Football Governance Bill

Debate between Damian Collins and Lucy Frazer

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Lucy Frazer]

The Bill identifies a number of things that we know are important to fans, including heritage assets such as the colour of shirts, badges and the location of a club’s stadium. We know that those are the things fans care about. The Bill ensures a proportionate approach, because we know that engagement with different fans at different clubs, which have very different measures in place, will require us to take a proportionate, case-by-case approach. The regulator must ensure a level of engagement with fans, particularly on the issues that I am identifying, but we also want to ensure that it works for the clubs. Therefore, it will be for the regulator to ensure that a proportionate approach is taken.

I was about to go on to discuss that aspect, because we will be setting a minimum standard of fan engagement, and requiring clubs to seek the approval of their fans for changes to those things I mentioned in order to comply with the strong existing protection for club names. We know that most clubs have a strong relationship with their fans, consciously engaging them in decisions about the club’s heritage. However, there have been some notable exceptions, as we have seen at Cardiff City and Hull City, whose fans have had to battle to bring back or keep their club’s colours, badge and name.

As I said, the regulator will also protect fan interests with the requirement for clubs to seek its approval for any sale or relocation of their home ground. The stadium a club plays in is not only of significant value to fans; it can be the club’s most valuable asset, and it is only right that a club seeking to relocate has to demonstrate that such a move would not significantly harm the heritage of the club.

[Damian Collins (Folkestone and Hythe) (Con)]

The regulator is asked to balance the financial sustainability of the club with heritage concerns and to make an either/or decision, under its purposes. In that scenario, could the regulator decide to allow a club to move if it felt it was best for the club’s future sustainability, even if the fans objected?

[Lucy Frazer]

Yes, that is right; the regulator has to take into account the views of fans and look at the proposals. If it considers the proposals to be good, that change can take place.

Under the new regulator, fans will no longer face the prospect of seeing their club signing up to ill-thought-out proposals, such as the European super league, which several Premier League clubs tried to join in 2021. The House was united in recognising that those proposals for the new competition were fundamentally uncompetitive and would have undermined the football pyramid, against the wishes of fans. This regulator will prevent that kind of closed-shop league from ever getting off the ground.

--- Later in debate ---

[Lucy Frazer]

As my hon. Friend knows, the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have spent time looking at the issues in rugby, and continue to do so. We are setting out what we hope will be a strong financial framework for football. This is being watched closely by other countries that are looking into what they will do in football. Of course if other sports want to look into this, they can.

I move on to the backstop power. Obviously, broadcast revenue is a hugely important source of income for clubs up and down our top-tier football leagues, but the current distribution of revenue across the top five divisions is not sufficient, and football has not been able to come to a suitable new arrangement. Not only does that contribute to problems of financial sustainability, but it can have a destabilising effect on the sport. To avoid that in future, the regulator will have new, targeted backstop powers to help ensure a sufficient flow of money. However, those powers are intended only as a last resort, and can be triggered only if certain conditions are met. The backstop mechanism has been designed with the industry and leading experts to give football incentives to reach a timely compromise, thereby delivering the right outcomes while minimising costly regulatory involvement.

The final part of the regulator’s job is improving the corporate governance of clubs. We will establish a football club corporate governance code, and will require clubs to report regularly on their corporate governance, setting out how they have applied the code and why that is suitable for their circumstances.

[Damian Collins]

The language in the Bill reflects the language on corporate governance in the Companies Act 2006, but there “corporate governance” includes the relationship that a board of directors has with not only the component parts of the business, but the employees. Should it not be inherent in the Bill that the corporate governance code should suggest how clubs can maintain high player welfare standards?

[Lucy Frazer]

We looked closely at precedents elsewhere, particularly in regulatory fields, when forming the basis of the Bill. We have always been conscious that we are regulating in a commercial space, and that football clubs are businesses. The premier league is world leading. We are regulating because football clubs have failed to solve these issues themselves. What we do not want to do through this Bill is over-regulate, including in areas in which we would not be regulating but for this Bill. We are trying to strike the right balance. That is why the Bill, notwithstanding questions that have been put to me in this House, focuses on financial regulation. Importantly, it does not interfere with the game, or with how players are looked after. The leagues have a role to play, and they should be primarily responsible for running the game.

Oral Answers to Questions

Debate between Damian Collins and Lucy Frazer

Thursday 27th April 2023 Commons Chamber

[Lucy Frazer]

As the hon. Member will know, the Commissioner for Public Appointments is looking into this matter, and it would not be appropriate to comment until it has published its full report.

[Damian Collins (Folkestone and Hythe) (Con)]

The Folkestone library at Grace Hill in the town was one of the early Carnegie libraries, an important cultural hub as well as a working building. It is currently closed because structural repairs are required. Does the Minister agree that the Arts Council strategy should recognise not only the need to support working library facilities, but that they are often important heritage assets that benefit the whole local community?

[Lucy Frazer]

Library facilities are very important, and I was pleased to visit a library facility recently. We have put more funding into libraries and into communities across the country.

Gambling Act Review White Paper

Debate between Damian Collins and Lucy Frazer

Thursday 27th April 2023 Commons Chamber

[Lucy Frazer]

The hon. Gentleman is right to say that it is appropriate to protect people who are aged between 18 and 25. When he reads the whole White Paper, he will see that it proposes a consultation on reducing the amount of money that young adults, aged between 18 and 25, can bet on online slots.

[Damian Collins (Folkestone and Hythe) (Con)]

I congratulate the Secretary of State and her officials on their work to produce this review. I agree that the Gambling Commission needs to be a data-savvy regulator. Can she confirm that it will be able to run independent background affordability checks without causing friction in the system? Importantly, many of the industry rules covering the gathering and use of data to target the advertising that drives customers towards loot boxes were written for the pre-smartphone world. The Gambling Commission needs to make sure that vulnerable players are not being data-profiled and targeted.

[Lucy Frazer]

As always, my hon. Friend makes an important point. I am pleased to have had the opportunity to discuss these issues with him, given his expertise and knowledge of this area. He mentions player protection checks, which will largely be seamless and frictionless background checks that affect only 20% of people, most of whom will not know they are taking place. These secret checks are important in ensuring that gambling companies are taking their responsibilities seriously.

My hon. Friend will know that the Government are working with companies to ensure there are protections on loot boxes, too.