(3 weeks ago)
Public Bill CommitteesClause 3 sets out the conditions that must be satisfied before the framework can be applied to a sporting event. The event must take place wholly or partly in the United Kingdom and must meet either the significance or the strategic priorities.
To meet the significance priorities, the sporting event must be likely to be of significant international or national interest, the sporting event organiser must have asked for the framework to be applied and the event must be likely to bring social or economic benefits to the whole or part of the UK. This clause sets out the criteria that may be taken into account in determining whether a sporting event is likely to be of significant national or international interest. They include the scale and reputation of the event, the number of people expected to attend the event from outside the UK, and the amount of media coverage expected outside the UK.
To meet the strategic priority, it must be proven that hosting the sporting event will improve the UK’s chance of securing hosting rights for events that meet the significance priorities. I think all Members will recognise the international challenges when bidding for such events. That is something that goes across parties and will often involve successive Governments, with one Government starting the bid and then another Government hosting the event.
Clause 4, which is entitled “Restrictions on application of framework”, sets out safeguards to ensure that powers over sporting events respect the devolved authorities. Before applying provisions that fall within the legislative responsibility of a devolved authority, the Secretary of State must obtain the relevant devolved authority’s consent. At the same time, the clause sets out that devolved authorities may only make regulations covering matters within their own legislative competence. Where ticket touting provisions are applied, the event must also take place at least partly within the relevant devolved territory.
Amendments 15 and 16, tabled by the Liberal Democrats, would require all sporting events hosted under the Bill to be made free to air. Understandably, that has raised a number of concerns among sporting bodies. Before I get into the details of why the amendments would not just upset the apple cart but risk cutting the apple tree down completely, I will start by disagreeing with the terminology “free to air”. As my noble Friend Lord Hayward pointed out in Committee in the other place, we must pay £180 each year for a television licence. These events are therefore never free to air.
Secondly, a review of the listed events regime is probably better placed to achieve the expansion of sports coverage—I do agree with the intentions of the proposal—than a blanket ban, which would be likely to have unintended consequences because of the complexities of global broadcast deals. At a glance, it may well look like an attractive proposition, designed to appeal to Liberal Democrats across the home counties. However, although we all agree that we want as many people as possible to enjoy major sporting events, good intentions and good headlines do not make good policy. These amendments would risk doing real damage to the very sports that they are meant to support.
Broadcasting revenue is an essential source of funding for British sport. It does not simply benefit the elite clubs and athletes at the top of the game. That revenue flows down the sporting pyramid, supporting community clubs, grassroots facilities and the next generation of—we hope—world-beating British sporting talent. The Liberal Democrats should be under no illusion about the scale of the financial risk that they are proposing. For example, the Premier League’s current domestic broadcast deals with Sky and TNT Sports are estimated to be worth £6.7 billion over four years, and the English Football League’s deal with Sky is worth another £1 billion over five years. Those agreements demonstrate the enormous value that broadcasters place on live sport, and the income that British sport stands to lose if we undermine the commercial model that supports it.
The question for the Liberal Democrats is simple: if their amendments put that income at risk, who will replace it? Where will the money come from to support sports clubs, maintain facilities and give young people the opportunity to participate in sport? I appreciate that their amendments start with major events hosted under the framework for which the Bill provides, but once the precedent is set and the likes of UEFA cannot sell their broadcast rights at market value, the effects will begin to pass from the international competitions to the feeder domestic competitions. What will the impact be on participation if that happens? I can answer for them: it will begin to fall, and once it does, it will be incredibly difficult to recover. It is all very well to demand that sporting events be made free to air. That is popular—I understand it—but someone still has to pay for the rights to broadcast them. If broadcasters cannot justify the cost of acquiring those rights, the financial consequences will not be confined to the boardrooms of elite sport; they will be felt throughout sport, including the community clubs and grassroots organisations that rely on this investment.
The Liberal Democrats should recognise that the current system already delivers significant benefits beyond elite sport. In the 2024-25 financial year, UK sports invested a record £213.2 million of broadcast revenues into sport under the voluntary code of conduct. The Premier League, meanwhile, invested £1.6 billion into the wider game in the previous broadcasting cycle. Those figures matter. They demonstrate that commercial broadcasting agreements can generate substantial investment across British sport. We should be looking at how to build investment in sport, not introducing blanket restrictions that risk undermining it at any level. That is particularly important when grassroots sport is already facing significant financial pressures under this Government. The Liberal Democrats should not seek to add further uncertainty to the financial foundations of British sport through amendments that could jeopardise the broadcasting revenue upon which it depends.
