Football Governance Bill [HL]

Baroness Jones of Moulsecoomb Excerpts

2nd reading
Wednesday 13th November 2024 Lords Chamber

[Baroness Jones of Moulsecoomb (GP)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Morris of Bolton. I did not realise she was a football fan. It is amazing how all these football fans have crawled out of the woodwork today. I am delighted I am one of them—I support Arsenal. I am sad to say that I am mostly reduced to listening to matches on the radio these days. Life is too full to do much else.

The Green Party welcomes this Bill but it wants, as others have said, the regulator to address the unfairness of the Premier League clubs getting nearly all the money, when 67 professional clubs share just 8% of the revenue. That does not seem like a logical place to be. We agree with the English Football League that there is enough money in football to ensure that all levels of the game are sustainable and thriving.

As other noble Lords have said, football in this country is part of nearly every park, sports hall, school playground, beach, empty piece of tarmac and patch of grass. It matters to the hundreds of thousands of parents, children and young adults who go along to play on their local pitch, or who travel for a couple of hours to the next match. It matters to the coaches and others who give hours and days to make it happen. It matters to the women’s teams. It matters to the pub teams. Whether it is pensioners or people with Parkinson’s, football is part of their lives and identities.

The Green Party wants to see football grow from the grass roots up. That means reversing the damage done by the last Government at a local level, with nearly 1,000 football pitches being lost since 2010. We want local authorities given the power to invest in their local professional football clubs and to reinvest the dividends back into sports facilities in their communities. We want to ensure that local authorities are able to maintain key sporting infrastructure, such as swimming pools, sports halls and playing fields, that can be used by all sections of the community.

Being a Green, I am going to bring climate change into this. Then noble Lord, Lord Hannan, is not in his place any more, but I agreed with one thing he said: he did not like the idea of net zero. I do not like net zero either. We are way past the time for net zero; we have to think about real zero. I know that this Labour Government have a real problem with understanding climate change. I am very happy to help them out at any time, with tutorials from scientists or meteorologists. In the meantime, this Bill fails to prepare football for one of the biggest challenges that it will face in the future.

Climate change needs to be part of this legislation, because the adapting of facilities to deal with flooding, drought and excessive heat is already starting to be a regular feature of football life. If you think this is a side issue, you should go and talk to soccer schools in Valencia, which are covered in cars, fish and mud.

There are 23 professional teams that can expect partial or total annual flooding of their stadiums by 2050. That probably sounds a long way off, but others will be vulnerable in the meantime. Zurich Insurance found that nearly one in four of the biggest stadia face major building work or crippling insurance bills simply because of trying to face up to climate change. Both the Bundesliga of Germany and the Ligue de Football of France include environmental sustainability as part of their licensing. Why are we not including climate change as a specific issue that our new regulator has to consider and deal with?

When Carlisle United’s Brunton Park was devastated by flooding caused by Storm Desmond in 2015, the club’s insurance covered its substantial losses. Following that claim, the club said it found it nearly impossible to renew its insurance. Climate change is happening, and it is already having a big impact at grass-roots level, where local clubs will need help to find the resources to cope. The chair of the FA, Debbie Hewitt, revealed that:

“We have something like 120,000 games a season cancelled because the pitches are not playable”.

In recent years, grass-roots teams have swung from cancelling games because the ground is baked like concrete to pitches being regularly flooded.

Giving the new regulator of the professional game a specific remit to consider climate change is a reasonable thing to do. It would send a signal to the Football Association that grass-roots football is also going to need resources to adapt to what is now happening to our climate.

[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.

--- Later in debate ---

[Lord Addington (LD)]

I thought I would let that one fall.

If we are going to do this, what do we need to do to get out the great social power that this has? I would like to see a little more attention paid to using the great power we have in association football, or soccer—call it what you like—as a positive thread throughout society. If I remember correctly, Clause 1(3)(b) talks about that social power.

Would it not be wonderful if all these clubs that we are giving so much attention to and regulating properly did a little something that steps just outside football? I have a radical suggestion: why not have them run training schemes for people to be treasurers, secretaries and chairmen of voluntary groups and sports clubs—something small like that? That is my starter for 10. This would make sure that these clubs contribute to the society from which they draw their fan base and would make them an even better social asset.

There are many other things that have been suggested to me. For instance, should we be taking on the green agenda, as has been suggested by my own party? The right reverend Prelate the Bishop of Sheffield suggested this also, along with the noble Baroness, Lady Jones, who does not seem to be here at the moment.

[Baroness Jones of Moulsecoomb (GP)]

I am here.

[Lord Addington (LD)]

She is a moving target— I appreciate that. If we are going through this structure, maybe clubs can be used for other social methods, but only if they are properly regulated.

