Football Governance Bill [HL]

Baroness Brady Excerpts

Report stage
Tuesday 11th March 2025 Lords Chamber

[Baroness Evans of Bowes Park (Con)]

My Lords, I will speak briefly to this group, which includes Amendment 15, to which I have added my name. As I said in Committee, the Government have been very vocal in their demands for existing regulators to institute cultural change within their organisations to help deliver economic growth, rather than excessively focusing on risk.

In January, the Chancellor said:

“Every regulator, no matter what sector, has a part to play by tearing down the regulatory barriers that hold back growth. I want to see this mission woven into the very fabric of our regulators through a cultural shift from excessively focusing on risk to helping drive growth”.


That is a call I strongly support. Regulators have a significant influence over the economy, and it is only right that they take into account the need for growth in their actions and decisions. It was a significant oversight not to include such a commitment to ensuring the continued growth of football, one of our most successful sectors, from the outset in the remit of the new regulator.

I would therefore like to thank the Minister for listening to the points raised on this issue and coming forward with the government amendment that obliges the regulator to have regard to the desirability of exercising its functions in a way that avoids any adverse effects on the financial growth of English football. It is an extremely welcome change to the Bill and an important addition to the IFR’s duties. I thank the Minister.

[Baroness Brady (Con)]

My Lords, I refer the House to my interests as declared in the register. I begin by welcoming the positive engagement that many of us have had with Ministers and the department since Committee. It is clear that the Government have been listening and are responding thoughtfully to a number of concerns raised by noble Lords from all sides of the House. I thank the Minister and the Bill team sincerely for their collaborative approach. Most importantly, I believe the ongoing dialogue we have established will result in a more effective Bill, which of course is our job here in this place.

I rise to strongly welcome Amendment 14, the Government’s proposed inclusion of a new duty on the IFR to avoid the adverse impacts on growth. This reflects the balanced and proportionate approach many noble Lords have advocated throughout this process, and which I know the Government genuinely intend. This is a very positive development. The new duty should help to ensure the regulator does take such a balanced approach in practice. Its inclusion is an acknowledgement that, to ensure that English football remains financially sustainable, we must not inadvertently constrain the game’s ability to continue to grow and succeed.

This is an important way to frame the approach of the regulator from the very beginning, but I hope it will also have specific practical benefits. For example, the new duty should help to prevent the IFR adopting an overly risk-averse or restrictive approach to financial regulation which could otherwise limit football clubs’ ability to invest and innovate. It should also serve as a significant check on any regulatory decision around the flow of Premier League funding, ensuring that determinations on financial distributions remain balanced and proportionate, and avoiding unintended harm to the commercial strength and international competitiveness of the league.

In short, this growth duty does offer some meaningful reassurances to football clubs that the regulator will approach its task constructively, supporting the long-term success and dynamism of the whole game and helping us to navigate the challenges of the future, not just fix the issues of the past. I am very grateful to the Minister. There is more to do, and we will talk about a number of further proposals throughout Report, but I am happy to offer my support for this amendment. I believe a growth duty is a meaningful and substantial step forward in this legislation.

[Lord Pannick (CB)]

My Lords, I echo what the noble Baroness, Lady Brady, has said. I too have greatly benefited from the constructive engagement of the Minister and the Bill team, and I am very grateful to them for the time they have taken and the listening they have done to the concerns that were raised during Committee. I should declare my interests for today. One of my areas of practice is as a barrister of sports law; I represent Manchester City in disciplinary proceedings —and I am a supporter of Arsenal Football Club.

I have one lawyer’s point on Amendment 1 from the noble Lord, Lord Parkinson. His proposed new Clause 1(1A) and (1B) would put on the face of the Bill that the Secretary of State and the IFR, in exercising their functions, must have regard to the purpose of what will be the Act. That is entirely unnecessary because one of the basic principles of modern administrative law is that powers conferred under an Act may lawfully be used only to advance the objectives of the Act. That has been the law since the statement of Lord Reid in the Padfield case of 1968. It would be unfortunate if this Bill included something that is otherwise implicit in all legislation; it would cast doubt on Bills that do not include such provisions.

