Football Governance White Paper

Jeff Smith Excerpts

Thursday 23rd February 2023 Commons Chamber

[Jeff Smith (Manchester, Withington) (Lab)]

I thank the Minister for his statement and for advance sight of it. The shadow Secretary of State is sorry not to be here. She managed to keep her diary clear on all the other days that we were warned to expect the White Paper, but on the day it finally arrived she had a commitment in her constituency. I echo the Minister’s comments about our sadness on the passing of John Motson. With the loss of Motty we have lost a real football legend.

Football clubs are at the heart of our communities. Football is a key pillar of our culture, society and economy, but it has long been in need of reform. Too often, decisions affecting our clubs have been made without reference to the fans, without whom football would be nothing. Historic clubs have collapsed because of the reckless actions of owners, and the perverse incentives created by pyramid finances. The longer we wait for change, the more clubs are at risk. Even now, Southend United is in crisis, facing a winding-up hearing next week. There is still no agreement between the Premier League and the English Football League on financial redistribution. Rumours continue about revised proposals for a new European super league. We are regularly reminded that this is an urgent issue.

Labour’s support for football reform and a fan voice has featured in all our manifestos dating back to 2010. That is why Labour welcomes the measures set out in the White Paper. We will look at the detail, but we strongly support the key proposal for the creation of a fully independent regulator of English football. Indeed, we backed the implementation of all the recommendations of the fan-led review from the beginning. Once again I thank the hon. Member for Chatham and Aylesford (Tracey Crouch) for her leadership in getting us to where we are today, but I must ask the Minister why it took us so long to get here.

The excellent fan-led review report was published in November 2021. When the Government responded last year they said they would back all 10 strategic recommendations. They delayed—too consumed by chaos in the Tory party and the Government—and the promise to legislate was watered down to the publication of a White Paper. The White Paper was promised for months, and although we were finally told that we could expect it weeks ago before recess, instead it was leaked to The Sun newspaper. In the meantime, more clubs have struggled and come near the brink of collapse. I am pleased that we are finally making progress, although today’s announcement should not really have been about a White Paper; it should have been about a Bill. It is not clear how much more we will learn from a consultation on a White Paper that was not already explored by the fan-led review, which had wide-ranging fan and stakeholder input, supported by an expert advisory panel.

Given where we are, Labour wants to use the opportunity to help the Government make the future Bill as strong as possible. In welcoming the broad proposals, I ask the following questions of the Minister. First, financial sustainability is at the centre of the fan-led review. We need a regulator with sufficient teeth to ensure that our game as a whole is sustainable, as well as individual clubs being sustainable. We look forward to seeing the full detail of powers that the regulator will have to step in on issues such as redistribution if the football bodies do not resolve them. What can the Minister say about the review’s recommendations on other important financial issues such as the transfer levy, parachute payments, or sustainable player contracts?

The fan-led review proposed what was called a golden share, which is simply a requirement that there should be democratic fan consent for actions around heritage items such as club colours, names, badges, or relocation outside the local area. How will that supporter consent be guaranteed? When the White Paper was leaked, The Sun reported that the then Secretary of State wanted legislation in place for the 2024-25 season. Will the Minister lay out the consultative and legislative timetable that would allow that to happen? Is it the intention to legislate in this parliamentary Session, and how soon does he think we can get a Bill passed and an independent regulator up and running? Those are important and fundamental questions, because our national game needs action and change. Football fans have waited long enough.

[Stuart Andrew]

I am grateful for the support that the hon. Gentleman has indicated today. We all recognise that action needs to be taken, and I am grateful for that support from the Opposition. I accept that time has been taken, but it is important to put on record that these are not simple matters. They are complex, and it has been important for us to ensure that we get this right. I have not been sitting on my hands; I have dedicated considerable hours to this, building on the extensive work in the review led by my hon. Friend the Member for Chatham and Aylesford.

The hon. Gentleman is right to talk about the finance side of things, and of course the regulator will have the teeth it needs to ensure support for the whole of the game. On fan voice, although we have not gone down the golden share route, the voice of fans is front and centre in this White Paper. It will basically achieve exactly the same thing, and it will be a condition of a licence for clubs to compete in English football. I am extremely grateful for the offer of support on the Bill, and I look forward to working with the hon. Gentleman as we try to progress it through the House.