The fact of the matter is that football—particularly at many of the clubs lower down—has been hanging on by its fingernails, and by tradition. What bank manager would have put up with some of the financial stresses we have heard about recently if they were dealing with anything else? Virtually none. There is something special about football. I hope that the regulator will put it on a firmer foundation.

As to my opinion on whether we should have parachute payments, and whether the arbitration is set to go through, football has had a chance to sort this out for itself. We would not be here if football had got a hold of it, spoken to itself—the various bits—and sorted this out. The previous Government brought a Bill forward only because football did not do those things. Football could have addressed this itself, so it should not blame others for its own inactivity. We have a situation where, as all noble Lords have said, a club going down will have greater costs than a club that is already down. Whether we use parachute payments or something else, that has to be addressed. I look forward to suggestions on that.

We have something here where we are trying to make sure that something fundamental to much of our society survives all the way down in its historical structure. That is what we should be worrying about. Yes, we must make sure that it remains a success—it will be much easier with football generating the money—but that social capital, that investment of faith in this game, is something that I hope all sides will say should be preserved. I look forward to discussions at later stages of the Bill but I hope we remember that we are not talking about a business or casual activity. We are talking about something that touches many people’s lives. I know that, and I am not part of it.

Football Governance Bill [HL]

Baroness Jones of Moulsecoomb Excerpts

Committee stage
Monday 2nd December 2024 Lords Chamber

[Lord Maude of Horsham (Con)]

My Lords, I rise to speak to my Amendment 12 in this group. Before I do so, I think it important to express mild regret at what the noble Lord the Government Chief Whip said before we started our proceedings today. This is an incredibly important Bill, which, for the first time, imports into our much-loved national game a costly system of regulation. It is a very long Bill. There are numerous amendments being tabled, mostly by Members on the government side. We know that the House of Commons these days gives scant scrutiny to important Bills. It is therefore incredibly important that this House in Committee gives the Bill the detailed scrutiny that is required. If the five days that the Government have rather meagrely assigned to this Committee stage are not enough, I hope they will be quick to extend the proceedings so that we can give proper scrutiny. Much hangs on this. The more we have debated the detail of the Bill, the more issues have arisen, giving rise to greater concerns—

[Baroness Jones of Moulsecoomb (GP)]

I was here last Wednesday, waiting quite a long time for my amendments to come up in group 3, and I sat through an awful lot of what I felt was hypocritical stuff from this side of the Chamber, given that this was a government Bill under the last Government. Not that much in it has changed, yet there was a lot of discussion on this side. Listening to that was agony, so I am quite keen to get through the Bill. Of course we should debate it, but not at the sort of length that is, I would say, rather self-indulgent.

[Lord Maude of Horsham (Con)]

I empathise with the noble Baroness’s pain, but this is what legislative scrutiny is about. It is about looking in detail at what is proposed and ensuring that we do not pass into law measures that will inflict damage on something that is both an incredibly important economic activity but also a source of great pleasure to millions in this country and more than a billion worldwide. So I hope the noble Baroness will suffer less and we will move as quickly as is appropriate in these circumstances.

We debated last time whether the ambition for football to be sustainable was sufficiently ambitious for the state of English football, and I think many of us in different parts of the House concluded that it was not so. However, if the Government insist that sustainability is all that is going to be sought then it is important that we define what is meant by sustainability in a way that does not circumscribe the mindset and the approach of the regulator that is going to be established.

Football is a very successful industry and activity. As we have heard, it remains the case that the Premier League is the most successful league in the world and the Championship is the sixth most successful in Europe, and we need to make sure that we do first do no harm but, secondly, because we know that there is no such thing as steady state any more, if it does not continue to grow and improve then it will be going backwards. So it seems right that, in addition to the addition suggested in my noble friend Lord Parkinson’s amendment, we should look at the four elements that I propose should be added to the definition of “sustainability”.

First, it should continue

“to be globally competitive in relation to audience and quality”.

That is important because you cannot take anything for granted. The success of English football has been earned, but it has been harder over a period so we need to be extremely careful; this is a precious asset and we need to be concerned all the time with competitiveness. The costs that are proposed to be imposed on English football through the creation of this regulator—both the costs to be recovered through the levy and the compliance costs for clubs of accommodating themselves to this regime—will in themselves be a blow to competitiveness, so there needs to be at least an equal and opposite concern to offset that. Competitiveness is going to be incredibly important in relation to audience and quality.

Secondly, it should continue

“to attract significant domestic and foreign investment”.