Let me be clear once again: I want more people watching major sporting events—I want children to be inspired by our greatest athletes, families to enjoy the biggest occasions and British sport to reach the widest possible audience—but we must recognise that accessibility and financial sustainability are not mutually exclusive. We can encourage wider access without imposing a blanket requirement that risks diminishing the value of the rights that help fund our sports.
The answer is to review the listed events regime, make the most of the commercial broadcasting agreements, encourage investment in grassroots sports and ensure that the success of our biggest sporting events benefits communities across the country. Broadcasting revenues are an essential part of that sporting ecosystem, without which it would wither away. These amendments offer a superficially appealing solution that is undoubtedly popular, without adequately addressing the clear consequences.
I am grateful to the hon. Member for Frome and East Somerset for tabling amendments 15 to 17 and for her thoughtful points. The amendments seek to add a further condition that the Secretary of State and devolved Governments must consider to be met in order for the provisions of the Bill to be applied to a sporting event or an event to rely on the funding power. In either case, the additional condition is that live coverage of the event must be made available free of charge to the public in the United Kingdom, either directly or through an Ofcom-licensed platform accessible without subscription.
The Government recognise the intent behind the amendments and are committed to ensuring that major sporting events are as accessible as possible to people across the United Kingdom, but we cannot accept them. Decisions relating to the broadcast coverage of sporting events, and particularly to those recurrent events delivered wholly independently of Government, are key commercial matters for broadcasters, event organisers and the holders of the broadcasting rights. Broadcasting rights provide essential income for national governing bodies and sport broadcasting rights holders, which enables them to invest in their sports and future events; indeed, the shadow Minister outlined in detail some of the relevant figures. The amendments would place tighter controls on their ability to generate much-needed broadcasting revenue, and could negate the wider economic benefits that the Bill provides for.
The current listed events regime is designed to ensure that sporting events of national significance are available to as wide an audience as possible, by prohibiting their exclusive broadcasting without prior consent from Ofcom. In any event, we would expect broadcasters and sporting rights holders of specific events to think carefully about the balance between generating much-needed revenue and ensuring access to coverage for viewers, ensuring the growth and development of the sport.
Clause 3 sets out the conditions that a sporting event must meet before the Bill’s framework provisions can be applied to it. We have had a thorough debate on this matter already, and I hope the Committee agrees that it is not necessary to revisit those points.
Clause 4 ensures that the Bill operates coherently across the United Kingdom while respecting devolved competence and territorial scope. The clause makes it clear that the Secretary of State cannot make regulations applying provisions on ticketing, advertising and trading to a sporting event in an area of devolved competence without the devolved authority’s consent. Similarly, the devolved authorities may exercise these powers only where the matter falls within their legislative competence. Where ticketing provisions are applied, the event in question must take place at least partly within the territory of the devolved authority making the regulations. The clause is an important part of ensuring coherence when applying the powers in a Bill that will ultimately strengthen our ability to secure and host world-class events throughout the UK.
Anna Sabine
I do not represent a home county, and I would like to press the amendment to a vote.
Question put, That the amendment be made.
(3 weeks ago)
Public Bill Committees
Anna Sabine
I beg to move, That the clause be read a Second time.
We all know what happened the last time England hosted the world cup. Not only does hosting the world cup appear to result in English victory, but it boosts the economy, brings fans together and inspires people around the country. We see the framework in the Bill as an opportunity to give fans what they want: the world cup hosted right here in the UK in 2042. To make that a reality, we need a proactive strategy, and that is what the new clause would provide: a duty on the Secretary of State to publish a feasibility study and a bidding plan.
I share the hon. Member’s enthusiasm for the United Kingdom hosting the FIFA world cup in 2042. As we have not hosted the tournament since 1966, this Government are absolutely keen to see it return here one day.
