Football Governance Bill [HL]

Debate between Lord Harlech and Baroness Jones of Moulsecoomb

2nd reading
Wednesday 13th November 2024 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Jones of Moulsecoomb.

[Baroness Jones of Moulsecoomb (GP)]

Even if I am an Arsenal supporter.

[Lord Harlech (Con)]

Even if she is a Gooner.

This legislation seeks to overhaul football governance structures in England and Wales to make the sport more transparent, financially stable and responsible. Like any significant reform, it has both pros and cons, and has particularly sparked concern from the Premier League.

One of the Bill’s most significant provisions is the introduction of stronger financial regulation for clubs. The Bill aims to prevent the kind of financial mismanagement that has led to the collapse of several clubs in the past. The Premier League has seen several clubs run up huge debts. More than half of Premier League clubs reported losses in recent years. In the 2022-23 season alone, Premier League clubs collectively posted £1.1 billion in losses.

The issue of financial mismanagement is not confined to the Premier League. The English Football League has also seen its fair share of clubs that have gone into financial turmoil, leading to administration or outright bankruptcy. As the noble Lord, Lord Mann, explained, one of the most high-profile examples in recent years is Bury Football Club. In 2019, Bury, one of the oldest clubs in English football, was expelled from the Football League after it failed to meet financial obligations but could not find a buyer to stabilise the club’s finances. The collapse of Bury FC was a stark reminder of the financial vulnerabilities that can plague even historic clubs if the proper oversight is not in place.

As we have heard, clubs such as Bolton Wanderers, Macclesfield Town and Blackpool—clubs that are intrinsic, essential and at the core of their local communities—have experienced financial crises and been forced into administration. These situations affect clubs, their fans, local communities and the broader football pyramid. The Football Governance Bill seeks to address these issues by introducing stronger financial regulations and governance structures to ensure that no other clubs face the same fate as Bury.

The establishment of an independent football regulator is another cornerstone of the Bill. According to the 2021 survey conducted by the Fan Led Review of Football Governance, 92% of respondents supported the idea of an independent regulator, emphasising the desire for greater accountability in football governance. However, I would caveat that: 92% sounds like a lot, but the total number of respondents was 20,000. If you think about how many fans attend football across a weekend—on a Saturday afternoon or a Sunday—that is not a huge number. We have to think about what the fans who did not engage with the review want. That is just a word of caution before we proceed wholeheartedly down this track.

As other noble Lords have said, not all regulators in this country have been successful. While many are called independent, their accountability, particularly to Parliament, has been called into question. Can the Minister say how the Government will ensure this new regulator’s accountability to Parliament?

Proposals for more transparency in club ownership, and implementing a more rigorous owners’ and directors’ test, might help ensure that only financially responsible, ethical owners run clubs. This is particularly relevant given the history of some club owners who have brought financial ruin or unethical practices to their clubs.

An example is the Glazer family’s ownership of the club I support, Manchester United. Since the Glazers bought the club in 2005, Manchester United has been plagued by massive debt and a lack of investment in crucial areas such as infrastructure and youth development. The Glazers financed their acquisition of the club through highly leveraged debt, meaning that Manchester United was saddled with a debt of £500 million at the time of the takeover. Since then, the club has paid hundreds of millions in interest on this debt, money that could have been better spent on improving the club’s facilities or player acquisitions. Moreover, their ownership has been marked by a lack of transparency, with millions siphoned out of the club through dividends and “management fees”. This has sparked widespread fan protests and has contributed to a decline in Manchester United’s competitive edge despite its enormous global fan base. The Glazers’ negative impact on the club exemplifies the need for stricter ownership regulations, which the Bill proposes, to ensure that clubs are run in the best interests of their fans, their communities, and their long-term success.

However, the impact of these reforms will be felt not just in England; Welsh clubs that compete in the English football pyramid will also be affected. Welsh clubs such as Cardiff City, Swansea City and Newport County are integral members of the English Football League. These clubs will be subject to the same regulations and financial reforms as their English counterparts, meaning that they could benefit from increased financial solidarity payments from the Premier League and the EFL as part of the Bill’s redistribution proposals. However, there are concerns about how Welsh clubs will navigate their unique position within the English system. Welsh clubs are governed by the Football Association of Wales, rather than the FA, which adds a layer of complexity to any governance changes.

One of the main concerns from the Premier League is that the Bill represents excessive government intervention in football’s internal affairs. While the Government argue that reform is necessary, the Premier League contends that football should be governed by its authorities, not politicians or bureaucrats. Football, after all, is a global industry with complex dynamics, and many believe that government interference could stifle its autonomy and commercial success. According to a report by the Premier League, over £10 billion of commercial revenue flows into the English game each year, mainly due to the unique, autonomous structure of the league. Any increase in government regulation could jeopardise the commercial appeal of the league and its competitiveness, which might undermine the Premier League as the most profitable in world football.

As eloquently explained by my noble friend Lady Brady, another significant concern is the Bill’s proposed redistribution of football revenue. The Premier League generates substantial income from domestic and international broadcasting deals, and there are proposals to redistribute a more significant portion of this revenue to lower-league clubs. The Premier League earned £10.6 billion from broadcasting deals in the 2022-25 cycle. While this is a crucial source of income for the league, the Premier League argues that a large-scale redistribution could undermine its financial stability. Any reduction in this income could make it harder to maintain that competitive advantage.

In conclusion, while the Bill has some positive aspects, the dangers must be addressed. Redistributing wealth between leagues and introducing stricter ownership tests could have unintended and far-reaching consequences for the entire football pyramid.

