Football Governance Bill [ Lords ] (Third sitting)

Clive Betts Excerpts

Committee stage
Thursday 5th June 2025 Public Bill Committees

[Joe Robertson]

No, I do not accept that. All the amendment does is to seek the compliance of the football regulator, which this Government are trying to set up, with the major international governing bodies—FIFA and UEFA. Any arguments about political interference and political symbols and how decisions on them are made will be a matter for FIFA, UEFA, the FA and the regulator, but we should want to ensure that the regulator is required not to do anything that conflicts with the rules of FIFA and UEFA.

[Mr Clive Betts (Sheffield South East) (Lab)]

The hon. Member has talked about the appointment of the chair and how the political connections of the nominated person might be deemed to conflict with the neutrality that FIFA expects in the way football is run. I direct him to paragraph 9(b) of schedule 2, which talks about the tenure of non-exec members, and provides that the Secretary of State may remove a non-exec member of the regulator if they have a conflict of interest. Surely if FIFA said that a person had political connections and therefore was not appropriate to be the chair, that would be a conflict of interest, and the Secretary of State could act at that point. That is already covered in the Bill.

--- Later in debate ---

[Stephanie Peacock]

I am grateful to the shadow Minister for those questions, which somewhat rehearse the previous debate on the staffing of the shadow regulator. He should have received an answer to the written question, and we spoke about this last time; as of 1 June, it has 42 staff. I cannot comment on exactly how many staff there will be at the point of Royal Assent. In my remarks, I said that upon the creation of the regulator, property rights, liabilities and staff will be transferred. I am happy at that point to write to the shadow Minister, but I will not speculate now.

Question put and agreed to.

Clause 9 accordingly ordered to stand part of the Bill.

Schedule 3 agreed to.

Clause 10

State of the game report

[Mr Betts]

I beg to move amendment 2, in clause 10, page 7, line 6, at end insert—

“(d) an assessment of any existing and effective financial distribution agreement against the principles set out in section 62(2);”

This amendment would require the state of the game report to make an assessment of any existing and effective financial distribution agreement against the principles set out in distribution orders for the resolution process.

It is a pleasure to serve under your chairmanship, Mr Turner. We are finally starting to get on to the football issues in the Bill. The state of the game report is obviously a key element. It will shape how the regulator operates, and eventually, the financial distribution, which we will come to later in the Bill. So the report is really important.

Amendment 2, without undermining what is already in the Bill in any way, simply ensures that the financial distribution as it exists, and as it might exist according to the principles laid out in further clauses of the Bill, is taken into account when developing the state of the game report. It brings a symmetry to the whole process, so that the state of the game report looks at the financial distribution, and when we come to the financial distribution, it goes back to look at the state of the game report. It is a simple amendment that makes the Bill coherent as a whole. I hope that the Minister might at least consider it when looking at how the Bill might be improved.

[Mr French]

I thank the hon. Member for tabling this amendment. As I said in a previous sitting, we have a lot of respect for the work that he does chairing the football all-party parliamentary group.

The amendment would require the state of the game report to assess existing and effective financial distribution agreements against the principles. My understanding is that the amendment would therefore require the Independent Football Regulator to assess existing agreements against the principles in clause 62(2)—namely that they

“(a) should advance the IFR’s objectives,

(b) should not place an undue burden on the commercial interests of either specified competition organiser, and

(c) should not, if a distribution order were made in accordance with the final proposal, result in a lower amount of relegation revenue”—

also known as parachute payments—

“being distributed to a club during the relevant period than would have been distributed to a club during that period had such a distribution order not been made.”

There are a lot of words there.

--- Later in debate ---

[Stephanie Peacock]

I thank my hon. Friend the Member for Sheffield South East for the amendment. I understand its aims. We do not consider it necessary, as we are confident that the Bill already covers the issue. Per clause 10, the regulator will be obliged to look into the main issues affecting English football and any features of the market that risk jeopardising its objectives. If the existing distribution arrangement meets either of those criteria, the regulator will cover it in the state of the game report. I reassure my hon. Friend that the regulator has the ability to address distributions in the sector if the current scenario reaches a threshold, and we will discuss those powers when we get to part 6.

In general, we have not taken the approach of being overly prescriptive and listing every issue the regulator could and should look at here in the Bill.

[Mr Betts]

I am trying to work out what the Minister is saying. Is she saying that the amendment is unnecessary, because in the state of the game report as laid down already in the Bill, the regulator can do precisely that—look at the distribution within football? There were some other words added then about what might be a restraint on the regulator’s ability to do that. Is the regulator completely free to look at the distribution of resources and revenue within football as it stands?

[Stephanie Peacock]

Yes, the regulator has the ability to address distribution in the sector if the current scenario reaches the threshold. We will come on to discuss that in part 6. I was going to say that, in general, we have not taken the approach of being too prescriptive and listing every issue in the Bill that the regulator could and should look at, as that would be contrary to the light-touch regulator that we have discussed throughout the Committee’s proceedings. I can be very clear in answering my hon. Friend’s question: it has the ability as it stands, and we will discuss that point further in part 6. I hope that he will withdraw the amendment for those reasons.

[Mr Betts]

I think I am reassured by what the Minister is saying. It is obviously quite a complicated area, and it links in to what comes later in the Bill. Maybe we can pursue this later. I want to be certain that the regulator has these powers, because I believe that much of the concern among football fans is around the current distribution of revenue, and we must ensure that when we have finished with the Bill, it sorts that problem out. At this stage I will not pursue this to a vote, but we will have discussions about distribution in due course. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Mr French]

I beg to move amendment 123, clause 10, page 7, line 6, at end insert—

“(d) an assessment of the impact that the IFR’s activities have had on the price of match tickets.”

This amendment would require the IFR to include in its state of the game report the impact that its regulatory activities have had on ticket prices.

Football Governance Bill [ Lords ] (Second sitting)

Clive Betts Excerpts

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Mr French]

I understand your point, Sir Jeremy, and will try to stick closer to the amendments as requested, but amendment 117 is about ensuring that political donations are made transparently and up front so that all Members, including Select Committee members, have the information to hand when they are making informed decisions as elected Members of Parliament.

Amendments 118 and 119, which are also in my name, are designed to further reinforce the appointment process for the chair of the board and the expert panel. As I have just highlighted, the Government have made a bit of a mockery of the process already. It desperately needs solidifying, so amendment 118 seeks to prohibit any person who currently has any interests or roles in a television or media broadcast that relates to football from being appointed to the board. I hope that hon. Members understand why I make that point.

