Football Governance Bill (Fourth sitting)

Ian Byrne Excerpts

Committee stage
Thursday 16th May 2024 Public Bill Committees

[Stephanie Peacock]

I am grateful for the opportunity to discuss the appointments process for the regulator. I was pleased to hear the Minister’s comments just now and those by the hon. Member for Gosport (Dame Caroline Dinenage) on Second Reading; she confirmed that the Culture, Media and Sport Committee will be holding a pre-appointment hearing with the chair of the regulator once there is a preferred candidate.

The first chair will have a formative role in shaping the regulator at a time when implementation will be key to success. However, on the whole, the Bill has provided limited information about how candidates for roles will be vetted. This is an incredibly important process to consider, not only due to the sheer importance of many of the decisions that these experts will be making but because we must be very careful not to import the same industry groupthink that has caused us to need an independent regulator in the first place.

There is no point in setting up an independent regulator if it is run by those who can offer no real independence from existing football governance structures. To ensure the strength and independence of the regulator, therefore, we require more detail in the Bill about appointments, as well as due diligence on behalf of those making the appointments in practice. The schedule does offer small bits of guidance in this area. It states that a person can be appointed only if their appointer is satisfied they do not have a conflict of interest, and that is an important start.

However, as Fair Game points out, the schedule is not comprehensive enough to provide the necessary assurances that the board will be free from such conflicts. Indeed, as the Bill stands, it does not say that a person cannot be on the board if they have a conflict of interest; instead it is more subjective, giving the power to the appointer to make the determination that they are satisfied there is no such conflict. I am simply not sure that that is strong enough.

[Ian Byrne (Liverpool, West Derby) (Lab)]

What the shadow Minister is saying is so important at the moment, because there is a complete lack of trust and faith in the game. That is why we are sitting here today. We heard from the evidence sessions that that lack of trust is hardwired in the National League, the EFL and the Premier League, so ensuring that everybody who loves the game sees the independent regulator as something to be trusted and as completely independent is so important. That is one of the key reasons why we are here today.

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[Stuart Andrew]

We have had this discussion many times, and I look forward to further debate on this as we go through the Bill. The hon. Gentleman will know that we also have provisions in the Bill for the regulator to look at those sorts of issues through the licensing conditions. I look forward to going into that in a bit more detail with him when we get to that part of the Bill, but I am acutely aware of his interest in that specific issue.

The third objective is on safeguarding the heritage of English football. Since the game was first played more than 160 years ago, football clubs have been an integral part of local communities and the lives of their supporters. The identity of each club is unique and often entwined with the identity of its fans and the history of the local community. Clearly, financial collapse is a risk, but so is the potential for clubs to become unrecognisable to their fans and communities.

[Ian Byrne]

That is a really good outline of why heritage is important. The Minister has talked about communities and football clubs. Maybe two words were missed out: “working class”. We have to ensure that working-class representation in the game stays within the game, as part of the heritage. I ask the Minister to include ticket pricing in that, because if we price working-class fans out of the game, we lose the lifeblood of the game.

[Stuart Andrew]

I never thought I would get into a discussion about class when talking about this Bill. My view is that football is there for everybody, and I absolutely recognise the roots of it in various parts of the country. Of course, particularly in the hon. Gentleman’s part of the world, there is a close association. I know we will come on to ticket prices later, but I hope the clause provides reassurance that the things that are important to fans—the identity of their club with their community, the colours, the names and so on—are an integral part of the work that the regulator will do to protect them.

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[Stephanie Peacock]

We are not suggesting that they will all be able to contribute to every element. I gave an example where, for example, football clubs are in the early stages of suffering financial problems and issues. Often, the groups that I refer to are the first to recognise and realise that. We are simply attempting to make sure that the legislation is as strong as it can be and that the regulator has the most thorough and useful list of people to work with constructively.

[Sir Christopher Chope in the Chair]

[Ian Byrne]

My amendment 2 builds on what my hon. Friend has just spoken about. The principles are all fine, but there is a glaring omission. We are here today because of supporters. It was the supporters that defeated the European Super League. If the reports are true, the then Prime Minister met the chief executive of Manchester United and there was not much of a furore around the European Super League politically. That suddenly changed when the fans rose up from every single club that was involved, much to the consternation of the owners —I know this personally. They thought that the fans of the said clubs would be delighted at the riches that were going to be pouring into their clubs and at ensuring their success, but that was not the case. It was the supporters of the six clubs and also the pyramid that rose up and defeated the European Super League.

[Robin Millar]

The hon. Gentleman and I see eye to eye on this, but it would be remiss of me not to point out, from the Government Back Benches, that the Prime Minister at the time was well aware of the objections and concerns that were felt across our constituencies.

[Ian Byrne]

That is a fine point. I am not excluding anybody, because there was outrage across the piece. Setting this regulator up is welcome, but it must have supporters at its heart. The regulatory principles should include supporters, so I hope the Minister takes on board what we have outlined and adds that one word, which would make a huge difference. It would reinstate trust in the whole process if supporters were listened to.

