Football Governance Bill [ Lords ] (First sitting)

Joe Robertson Excerpts

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Jim Dickson]

It is a pleasure to serve under your chairship, Sir Jeremy. I want to start by expressing my gratitude for the opportunity to be part of this Bill Committee. I again declare an interest as a season ticket holder at Crystal Palace for over 35 years, which has given me a chance to see the ups and downs of a football club and the perils of clubs going into administration. That has happened to Palace twice in just over 25 years, but that shows that clubs can sometimes bounce back. I hope, Sir Jeremy, that you will tolerate me briefly putting on the record my joy at having been at Wembley two weeks ago to watch the mighty Eagles win the FA cup—a high point in my time as a fan. I promise the hon. Member for Old Bexley and Sidcup that I will not turn the Committee into a clash of the south London giants over the next month or so.

I warmly welcome the Bill. Fans and all those who value clubs as integral parts of local communities will fully support the establishment of the independent regulator and the three primary objectives of sustainability, resilience and protecting heritage. The enhanced owners and directors test; the club licensing system, which is proportionate and puts advocacy first; the oversight of financial distribution; and the backstop powers in the Bill are very important. Fan organisations are particularly pleased by the provisions requiring clubs to meet the fan engagement threshold.

Clause 1 sets out the purpose of the Bill and defines sustainability. The hon. Member for Old Bexley and Sidcup seeks to change that definition. I am curious why the Opposition want the definition of the sustainability of English football to be tied to, for example, its increasing TV viewership. Although I am sure that is well intentioned, I fear that it conflicts with other parts of amendment 96. While growing a TV audience is obviously important, if it is considered critical, I am sure that clubs will argue for even more late changes to fixture schedules to produce the best kick-off times for TV, or, as has started to happen in other leagues, to begin playing games abroad. Those things create major expense and inconvenience for fans and therefore will not meet the needs of present or future fans, which the amendment refers to.

The amendment misses the point in another important respect by muddying the waters between success and sustainability. Across their history, the Premier League and the English Football League have been very successful in generating revenue. According to the football finance expert Kieran Maguire:

“Since the Premier League was formed in 1992-93, its revenues have increased by 2,857%, whereas the Championship is at just over 1,000%”—

also very healthy. Given that prices have doubled, from a consumer prices index perspective, that is great business.

However, that has come alongside an inability to control costs. The most significant costs in the industry are wages. While Premier League revenues are up by 2,857% since 1992, wages have increased by over 4,000%. Mr Maguire also said:

“Similarly, as far as the EFL Championship goes, if we take just one division, wages are up 1,400% compared with revenue of 1,000%...As a consequence, if we look at the figures for 2022-23…the 20 clubs in the Premier League lost a collective £836 million. In the Championship, on average the clubs were losing £20 million: League One, £4.1 million, League Two, £1.4 million; and in the National League, £970,000. All those clubs have been part of a spectacularly successful industry, of which we should be proud.”

He added, as the hon. Member for Old Bexley and Sidcup has also said:

“It has globalised the game of football as coming from the UK. There has been a collective inability to control costs.”––[Official Report, Football Governance Public Bill Committee, 14 May 2024; c. 5, Q1.]

One of the results is that since the start of the Premier League, roughly 40% of clubs in the top four leagues have gone into administration, which further underscores the problem. It is little wonder that, according to Dr Christina Philippou from the University of Portsmouth:

“More than half of the clubs in the top five leagues are technically insolvent, so if they were any other business, they would not be in existence.”––[Official Report, Football Governance Public Bill Committee, 14 May 2024; c. 7, Q4.]

So why is it right for the Bill to focus on the broad definition of sustainability? It is because the fans and communities need these clubs to exist. Unless we root the definition of success in sustainability, rather than the other elements that the Opposition are trying to introduce, we will not see that happen.

[Joe Robertson (Isle of Wight East) (Con)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I am delighted to be on the Committee, although I feel slightly ashamed that, unlike seemingly everyone else, I do not have any interests to declare.