In certain civil service roles or other roles linked to the public sector, there are restrictions not only on political interference, but on what can be said publicly and in other aspects of a person’s life. I am concerned about what would happen if, say, Gary Neville—I am not just starting on him, I promise—or Jamie Carragher were suddenly appointed to the football regulator. Would this House be comfortable with those people—again, this is just an example—making comments about the regulation of football while having a commercial interest as a media pundit or commentator? Personally, I would not be comfortable with it, because a range of issues could arise. The point of the amendment is to make it clear that we do not believe that people in those positions should hold media roles.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am interested to know where the hon. Gentleman is trying to get to; I am not quite sure that he knows, at this stage. He is saying that anyone who has a role with influence in any of these matters should not be a media commentator. Does that go for MPs? I understand that the hon. Gentleman’s ex-colleague Jacob Rees-Mogg appeared as a presenter on GB News while he was still an MP. Is there not a conflict of interest there, or are such conflicts very specific to this one job?

[Mr French]

I thank the hon. Member for intervening. As was the case before lunch, I am happy to have this debate in Committee. I should not talk about people who are no longer Members of this House; they are private individuals and are no longer linked to the Government, and they are certainly not part of the Independent Football Regulator. I refer the Committee to my comment to my hon. Friend the Member for Spelthorne about why the independence of football is so important.

I will not get into the jurisdiction of Ofcom and what it is looking at with regard to political people on TV networks, because that is not what the Bill is about. My point is that the chair is an independent person who will be appointed to independently regulate football. Should they have a dual role that includes media punditry, commentary or other media work? We believe that the answer is no. Ensuring that they cannot have such a role would ensure that there are no vested interests in the process.

--- Later in debate ---

[Mr French]

I understand the point that the hon. Member is trying to make. We have had lots of attempts at muddying the waters today, but it is Government Members who will have to explain to their constituents and fans around the country why they believe that a regulator should be appointed that earns more money than the Prime Minister. We on this side of the Committee are happy to stand up and say very clearly that we do not agree that that should be the case.

We do not agree that those costs—which we have concerns about, as I have said in debates on previous amendments—should be passed on to fans, as the cost of the regulator ultimately will. That may not be the case for the clubs that have large billionaire owners, but we are talking about the whole pyramid all the way down to the National League. I fundamentally believe that it is our duty in this place to seek to limit the cost of the regulator to those fans.

[Mr Betts]

There is a matter of procedure and process here. I cannot think of another example where a public servant’s salary has been written into primary legislation, either as an actual or a maximum. Does the shadow Minister accept that we would have to have a new Act of Parliament to amend that figure in 10 or 20 years’ time? Surely that is appallingly bad practice.

[Mr French]

I disagree. As I have said, we are here today to set the guidance for what we think is an appropriate level of pay. We believe that fans on the street will think that this amendment is fair and proportionate, and that the chief executive of the football regulator should not be paid more than the Prime Minister of this country.

I have a great deal of respect for the hon. Member for Sheffield South East. He made the comparison with a public servant, which is the point that I am trying to make. If we classify this independent regulator as a public servant—that is another rabbit hole that we probably do not want to go down now—should they be paid more than the Prime Minister, who should be the ultimate public servant in this country?

--- Later in debate ---

[Mr Betts]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I want to refer particularly to clause 6(c). When we finally get to the football issues in the Bill, I am sure a lot of them will be about the ownership of clubs and how owners behave. Just in passing, and without going into detail, the EFL has once again taken action against the owner of Sheffield Wednesday, Dejphon Chansiri, for failing to pay the players’ wages. I have said before that he does not have the resources to run the club, but we will come to that later. The other major issue we will come to will no doubt be the financial distribution within football.

However, let us remember why the Crouch review was established. It was actually kicked off and stimulated by the suggestion that there might be a European super league, with certain clubs going off and playing by themselves and detaching themselves from the rest of football. The then Prime Minister got rather upset about that and decided that action needed to be taken. So the review was essentially about protecting the integrity of the established football competitions—the leagues, the FA cup and the League cup.

Clause 6(c) refers to the need to

“safeguard the heritage of English football”,

or the heritage objective. Our objective is to protect the Premier League and the EFL—what has been the English league game and the pyramid for a long period—together with the FA cup and, more recently, for the last 50 years, the League cup. That is the heritage that needs protecting.

[Mr French]

I absolutely understand the hon. Member’s argument, and as I said earlier I have full respect for the work he has done as chair of the football all-party parliamentary group. However, a story in the press yesterday highlighted that there could be a breakaway league in rugby union. A lot of the arguments he is making about the creation of the Bill are about why the heritage part is so important. Given that commonality and that we are talking about a similar risk, does he believe that the Government should set up a regulator for rugby?

[Mr Betts]

I am afraid that the hon. Gentleman will not tempt me down that road; if he did, I am sure you would stop me fairly quickly, Sir Jeremy. Let us stick to the matter in hand and look at the heritage of the game.

It is absolutely right that the Government acted. The Bill, through a clause retained from the previous Bill, acts to stop clubs engaging in competitions that are not accepted by the regulator. That is an important part of the Bill, and it comes from the European super league suggestion. However, there are other developments in the game that I think are undermining its heritage.

--- Later in debate ---

[Mr French]

Indeed. We could keep going. That proves the value of the cup competitions. Many more clubs should take our traditional cup competitions more seriously.

[Mr Betts]

That is a fair point, and it does not happen often enough these days. We can think back to how often the cup is won by someone different, and in past years it has been almost the same teams playing each other all the time. I think Crystal Palace were underdogs; I am not sure that Newcastle and Tottenham can really classify themselves as underdogs. But it was a point well made.

There is a point I want to emphasise and ask the Minister to have a look at. Does she accept that the regulator, with the powers that it has to safeguard the heritage of English football, can look at the impact on domestic competitions and on all the clubs within the pyramid—the clubs that play in the FA cup and the League cup—from other competitions, where the calendar fixtures of a small number of clubs detrimentally affects those other clubs?

Football Governance Bill [ Lords ] (First sitting)

Clive Betts Excerpts

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Mr Louie French (Old Bexley and Sidcup) (Con)]

I refer Members to my entry in the Register of Members’ Financial Interests.

[Mr Clive Betts (Sheffield South East) (Lab)]

I am a season ticket holder of Sheffield Wednesday and work very closely with the supporters trust there.

[Kevin Bonavia (Stevenage) (Lab)]

I am a member of Tottenham Hotspur football club.

--- Later in debate ---

[Mr French]

I thank my hon. Friend for his intervention. I will not get into what the public are more interested in or not, as that is dangerous ground for a shadow Minister for Culture, Media and Sport to get into—obviously, I have to meet a lot of different bodies, and people have different interests. My hon. Friend’s point about the independence of sport and why it is so important has not been missed. I am sure that as the Bill progresses we will debate the question of why independence is so important.

We have spoken about public perceptions, and about the political process in this House, but what we have not spoken about yet so far is the role of international regulators, including UEFA and FIFA. We will make the point, as I said on Second Reading, that independence is crucial to that. For English clubs to continue playing in European competitions, the regulator must be independent. That is very clear.

We have urged the Government on multiple occasions to publish discussions with UEFA—again, I am happy for it to be on a private basis—so that all Members of this House can make informed decisions about the risk to English football if an independent regulator either expands its scope, through scope creep of the Bill, or is perceived by international bodies to not be independent. That is so important, because the international football community has made it increasingly clear that it will not accept Government interference with the running of the sport.