[Mr Betts]

I was thinking of moving my amendment from the Chair and then I could have directed the Minister to agree with it. [Laughter.] This proposal would feel very strange, as Ben Wright from the PFA said this morning, without the two groups of people who are absolutely key to football. We can manage without owners and directors, but we cannot manage without fans and players, and they are not mentioned in this part of the Bill. Will the Minister give us some comfort at least about how that particular point will be addressed?

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[Stephanie Peacock]

I appreciate the Minister’s response. He said that it could be quite burdensome to engage with every stakeholder, but that is not what this amendment seeks to do; it aims to lay out what we see as the most important ones. That includes players and fans, without which we could not be here. I think the Minister said that that is implicit. Why not make it explicit? Going back to that argument around burdens, the Bill mentions engagement so far as is “reasonably practicable”, so there is already that safeguard for the regulator. For that reason, I would like to press amendment 9 to a vote.

[Ian Byrne]

The Minister spoke about a stakeholder list, but actually the amendment was just about supporters. They asked for that single word, “supporters”, just to be on the face of the Bill. I think it would make a huge difference to supporters across the land if it was enshrined in the regulator’s principles. I think it would genuinely make a massive difference, so I do hope the Minister considers that at the next stage.

[Stephanie Peacock]

I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 9, in clause 8, page 5, line 33, at end insert—

“(iv) football fans,

(v) football supporter organisations,

(vi) any local community groups that the IFR considers relevant,

(vii) employee groups and unions with members employed by football clubs, and

(viii) professional football players and their representatives.” —(Stephanie Peacock.)

This amendment expands the list of those whom the IFR must engage constructively.

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I understand that it is incredibly important that the scope of the regulator should not stray into areas beyond its remit. I want to be clear that I am not suggesting that the regulator or fans should be able to impose any requirements on clubs or competition organisers to sell tickets at certain prices. That is not for anyone other than the clubs and competition organisers to decide. However, I believe that well-run clubs will want to hear from fans on the issues that matter to them most. I will be interested to see any trends on prices and how they impact fans and attendances.

[Ian Byrne]

On the point about supporters not dictating ticket prices, in 2013 the supporters came together and fought for a price cap on away ticket prices, because clubs, left to their own devices, were pricing them out of the game. I think the Arsenal-Liverpool game in 2013 was the tipping point—I think that was £68. It was felt that that was unsustainable, and that was happening right across the football pyramid. Supporters came together, campaigned and got the Premier League to sit down with them in a room and acknowledge that it was getting too expensive, and a £30 price cap was then designated. The atmosphere of games was a unique selling point for the Premier League. It was willing to price supporters out, and it was supporters who brought it to its senses.

[Stephanie Peacock]

That is a good example that highlights that well-run clubs will want to hear from fans on the issues that matter most to them. Of course, the ability of fans to attend games is incredibly relevant to the financial sustainability of every club. Match-day revenue is a crucial pillar of club finances, and of course getting pricing right will require much more than fan input alone, but I believe that at the very least fans deserve to have their voices heard on the matter, and they have something to offer clubs in return.

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[Stuart Andrew]

I absolutely recognise that issues such as ticket pricing are really important to fans. Indeed, match days, as others have said, would not be what they are without the fans. The Government believe it is important that clubs consult fans on key off-pitch issues that impact supporters, including operational and match-day issues. These provisions, and the wider provisions for fan engagement, will ensure that fans have a voice on the issues that are most important to them, but it would not be appropriate—the hon. Member for Barnsley East was alluding to this—for the regulator to be a fix for all of football’s woes. Rather, it will be set up with a tightly focused and defined scope and purpose, to tackle the specific market failures that carry a risk of significant harm to fans and communities.

[Ian Byrne]

I do not think the supporters expect the regulator to fix ticket prices. What they are expecting the regulator to do is to ensure that the clubs go into dialogue with the supporters, so that they can understand the difficulties that supporters may have in relation to affordability. Also, as we heard during the evidence sessions today, many decisions are being made by clubs instantaneously, or within hours, and with zero consultation, which is a cause of massive discomfort. We heard about Arsenal and Tottenham football clubs getting rid of concessions. My own football club, Liverpool, made a decision to increase ticket prices with zero consultation. That is what needs to stop. These are important things. I link this to the heritage element: if we price football supporters out of the game, we lose the heritage of football.

[Stuart Andrew]

I absolutely understand the hon. Gentleman’s point. It is why, on page 93, the Bill specifically says that the “relevant matters” include

“matters relating to…operational and match-day issues”.

I encourage the clubs to speak to the fans about these very issues.

The Bill is very focused on sustainability in order to protect the long-term future of clubs, in the interests of the fans and the local communities. That means that the regulator will not intervene directly on issues outside this scope—including match scheduling and ticket prices. Issues of that kind are for football to address. It is well within the gift of the leagues and the authorities to intervene if clubs are not getting it right.

The purpose of the state of the game report is to allow the regulator to better understand the finances and economics of the industry and its individual clubs. As industry experts said on Tuesday, the state of the game report will allow the regulator to look forward as well as in the rear-view mirror. In turn, that allows it to deliver on ensuring the sustainability of clubs. To specifically require the regulator to consider ticket pricing and match scheduling as part of the report would detract from that purpose.