Football Governance Bill [HL]

Baroness Taylor of Bolton Excerpts

Committee stage
Wednesday 18th December 2024 Lords Chamber

[Baroness Taylor of Bolton (Lab)]

My Lords, I will say a few words about one of the amendments, but first want to follow up on what the noble Lord, Lord Parkinson, was saying about multi-club ownership. He was suggesting that multi-club ownership could alleviate risk. I see the point that he was making, but we have to be clear that it can also generate risk. This is an ongoing conversation that many people in football are having. We have to consider its prevalence and the fact that it is increasing, but there are questions about how it could distort competition and lead to complications with loan deals or the sale of players. This is a big question that will loom over us in the future. It is not just a one-way issue, as perhaps the noble Lord was suggesting.

I want to say a couple of words about Amendment 201. Clause 37 says very clearly that in determining whether it considers that an individual has the requisite honesty et cetera, the regulator should have regard to whether the individual has been convicted of a serious criminal offence. Amendment 201, in my name and that of my noble friend Lord Bassam, goes somewhat further and says:

“No individual with an unspent serious criminal conviction, whether or not in England and Wales, shall be permitted to own a controlling stake in, or serve as a director for, any regulated club”.


That is a clear statement of intent about the serious nature of some of the issues that have arisen about specific clubs in recent times. I ask the Minister to tighten up on this, take the prospect of owners with serious convictions very seriously and say that it should be a bar to ownership and not simply something that has to be taken into account.

[Lord Moynihan (Con)]

My Lords, I too will speak to Amendment 204 on multi-club ownership, as the noble Baroness, Lady Taylor, has made some important points and it would be helpful for the Committee to understand the position of the Government. It can alleviate risk. It is also highly complex and can make it very difficult, in terms of due diligence, for the regulator to look at an English club under this legislation without taking into account the financial exposure that a multi-club owner could have in another country with other clubs.

This is a growing trend; it is not new. A significant number of Premier League clubs and six EFL Championship clubs form part of a wider multi-club model, a structure first explored exclusively in Europe by ENIC, now the majority shareholder of Tottenham Hotspur. The rationale underpinning multi-club ownership aspirations, which underlines just how complex the situation can be, ranges from player recruitment and development efficiencies to knowledge sharing, resource synergies and brand penetration.

Furthermore, accruing interest in clubs that compete in the continent’s top leagues—those that hold higher bands and therefore score more points in the governing body endorsement system—is seen as a means for Premier League and EFL clubs to access a more eligible foreign pool of players. Having interests in multiple clubs is not a phenomenon unique to the UK; it pervades the European game. UEFA reports that clubs with cross-ownership relations account for more than a third of the top division in each of Belgium, France and Italy, in addition to England. Integrity of competition, reconciling the model with football’s rulebook, has become a complex issue for UEFA. At the centre of sport is competition, so if the same person, either a natural or a legally based entity, was to have control or influence over two rivals, there would be a risk to the integrity of competition whenever those rivals competed.

To mitigate that risk, football’s governing bodies have introduced rules to preserve the independence and integrity of competition between its clubs. At a domestic level, approximately two-thirds of European national football associations have rules directly limiting or restricting multi-club ownership. The famous article 5 of the regulations of the UEFA Champions League, on the integrity of the UEFA club competitions, stems from the governing body’s concern, which started back in the late 1990s. Article 5 regulates common ownership by prohibiting the same individual or legal entity having control or influence over more than one club playing in the same UEFA club competition. That notably includes the ability to exercise, by any means, a decisive influence on the decision-making of the club concerned.

With that brief explanation on top of the important points made by the noble Baroness, Lady Taylor, I would be very grateful if the Minister could confirm that she is completely comfortable with article 5 and will instruct the regulators not to impose any conflicting regulations in this area.

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[Lord Addington (LD)]

We have gone through this several times. If there could at least be some private way in which those people involved in this could see this letter, it would be of assistance, because this is becoming a hardy perennial that is getting in the way of progress.

[Baroness Taylor of Bolton (Lab)]

I think everybody is thinking about the previous examples we have been given, but would not the example that the noble Lord, Lord Parkinson, just gave us of the non-sanctioned Russian individual be covered by the other considerations and the holistic attitude that my noble friend the Minister was telling us was the basis of the approach of the regulator?

[Baroness Blake of Leeds (Lab)]

I thank my noble friend for her helpful comments. I am not able to comment further at this moment. I think the detail is probably beyond this discussion and I recognise the comments about going round and over things again.

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[Lord Addington (LD)]

My Lords, we need an answer about why these things are carried on for so long, because there are administrative burdens. If we want these clubs to survive and come back, we could probably make a case for two things. One would be an intermediate regulator, which I do not think would be terribly popular with certain sections of this Committee, and the other is deciding when you can come out of this, because there are duties that are probably an appropriate burden for a professional structure. A good few clubs have gone in and out of this structure, but there is a certain level at which you are not receiving income, you are not receiving support and you have become a part-time asset to the community. Surely there is some point at which there is a cut-off. A better definition of the Government’s thinking on this might be helpful.