My own club, Tottenham, has invested hugely in a world-class new stadium; other clubs need to do the same. A huge amount of investment will be required in upgrading stadia around the country. They are extremely expensive commercial assets that are of great importance to their local communities as well. They are community assets that tend to attract in their wake, in their slipstream, other regeneration investment into the communities, often some of the most disadvantaged communities in the country. It will be extraordinarily important that the regulator has in mind at all times that the return on those big investments that will be needed should not be imperilled by the way that the regulator itself operates.

Lastly, it should continue

“to grow economically in terms of commercial revenues”.

All these are fragile. None of these revenue streams—from broadcasting or from the asset and enterprise values—can be taken for granted. The success of English football has to be earned, every day of every week of every season there is, so this will be very important.

Given these approaches, I cannot feel that anyone will quarrel with these being elements that the regulator should think about and seek at all times to prioritise. What is the objection to them appearing in the Bill, since that shows the importance that Parliament attaches to these considerations? That can in some way help to make a difference to the way in which the regulator is set up, because much of that is left unclear. Much of it will be at the discretion of the board and its chair, yet to be appointed, of the regulator. This Committee should have no difficulty in supporting having these factors placed squarely on the face of the Bill. I hope, therefore, that the Minister will take this away and think carefully about whether it would a be way of improving a Bill that currently leaves much to be desired.

--- Later in debate ---

The wider point I would like to make, which I made at Second Reading, is that there is an awful smack, in the entire Bill, of, “We know best”. Do we? Do we really know best, in such detail, as to define who the fan is and what games should be allowed to be played where? Have we in this Chamber such an enormous track record of commercial and financial success that we decide that we are in a position to overrule what a club would like to do and say, “No, we know best. You can’t have that game. These are the fans you’ve got to look after; these are the ones we will consult and they are the only ones we’ll listen to”. Do we really believe that we know best? Could we not be a little more humble, step back a little and leave it much more to others to define “what’s what”, “how’s how” and what these clubs, in the most successful industry in this country, should be allowed to do?

[Baroness Jones of Moulsecoomb (GP)]

My Lords, as I sat through the whole of this fascinating debate, I thought I might as well throw my penny’s worth in on the issue of what a fan is. I am a football fan. I do not have a season ticket. I was on a list for a season ticket for many years until Arsenal moved stadium, when they scrapped the waiting list and you had to start again. The only way I show my fandom, really, is to listen or watch matches whenever I can and get into arguments in pubs with people from other teams. Just saying.

[Lord Jackson of Peterborough (Con)]

My Lords, very briefly, I support my noble friend Lord Parkinson’s excellent amendment. I think it is unarguable that in the last hour we have demonstrated why we need that amendment, because no one agrees what “local” means. I think that is a very important point. This whole debate reminds me of Humpty Dumpty in Alice’s Adventures in Wonderland, when Humpty says:

“When I use a word, it means just what I choose it to mean—neither more nor less”.


We do not really know what “local” means. My noble friend Lord Moynihan of Chelsea talks about the importance of international fans. I say to the noble Lord, Lord Watson, that I fundamentally disagree with Amendment 17A because I think it is socially regressive and would lock out many people. It would actually go against my noble friend’s Amendment 8 in terms of getting new generations of fans involved: not everyone can afford a season ticket.

--- Later in debate ---

[Lord Bassam of Brighton (Lab)]

My Lords, Amendments 11 and 15 relate to sustainability—not the notion of sustainability that we have been addressing to date when considering this Bill but environmental sustainability.

We seek here to get something on the record about how we feel the regulator should approach this issue. Every sector, every industry, should consider environmental sustainability and football should not be an exception. The Government, quite rightly, have commitments to achieve net zero on carbon emissions. It is impossible to divorce environmental issues from issues of financial sustainability and there are numerous ways in which one could substantiate that. It would be negligent to exclude environmental sustainability from the regulator’s remit. It is a moot question whether this needs to be in the Bill, but it should certainly be part of the regulator’s thinking. Existing regulation in the world of football has failed to change sufficiently the culture of professional and semi-professional clubs.

With limited financial and staffing resources, nearly every club outside the Premier League has failed to make any notable progress on environmental considerations. There are some clubs, the first among them being Forest Green Rovers, which, notoriously, have a very good reputation in promoting sustainability. Others include Swansea City and Norwich City—which has recently been in the Premier League. It is the Premier League clubs—16 of them—that have, to their great credit, led the way in the football pyramid. We feel that it is necessary to encourage other clubs to do the same.

Obviously, Premier League clubs have more resources than clubs lower down the pyramid, but they should not continue to be an outlier in promoting more sustainable environmental practices. To noble Lords who might question whether football should have a role in this, I simply say that the Financial Conduct Authority has regulatory principles which include minimising environmental impacts. There is an environmental policy statement and an environmental management statement, which complies with ISO 14001. It covers issues such as energy, emissions, water usage, minimising waste, recycling, paper use, methods of business travel, digital services and ICT. Football clubs and how they manage the resources that they have at their disposal have an impact on our nation’s desire to head towards net zero by 2050, and that is what the amendment speaks to.