The amendments deal with the important issue of the Bill’s purpose, but I will start by saying that football in this country is more than just a game; it is a defining part of our national identity. With around 14 million grassroots players and over 40,000 clubs across England, football is deeply woven into the fabric of communities. From the local pitch to the world stage, our game is a source of pride, unity and aspiration.

There are many key dates in this nation’s history. One of them is 1066, when the Norman conquest marked the start of modern monarchy in England, but for many people 1966 is an even more important date, because it was the last time that England won the World cup. To see this as merely a Bill relating to a sport would be to misunderstand the fundamental importance of football in our country. As a previous Secretary of State for Culture, Media and Sport noted in 2023:

“We invented the beautiful game. The English Football League is the world’s original football league, while for over 3 decades the Premier League has been the template for all other leagues to follow—simultaneously generating both the most excitement and the most wealth of any league on the planet. The Premier League and EFL are true global success stories, exported and watched by millions of people around the world each week.”

The community value of football clubs at the grassroots level also must not be underestimated.

The original wording of the Bill risks reducing sustainability to narrow financial metrics; amendment 96 seeks to broaden its definition to encompass environmental, social and generational responsibility. As my hon. Friend the Member for Old Bexley and Sidcup said, the amendment aims to make the definition more aspirational; rather than merely sustaining the status quo, it would mean looking to promote and enhance football in this country.

Our amendments 95 and 96 would frame football as not merely a business but a shared cultural institution, and they would protect fans’ long-term stake in their clubs, ensuring that future generations can access the same joys, histories and traditions. An overly cautious approach in the Bill could stifle investment and reduce competitiveness, so I ask the Minister for greater clarity on the regulatory model. The statement of the Bill’s purpose relates to sustainability and the Bill itself is overly focused on financial metrics.

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[Jon Pearce]

It is a pleasure to serve under your chairmanship, Sir Jeremy. Does the hon. Member agree that there is a tension between increasing TV viewership and increasing match attendance? Many fans around the country will say that the frustration of moving kick-off times from 3 o’clock on a Saturday to 4 o’clock on a Sunday, or to a Monday, Thursday or Friday evening, has a massive impact on the regular UK fan. Does the hon. Member see any tension between the aims of amendment 96?

[Joe Robertson]

I would not like to sweep aside any suggestion of tension. There will always be tension among people who watch sport—in this case football—in different ways, but I do not accept that there is an overall tension. It is perfectly possible to grow both match attendance and TV audiences. I do not accept that there is a structural tension between those two things. In my view, the success of football is infinitely growable.

Amendment 96 also refers to the unique heritage of football clubs. The shadow Minister talked about football being older than the Labour party, which shows how woven into the fabric of this country—indeed, of the whole United Kingdom—football is. The amendment also mentions the

“effects on the income of local businesses, cultural enrichment or the reputation of the local area.”

All Members know that football and football clubs have a positive effect on those things. It is right to that the Bill’s purpose reflects all those things and the breadth and importance of football in this country.

[The Chair]

I am happy to call the hon. Member for Cheltenham automatically in every group or, if he prefers, he can indicate whether he wishes to contribute. Which would he prefer?

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[Max Wilkinson]

It is a pleasure to serve under your chairmanship, Sir Jeremy. As the Minister knows, the Liberal Democrats support the Bill. We were clear on Second Reading that we supported its aims, although we believe that it should go further—on the scope of the competitions covered, for one example. We also agree with the hon. Member for Isle of Wight East about financial redistribution; he made some eloquent points. I am not sure that they were entirely in line with what his party was arguing on Second Reading or in the House of Lords, but there we are.

Our amendment 74 is clear. It extends the scope of the Bill to cover the sixth tier of English football. We all remember what happened to that tier during the covid pandemic: many clubs ended up on the verge of bankruptcy and needed bail-outs. The need for financial sustainability does not end at the fifth tier. To push back against the point made by the hon. Member for Old Bexley and Sidcup, I should say that we would see the football regulator taking a light-touch approach, as in the outline aims of the Bill, and there would also be an exemption for clubs in the sixth tier because many are run by volunteers with perhaps one or two members of staff, not all full-time.