We know that major sporting events, especially world cups, have a unique power to foster social cohesion, spark regional pride and unite divided communities. That is why the Government committed in our manifesto to hosting major international and cultural events with pride. It is why this Government have backed the bid for the 2035 FIFA women’s world cup to be hosted in the UK. Hosting on home turf would be a monumental moment in our sporting history, driving growth and leaving a lasting legacy for women’s sport and football more broadly.
However, it is important that we follow appropriate processes to select which events we back. The new clause would effectively legislate for preferential treatment and an expectation of public expenditure on one particular event. As much as I would love to commit today to launching that bid, we will perhaps save it for another day. I cannot accept the new clause, but I share the hon. Member’s enthusiasm and the sentiment behind it.
Anna Sabine
On that basis, and with much enthusiasm in return, I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 10
Prohibition of ticket touting and regulation of resale platforms
“(1) A person commits an offence if the person resells, or offers to resell, a ticket for a major sporting event at a price exceeding the original cost.
(a) For the purpose of subsection (1), the original cost of a ticket is the original ticket price plus any unavoidable fees, including service charges.
(2) A person operating a ticket resale platform must not charge service fees exceeding a statutory cap prescribed by regulations.
(3) A person commits an offence if the person resells, offers to resell, or lists for resale a number of tickets exceeding the number they were entitled to acquire in the initial primary market sale for that event.
(4) A person who operates a ticket resale platform has a legal duty and strict obligation to—
(a) monitor listings on the platform, and
(b) enforce compliance with subsections (1), (2), and (3) to ensure the rules are adhered to on the platform.
(5) The Competition and Markets Authority may impose a financial penalty on any person or ticket resale platform found to be breaching the provisions of this section, up to an amount not exceeding 10% of their annual global turnover.”—(Anna Sabine.)
This new clause implements ticket touting protections by making it illegal to resell major sporting event tickets above original cost, capping resale platform service fees, placing legal duties on resale platforms to monitor and enforce compliance on their sites, and empowering the Competition and Markets Authority to enforce penalties of up to 10% of global turnover.
Brought up, and read the First time.
Anna Sabine
No fan should miss out on watching their favourite team play, but at the moment that is the reality every single time tickets come on sale. I am sure many of us know the heartbreak of waiting in an online queue for hours with no luck, only to see tickets pop up minutes later on resale sites at extortionate prices because bots and serial bulk buyers got there first.
Every year, fans lose £145 million to greedy touts. It is clear that the system is broken and is not working for the everyday fan. Labour promised in its manifesto and in the King’s Speech to tackle ticket touting, which we welcome—and yet here is a Bill with the framework to deliver that, and the Government are choosing to kick the can down the road.
Fans should not have to wait for change. That is why the Liberal Democrats want to make it illegal to resell tickets above face value. We want to ban surge pricing and cap resale platform fees at 10%. The Sporting Events Bill is the perfect vehicle to make those changes, and that is what new clauses 10 and 11 would do. I urge the Government to back them.
When I addressed clause 5, I noted our commitment to specific ticket touting legislation that will go further than the amendments tabled by the hon. Member. We know that for too long the joy of attending live events has been marred by unfair practices in the secondary ticketing market, most notably the systematic activities of ticket touts.
The Government are fully committed to tackling industrial-scale touting once and for all, improving transparency around pricing practices and putting more money into fans’ pockets through the ticket tout banning Bill. That Bill will introduce a price cap on the resale of tickets for all live events, including those captured under this Bill, to ensure that genuine fans can recoup their costs when they can no longer attend an event. It will also provide strict obligations on ticket resale platforms to ensure compliance.
The time-limited ticket provisions in this Bill are designed to satisfy event owner requirements. The Bill is therefore not an appropriate vehicle for wider reform of the secondary ticketing market. These are significant issues and are best addressed through the planned dedicated legislation. When it comes to surge pricing, businesses are already required by law to provide fans with clear and accurate pricing information before purchase and to ensure that fans are free to make decisions without undue pressure or manipulative practices that might distort their choices. I know that hon. Members will have heard the words of the Secretary of State on Second Reading about how committed this Government are to introducing the legislation.
Anna Sabine
I thank the Minister for her comments and I hear what she says, but in the absence of planned, timed legislation to take the matter forward, we would like to press the new clauses to a vote, starting with new clause 10.
Question put, That the clause be read a Second time.