I hope that clubs adopt environmental good practices as Arsenal and Brighton & Hove Albion do, such as including free travel in their ticket pricing to encourage more people to get on to public transport. Clubs such as Tottenham, Wolverhampton Wanderers and Chelsea have similar strategies. This should be common practice across the football industry. Whether it is in the Bill or part of the regulator’s remit, the environment is simply too important for us to leave to chance. There is a role for football to play in leading the way, as it does in many other fields of social interaction, such as promoting good race relations, tackling misogyny and dealing with other social issues. I beg to move.

[Baroness Jones of Moulsecoomb (GP)]

My Lords, I rise to speak to my 10 amendments in this group on environmental sustainability. I want to support almost everything that the noble Lord, Lord Bassam, has just said. If you are talking about sustainability, which is what we have been talking about for two days on this Bill, you cannot avoid environmental sustainability, because it will have an impact on the financial well-being of football, and every other business. At the moment, most clubs do not think very hard about this. Forest Green Rovers are fantastic; Liverpool are doing their bit; but, by and large, there are little tweaks that clubs are doing, which makes them feel good—or perhaps they cannot imagine doing anything more, I am not sure.

We know the climate is changing; we know that the weather is changing; we know there are more floods and more droughts; so it is very short-sighted not to include environmental sustainability when you are worried about the future of clubs and their financial sustainability. Football is at risk from climate change, as are many other sports. Flooded pitches lead to cancelled games, lost revenues and disappointed fans, and droughts demand expensive irrigation. As Carlisle United discovered, a flood can lead to the kind of jump in insurance premiums that could put you out of business. So fans need the confidence that these growing risks are being prepared for and that they are not going to have a detrimental impact on clubs’ finances. The Minister kindly gave me a meeting on this, although we did not quite agree, so does she agree that climate change will have direct impacts on the financial sustainability of football and, if so, how is that recognised in the Bill? At the moment, of course, it is not.

My Amendment 103 requires the football regulator to include an assessment of football’s resilience against climate change in its “state of the game report” because, if the report does not consider environmental sustainability, it can give only an incomplete picture of the state of the game. Amendments 127, 131, 154 and 166 introduce climate and environment management plans as a mandatory licence condition for clubs. As the noble Lord, Lord Bassam, said, it should be mandatory across all businesses, and these environment management plans would set out the clubs’ environmental impact and what is being done to mitigate it. Above all, they would also require clubs to identify the impacts that climate change is having and will have on the club and make plans to manage those risks.

Football, of course, also contributes to climate change and environmental damage; hundreds of thousands of single-use plastic cups and utensils are used every single matchday; fertilisers, herbicides and millions of litres of water are used to keep the pitch green; and cities and towns are choked up with traffic on match days. The definition of sustainability in the Bill, as it stands, allows all this to continue unabated. It would even allow clubs to damage the environment even more, as long as they keep on serving fans and making a contribution to the community.

It really is an own goal for the planet, but football clubs actually caring about the planet do not have to cost the earth. Forest Green Rovers, who have been described as the greenest football club in the world, are focused on sustainability across their business. Solar panels provide about 20% of the club’s electricity needs; the club organises coaches to away games, not planes; they have cut out single-use plastics in favour of reusable or refillable options; the pitch is organic and harvests rainwater for irrigation. This is a club that is at the top of their table, fit for the future and a role model that other clubs could aspire to. Liverpool, who are, regrettably, also at the top of their table, have their Red Way initiative, which is about environmental sustainability.

My amendments will lay the groundwork for greener pitches and truly sustainable sport, embedding environmentalism throughout the football regulator’s remit. Amendment 55 adds climate and environment to the football regulator’s objectives. At Second Reading, the Minister suggested that the football regulator must be focused on the financial sustainability of clubs. The Bill already lists safeguarding the heritage of English football as an objective, so why not safeguard the environment as well? Amendments 60 and 66 require the football regulator to act in accordance with the net-zero targets in the Climate Change Act and secure the long-term environmental sustainability of football.

If the football regulator cannot set sport on an environmentally sustainable footing, football’s long-term viability is at risk. Amendment 144 would have clubs consult their fans about climate and environmental issues facing the club. Sustainable football should not just be a luxury enjoyed only by vegans and eco-entrepreneurs. While Forest Green Rovers are showing what is possible, this Bill is an opportunity to embed best practice throughout the sport. I really hope that the Government can move on this issue.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, I rise to oppose this whole group of amendments.