We believe that when clubs come up from the sixth to the fifth tiers—there are many ambitious clubs in the non-league sector—it is really important that those also build in a financially sustainable way. We believe that including them in the Bill will help them become financially sustainable as they make their way through the football league.

[Joe Robertson]

I rise to support Opposition amendment 132. The shadow Minister eloquently set out the reasons why, and I do not need to repeat them. But I pose this question to the Minister: why would she reject clarifying that specified competitions mean the Premier League, the English Football League and the National League? If she is not prepared to accept the amendment, which would set out those competitions with clarity, that slightly begs the question of what she or her Government have in mind. What are they seeking to add by using the wide discretionary powers set out in the Bill already? Unless the competitions are clearly identified as in the amendment, there could be a question about whether the England national team could accidently get swept up as part of the regulations. The amendment makes an obvious clarification and gives certainty to football clubs and fans.

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[Jon Pearce]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I declare my interest as a member and the former chair of the RamsTrust. Given that my hon. Friend the Member for Derby South is also here, this is probably not the last time that we will get to talk about Derby County.

I welcome these definitions, which are hugely important as a balance against some of the tests of ownership. They will help to solve some of the problems that Derby County have faced. In October 2003, three individuals bought Derby County for £1 each. The three amigos, as they became infamously known by the fans, had no money of their own and initially refused to disclose who the actual owners of the club were. It turned out that the money the trio had used to support their takeover was a loan costing 10% interest a year from a company, the ABC Corporation, registered in Panama.

It was at that point that I joined the RamsTrust—the supporters’ group that campaigns for a stronger voice for supporters in the decision-making processes at Derby County. Obviously, such trusts play vital roles at other clubs across the country. The tireless efforts of the fans in scrutinising the activities of the management of the club led to four individuals being convicted for fraud and receiving substantial prison sentences. The definitions will certainly help; although those individuals would have passed any fit and proper person test because they had no previous convictions or previous evidence of fraud. That is why I welcome the provisions in the Bill.

[Joe Robertson]

In looking at the definitions, I am concerned about what is intended to be meant by “ultimate owner”, not least from a drafting point of view. Schedule 1 deals with an owner in significant detail, although it is actually quite convoluted and I worry that there may be loopholes in there that may be exploited in the future. By setting out such a high level of detail around trying to close loopholes, loopholes might accidentally be opened or created.

However, it is not the definition of “owner” that I want to look at, but the definition of “ultimate owner”, which must be something different or else it would not be separately defined. It is contained in clause 3(2), which says:

“For the purposes of this Act, a club’s “ultimate owner” is—(a) where the club has only one owner, that owner;”.

That makes sense; if a club is owned by one person then they are the ultimate owner—that is easy. It goes on to say:

“(b) where the club has more than one owner and one owner exercises a higher degree of influence or control over the activities of the club than any other owner,”.

That seems very vague wording for lawmaking. There could be two highly influential owners, but one has some power at their disposal that makes them technically able to exercise a higher degree of influence; that does not mean that the other owner is not also very influential. I do not understand why “ultimate owner” dismisses the possibility of there being two club owners exercising a significant degree of control, albeit where one has a marginally higher degree of control than the other.

Normally the wording in company law—but not just company law—talks about an owner, director or officer exercising significant influence and control, and there is a lot of case law that sets out what that means. That wording is used in the Bill, in schedule 1(15), which is entitled

“Significant influence or control over the activities of a club, trust or other body”.

But because clause 3(2) does not use that wording, “ultimate owner” must mean something different than exercising a significant degree of control, and I do not understand what it is getting at.

There is a third definition of “ultimate owner”. We have dealt with where there is only one owner—that is easy. We have dealt with where there is more than one owner, and one owner exercises a “higher degree” of influence, whatever that means. The third definition is

“in any other case, each owner of the club who exercises a degree of influence or control over the activities of the club”.