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[Lord Addington (LD)]

My Lords, the amendments to which I put my name are trying to point out the fact that we regard these football clubs as being social assets—things that should actually reach into their community. We were inspired by a series of meetings with various bits of the football community, because they did not seem to be taking it on board that wholeheartedly—so I proposed a series of amendments giving specific duties to what those clubs covered by this should do.

I give great thanks to the Minister, who clearly listened to at least the concept of this proposal, if not my particular idea, and has come up with the Government’s own Amendment 32. I am really here just to say that, if the Minister wanted to add to her amendment by accepting mine, I would be incredibly grateful—but her own amendment, bringing in corporate governance to the schedules of the Bill, is one that may give us a chance to grow and develop the idea of community interaction between clubs and the communities that they serve. That is very important. There has been far too much talk in this debate about financial aspects and great growth, et cetera. Nothing stays still for ever; Italian football has been very popular and may be again—who knows?

The fact of the matter is that these are things that we now regard as social assets, and clearly that is something that the Bill should embrace. Saying that they have an outstanding duty to their community is something that we should embrace. I would not feel bad if any of the other professional sports in this country took on some of this duty as well—I would welcome it with open arms.

I thank the Minister and look forward to her comments on my humble efforts, but this is very much the Minister’s championing of an idea, and I thank her and the Government for bringing forward her amendment, which I shall wholeheartedly support when it is moved.

[Baroness Brady (Con)]

My Lords, I support Amendments 3 and 32, which would make the economic and social impact of a football club part of its corporate governance requirements. It has become something of a cliché to point out that football clubs are deeply woven into the fabric of their communities, but it is such an important part of why football is so important in the lives of millions in our countries.

If I may, I will very briefly share what this looks like in practice, through the example of my own club, West Ham United. I am proud that our foundation reaches over 50,000 people annually across east London, operating in some of the most deprived boroughs in our country. When West Ham moved to the London Stadium, we made a commitment that this would not just be about a bigger stadium but about deeper community roots.

The foundation now delivers over 30 different programmes, focusing on health, education, employment and social inclusion. During the pandemic, players and staff personally delivered meals to vulnerable residents. The club and fans made significant financial contributions to local food banks. None of this was seen as charity; it was about responsibility. It is what a football club is all about. Our award-winning Players’ Project has seen first team players become ambassadors for specific community initiatives, giving not just their names but their time and their genuine engagement. These connections matter profoundly to local residents.

What makes these initiatives particularly powerful is that they leverage what football does uniquely well: they bring people together across the divides of age, background and circumstances. When a young person struggling with education attends a programme at West Ham United, they engage in ways that traditional institutions often cannot reach them. I have seen the personal impact for myself countless times.

The economic impact is equally significant. West Ham supports thousands of jobs, directly and through a supply chain predominantly sourced within east London. My club has contributed £323 million in gross value added to the regional economy through supply chain, supporting employment and the visitor economy. Match day brings vital trade to local businesses, where targeted employment programmes have helped hundreds of local residents find sustainable work.

These amendments would help to ensure that such contributions are not peripheral or dependent on the good will of particular owners but are fundamental to how clubs operate and are governed. I commend the Minister, as well as the noble Lords, Lord Addington and Lord Bassam, and the noble Baroness, Lady Taylor, for supporting these amendments. I know that this is a particular passion for the noble Lord, Lord Addington, in relation to his Amendment 50, which is also part of this group. I believe he has had some productive conversations with the Premier League about how we can build on our experience and support football charities.

I believe the league will now be examining how we can work with expert organisations, such as the NCVO, to make good governance advice more accessible to small community organisations. This would be a good use of the Premier League’s reach and profile within communities, so I am pleased it is happening.

Football clubs receive extraordinary loyalty and emotional investment from their communities. These amendments formalise that this relationship is reciprocal and should be embedded in governance structures. That is a perfectly reasonable thing to ask as we develop this new regulatory framework, so I fully support these amendments.