[Mr Betts]

The hon. Member is talking about correspondence with UEFA. As I understand it, the previous Government also had correspondence with UEFA, and the current shadow Secretary of State, the right hon. Member for Daventry (Stuart Andrew), was the sports Minister at the time. So, to give an example of what should be done, will the shadow Minister now agree to publish the correspondence that the previous Government had with UEFA?

[Mr French]

I thank the hon. Gentleman for his question. He is a very well-respected Member of this House and of the football APPG. Obviously I was not a Minister in the previous Government, so it would not be possible for me to publish correspondence. I can speak only on my own behalf, and I do not have any UEFA correspondence. Again, I understand the basis of the hon. Gentleman’s question, but, on the question of what I have urged the Minister to do, I am happy for that to be done on a private basis, so that we can have those reassurances as Members of this House.

This situation is clearly pertinent to the Bill, because, as Members of this House, and as football fans—a number of people have outlined their local clubs and who they support—we surely have to have confidence that what we are putting into law through this House does not conflict with the ability of English clubs to participate. This is not me trying to scaremonger; I just need to know the information.

Football Governance Bill [Lords]

Clive Betts Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Lisa Nandy]

I thank the hon. Friend for his advocacy. I also thank my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), who has done incredible work in this regard. I am due to meet some of the families shortly.

I will try to make some progress, because many Members want to speak and raise issues about their own clubs and communities. Let me turn to the subject of financial distributions. Our strong preference is for football to be able to reach its own agreement on broadcast revenue distribution, but regrettably, as the House will know, no agreement has been reached since the last deal was struck in 2019. That is why we agree with Dame Tracey Crouch that clubs must have a safeguard in these circumstances, and the Bill proposes a backstop power. It was explicitly designed to incentivise industry to come to its own agreement, and restores the right of the regulator to consider all elements of club finances, including parachute payments. By definition, a backstop is a measure of last resort, and we have strengthened the measures in the Bill to ensure that the regulator will have the power to intervene only as a last resort. We have also made it clear that the regulator will need to publish its “state of the game” report before the backstop can be triggered, so that all parties have a clear and common understanding of the problems that should be addressed before engaging in mediation.

I recognise that the exact process of how the backstop should work has been a matter of serious and considered debate in the other place, with thoughtful suggestions made by Lord Birt, Lord Pannick and others. We are confident that we have proposed an effective mechanism, but we appreciate the constructive and thoughtful debate on this matter. Before the Committee stage, we will consider whether there are sensible ways in which to improve the process and ensure that we present the best possible option to the House.

[Mr Clive Betts (Sheffield South East) (Lab)]

May I return the Secretary of State to the Conservatives’ position on parachute payments? I welcome the fact that the Government have not ruled out taking them into account when the regulator does his work. Surely the purpose of the “state of the game” report is to look at the health of the football pyramid as a whole, but before that report is published, the Opposition want to rule out allowing the regulator to take account of parachute payments. As 80% of the help that the Premier League gives the rest of the league is spent on parachute payments, surely that is a nonsense and at least should be considered for the future.

[Lisa Nandy]

I agree very much with what my hon. Friend has said.

Let me deal with the subject of owners’ and directors’ tests. Football clubs are the pride of our towns and cities. New owners bring important investment, but they are also the guardians, the custodians, of clubs that have stood at the centre of our communities and our lives for more than 100 years. Fans grow up attending matches with parents and grandparents; later, they take their own children and grandchildren. These clubs are handed on from one generation to the next. They are institutions that—as the right hon. Member for Hereford and South Herefordshire (Jesse Norman) once wrote—help to shape and define us as we help to shape and define them, and they are too important to be used as playthings by people who have no stake or care for the community that owns them.

That is why the Bill introduces a fitness test for owners and directors, a source of wealth test for owners, and a requirement for adequate financial plans and resources, also for owners only. Prospective owners and directors will have to pass those tests before buying or joining a club. Incumbents will not automatically be tested, but the power exists, if there is concern about their suitability, to remove them if they are found unsuitable. This approach reduces the regulatory burden, and is targeted proportionately where there is a risk of harm. It will bring peace of mind to clubs, their staff and their fans, who deserve nothing less.

--- Later in debate ---

[Stuart Andrew (Daventry) (Con)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a Second Reading to the Football Governance Bill [Lords], because, notwithstanding the need for financial sustainability in the English football league pyramid, the Regulator proposed to be established by the Bill will damage the independence of English football, particularly given the Government’s proposed choice for the Chair and because the Bill will increase the regulatory burden and costs on all English football clubs—particularly lower league clubs—leading to increased ticket prices for fans and will in turn reduce the international competitiveness of, and increase the risks to, English football.”

Let me begin by offering my congratulations to Liverpool FC on winning the premiership yesterday and to those who have been promoted, and I feel I especially need to mention two of my former homes—namely, Leeds and Wrexham.

I think I speak for all Members when I say that football is a defining part of our national identity. With clubs bringing fans and communities together week in and week out, football has been a great unifier since its inception. It was a football match that famously brokered a momentary truce on the western front on Christmas day in 1914. Since the inaugural FIFA world cup in 1930, football has brought nations together around one central purpose—the love of a game—in friendly competition. Football is a multibillion-pound industry with a truly global footprint, and I know that Members across this House want to secure its future growth.

The collapse of clubs such as Bury and Macclesfield, the devastating impact of the pandemic and the failed attempt by some English clubs to join a breakaway European super league have all highlighted that the future of the clubs we love and of the beautiful game is far from guaranteed. For this reason, we introduced the original Football Governance Bill, aimed at securing the future of football clubs for the benefit of both communities and fans. This proposed legislation, as we have heard, followed the fan-led review that was brilliantly chaired by our former colleague, Dame Tracey Crouch, and extensive consultation with a wide range of stakeholders and experts. I, too, want to pay tribute to Dame Tracey, and to all those who participated in the process and contributed to shaping our Bill.

However, it is because of the importance of football, both to our national identity and economy, that we have had to take a decision regarding our stance on this particular legislation. When circumstances change, so too will our approach—and things have certainly changed. This is not a decision we have taken lightly, but after careful consideration of our responsibility to the game, the clubs at its core and the millions of fans who cherish it, we have reached the conclusion that we must vote against Labour’s version of the Football Governance Bill.

The Bill we are considering today is not the same as the one that we originally envisaged. It has been fundamentally altered to a point where it threatens to do far more harm than good. The Secretary of State says in one breath that it is same Bill, and in the next breath that she has changed it all, which is almost like saying that Manchester United and Manchester City are the same. The Government’s decision to appoint a Labour donor as chair of the independent regulator raises serious concerns about political interference in football governance.

[Mr Betts]

Getting down to details, the right hon. Gentleman praises Dame Tracey Crouch’s review, which everyone welcomed and supported. Will he now set out the specific measures in the Bill which contradict and differ from what Dame Tracey recommended?

[Stuart Andrew]

First and foremost, and I will come on to this, is the fact that the regulator is no longer independent.

