Football Governance Bill

Debate between James Wild and Lucy Frazer

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Lucy Frazer]

We understand that parachute payments have a role to play. There is provision in the Bill to deal with parachute payments, but that provision relates to the consideration on a club-by-club basis in the licensing regime itself.

[James Wild (North West Norfolk) (Con)]

When clubs like Norwich City are promoted to the Premier League, those parachute payments give them the confidence to invest, which drives competition in football. Are they not a good thing that we should be supporting?

[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.