Environmental Targets (Water) (England) Regulations 2022

Debate between Lord Harlech and Baroness Jones of Moulsecoomb

Monday 23rd January 2023 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is the turn of this side. There will be time for everyone to contribute.

[Baroness Jones of Moulsecoomb (GP)]

I deeply resent that.

Clean Air (Human Rights) Bill [HL]

Debate between Lord Harlech and Baroness Jones of Moulsecoomb

Committee stage
Friday 18th November 2022 Lords Chamber

[Lord Harlech (Con)]

My Lords, I start by expressing my thanks to the noble Baroness, Lady Jones of Moulsecoomb, for her hard work campaigning on this important issue and to all noble Lords who have contributed to today’s debate. I thank Rosamund Adoo Kissi-Debrah for being with us today. The death of her daughter, Ella Adoo Kissi-Debrah, was a tragedy, and I pay tribute to her family and friends who have campaigned so tirelessly on this issue and continue to do so.

Noble Lords across the House were horrified to hear this week about the tragic death of Awaab Ishak. We are absolutely clear that every person in this country, irrespective of where they are from, what they do or how much money they earn, deserves to live in a home that is decent, safe and secure. Awaab’s case has thrown into sharp relief the need for this Government to continue our mission to reset and rebalance the tenant-landlord relationship in this country. My friend in the other place, the Secretary of State for Housing Michael Gove, is taking immediate action on this matter.

I turn back to the Bill. As the noble Baroness, Lady Jones of Moulsecoomb, knows, the Government fully appreciate the intention behind her proposed legislation. We welcome her ambition to drive down air pollution and its impacts on public health and the environment. We share that ambition. The Government take air quality and its effects extremely seriously. Although we have achieved significant reductions in air pollution, it remains the largest environmental risk to public health in the UK, so we know there is further to go.

I will not go into detailed arguments: my noble friend Lord Benyon set out the Government’s full position at Second Reading, as well as the range of action we are taking to tackle air pollution and its effects. The sources of air pollution are diverse and complex, and there are no easy solutions. In these difficult times, we must deliver interventions that avoid placing disproportionate costs on individuals and small businesses. We are working across all sectors to drive down emissions and concentrations of harmful pollutants, encouraging innovative solutions and raising awareness to ensure that we can bring society with us.

We are concerned that environmental degradation can have implications for full enjoyment of human rights. The UK understands that the right to a clean, healthy and sustainable environment is a component of the rights elaborated in Articles 11 and 12 of the International Covenant on Economic, Social and Cultural Rights; namely, the right to an adequate standard of living and the right to the enjoyment of the highest attainable standard of physical and mental health. However, specifically on this resolution, we regard the recognition of the right as political and consider that there is a lack of international consensus on the legal basis for this right. It is important to have due regard to the useful information of international human rights law. Nevertheless, we supported the General Assembly resolution on the right to a clean, healthy and sustainable environment. We are committed to environmental action and will continue to champion more ambitious efforts on environmental protection.

Climate change and environmental degradation can have an impact on the well-being of people and we know that states must continue to protect, respect and promote human rights obligations. Our comprehensive existing legal framework, now bolstered by the landmark Environment Act 2021, gives us the capability and accountability we need to do this, which is why this Government are expressing reservations in regard to the noble Baroness’s Bill. The Government remain committed to setting ambitious targets under the Environment Act. We are currently finalising the government response to the consultation and we will continue to work at pace to lay draft statutory instruments as soon as practicable.

Once again I pay tribute to the noble Baroness, Lady Jones. Her Bill will help to raise awareness of the effects of air pollution, its impacts and the actions that can be taken to reduce it and to protect the vulnerable from its effects, which is of course welcome. I thank the noble Baroness for her assiduous campaigning on air quality and I look forward to continuing discussions with colleagues across your Lordships’ House on this vital matter, as the Government continue to make progress on improving the air we all breathe.

[Baroness Jones of Moulsecoomb (GP)]

I thank all noble Lords who have spoken on the Bill. The noble Lord, Lord Randall, was critical but also extremely kind, calling it a golden opportunity and world-beating; I thank him very much. It is always good to have a Conservative support my radical thoughts, so it was very kind of him. The noble Baroness, Lady Brinton, mentioned Awaab Ishak. She said it must have happened before, it will happen again, and we have to stop it as best we can.

I am grateful to the noble Baroness, Lady Hayman. I borrowed some of her amendments that did not get into the Environment Bill to put into my Bill, so I thank her very deeply for that. She talked about the toxic air in poor communities. It is a fact that poor communities suffer more from air pollution. It is absolutely inevitable: they live closer to the roads, they have fewer options for getting out into the countryside or into parks, and so they suffer more. It seems an even greater injustice to keep them in a position where they are suffering from polluted air. She talked also about the Government’s commitment to targets; a commitment to a target would be good.

Finally, I thank the Minister for his kind words. I am glad he understands that the Bill is brought with very good intentions to actually help people—not just children but absolutely everybody. I also appreciate that there are no easy solutions, but we have to start somewhere. The Bill is a very good place to start. I realise that it is tough. The Minister spoke about costs to individuals and businesses, but there are already costs to them from polluted air. It costs the NHS, families and social security. It is a cost to us that we somehow do not calculate.

The Minister made a point about bringing society with us. That is crucial. You cannot just say to people, “You can’t do this any more”; you have to offer them a benefit or an option. I am obviously more than happy to work with the Government to help them along those lines.

I thank everybody. I will sit down now. I beg to move.