--- Later in debate ---

[Mr Clive Betts (Sheffield South East) (Lab)]

The Bill is very much rooted in what Dame Tracey Crouch recommended in the fan-led review. I asked the shadow Secretary of State if he could detail any ways in which this Bill deviated from what Tracey Crouch recommended. He mentioned independence and went on about that for some considerable length of time. No other proposal in the Bill differs from the fan-led review—not a single one. The reality is that the shadow Secretary of State did not even convince himself with his arguments today. There is a phrase that football fans chant—“You don’t know what you’re doing”—and it seemed to apply to his speech today. I am sorry about that because I respect his past contribution to the previous Bill, which is the framework for what is before us now, with one or two improvements.

Dame Tracey’s recommendation H is clear and is key to the fan-led review:

“Fair distributions are vital to the long term health of football. The Premier League should guarantee its support to the pyramid”.

That is key. The pyramid is uniquely British. The strength of the pyramid is uniquely British. We therefore need to preserve it, but we need a fairer distribution of resources in order to do that. One change proposed in this Bill is the potential to include parachute payments when the regulator comes to a view on what the distribution should be. Instead of simply ignoring parachute payments—pretending they do not exist, as the previous Bill did—this legislation recognises the problem that currently 92% of the distributed funding for football goes to 25 clubs: the premier league clubs and the clubs receiving parachute payments. Those clubs receiving parachute payments have basically 10 times more resources than the clubs getting payments through the solidarity fund from the Premier League.

This is a nonsense. We can see the difference now between the championship and the premier league; this year is, I think, the first when all three promoted clubs have been relegated straight back down, and there is a great difference between their points totals and the points total of West Ham, just above them. This is not sustainable—not at that level nor going down the leagues, as clubs simply struggle to survive.

[Dr Luke Evans]

The English premier league is the best in the world. Any bar we go into across the world wants to show premier league football. There is a real danger of killing the golden goose if we try to pull that down. Also, the championship is the seventh most valuable league in Europe, and it is our second tier. I have a big worry here. We should look at the way England is playing, and at the way the clubs have come up. Leicester won the premier league in 2016, and the likes of Brighton and Brentford and Nottingham Forest are all flying up the leagues. The premier league is a competitive league, and that is what we want; we do not want to over-regulate it and kill both our national game and our international presence.

[Mr Betts]

I am sorry, but we must kill this myth that somehow the Bill is going to kill the premier league. It is not. This Bill is designed to sustain the rest of the football pyramid. We should look at the resources the premier league has: it has twice as much money as any other major European league. That is the difference. Taking a proportion of that away to support the rest of the pyramid will not undermine and destroy the premier league. It will help sustain the rest of the pyramid, and that is the message that we need to get across.

On the rest of the Bill, the issue of the sustainability of the pyramid is absolutely key, but I am still a bit wary about the rigidity of the backstop powers. There is some room for debate about giving a bit more flexibility to the regulators on that; I hope we can discuss that in Committee. The other key element is about ownership. We have heard stories about the problems that clubs have had with owners who simply are not fit for purpose, and I have no doubt that we will hear more. I was talking to colleagues in Reading on a Teams call the other day, along with other Sheffield MPs, and we discussed the problems facing Sheffield Wednesday supporters. We should stop clubs having to face such problems in the future.

On Sheffield Wednesday, the owner is not a bad man; he has put a lot of money into the club and he has not ripped it off, but he is clearly running out of money to make the club sustainable. He could not pay the players’ wages last month, and he could not pay the tax dues a few weeks ago. Another failure to pay will mean the club is subject to a transfer embargo for three transfer windows. That would completely undermine both the competitive and the financial basis of the club. That is not acceptable. The chairman is the only owner and the only director; he does not have a board of directors and has no chief executive. He runs the club from Thailand by remote control, and when he could not pay the bills he said, “Well, my companies are owed money, so I don’t have the money to pay the club’s bills.” We do not know what companies those are in Thailand. As far as we can see, he has no companies that earn money. We suspect that the money comes from the family trust that owns Thai Union Frozen Products, which owns John West and other brands. In other words, he is reliant on his family members to give him the money to pay the players’ wages. That is not sustainable. This Bill compels the regulator to make sure that owners have the funds to sustain their club, and that the sources of those funds are transparent and open for all to see. That is absolutely key, not only for Sheffield Wednesday but for lots of other clubs.

Finally, I am concerned that the owner, like owners of other clubs, has separated the ownership of the ground from the ownership of the club, and I hope we can strengthen the Bill on that issue. I do not think that was done for malevolent reasons; it was done to try to get around the financial fair play rules, and to help the club—that was his view. The fact is that the ground and the club are separate. Other clubs have that problem as well. In future, if an owner wants to separate the club and the ground, the regulator can step in to ensure that that is for proper reasons, and done in the proper way. Unfortunately, when ownership of the ground is separate from ownership of the club, there is a challenge. I would like a measure in the Bill that says that in order to get a licence, the owner has to prove that they have not only financial funding but a ground to play on. That should be locked in.

Changes and improvements can be made, but the Bill really helps football. It helps fans to ensure that their club is sustainable, and it holds owners to account. It is great that fans will now have a real role and involvement in their club. They can be properly consulted about what happens at Hillsborough; currently, there is an engagement panel for fans, but the chairman chooses who goes on it. When people join the engagement panel, they have to sign a document that states that they will not talk about what has been discussed outside the group. What sort of accountability is that? It is nonsense. The Bill will strengthen the hand of fans, so that they can properly engage with a club. I fully support it, and hope that the House overwhelmingly supports it, too.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Culture, Media and Sport Committee.

Football Governance Bill

Clive Betts Excerpts

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Lucy Frazer]

We believe that parachute payments have a role to play, although I know people have concerns about distortion. Under the Bill, if there is any issue relating to the finances of a particular club, particularly by reference to the parachute payments it might have received, the regulator has an ability to look at that within the licensing regime as a whole.

[Mr Clive Betts (Sheffield South East) (Lab)]

I have read the Bill, but I wonder whether the Secretary of State has read it. Under clause 55(2)(b), the regulator is not allowed to deal with

“revenue that the specified competition organiser distributes to a club by virtue of a team operated by the club being relegated from a competition organised by the specified competition organiser.”

In other words, parachute payments are deliberately excluded from the remit of the regulator. Why has that been done when it is one of the most distortive elements of the current arrangements?

[Lucy Frazer]

I have been very intimately involved in this Bill, having put together all the policy recommendations and had discussions with all the parties. I encourage the hon. Member to read all aspects of the Bill, not just the provisions in relation to the backstop, which he quoted. I know many Members feel that parachute payments are very important, so let me try to explain again.

I know that many stakeholders have concerns about the impact of parachute payments on financial stability, sustainability and resilience, and I know that parachute payments can play an important role in softening the financial blow of relegation at all levels of the football pyramid. Given the complexity of the issue, the regulator will need to undertake an holistic, evidence-based assessment of the system of financial distributions as part of its state of the game report, and this will include an assessment of parachute payments.