[Baroness Taylor of Bolton (Lab)]

My Lords, I just want to say a word about Amendment 207. It talks about a club that is not a regulated club but bears a very similar resemblance to one that is in things such as the name, the shirt colours and things of that type—almost an imitation of another club in order to get some support, finance or whatever. It may seem that this is highly unlikely, but I have a nightmare scenario where the super leagues that are being proposed do not take off, and therefore people try to create an artificial super league by, for example, having a team called “Manchester Blues” or “Liverpool Reds” getting into competitions with clubs abroad as an imitation of the super league that has been proposed and rejected. I want some assurance that should that nightmare scenario come about, there is some provision for being strict about what can and cannot happen.

[Baroness Twycross (Lab)]

My Lords, before I speak to this group, I want to be clear about who the regulator will test and clarify an earlier point I made. I will ensure that all noble Lords who participated in the second group have their attention drawn to this clarification and apologise if I caused any confusion.

Schedule 1 to the Bill sets out details on who meets the definition of an owner. The Secretary of State will also set out guidance on one of the criteria for ownership, “significant influence or control”. An incumbent individual simply meeting the definition, including if they exert significant influence or control, does not mean that the regulator is required or obliged to test them. It may test an incumbent owner if there are grounds for concern about their suitability. The criteria for suitability are clearly set out in the Bill. This applies to any type of owner, be it a state owner or otherwise.

The key point I must stress—it goes for Newcastle United or any other club, although as someone who lived for a number of years in Newcastle I am particularly keen to reassure Geordies—is that the regulator will be operationally independent of government. It is not for the Government to prejudge the regulator’s assessment of who meets the definition of owner, whether there is concern about a particular owner or the outcome if the regulator tests a particular owner.

Finally, I want to reassure your Lordships’ Committee that this Government are unashamedly pro-investment, which will drive our growth mission. We want good, long-term investors into the UK, and foreign investment is key to this. I hope that noble Lords find this clarification helpful.

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Moved by

[Baroness Taylor of Bolton]

219: Clause 46, page 38, line 26, leave out first “home ground” and insert “specified properties”
Member’s explanatory statement
This amendment expands the duty to notify the IFR of a potential disposal of a home ground to include a potential disposal of any specified properties.

[Baroness Taylor of Bolton (Lab)]

My Lords, Amendment 219 relates to Clause 46 and the question of the disposal of home grounds, and the kinds of approvals that are going to be required. I have just three points to make. First, are the words “home ground” sufficient? We suggest that we should say “specified properties”. This relates very much to what I was saying the other night about assets of community value. I said that when my own club, Bolton Wanderers, made its ground an asset of community value, it covered not just the ground itself, the pitch and the stands but the concourse. We have to talk about whether it should cover a training ground and even advertising hoardings, car parks and the fan zone. If we simply say “home ground”, will that cover an item such as a fan zone? That is why the amendment I have tabled suggests that we should have specified properties. They may be different in the case of different clubs, but a home ground is more than just what is on the pitch or even within the boundaries of the stadium. That is something that I hope the Minister will consider.

My second point is that this should relate to the assets of a club being used as security for a loan by the owner. There is clearly potential danger there if the loan is called in but the owner does not have the wherewithal to cough up the money that he has borrowed. Could that situation jeopardise the heritage of a club if it is vulnerable because it has been given as security? That is a valid consideration.

The third point is the need to make sure that fans are fully consulted and engaged in any discussion about the disposal of the specified properties. Often, when we are talking about which properties might be involved, it is the fans themselves, especially if there is a fan zone, who have a clear vested interest. We have talked on the Bill about moving five miles. In any circumstances, the fans have to be involved and, therefore, I hope the Government will consider the amendments that we have tabled.

[Lord Goddard of Stockport (LD)]

I support the noble Baroness, Lady Taylor of Bolton, and the noble Lord, Lord Bassam of Brighton, because I have walked this tightrope. When I was leader of Stockport Council, we had to financially advise and support Stockport County on several occasions. In the end, in 2013, we acquired the freehold and leased it back to the new owner of Stockport County, Mark Stott, for 250 years. That enabled him to get investment in and get the football club moving back into the league and climbing the divisions. That is where we start from: the position of the club and its value as a loan against something.

If we can get local authorities and other people to get hold of the freeholds, that will save Toys-R-Us from being built on certain football grounds on the south coast and give the clubs real opportunities to move forward. So we should support the amendments. We should also probably be thinking about how we can strengthen that in future. There is more involvement in the community value and the asset to a town and area of a football club, so we could be a bit more imaginative about how we protect that, rather than just arguing over how we should cover a loan against the ground.

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On that basis, and for the reasons I have set out, I would be grateful if the noble Baroness would withdraw her amendment.

[Baroness Taylor of Bolton (Lab)]

My Lords, I have listened very carefully to what the Minister said. I am very grateful to her for saying that she will consider some aspects further, because I think there is an issue here, especially in how we define a home ground. We may want to return to this at a later stage. In the meantime, it proves why every club should have its grounds designated as an asset of community value; we then would have the protection that we are seeking in this amendment. I am grateful to the Minister for what she has said and for saying she will consider parts of this again. On that basis, I am happy to beg leave to withdraw my amendment.

Amendment 219 withdrawn.