Football Governance Bill [Lords] Debate
Full Debate: Read Full DebateCharlie Dewhirst
Main Page: Charlie Dewhirst (Conservative - Bridlington and The Wolds)Department Debates - View all Charlie Dewhirst's debates with the Department for Digital, Culture, Media & Sport
(1 day, 15 hours ago)
Commons ChamberHaving been elected more recently, I am somewhat less burdened by previous legislation, but let me be clear: having worked in sports administration for many years, I have serious misgivings about a Government regulator in football. I know that this legislation started out as a very well-meaning initiative, but I have concerns—they have already been raised by other hon. Members—about creeping scope and the potential impact of Government meddling in a great British success story.
It is hard to argue that the premier league is not England’s finest export. It is the envy of global football, a competitive and unpredictable league that attracts the biggest names in the game to play in front of packed stadia, with hundreds of millions more watching around the world. The league contributes over £8 billion to the UK economy, pays £4 billion in tax, and employs over 90,000 people. Its reach is truly unparalleled, as other hon. Members have referenced. I have seen kids wearing Chelsea shirts in rural Rwanda and met Man United fans in Pyongyang—in fact, it may surprise the House to know that the premier league is widely watched in North Korea, albeit through pirated broadcasts. However, I understand that Spurs do not regularly feature in the coverage, thanks to their captain Son Heung-min.
I am sympathetic to fans up and down the country who fear that the owner of their football club is going to run it into the ground. As a Leeds fan, I know a thing or two about bad ownership and financial mismanagement, and we have heard some good examples of that from Members representing Reading and Sheffield Wednesday. However, we should dispel the myth that every football club owner is some super-rich maniac trying to squander their fortune in order to destroy a local football club.
I absolutely agree with the hon. Gentleman that not all football club owners are maniacs determined to ruin their club, but I gently point out that this regulator will ensure that those clubs that do have such owners will be better protected in future. Does he not accept that point?
I disagree on the ideological level—on the ideological point about who should regulate football. I will come on to that in a second, but I do not believe it is the Government’s job. I believe that the football landscape already provides for regulation.
No, I will make some progress on this point, if the hon. Gentleman does not mind.
As a former employee of a football club, Hull City, and as someone who has worked for a national governing body of a sport at the Rugby Football Union, and for a national elite sport funding body at UK Sport, I have some experience of this issue. Each of those bodies—the EFL, the EPL and the FA—has a role in regulation.
As a fellow Leeds United supporter, the hon. Gentleman was probably prepared for me to talk about the finances around the transfer of Seth Johnson to Leeds United, but does he recognise the words of John Madejski, who said that the best way to become a millionaire is to be a billionaire and own a football team? Does he recognise that the current ownership model needs to change?
Those of us who support a club that was previously owned by Ken Bates and Massimo Cellino have had our fair share of rough ownership over the years.
Coming back to the wider landscape and who should regulate, above the Football Association, EFL and EPL we have UEFA and FIFA as international bodies representing the global game, and they each have a regulatory function. I believe that instead of the Government creating yet another quango, headed up by a Labour party crony, they should be working with the Premier League, EFL and FA to resolve current concerns such as financial sustainability and fit and proper ownership. That would be a far more satisfactory outcome for the clubs and ensure that sport and politics are kept at arm’s length.
The hon. Gentleman mentions UEFA and FIFA. Would he categorise those as organisations where politics is kept at arm’s length and where there is no place for cronyism?
The hon. Member raises a very good point. FIFA’s recent history is not a proud one, but we do not have time to go into that. There is an important point about the way in which UEFA and FIFA operate within the landscape. There is a danger that measures including parachute payments, which affect competition tools and structures, being in the scope of the Bill places the Government on a collision course with those international federations. That has already been discussed.
Ultimately, the fact we are here discussing this Bill today is a sad indictment of the relationship between the existing stakeholders. However, it is not beyond the wit of Government to find solutions that do not involve a new regulator. [Interruption.] Well, I am not burdened by previous legislation. I also worry that the Bill is playing to a certain viewpoint among EFL clubs that money from the bottom half of the premier league should be redistributed en masse to the championship. Those clubs argue that that would give the promoted clubs—one of which I am a fan of—a better chance of success.
I fear that could have serious unintended consequences. It could create a small group of entrenched successful clubs at the top of the premier league and ultimately damage competition, as the top clubs accumulate more and more wealth, to the detriment of clubs lower down. It would effectively end any chance of a club such as Leicester winning the title, or teams such as Brighton, Bournemouth, Brentford and Nottingham Forest cementing themselves in the league and challenging for Europe. It would be another two-tier system created by this Labour Government.
The idea that the championship is a poor relation is also false. Every championship club receives £7.8 million from the Premier League, which is between 20% and 40% of their typical annual revenue. The EFL has recently signed a domestic broadcast deal worth more than £900 million, increasing its own revenues by 50%, and the championship is already the sixth-richest league in Europe.
Finally, I want to address the issue of the medium to long-term future of the regulator. This legislation has morphed from creating an independent regulator with a narrow scope to creating a Government regulator headed up by a Labour party donor, with sprawling powers. Once the regulator has dealt with the most pressing issues, who knows how it might justify its existence in future. The devil will surely make work for idle hands. My fear is that the football regulator will not behave as a guardian of the sport but will instead look to involve itself more and more in day-to-day club operations.
We have come a long way since the dark days of the 1980s—an era that reached its nadir just under 40 years ago with the Heysel disaster, which saw English clubs banned from European competition for five years. It was a period when the best English players sought to ply their trade in Serie A, La Liga and Ligue 1. English football is now the envy of the world. I am sure our competitors in Spain, Italy and Germany are watching and would be delighted if we were to regulate ourselves into a less competitive place. If it ain’t broke, don’t fix it.