Parachute payments have been specifically excluded from the backstop mechanism to ensure that the two final proposals from the Premier League and the EFL are easily comparable. The impact of parachute payments on financial sustainability and resilience could be a relevant factor in both the decision to trigger the backstop and the final choice in relation to a proposal. More generally, the regulator can look at the impact of a parachute payment on a particular club when it comes to the licensing regime.

[Mr Betts]

Will the Secretary of State give way?

[Lucy Frazer]

I will press on, as I have now answered five times on parachute payments.

We will achieve our goal through the new licensing regime, under which all clubs in the top five tiers of English men’s football will need a licence to operate as professional football clubs. The regulator will have powers to monitor and enforce requirements on financial regulation, club ownership, fan engagement and club heritage protection, as well as setting a corporate governance code of practice and having the power to prohibit clubs from joining breakaway competitions.

--- Later in debate ---

[Thangam Debbonaire]

My hon. Friend raises a really important point. It is so important that the state of the game report leads the way, and that the regulator is allowed to look at the evidence and have the scope to intervene where that is necessary. I fear that the Secretary of State may inadvertently have confused the issue in her earlier remarks, although I think she began to clarify it. I would be grateful if the Minister could further clarify it in his summing up, as there is some remaining confusion.

[Mr Betts]

I certainly think that if we do not sort this issue out today, we must at least have some time in Committee to try to untangle what clause 55 actually means. I thought the Secretary of State said that the parachute payments were in play in the discussions about distribution of funds within football until it gets to the backstop, when they are taken off the table. It is almost being said that if the Premier League does not reach an agreement with the EFL until the point of the backstop, the Premier League will in effect have a veto over parachute payments being changed. That is what is being said, and I think that position really needs to be changed when we are in Committee.

[Thangam Debbonaire]

I thank my hon. Friend for that intervention. Like other colleagues, he is so knowledgeable about the detail of this Bill. I urge the Government to consider what has been said in a constructive spirit. Everybody present wants to get to the bottom of this confusion. We want to make sure that football and the regulator have the tools they need to grow sustainability—a key word which the Government have themselves used. The confusion about parachute payments is worthy of further attention, because there is so much money involved. They also have the distorting effect that the Government’s White Paper rightly identified.

If we do not look at this issue, we risk distorted competition in the championship by encouraging greater financial risk taking by the clubs that do not receive those payments. We know that that can result in an over-reliance on owner funding, which again is simply not always sustainable. As my hon. Friends have mentioned, clause 55(2) excludes parachute payments from any order by the regulator on revenue distribution. I gently say to the Government that, as there seems to be some contradiction or possible confusion, we would like that cleared up. I would be grateful if the Minister could say more in his summing up about how the money currently used for parachute payments could make more impact and perhaps be shared more widely, whether he has examined that in detail and to what extent he feels the current terms of the Bill are satisfactory.

--- Later in debate ---

[Mr Clive Betts (Sheffield South East) (Lab)]

First of all, we are here today because football has failed to regulate itself over many years. It is our job as parliamentarians to ensure that, in the end, we regulate on the behalf of football fans for now and for the future, and for the communities where our football clubs are based. That is our job. I will just begin by thanking those who have got us to this position: the hon. Member for Chatham and Aylesford (Dame Tracey Crouch), certainly; the Minister for sticking with it and bringing the Bill before the House today; and the EFL, the PFA, the Football Supporters’ Association and Fair Game for their advice. I even had a conversation with the Premier League, but let us say that that conversation did not lead to as much agreement as other conversations I have had with other football organisations.

This is not a Bill to destroy the Premier League, as some have tried to present it, including the Premier League itself. The Premier League has been a massively successful organisation. It has brought unimaginable wealth into football and into this country. The legislation is not here to destroy the Premier League, but to ensure that its great strength, its financial resources, can be used as a basis on which to strengthen the whole of the football pyramid. It is just a pity that the Premier League itself does not see it like that. It does not see its responsibility to the wider football game, but instead so often seems intent on narrowly focusing its attention on supporting the handful of clubs that are within the Premier League.

We just have to look at the other successful brand in English football: the pyramid. There is no other football pyramid like it in the world. The championship has the fifth-highest attendances of any league in Europe. Where else could you go on a Sunday afternoon to a second-tier relegation game and get 7,500 fans not in the home end but in the away end? Sheffield Wednesday did that at Blackburn on Sunday—and won, I hasten to add, giving ourselves hope of salvation. That is the strength there, but the incredible power of the Premier League’s resources is slowly beginning to corrode and erode the basis of the whole football pyramid. That is what we have to stop and what we have to act on.

In very simple figures, 25 clubs—not just the 20 clubs in the premier league, but the other five that are in and out of it on a regular basis—get 92% of the distributed resources within football. The other clubs in the EFL get 8%. That simply is not sustainable, and we have seen that gap grow and grow over the years. It is not just a static problem; it is an increasing problem that undermines the whole of the football pyramid.

Does the Bill, as it stands, deal with that fundamental challenge? The process for a review of football finance is far too bureaucratic. Why not give the regulator the up-front power to come to a decision about the distribution of football’s resources that makes individual clubs sustainable, and competition within and between the leagues sustainable? That is a simple remit. Let them get on with it, rather than going through this process right the way through to a backstop, knowing that the leagues have already had a chance to reach an agreement which they have signally failed to do. The Premier League never made a single offer right through the process from the very beginning.

With the parachute payments excluded from the backstop, the Minister risks destroying his own Bill. If the Bill remains as it stands, we will not achieve a sensible and appropriate redistribution of revenue. I think that has been said right across the House and we simply have to change it. I am happy to table an amendment in Committee. I hope the Minister might think about how the Government might accept such an amendment, because it will be needed to strengthen the Bill.

Is the distribution of resources simply a matter for the EFL and the Premier League, or do the fans, players and grassroots not have a view? Should there not be a wider process, at least a consultation, so that the regulator has the up-front power and also consults those groups in reaching a final conclusion? It is just strange that something that began with a fan-led review does not mention fans in that very important part.

I welcome the general approach of the licensing system. As has been pointed out, we have had too many bad owners and directors in football, and we still have some around.

[James Daly]

I am very interested in what the hon. Gentleman says. There are some very important points regarding redistribution, but there is also a very important point about the competent management of football clubs. The Derby County situation is an example, because the owner had £400 million in cleared funds when the club was bought. What happened to Derby was a result of how badly it was managed after the initial test. That is a real challenge for this Bill.

[Mr Betts]

My understanding is that it will be a test of the licensing system. It is about ensuring sustainability, and not just when an owner comes along and says they want to buy a club. They need to show that they can actually sustain that ownership going forward. That is the difference between the current rules and the rules that are being proposed, which we can test further in Committee.

Can the regulator really regulate sovereign wealth funds that own clubs? I have asked the Minister about that before, and it is something else that we have to look at, because it is a challenge to the system. I welcome the fact that fans will have a veto over their club changing its colours or name, but there is nothing in the Bill that says that fans have to be consulted about a change of grounds. The regulator has to approve it, but there is no right for fans to be consulted. We need to have a look at that.

