorically untrue. We have the cheapest adult season ticket in the league, at £345. Since we moved into the London stadium, we have sold 35,000 season tickets for £99 to juniors. We have two “kids for a quid” games every year in the Premier League at the club. We are more than doing our bit.

Football Governance Bill [HL]

Debate between Lord Hannan of Kingsclere and Baroness Brady

Committee stage
Monday 9th December 2024 Lords Chamber

[Lord Hannan of Kingsclere (Con)]

My Lords, in introducing this amendment, the noble Lord, Lord Addington, used the phrase “hiding behind a paywall”. I wonder whether that is really a fair description of paying for something. When I got my phone, it was hiding behind a paywall: it was not given to me free; I had to shell out for it. I need a new car at the moment; my heap of junk of a Nissan has collapsed. The new one is hiding behind a paywall, and I have to pay for it. I had to pay for my dinner tonight; it was hiding behind a paywall.

There is an assumption here that there is no such thing as private property or free contract and that everything ought to be somehow at the disposition of regulators or of state officials. That is not how we got here. If you do not respect the fundamental ability of sporting clubs or indeed broadcasters to do what they think is in their best interests, you end up with suboptimal outcomes. This is a very neat demonstration of why, once you create these regulatory structures, they expand and expand—because people airily demand things and feel very virtuous in demanding them without any thought for the practicalities of the people who have to implement them.

[Baroness Brady (Con)]

My Lords, I oppose Amendments 91 and 92 because they try to make the regulator a consultee on listed events and would place a duty on it to have regard to the desirability of making more domestic games free to air. I have huge respect for the noble Lords, Lord Addington and Lord Goddard, and their colleagues, and I know that these amendments relate to a manifesto commitment made by their party, but I hope it is helpful to talk a little about how football’s broadcast economy works in practice.

The Premier League’s domestic broadcasting rights are contracted through to 2029. Of course, they represent far more than a simple commercial arrangement: they form the foundation of English football’s entire economic model, and their thoughtful and innovative packaging is a hugely important part of the Premier League’s success. The substantial revenues they generate enable the Premier League to provide £1.6 billion of support to the wider pyramid, representing 16% of central revenues, of which—I think the noble Lord, Lord Watson, may like to know—£25 million goes to funding the PFA. That is why it keeps its joining fee at £20 and its subs at £150.

The sophistication and complexity of broadcasting arrangements is enormous and a huge source of competitive advantage for English football. Each broadcasting slot and each package of rights exists within an intricate ecosystem where values are fundamentally interdependent. These are not discrete assets that can be easily separated; they form a carefully balanced whole that has taken decades to develop to create value and appeal. Forcing certain matches to be free to air would not just affect those specific fixtures; it would fundamentally undermine the value proposition of every broadcasting package.

Premium broadcasters invest based on exclusive content that attracts subscribers. Remove that exclusivity—even partially—and decouple certain packages from each other and the entire model becomes unsustainable. The consequences that would cascade throughout football are significant. A significant reduction in broadcast values would not just affect Premier League clubs but immediately impact the entire pyramid through reduced solidarity payments, youth development funding and grass-roots investment. The damage to football’s economic ecosystem would be profound and potentially irreversible.

Of course, this sort of intervention would create exactly the kind of seismic instability the regulator is meant to prevent. In an attempt to increase access to certain matches, it would risk destabilising the very mechanism that funds football’s broader development and sustainability. The Premier League’s success in maintaining the growing broadcast revenues, which benefit the entire game, comes through very careful and innovative management of these arrangements. While I respect my noble friend’s motivations and good intentions here, I must strongly oppose the expansion of the scope of the IFR in the way proposed.