Football Governance Bill [Lords]

Caroline Dinenage Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Dame Caroline Dinenage (Gosport) (Con)]

I start my comments by speaking not as the Chair of the Select Committee, but as a football fan—in particular, with apologies to the hon. Members for Cheltenham (Max Wilkinson) and for Great Yarmouth (Rupert Lowe), as a Portsmouth FC fan. I understand very well what a football club means to a community, a local way of life and the fans, and what they will do to protect it. In the five years that followed Portsmouth’s fantastic FA cup victory in 2008, we really went through the wringer. The club boardroom seemed to have a revolving door. We had a succession of owners, each worse than the last. The club entered administration twice, and it had a 10-point deduction on two occasions. Pompey suffered three relegations in four seasons. I saw what that did to the city of my birth and to the fans, who feel as strongly about the club as I do.

The club was pulled from the brink of oblivion by the largest fan-led buy-out in history—fans put their money where their mouth is. They had to, because the club was at risk of extinction. The Pompey Supporters Trust was formed. Some 2,300 Pompey fans invested their own money and became shareholders, raising around £2.5 million. Remarkably, under that fan-led ownership model, the Pompey Supporters Trust was able to declare the club debt-free in September 2014, just 18 months after taking over.

Not all clubs are so lucky. Time and again we have heard in the Chamber stories of clubs falling into the hands of unscrupulous owners who have little regard or care for the club history, or what it means to the local community. They do not listen to the fans, who we all know are the blood that runs through the veins of our football clubs up and down the country. It was that, alongside the spectre of the European super league, that the previous Government had in mind when they commissioned the fan-led review, captained so brilliantly by my friend Dame Tracey Crouch. It was pivotal in the genesis of this Bill. I hope that this rebooted Bill will protect English football and keep clubs at the beating heart of their communities, just as much as its previous iteration did.

Some of the Government’s changes to the legislation echo the previous Culture, Media and Sport Committee’s recommendations. First, on enhanced fan engagement, we know that English football fans are some of the most passionate in the world. Their voices must be heard. For too long, fans have been left in the dark about decisions on ticket pricing, home shirt colour changes and home ground relocation. I welcome the Bill’s commitment on that. I also welcome the removal of the requirement for the regulator to consider Government foreign and trade policy when deciding whether to approve club takeovers. That should ensure the regulator’s operational independence from Government—a subject to which I will return.

There has been controversy around aspects of the Bill, and particularly on the inclusion of parachute payments in the financial distribution mechanism, which has inevitably sparked hostility towards the Bill. However, in a room of 10 people there would be 10 different opinions on how the parachute payments should work. The legislation will never please everybody. Some people oppose the Bill entirely, and others have voiced dissent for myriad reasons; there is growing criticism of the Bill this time around. The sheer number of amendments tabled in the other place was a sign of that discontent. It will be crucial to ensure that the legislation is right, and we have only one chance to do so.

I suggest we take a moment to remind ourselves of the findings of the fan-led review, and of why the idea of a regulator was conceived in the first place. It was conceived because self-regulation simply is not working, although it was given many chances over many years. The leagues have not been able to reach a deal on financial distribution themselves. We should not forget that, left to their own devices, six greedy clubs planned to break away to form the European super league, risking English football itself.

[Wera Hobhouse (Bath) (LD)]

Does the hon. Lady agree that it is shame that there has not been recognition from the Dispatch Box that there would be no premier league if there was no grassroots football? The better our grassroots football, the better the league will be.

[Dame Caroline Dinenage]

The hon. Lady is right. English football thrives because the ecosystem runs from the grassroots to the top of the elite. Our job is to ensure that it continues to thrive, and that every aspect of that ecosystem is protected and supported. Some irresponsible club owners continue to play fast and loose with club finances and assets. Far too many clubs have been on the brink of collapse, and that is why the regulator must have a role in protecting English football. However, the regulator will need to bring together all voices in that complex ecosystem for it to work properly.

The Culture, Media and Sport Committee, which I chair, is looking forward to our pre-appointment hearing with David Kogan, the preferred candidate, next week. It has been a long journey to get here, as I am sure the Secretary of State appreciates, having scheduled and then postponed hearings more than once, as Ministers have struggled to pick a candidate. The chair of the football regulator will be utterly critical to ensuring that the regulator performs its role well. They will steer the ship. They will set the temperature for football, going forward. They will have to come in on the front foot and broker strong relationships with stakeholders across football to get full buy-in. I have already spoken about some of the nay-sayers and detractors. The chair will need to build faith and demonstrate a good understanding of the dynamic football ecosystem to have the clout that they will need. However, they need to ensure they do not come with a load of industry baggage. It is a really difficult position to be in. At the same time, to be effective, they must demonstrate regulatory experience.

Ultimately, the chair will have to demonstrate that they can be objective, fair and, crucially, independent of Government, the leagues and individual football clubs. It is a very difficult job to recruit for. Indeed, UEFA has raised concerns and threatened sanctions over the prospect of Government interference. That is why I am surprised that the Government have proposed a candidate who is so close to the Labour party, and who has donated money to the Chancellor and others. It raises concerns about whether the regulator can truly be seen as independent, given their close ties to members of the Government. I expect that the Committee will want to explore that in detail when we hear from Mr Kogan next week. He will need to demonstrate that he intends the regulator to be operationally 100% independent from political interference. I struggle to see how that will happen, but my mind is open, because the Select Committee’s job is to hold a pre-appointment hearing with this potential regulator.

As other hon. Members have mentioned, the former chair of the BBC, clearly a talented, capable and very smart man, was undone by the impression that he gave of lacking independence from Government. Like the BBC, very many people out there are willing this body to fail, and I do not want to see that happen. The worst-case scenario for everybody is if the regulator is undermined in its infancy.

Even before the chair is in place, there have been some concerning signs about the Government’s approach to the independent football regulator. We know that many clubs in the premier league in particular have expressed misgivings and in some cases very strong opposition to the regulator. Despite what the Secretary of State has said—she has spoken very strongly on this—there are some lingering doubts. The whole process has been plagued by leaks and delays. Members have seen and heard the rumours that the regulator was poised to be thrown out on to the latest bonfire of quangos even before it had started. When discussing the so-called blockers, it seems telling that the Government chose to single out the Gardens Trust, Sport England and the Theatres Trust, which will no longer be consulted over planning. When considering AI and copyright, the Government seem to be siding with big tech over creative industries. Members will forgive me for beginning to feel like the sectors we represent on the Culture, Media and Sport Committee are not valued by the Secretary of State’s Department.

I look forward to hearing next week from the proposed regulator and to seeing the Bill progress through the House. I think the Bill can improve the resilience of clubs and encourage sensible financial decisions. I would like clarity on how the regulator will operate alongside the cost control measures that it will have no oversight of, such as premier league profit and sustainability rules, which we have recently seen clubs such as Chelsea manipulate to their own advantage and which will arguably undermine the regulator. I would be grateful if the Minister came back to me on that. I also want cast-iron assurances that the Bill will prevent the sort of painful, appalling situation that has been experienced by Reading FC with its owner, Dai Yongge. Otherwise, we will all be wasting our time.

It is imperative that this Bill safeguards English football, which is central to our communities and to the national fabric of our country. Football is a unifier: it brings people together for the love of the game, from the grassroots to the top of the elite clubs, and it is the envy of the world. All the other countries in the world would love to have our football leagues. We must secure its future for generations to come.

[Several hon. Members rose—]