I come back to my own club, Sheffield Wednesday—I have mentioned them once, and I will mention them again. They welcome the proposals and the EFL’s approach to the review, and they recognise the need for a change in the distribution of resources. I am not sure that the owner will be that enthusiastic about the change to require him to consult the fans properly. Many owners are like that—they want to go through the motions. Are they really going to engage in a meaningful way? That will be a real challenge for the regulator at a number of clubs. I understand why the form of consultation is not specified, but it will still be a challenge going forward and we need to keep an eye on it.

Finally, I come back to the FA cup. The Minister said it is not our job to get involved in football competitions, but the fan-led review was triggered by some clubs wanting to change the competition they play in by going to the European super league. That involved a handful of rich clubs deciding that they could be better off there. We now have a handful of rich clubs deciding that European games are more important than FA cup replays—that is what is happening.

When Arsenal won the FA cup in 1979, they had five replays, four of which were against Sheffield Wednesday in one round. I remember it all these years later, because it was a great achievement. Three of those replays were at the old Filbert Street ground. We remember those things as football fans, and we should not take them away from the game. I say to the Minister that one of the requirements of the regulator is to ensure that the heritage of English football is safeguarded. Will the regulator have the power to do that under the Bill’s rules, and is the FA cup and its replays not part of the heritage?

--- Later in debate ---

[Stuart Andrew]

My hon. Friend raises an interesting point. I have had dozens of meetings with the Premier League, but as far as I can recall, I do not think that it has raised carving out international broadcast revenue in those discussions, which have always revolved around the net media revenues and the aggregate revenue received by both the Premier League and the EFL; she raises a very interesting point.

Some say that the regulator should be able to trigger the backstop right at the outset. Frankly, that would just be a frontstop, and it may hinder a deal being struck by football itself, but the Bill provides that if there is no deal because one has not been offered or one side cannot sign it because it is not a good deal, that side can ask the regulator to trigger the backstop.

Members have mentioned parachute payments, and I am always happy to meet colleagues to discuss and look at that matter further, particularly in Committee. I am also happy to organise a briefing, if that would be helpful, because it is quite a complex issue. Parachute payments play an important role in the sustainability of the system by softening the financial blow of relegation, and removing them could have adverse effects. Look at Bradford City: when they were relegated from the premier league in 2001, there were no parachute payments, and the following season they went into administration.

[Mr Betts]

Will the Minister give way?

[Stuart Andrew]

I literally have two minutes. I have offered a briefing, and we can have this debate afterwards.

We realise that parachute payments can have a distortive impact, particularly in the championship, which is why the regulator has the power to address any structural or systemic issues through its licensing regime. Any distortion created by parachute payments also has the potential to be addressed through distribution to non-parachute payment clubs; that is exactly what the regulator will be able to look at as part of the backstop. Leading experts have advised us to keep the backstop targeted and simple, which we have done, and to design it so that it may never need to be triggered, which we have also done. As such, we do not think it is appropriate to include parachute payments in the backstop, nor we do think it is necessary to do so, as we have ensured that the regulator will be able to address any distortive effects that they cause via the licensing regime.

I am running out of time to answer more questions. This is a landmark Bill for football. It has been carefully designed to celebrate the sport’s success and encourage investment, but it is about providing stability for clubs, sustaining the pyramid and putting fans at the heart. We recognise that there are many successes, but it is important that we tackle the issues. The IFR will be focused on football, focused on financial stability and focused on fans.

I close by playing on the iconic words of 1966. Too many fans have seen their club on the brink, and they think it’s all over. Well, it’s not now.

Question put and agreed to.

Bill accordingly read a Second time.

Football Governance Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)), That the following provisions shall apply to the Football Governance Bill:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 6 June 2024.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Joy Morrissey.)

Question agreed to.

Football Governance Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Football Governance Bill, it is expedient to authorise the payment out of money provided by Parliament of any expenditure incurred under or by virtue of the Act by the Secretary of State.—(Stuart Andrew.)

Question agreed to.

Football Governance Bill (Ways and Means)

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Football Governance Bill, it is expedient to authorise:

(1) the charging of a levy by the Independent Football Regulator in connection with the exercise of its functions under the Act; and

(2) the payment of sums into the Consolidated Fund.—(Stuart Andrew.)

Question agreed to.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 16th November 2023 Commons Chamber

[Stuart Andrew]

The hon. Lady raises an important point. Legacy is incredibly important to me. That is why we have been giving hundreds of millions of pounds to improve on and build new grassroots sports facilities, so that there are plenty of opportunities for people to enjoy the things they want to do that are inspired by tournaments just like Euro 2028.

[Mr Clive Betts (Sheffield South East) (Lab)]

This should be an opportunity for fans to celebrate and enjoy. I remember the 1996 Euros, when the Danish fans came to Sheffield and drank the city dry, without any problems or disorder whatsoever. Will the Minister give two commitments? First, will he engage with the Football Supporters’ Association in full planning for this? It needs to be involved because it has really good ideas and experience. Secondly, will he talk to the authorities about ticket pricing, so that those on low incomes, and particularly children, can get to the games and enjoy the events?

[Stuart Andrew]

I absolutely commit to engage with the Football Supporters’ Association. I also met fans ahead of the European championship finals in Istanbul this year. The hon. Gentleman is right, and there are lots of issues for us to discuss. We are in constant discussions with the likes of UEFA, for example, to which I will happily make those representations.

Football Regulation

Clive Betts Excerpts

Wednesday 8th November 2023 Commons Chamber

[Matt Rodda]

I thank the hon. Gentleman and I hope that the action the Government are proposing is brought forward and has the widest possible impact across the UK.

I take this opportunity to thank the thousands of local fans who have shown their support for a change of ownership of Reading FC, including the 1,400 people who joined a march from our town centre to the stadium a few days ago. It was an incredible show of support, and one that led to the unexpected closure of the A33 due to the huge numbers who took part. I thank all the drivers on the other side of the road—a two-lane trunk road—who hooted in support and cheered us on. I thank Reading FC legend Dave Kitson for leading the march and for his support for both the club and the campaign.

I thank our local council, including the council’s leader, Jason Brock, Councillor John Ennis, who has been a Reading fan since 1975, Councillor Adele Barnett-Ward and others. I thank John in particular, because he took part in a previous march in 1983 against Robert Maxwell’s ill-thought-through plan to merge Reading with Oxford United. I should add that John has been our lead councillor for transport for just four months and already he has shut a major road, which is not something that many councillors get to do.

I also thank my fellow Berkshire MPs, particularly the hon. Member for Bracknell (James Sunderland), the right hon. Member for Reading West (Sir Alok Sharma) and my hon. Friend the Member for Slough (Mr Dhesi). Sadly, the hon. Member for Bracknell cannot attend the debate due to illness, but he is a fan and hugely enjoyed the march. Despite the local political differences, he marched next to John and other seasoned campaigners and marchers from the Labour council—although, funnily enough, he seemed to feel more at home when the fans started chanting “Blue Army” as we walked down the road. I thank him, the Minister and colleagues from across the House for their support.