I am grateful to the hon. Member for Frome and East Somerset for tabling the new clause, which would prohibit gambling advertising, marketing and sponsorship at major sporting events. The Government support the sporting sector’s commercial freedoms and right to enter into sponsorship arrangements. The licensed gambling sector has provided vital financial support to sports through these arrangements, which are constructed within a robust regulatory framework that ensures that advertising is socially responsible and does not promote excessive or harmful gambling.
In 2024, we welcomed the introduction of the sponsorship codes of conduct across all major sports, which promote social responsibility, support reinvestment in the sports and strengthen safeguards for children. Sporting bodies have reviewed how the codes are working in practice, and the Government welcome their ongoing commitment to reviewing and strengthening the codes. We also welcomed the Premier League’s ban on front-of-shirt gambling sponsorship, which will help to reduce the prominence of gambling advertising in football. Advertising remains one of the clearest ways in which licensed operators can distinguish themselves from the illegal providers that pose a threat to British consumers, which is why the Government recently consulted on banning unlicensed gambling sponsorship and physical advertising within sports and other sectors.
The Government recognise that the relationship between sport and gambling must be handled with care, particularly because of the impact it can have on children, young people and vulnerable people. We will consider the fullest possible range of evidence before taking any further policy steps. Any additional restrictions must be thoroughly evaluated to avoid unintended consequences. We continue to support the sporting sector’s commercial freedoms while working with the Advertising Standards Authority, the Gambling Commission, the Betting and Gaming Council and sporting bodies to further raise standards. Let me be clear: the purpose of the Bill is neither to alter the regulation of gambling advertising nor to limit the benefits sponsorship arrangements can bring to the sector. I therefore ask the hon. Member to withdraw her amendment.
Anna Sabine
I thank the Minister and the shadow Minister for their comments, but we respectfully disagree. The Liberal Democrats would like to press our new clause to a vote.
Question put, That the clause be read a Second time.
Anna Sabine
I thank my hon. Friend the Member for West Dorset for tabling new clause 13. In my constituency of Frome and East Somerset, we have loads of fantastic community sporting groups. I recently visited the Frome Flyers and the Somer Valley Strikers, two women’s walking football clubs in my constituency that represent everything that is great about local community sport.
Community groups could benefit enormously from increased funding, and that is exactly what the new clause would deliver. As my hon. Friend said, there are clear examples of major international events leaving lasting community benefits when local funding is built in, particularly for women and girls and disadvantaged groups in sport. This Bill is our chance to make sure that international events do more than bring a few weeks of business to a host area; they should leave a lasting legacy for the people who live there. The new clause simply makes sense, and I hope that the Government will support it.
I thank the hon. Member for West Dorset for tabling this important amendment. I fully recognise the issue that he raises, and the Government share his commitment to maximising the positive legacy of the major sporting events that we support. However, we do not believe that the new clause is necessary, as the Bill already provides for the outcomes that he seeks to achieve while retaining the flexibility to adapt our approach to the specific event in question. I will outline some of the reasons why.
First, the likelihood of bringing social and economic benefits to the United Kingdom or part of it is already one of the criteria for consideration when considering whether the framework can be applied to a major sporting event. That would encompass the sort of community participation and wider local benefit that the hon. Member is seeking to secure. Secondly, clause 25 of the Bill is also clear that funding can be given subject to conditions, which could include requirements relating to these important issues, where appropriate.
More broadly, the vast majority of major sporting events that could fall within the scope of the Bill would already have social impact embedded within them from the outset. In the case of itinerant events, the gold framework is clear that when seeking investment from the Government, event organisers must have meaningful plans in place to generate positive social impact for communities around the country, including to drive up levels of physical activity and participation.
Also, many recurring events already support significant community engagement. To give just a few examples, Wimbledon annually contributes nearly £50 million to the work of the Lawn Tennis Association, the London Marathon Foundation has distributed over £120 million in grant funding since its inception in 1981, and the British grand prix generates more than £100 million annually for the local economy.
Critically, the evidence is clear that the best legacy programmes are developed through engagement with the communities they are meant to support, enabling us to target support and funding where they are truly needed. That is why we think the current system works; it recognises that one size does not fit all and provides flexibility that the new clause would reduce.