[Baroness Taylor of Bolton (Lab)]

My Lords, we have spent some seven days discussing the detail of the Bill, and I think this is probably the first time I can rise and say that I actually agree with the noble Baroness, Lady Brady. It is true that football has the power to do an awful lot of good. Many clubs—not just West Ham —actually do an awful lot of good in their community. The Minister has tabled Amendment 32, and my noble friend Lord Bassam and I have added our names to it, because this is one of the issues that we have discussed with the Minister and have mentioned in this House.

I will resist the temptation to talk about the good work that Bolton Wanderers does in the community. Suffice it to say that it is one of the few clubs that has actually got a chair who not only talks about helping the community but actually involves herself in the overnight sleep-outs for charity and other such activities. It is a mark of the level of commitment that many of the people who run football clubs have towards their communities and it is something that we should appreciate.

There is sometimes an accusation of sportswashing when clubs make big gestures, but an awful lot of direct involvement with communities can make a difference. In this context, it is particularly important in terms of men’s mental health, because many football groups are reaching people who would not be reached in any other way.

Therefore, I am very grateful to the Minister for the time that she has taken to talk to all of us about these issues, and for the amendment she has tabled, which I am very happy to support.

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[Lord Bassam of Brighton (Lab)]

My Lords, I chaired the meeting referred to by the noble Lord, Lord Goddard, and I too was very puzzled that the noble Lord, Lord Moynihan, decided to proceed with his amendment today. The FA was very clear that UEFA and FIFA were very happy with where we had got to with the legislation and that they were satisfied. It made clear too that DCMS was right not to want to publish the correspondence to which the noble Lord, Lord Moynihan, made clear and obvious reference.

I agree with the arguments made by the noble Lord, Lord Pannick. I was somewhat surprised that he—the lawyer and expert in football litigation that he is—made some of them. As he said, only one group of people will benefit from this—those who do sports lawyering.

I invite the noble Lord, Lord Moynihan, not to press his amendments—they are not necessary. If we were to be mistaken and accepted them into the Bill, it would slow down the operation of the independent football regulator, and I do not think anybody wants that. It could lead only to a reduction in the effectiveness and speed of the regulator’s operation. I hope that having heard what the FA said about it, as he did yesterday, and the assurance it gave to me and others in the room that it is happy and that UEFA and FIFA are happy, he will in good grace not press the amendments.

[Baroness Brady (Con)]

My Lords, my noble friend Lord Moynihan has articulated the case for his amendments with great clarity. Without revisiting all the arguments made in Committee, my fundamental concern is straightforward: we must avoid inadvertently ceding control of English football to external bodies.

The relationship with international governing bodies inevitably creates tension points where our interests may diverge. The Premier League, UEFA and FIFA are not just partners, fellow rule-makers and governing bodies; they are also competitors that run competitions involving English clubs.

Unless UEFA and FIFA provide unequivocal confirmation that nothing in this Bill raises concerns about state interference, the truth is that the Premier League will face ongoing vulnerability. The regulator could become a strategic pressure point of international football politics, with English football losing sovereignty over our domestic arrangements as a consequence.

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[Baroness Jones of Moulsecoomb (GP)]

Thank you very much.

Amendment 13 is quite an important amendment for me, because a noble Lord challenged me earlier, saying, “Surely you’re not going to bother to push this to a vote; otherwise, it could be in every Bill”. Well, yes, of course: as a Green, I would like an awareness of the Climate Change Act to be inherent in every Bill. Unfortunately, it is not at the moment. That is why this amendment is so important.

I am a football fan. Despite being a Green and despite all its flaws, I absolutely love football. I am well aware of the power that football clubs have over their fan base and their sphere of influence into wider society. We all know now that we have to limit our impact on the planet, that we need to use less plastic and that everything can be polluted by plastic—our own lungs, the sea, absolutely everything. Some clubs are trying very hard, but many, many fail.

