English Football: Financial Sustainability and Governance Debate

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Department: Department for Digital, Culture, Media & Sport

English Football: Financial Sustainability and Governance

James Wild Excerpts
Thursday 6th March 2025

(3 days, 2 hours ago)

Westminster Hall
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James Wild Portrait James Wild (North West Norfolk) (Con)
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I congratulate the hon. Member for Earley and Woodley (Yuan Yang) on securing the debate. I declare an interest: I am a Norwich City fan and a King�s Lynn Town supporter.

The premier league is the most viewed league in the world and supports 90,000 jobs across the country, and league one is also very popular, so football is a success. I want to focus on the governance proposals, particularly in the Football Governance Bill. All fans would sign up to the key objectives of ensuring financial sustainability, preventing breakaway competitions and protecting heritage, but my concerns are about possible over-regulation and overreach. I welcome the amendments that have been tabled in the other place to introduce a growth duty into the Bill, which the Government previously resisted.

Of course, the provisions on revenues attract the most attention. Let us be clear that the proposal is for the Government to take the power to mandate how to divide the proceeds of football. Currently, there is a voluntary distribution of the revenues through the football pyramid, and that is essential to the health of the game. We are seeing the impact of the proposals: the EFL is refusing to negotiate with the Premier League and has said that it is waiting for the backstop powers to come into force.

The Government have made the proposals even worse by including parachute payments in the backstop. That is a complete mistake, because clubs such as Norwich need the certainty of parachute payments to invest so that they can compete in the league. That would ensure we have a competitive league that generates income. The EFL will not engage with the 3UP national league campaign, because it is waiting for the backstop before making a view on whether to get one more promotion from the national league.

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James Wild Portrait James Wild
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I have to say that it is very curious that we know that this letter exists�it has been confirmed in the other place that it exists�and yet the Government repeatedly refuse to publish it, despite the potential impact that political interference with the governance of sport could have. Why does the Minister not just ask UEFA for permission to publish the letter and give it to Members?

Stephanie Peacock Portrait Stephanie Peacock
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The hon. Gentleman is an experienced Member of this House who I know spoke on Second Reading of the Bill. His Government, like this one, did not publish private correspondence, but I can absolutely assure the House that I have met UEFA and it does not have any issues.

As the Member of Parliament for Barnsley South, I know how important a club is to the community. Barnsley FC is a huge part of my town, and the community trust does amazing work, but Barnsley football club narrowly avoided administration 20 years ago. Football clubs mean everything to local people, with family, friends and neighbours coming together to watch games, win or lose. In turn, football would be nothing without its fans.

Hon. Members have spoken so well today about what clubs mean to their communities. We have heard from so many: Reading, Aylesbury United, Oxford United, Brighton and Hove, Luton Town, Grimsby Town, Norwich City, Chesterfield, Coventry City, Port Vale FC, Derby County FC, Morecambe FC, Carlisle United FC, Basingstoke Town, Bolton Wanderers, Bracknell Town, Mansfield Town and Weston-super-Mare. That really shows the strength of debate up and down this country and across this House. Despite bigger revenues than ever coming into the game, too many loyal fans have had their attention forced away from the pitch and into the troubles of malicious ownership, mishandled finances and ultimately the worry that their cherished clubs might be lost.

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James Wild Portrait James Wild
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rose�

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Yuan Yang Portrait Yuan Yang
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I thank all hon. Members who have made speeches or interventions today. I also thank the Minister for her response and reassurance that she and this Government will continue to take seriously the real and pressing need for better football governance in this country. I am glad that she mentioned this Government�s amendments and additions to the Bill, particularly concerning fan consultation. I think we can all agree that we are here today in this Chamber because of the fans we represent.

Many hon. Members have brought up the social value of clubs and the community value that they bring to us. As my hon. Friend the Member for Weston-super-Mare (Dan Aldridge) pointed out, it is rare in any other walk of life to find a club that spans youth clubs and elderly people�s clubs and does work across the spectrum of ages and backgrounds. My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) described how much of a presence her local club has in her town. My hon. Friend the Member for Stoke-on-Trent North (David Williams) spoke about how his local club, Port Vale, received an award for its community value, and he described the value of the cohesion that a football club can bring as a focal point for the community.

My hon. Friend the Member for Morecambe and Lunesdale (Lizzi Collinge), who has worked at length with her local club the Shrimps, described how clubs can bring people together. I recognise that Morecambe football club faces a severely urgent need for an independent regulator. Because of that urgency, I was actually quite disappointed to hear the shadow Minister, the hon. Member for Old Bexley and Sidcup (Mr French), describe the history of the Bill, but then sidestep that history and seem to oppose the current Bill. I also note that he did not respond to the question from my hon. Friend the Member for Bracknell (Peter Swallow) about why he had changed his mind.

For many clubs across the country, we need regulation sooner rather than later, as my hon. Friends the Members for Derby North (Catherine Atkinson), for Middlesbrough and Thornaby East (Andy McDonald) and for Harlow (Chris Vince) pointed out. Every day we wait means another day that the staff of Reading football club forgo their wages and fans forgo certainty. My neighbour the hon. Member for Wokingham (Clive Jones), who described this as a cross-party issue. I urge Opposition Members to maintain the cross-party consensus that was built over the last Parliament, when we all identified the need for independent football regulation.

I recognise the concerns voiced by the right hon. Member for Salisbury (John Glen) and the hon. Member for Hinckley and Bosworth (Dr Luke Evans) about the effects of a new regulator. I see where they are coming from, but I would argue that regulation can only increase international business confidence in the integrity of our football pyramid. There have been legal challenges already in the past few decades about the collective selling in the premier league, and I believe that better governance would reassure all those looking on that the public benefit argument has been sufficiently thought through.

More regulation would mean more stability across the pyramid and would prevent the situation we are in today, under which so many Members in this room have seen their local clubs go into administration, and which the hon. Member for Great Yarmouth (Rupert Lowe) experienced when he was the chair of Southampton and it went into administration. For those clubs that have experienced administration, as my hon. Friend the Member for Bolton West (Phil Brickell) described, the impact on fans and on staff is immense. My hon. Friend the Member for Luton South and South Bedfordshire (Rachel Hopkins) described how fans can rescue a club from administration, but so few manage to go down that route and emerge successfully.

My 90 minutes is drawing to a close, and there is no extra time for us in this match.

James Wild Portrait James Wild
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Will the hon. Lady give way?

Karl Turner Portrait Karl Turner (in the Chair)
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Order. Interventions are not taken in wind-ups.