That seems to be sweeping up anyone with any influence, so potentially every owner. But it goes on to say

“where there are other owners, is a higher degree of influence or control than any other owner.”

That suggests that the only owner in a multi-owned club who is not caught by the definition of “ultimate owner” is the one owner who ranks the lowest in terms of the amount of control that they exercise over the club. The provision is badly drafted. It is very unclear what it is trying to achieve, and alternative wording is available to the Government and the draughters of the Bill. If the aim of describing the ultimate owner is to avoid applying this to very small shareholders, such as community shareholders and fans who have some ownership of the club but no meaningful say over what happens to it, the Bill could simply state that an ultimate owner is any owner other than those who exercise a negligible or trivial degree of control. That would exclude those who have no influence but who own shares and would avoid the convoluted, inclusive set of provisions that amount to nonsense in the minds of most people.

If an ultimate owner is not defined in the Bill, the Government open themselves up to all sorts of problems. An ultimate owner, who may be very wealthy, could deploy his well-paid legal team to take the Bill apart in court, and we know what courts will do: if the wording is unclear, they can find in favour of the person who is trying to be bang to rights with a badly drafted Bill. I would urge the Government to rectify that. I do not expect the Minister necessarily to be able to respond to all that detail on the hoof now. If she cannot, I ask her to go away and seek clarification on that, because I worry that that is a major drafting defect. If we cannot define an ultimate owner in the Bill, we have a problem.

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[Stephanie Peacock]

I am grateful to the hon. Member for Old Bexley and Sidcup, who makes some valid points. We will talk about owners and directors when we come to part 4. Competition and conflict of interest are not in scope of the Bill and are for UEFA, but I am happy to debate this with him further down the line.

The hon. Member for Isle of Wight East made an extensive and technical speech. For transparency purposes, the ultimate owner or owners will be publicly identified in clubs’ personal statements, and this will help fans to hold the most powerful owners to account, as my hon. Friend the Member for High Peak said. Anyone who exercises significant influence or control will be defined as an owner and can be subject to an ODT, but I am happy to write to the hon. Member for Isle of Wight East on some of the technical points that he made, as he asked.

[Joe Robertson]

I thank the Minister for that. She has already given some better words by talking about “significant” control. That is not the wording in clause 3, but I prefer it, to be honest. Will she go away and look at that? It is probably a drafting issue.

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[Mr French]

The clause formally establishes the Independent Football Regulator as a statutory body, providing the legal foundation for the IFR’s existence and marking a significant moment in English football governance and our constitution. The clause gives the Independent Football Regulator its own legal personality, allowing it to operate independently of Government and the football authorities.

We will come to the issue of independence, so I will not hold up the Committee too much on the point. I will not make this personal to the Government’s proposed choice of chair. It is rather about the structural integrity of independence, which is crucial to what we do as a House and how sport operates across this country, as it has done successfully for a number of years. The last thing that sport fans want is politicians involved in the regulation of football. We all welcome being supporters—a number of Members are supporters of clubs—but we must be clear that there should not be political interference in the running of the game.

The clause ensures that the regulator can exercise powers conferred elsewhere in the Bill, including around licensing, enforcement and oversight functions. We have a number of concerns about how the details in schedule 2 will work in practice, and the rules around making the independence of anyone involved in football regulation clear as we move forward.

More broadly, I seek clarity from the Minister on a few matters. Does she believe that clause 5 provides sufficient clarity and authority for the IFR to act decisively and independently when enforcing breaches of licensing conditions or financial rules? What safeguards are in place to ensure the Independent Football Regulator’s independence from political or industry pressure when taking enforcement action against powerful clubs or owners?

Will the IFR have the necessary investigatory powers from the outset to underpin robust enforcement, or are those powers dependent on secondary legislation or guidance? How will the IFR balance its role as a regulator with the need to maintain constructive relationships with clubs, especially when initiating enforcement proceedings?