Amendment 13 tries in particular to acknowledge the link between environmental and financial sustainability and the urgent need for the games regulator to be empowered to drive greener practices. The idea that the independent football regulator’s remit should include consideration for environmental sustainability is backed by Pledgeball and fellow sport and sustainability organisations Sports for Climate Action and Nature at Loughborough University, the Cool Down Sport for Climate Action Network, and the Football and Climate Change Newsletter.

In 2021, in response to a number of high-profile crises that had arisen in the sport, there was the fan-led review, which has been discussed already, chaired by the former Sports Minister, Tracey Crouch. Many of the review’s 10 findings focused on financial stability at the clubs, fan input, equality, inclusion, diversity and welfare, but it is also crucial that a focus on environmental standards and sustainability is part of the regulator’s remit.

In Committee, Ministers resisted amendments about environmental sustainability on the basis that such measures would put a burden and cost on the regulator and on the clubs. Ministers also argued that voluntary sustainability efforts by clubs and leagues were, and would continue to be, sufficient. However, although some clubs are doing commendable work in this area, progress is inconsistent, erratic and lacks enforcement. Without regulation, football will have fragmented, inadequate responses to climate threats.

It has been predicted that, at the current rate of climate change, one in five English clubs could be at high or very high risk of flooding by 2050. The average grass-roots pitch already loses around five weeks of play every season due to adverse weather. Approximately 120,000 fixtures are called off each year due to unplayable conditions of various kinds.

Additionally, government policy already links financial stability to climate risk. The Bank of England’s Financial Policy Committee is required to consider climate risks in its financial stability assessments. Defra has also asked several major UK regulators, including Ofcom, to submit a report on how climate risks are affecting the sector. Football should be no different.

My Amendment 13 would ensure that clubs comply with the Climate Change Act 2008 to secure the long-term environmental sustainability of English football. I simply feel that this is too important to leave, so I will move it later.

[Baroness Brady (Con)]

My Lords, my Amendment 25 seeks to address a key issue: how the new regulator will operate in practice and the transparency with which it will exercise its powers. But first, I welcome the Government’s decision to adjust the frequency of the Secretary of State’s statement on football governance from every three years to every five. This sensible change now aligns the timing of various key processes across the Bill, ensuring consistency, clarity and practical efficiency. I thank the Minister for listening to the points raised in Committee and responding positively with her amendment.

On guidance and consultation and my amendment, the Bill currently requires guidance only for discretionary licence conditions, leaving many critical regulatory functions without similar obligations. I want to briefly highlight three key areas where greater clarity is essential and guidance should, in my view, be mandatory.

First, financial sustainability is the regulator’s primary purpose, yet there is no obligation for the regulator to define how it will assess soundness or resilience through guidance. Clubs making long-term investment decisions deserve clarity on how these will be evaluated. Can the Minister please confirm that the regulator will define these incredibly important terms, which influence the overall approach the regulator takes and therefore what regulated parties should expect, in the “state of the game” report?

Secondly, the owners’ and directors’ test—vital for responsible investment—lacks detail in the legislation itself. Without requirements to consult clubs and existing and potential investors on its design, we risk creating unnecessary uncertainty. There is a requirement to consult on the definition of “significant influence or control” within the ownership rules, but no consultation requirements for the test itself.

Thirdly, the backstop power over financial distributions could fundamentally alter football’s economics, yet the regulator need not explain its approach or methodology ahead of a determination. For a mechanism with such profound implications, this seems to represent an obvious gap in procedural and legal safeguards. This uncertainty around guidance could create practical problems. The Premier League’s broadcast deal runs to 2030. Clubs like mine are making infrastructure decisions spanning similar timeframes or even longer.

How can responsible planning occur without regulatory clarity? Surely mandatory guidance across a whole range of areas in this Bill would be conducive to generating greater clarity and regulatory certainty. These amendments would require the regulator to provide guidance across all functions and to consult appropriately. I am not seeking to constrain the regulator’s authority, just to ensure that powers are exercised transparently and coherently. If, as the Minister assures us, this will be a collaborative regulator, I ask her to commit to embedding that principle more comprehensively in the legislation itself.