I turn now to the substance of the debate. It is clear to us all that there is an ownership problem in English football. I will use the debate to explain the terrible impact of that ownership problem on Reading and, by implication, on many clubs across the country, and to ask the Minister to reassure fans, players, staff and local communities. As I said earlier, I welcome the Government’s announcement that they plan to bring forward a Bill to regulate football. That is an important step.

I call on the Government to live up to that promise. Ministers must ensure that the Bill includes proper powers for the regulator and, crucially, that there is enough parliamentary time for the Bill in the last months before a general election. Above all, the Government need to show us that they have the determination to press forward with what they have promised. I know my hon. Friend the shadow Minister is willing to work with them, as are we MPs, fans and the whole football community. I hope the Minister will confirm that the Government are serious and will commit to them taking this vital work forward as a matter of urgency.

I will turn now to Reading football club. To put it clearly and simply, as loyal fans did on the march last week, we want our Reading back. The story of what is happening to our wonderful club is quite simply heartbreaking. It is terrible, and I could use much less parliamentary language—as was occasionally heard as we marched down the A33. The situation we face stands in stark contrast to the history and traditions of our great club.

Reading was founded in 1871, and it is one of the oldest clubs in English football. The fans, the players of the men’s and women’s teams, and the staff have all been badly let down. In men’s football, Reading has been a championship club, knocking on the doors of the premier league. It has enjoyed three seasons in the top flight. In fact, we were one place outside getting into Europe at the end of our first premier league season, in 2006-07. Fans have vivid memories of the nineties, the noughties and our most recent time in the premier league 10 years ago—the proudest possession of one of my children is a ball signed by the whole team from that heady time—under the wise leadership of brilliant managers such as Steve Coppell, who guided gifted players, many of whom were local and came up through the club’s academy, and the committed support of the then owner, Sir John Madejski, whom I thank for his wise stewardship of the club.

The club and the wider football community used to talk about “the Reading way”: developing and motivating players at a local family club, and achieving far more than others would have thought possible. That includes—I particularly like saying this—beating Watford 4-1 to win the Simod cup at Wembley; winning the championship a number of times, most recently in 2011; knocking on the door of the premier league in successive play-offs; and great FA cup runs, including sadly losing to Arsenal in the semi-final in 2015.

Crucially, the women’s team were also punching above their weight, and were a real success story. Until recently, they were playing in the women’s super league thanks to brilliant players and management, and were on the brink of doing something amazing. Sadly, that run of success has now ended.

The club was sold in 2013, and a succession of owners have presided over a worsening situation. Unfortunately, our men’s team is now languishing at the bottom of league one, through no fault of their own—16 points have been deducted from the club in the last few months for an array of financial mismanagement by the current owner, Chinese businessman Dai Yongge, not for anything that has happened on the pitch. That financial mismanagement includes Mr Yongge failing to pay wages and national insurance. His Majesty’s Revenue and Customs had lodged winding-up petitions before the NI was paid. Mr Yongge’s term as owner started well, with investment in players and the training ground, but sadly he seemed to lose interest. This may be a familiar story to others who follow the history of many of our clubs.

The effect of those points deductions has been absolutely appalling. Reading’s men’s team was relegated from the championship to league one at the end of last season, and further points deductions have left us at the very bottom of that league. To make matters worse, it now looks as if the club will be relegated again at the end of this season. That would leave us playing in league two. The owner has also pulled the funding for the women’s team, which made them unsustainable as a professional outfit—sadly, the players are no longer fully professional—and they too have been relegated.

Let me say a brief word about players, staff and fans. Quite simply, they are doing a determined job to remain positive in an extremely difficult and challenging situation that is not of their making. We are all extremely proud of them, and I pay tribute to them all. Young, less experienced players—the men’s team are the youngest in the league—who in some cases should still be in the academy or on the bench, are playing with grit and determination despite everything that has been thrown against them. Fans with families and busy jobs have come together to fight for our club in a community campaign that has made the national news. We are all very proud of them, and I want to say: “Come on you R’s!”

[Mr Clive Betts (Sheffield South East) (Lab)]

I apologise for being late to the debate—I was caught out by the earlier start. My hon. Friend is making a good point about the way in which football is often run by individuals who can, in the end, bring a whole club and its community down because of the way the club is managed. At Sheffield Wednesday, Dejphon Chansiri has put a lot of money into the club—great—but he has been saying recently that he may stop the funding, which is obviously a considerable threat. In the end, clubs are not just about the person who owns them, or the chairmen; they are about fans. Clubs belong to them, and they should have the right to be consulted right the way through on all those issues. We hope that the regulator, when it comes in, will have the powers to do precisely that.

[Matt Rodda]

My hon. Friend makes an excellent point, which I will address later in my speech. I hope the Minister will offer further detail about what he proposes, and I urge him to use his speech to give us some hope, some cheer, some optimism, and some fire in our bellies to help fight for the future of our beloved club.

The Government have announced a Bill to introduce a football regulator, which is welcome. That Bill has the potential to lead to real change in English football, but sadly it is not clear how far the Government will respond to fans’ concerns, and indeed to those of the football authorities. We are all concerned about owners, such as Dai Yongge, who seem to swoop in, hope to make money, and then lose interest if they are not successful. We are at a very early stage with the Bill, so I hope the Minister will be able to reassure us about the thrust of that Bill. I ask him to provide some detail on a number of key points.

For example, can the Minister spell out what the Government hope the Bill will achieve? Can he be clear about the powers he is considering for the regulator, and will he reassure fans that they will actually have a say? Will he also put an end to clubs being punished for the actions of irresponsible owners? In short, will he commit to doing what it takes to make sure that no more clubs and no more fans have to suffer what we have had to suffer?

Dai Yongge has announced that he plans to sell Reading. He made that announcement in October, and so far there appear to be three bidders who have shown an interest in the club. That means that the sale could go through before the Bill is passed, so is the Minister able to reassure me about the club’s immediate future? If the sale does go ahead, will he commit to Reading becoming a pilot for new regulation to protect the club, and indeed to other measures that may be necessary to offer support?

Mr Deputy Speaker, I thank you once again for allowing me to have this debate tonight, and I thank Members who have intervened on me. Most of all, I thank Reading fans and our whole community. I look forward to the Minister’s response.

[The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)]

I start by congratulating the hon. Member for Reading East (Matt Rodda) on securing this debate. As he mentioned at the start of his remarks, it was the intention of the Minister for Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), to respond to the debate, but he has had to return to his constituency urgently for reasons that I think colleagues will fully understand.