On that point, I again highlight the importance of independence—not just independence from this place, but independence from other leagues and experiences that might bring into question any judgment that the IFR makes. That is a concern I have around the choice of chair, which I know we will come on to. I have concerns about leagues and any bias—known or unknown—in decision making, and the questioning of that. Going forward, that would generally be very unhelpful for the game.

Lastly, to what extent will the IFR be held accountable for the consistency, transparency and proportionality of its enforcement decisions under the powers established in the clause?

[Joe Robertson]

The requirement for the regulator to be independent is clearly essential. I am sure that it is common ground on both sides of this Committee Room, and in the rest of the House, that the Independent Football Regulator board and chair need to be independent.

This is a significant time for English football. To be regulated by statute and lawmaking and the decisions of the Members of the House of Commons and the other place is a departure from the way our beautiful game has grown in this country, without regulation. In certain aspects, we need to be really careful about what we are doing. The independence of the chair and the board of the regulator is key. Independence can mean so many different things, as the shadow Minister has noted. It can mean independence from the influence of certain interests within the game—clearly, if the regulator is to regulate multi leagues, we need an independent regulator that is not encumbered by particular interests, particular clubs or particular leagues.

There is also the very important issue of political independence. Given that the chair will be appointed by an elected politician—by the Secretary of State—the decision needs to be carefully scrutinised to ensure that independence, with a capital I, remains key. We might get on to this point at another time, possibly today, but the Secretary of State has recused herself from making any decision over the recommended candidate because of a donation he declared to her leadership campaign. The preferred candidate also made a donation, which he declared to the Culture, Media and Sport Committee, to the Prime Minister’s leadership campaign, but the Prime Minister has not recused himself from any involvement in the decision.

[Max Wilkinson]

The hon. Member is making a compelling case. Does he think that in all cases—in all public bodies, in all quangos—anyone who is a member of a political party, or has ever been canvassing, even in an European election, might be barred from holding any of those kinds of offices? As I understand it, political parties of all colours have in the past appointed people to various public bodies. This is clearly what is being implied by the Conservative amendments.

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[Joe Robertson]

Thank you for that guidance, Sir Jeremy. I can see what the hon. Gentleman is inviting me to do, and I have sympathy with his general point about the independence of chairs of bodies, but I will stick to this Bill and this independent regulator for two reasons. The first is that we are in this Bill Committee today to talk about football governance. Secondly, the point I was making is that because this is a new departure—to have a regulator in a sport that does not have a regulator—particular regard needs to be paid to political independence. We have a candidate who has made a political donation to the Prime Minister and the Secretary of State. Therefore, the Government have an unexpected relationship with the preferred chair of the regulator.

I urge the Minister to address at some point today how the independence of the football regulator will be protected. Even putting to one side the preferred candidate, the fact is that the appointment will always be made by a Secretary of State, so how will we avoid the criticism that the hon. Member for Cheltenham identified? If it is a political appointment, there are always going to be accusations—in this case, fair—around an elected politician appointing a regulator over English football. I know that that is inherently unattractive to fans, who should be our priority.

[Stephanie Peacock]

I will deal with the comments specifically on the chair in the next group—I am not avoiding the question, but I think we are going to have a more substantial debate on the next group. Let me answer some of the other specific points that Members have made. The shadow Minister asked about finance, and the levy will be proportionate to the size and level of the club. We absolutely value the independence of the regulator. That means all sorts of different things in terms of leagues, Governments, clubs and so on.

On how the independent regulator operates and what will guide them, I draw Members’ attention to clause 8 in part 2 on the regulatory principles. We will go through those later so I will not go into any detail now, but they are a useful guide to help the independent regulator in their functions and in carrying them out. I will pause there, because I think we will have a more substantial debate in a moment.

Question put and agreed to. 

Clause 5 accordingly ordered to stand part of the Bill. 

Schedule 2

The Independent Football Regulator