Football Governance Bill [Lords]

Baggy Shanker Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Baggy Shanker (Derby South) (Lab/Co-op)]

In Derby, our football club is not just a team; it is at the heart of our community, uniting us across generations. Derby and Derby County have a rich footballing heritage, heroes to inspire us and a bright future ahead, but the future has not always looked so bright. In 2021, we entered administration. Fans were left on a constant cliffhanger as administration negotiations dragged on and offered little clarity. We were celebrating that the club had been bought one day, only to find that the promised funds had not arrived the next. Thankfully, local man and fan David Clowes stepped up to ensure that generations of fans to come will be able to enjoy a Saturday afternoon at Pride Park. As he has said,

“We would never want to see another club and its fans suffer in the way Derby did both before and during the period of administration. Anything that can prevent that, including this Bill, should be supported and applauded.”

Up and down the country, from Birmingham to Burnley, fans are rightly proud of their clubs. Despite that fan base, it is not just Derby County facing financial peril: EFL clubs across the country will lose around £450 million this season. This financial instability undermines the clubs that unite our communities, risking the matchday magic for fans. That is why I welcome the Government’s plan to introduce an independent football regulator through this strengthened Bill. It is right that clubs are required to stick to tough financial regulations, and that the independent football regulator will ensure a fair distribution of revenue. Having experienced Derby County’s separation from its stadium, I know it is right that clubs will have to seek approval to sell or relocate from their home ground. This Government recognise that a stadium, such as Pride Park in Derby, is a huge asset to fans.

When interviewed on the opening day of his first season as chairman, David Clowes was asked what he wanted Derby County to stand for. His response was “stability, integrity and progress”, which is exactly what the Bill stands for: stability, integrity and progress, to preserve and protect the game we all love.

Football Governance Bill [ Lords ] (Fifth sitting)

Baggy Shanker Excerpts

Committee stage
Tuesday 10th June 2025 Public Bill Committees

[Mr French]

I will not rehash the debate we have already had on the amendment. We were seeking greater transparency and a greater say for clubs at risk of losing their licence, which, as I have explained, is the ultimate sanction and would cause enormous damage to clubs and the communities in which they operate through job losses, and impact on the game and on fans. I would appreciate the Minister giving more clarity on how this will work in practice. These situations are hypothetical, but realistic, and would have serious consequences for not just the individual clubs, but the leagues and how they operate.

We believe strongly that promotion and relegation should be based on competition on the pitch. However, in the extreme example of a club breaching the licence so significantly that it is revoked, which might more realistically happen at the lower end of the pyramid, we need to have a greater understanding of what that means for relegation. All clubs deserve transparency in that regard. We have seen much speculation in recent years around change of ownership—I will not mention the clubs involved as some of the legal cases are ongoing—what that might mean for relegation and the significant financial consequences it may have for other clubs. It would be greatly appreciated if the Minister provided guidance on that in writing so that all Members can have a greater understanding of how it will work in practice.

[Baggy Shanker (Derby South) (Lab/Co-op)]

Will the Minister say whether a good licensing regime and, if necessary, revocation of licences would prevent clubs from going into full administration—as in the example of Derby County that my hon. Friend the Member for High Peak described—and the knock-on effect of that on supporters, suppliers and the local community? A licensing regime should prevent full administration and be able to deal with problem clubs at a much earlier stage.

[Stephanie Peacock]

My hon. Friend raises an important constituency point. I do not want to comment on particular clubs and predict the action the regulator may or may not take. We hope that the Bill will raise the bar across the board and prevent clubs from getting into difficulty, but I do not want to be drawn on the specifics.

We have been clear that this is not a zero-fail regime. I will endeavour to write to the shadow Minister regarding the complex, but important, hypothetical situation he has proposed.