In his remarks, the hon. Gentleman highlighted the deep concern that he and many of the fans he represents have expressed regarding football ownership. I pay tribute to his commitment, and to theirs; having listened to his description, we understand how difficult it must have been for those fans over the past few years. We are very much aware of the passion and interest that many hon. Members feel about the long-term sustainability and governance of English football, and their commitment to their local clubs. I thank the hon. Members for City of Chester (Samantha Dixon), for Strangford (Jim Shannon) and for Sheffield South East (Mr Betts) and my hon. Friend the Member for Southend West (Anna Firth) for their contributions to this debate. In particular, as a Member of Parliament for Essex, I am very much aware of the difficulties faced by Southend United, and my hon. Friend has been a fantastic champion for the fans of that club.

The presence of those hon. Members in this debate demonstrates how important football clubs are to the lives of people in this country. In 2011, when I chaired the Culture, Media and Sport Committee—quite a considerable time ago now—we conducted an inquiry into football governance. It is somewhat depressing that, 12 years later, we are still debating many of the same issues. However, I hope that the inclusion of the football governance Bill in the King’s Speech yesterday will reassure the hon. Member for Reading East and others that this Government are intent on delivering and safeguarding the future of football clubs for the benefit of communities and fans.

The hon. Gentleman has talked about his own local club, steeped in the fabric of its community. It has been relegated, suffered sporting sanctions and faced financial penalties because of reckless decisions made by owners and terrible mismanagement. We have also heard about poor and non-existent governance practices, with fans being prevented from influencing key decisions that affect them and having to petition local councils, in some cases to protect stadiums. All such incidents threaten the long-term health and sustainability of all clubs, not just Reading.

We have heard about how English football clubs make significant contributions, and also about what happens when the community is let down by irresponsible owners in charge of football clubs. No employee, be they a player or, indeed, someone in the club shop, should fear not being paid. It is the local communities and fans that are the lifeblood of these clubs, and they bear the brunt and fallout of bad ownership decisions. They see where the structures are not working for the good of the game, and they can articulate most clearly how these are set right.

My colleagues in the ministerial team have prioritised engaging with fans and listening to their concerns, and I would like to pay tribute to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) for leading the fan-led review of football governance. This has been of immense value in developing the White Paper and during the period of the consultation we held earlier this year. I would like to thank the Football Supporters Association for its support; its contribution has been extremely valuable.

Too many clubs have been brought to the brink with unsuitable owners taking over, stripping them of their assets and refusing to fund them any more. We are committed to breaking this cycle of inappropriate ownership, financial instability and poor governance practices. That is why the inclusion of the Bill in yesterday’s King’s Speech is so important. The Bill will establish an independent football regulator, which will put fans back at the heart of football and help to deliver a sustainable future for all clubs. It will strengthen the governance and financial resilience of football clubs to protect the national game and clubs linked with communities and fans. Crucially, the regulator will address systemic financial issues in football, while providing the certainty and sustainability required to drive future investment and growth. This will ensure that English football remains the global success story and tackles the harms that exist.

The Bill will give fans more of a voice in the running of their clubs by setting a minimum standard of fan engagement. Clubs will need to meet this, and will be required to comply with the FA on its new rules for club heritage. It will give fans a veto over changes to the badge and home shirt colours, in addition to the strong existing protections for club names. Most clubs have a strong relationship with their fans and consciously engage them in decisions about club heritage, but not all do. For instance, fans of Cardiff City and Hull City will understand the importance of these measures after they recently had to battle to bring back or to keep their club’s colours and badge. Likewise, the new system will create strengthened owners and directors tests to make sure a club’s custodians—their owners and directors—are suitable.

[Mr Betts]

I think the consultation with fans is absolutely at the heart of this. It was at the heart of the fan-led review, and I pay tribute to the hon. Member for Chatham and Aylesford (Tracey Crouch) for that. For the fans, it will be really important that the legislation specifies how fans groups will be appointed as part of the consultation, and it should not be left to the owners of clubs to decide which fans they want to talk to and which they do not, because that is at the heart of the current problems in many clubs.

[Sir John Whittingdale]

rose—

Oral Answers to Questions

Clive Betts Excerpts

Thursday 1st December 2022 Commons Chamber

[Michelle Donelan]

I would be delighted to meet my right hon. Friend. The Bill will ensure that children do not see content that promotes self-harm or glorifies eating disorders. Of course, the Bill will now be strengthened by a provision ensuring that adults will no longer see content promoting self-harm. I will invite the Minister of State, Ministry of Justice, the right hon. Member for Charnwood (Edward Argar), who has responsibility for victims, to join that meeting, to explain the clauses that we have added.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Minister quite rightly wore the armband in Qatar. Does he agree that it is completely disgraceful that FIFA stopped Harry Kane and other captains from wearing the armband as a demonstration of solidarity? Will he encourage our Football Association to work with other, like-minded FAs to ensure that FIFA changes its approach to the awarding and running of World cups?

[Stuart Andrew]

That was one of the reasons why I wore the armband. It was totally unacceptable that both the Welsh and English teams, at the 11th hour, were faced with an impossible decision. I thank those teams for wanting to wear the armband; it means a lot to all of us. I have already spoken to the FA about where we go from here. We cannot, at the end of this tournament, just let the matter come to an end. We need to talk about the future.

BBC Local Radio: Proposed Reduction in Provision

Clive Betts Excerpts

Tuesday 1st November 2022 Commons Chamber

[Julia Lopez]

I hope that the BBC listens carefully to all the points that hon. Members are raising today. As a public service broadcaster, the BBC is there to serve all demographics, but particularly those who are poorly served by other means. I am grateful to my hon. Friend for highlighting the charity work that her local radio station, BBC Radio Essex, has been so excellent in pursuing.

[Mr Clive Betts (Sheffield South East) (Lab)]

I echo the comments made by my hon. Friends already about the excellent services provided by Radio Sheffield—local news, local motoring and local football. The key is the word “local”. People in Sheffield and south Yorkshire want to know what is happening in their immediate communities: frankly, they are not desperately interested in what is happening in Leeds and west Yorkshire. I suspect the reverse is also true. While we seem to be promised that the local morning news will be protected, it appears that excellent programmes such as those on Radio Sheffield in the afternoon will be scrapped and merged into some amorphous regional offering. Will the Minister tell the director-general that that simply should not be allowed to happen and is not what local people want?

[Julia Lopez]

The hon. Member’s point goes to the fundamental question of at what point local news ceases to be local. I shall ask the director-general that very question.

Oral Answers to Questions

Clive Betts Excerpts

Thursday 20th October 2022 Commons Chamber

[Michelle Donelan]

I would be more than delighted to meet my hon. Friend.

[Mr Clive Betts (Sheffield South East) (Lab)]

I want to push the Minister a little bit further, as he might appreciate. There is widespread support for the fan-led review. Okay, have the discussions about how it is going to be done, but can we have a commitment from the Front-Bench team that they are going to implement the principles of the review—an independent regulator, fairer distribution of funding, and an end to parachute payments?

[Stuart Andrew]

The hon. Gentleman is very good at pushing me on points, but I am sure he would accept that it is only right that I check all the details before making commitments. I assure him, though, that we will be publishing the White Paper very soon.