Football Governance Bill [ Lords ] (Fifth sitting)

Kevin Bonavia Excerpts
Louie French Portrait Mr French
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I am not sure what to say about that, but the hon. Member can have his say when the Committee votes on the matter shortly. He has stated his belief.

In recent years, we have seen clubs wade into contentious debates, sometimes with noble intentions, without any formal engagement with their supporter base. Whether we are talking about a statement on a foreign conflict, domestic legislation or ideological campaigns, such interventions can divide opinion and risk alienating the people who pay their money, wear the shirt and keep their club alive. Nobody is arguing that clubs should be barred from speaking on social matters, but they should be expected to act with consent, not presumption. Fans should not wake up to find their club being used as a platform for views that they had no part in shaping. The new clause would not restrict freedom of expression; rather, it would enhance democratic accountability in football.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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Will the shadow Minister give way?

Louie French Portrait Mr French
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I will make some progress because I am conscious of the Chairman’s time. The new clause would ensure that where a club proposes to adopt a political stance not directly related to football or the club’s commercial interests, it must first engage with its supporters through an appropriate consultation mechanism. This is about strengthening the bond between club and community, not weakening it. New clause 16 would be a simple safeguard to protect the cultural neutrality of our national game, and to ensure that football remains a source of unity, not division.

The cumulative effect of the Bill’s provisions, as they stand, is that they give the Government’s regulator enormous latitude to impose an ever-growing set of compliance obligations on clubs with little oversight or scrutiny from Parliament or fans. It is entirely possible, perhaps even likely, that clubs could find themselves constantly revising governance arrangements, redrafting financial documents and hiring compliance staff simply to keep up with the regulator’s demands—demands that are funded by the clubs. That is a concern for the entire football pyramid, but it is a particular burden for the lower leagues, where administrative budgets are tight and every pound spent on compliance is a pound not spent on the pitch or in the community.

Let us be clear: good regulation is about balance. It is about ensuring standards without stifling initiative, protecting clubs without disempowering them and learning from the past without writing off the future. There are a number of ways in which the Government could help to strike that balance.

First, we ask the Government to publish a clear definition of what each of the threshold requirements entails. It is not good enough to provide for “appropriate” arrangements. The regulator should be guarded by Parliament’s intent, not left to interpret sweeping language.

Secondly, we must ensure transparency and account-ability. If the regulator decides to change the threshold requirements—say, by requiring new climate disclosure standards or mandating support or representation on the board—that is a major policy shift. We believe that, as a sovereign Parliament responsible for passing this legislation, we should be able to scrutinise and, if necessary, prevent the Government’s regulator from making law by regulation. It should come back to the House, not be slipped through in the shadows.

Finally, we must keep a watchful eye on the cost burden. As we argued in previous debates, the Government’s regulator will not be cost-free. It is expected to fund itself through levies and fees imposed on clubs, so every layer of compliance—every extra form, every extra process —has a price tag. That price will ultimately be paid by the very fans we are trying to protect.

Kevin Bonavia Portrait Kevin Bonavia
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I thank the shadow Minister for giving way, and it is a pleasure to serve under your chairship, Sir Jeremy. The shadow Minister is talking about cost, yet here is another proposal that would add more cost and is effectively unworkable. This Bill is in Committee at the moment. If a club saw the changes here and wanted to lobby us to say, “We are not happy with this,” how on earth would it do that if it had to consult its fans? How do we define a political move by a club? It just does not work, does it?

Louie French Portrait Mr French
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I hear the argument that hon. Gentleman is making, and he will be able to vote on the amendment shortly. Again, I appreciate your time, Sir Jeremy.

It is a shame that the Government would not accept our earlier amendment to ensure that fans know the true impact of the regulator on the price of their tickets. Football is not a normal business. It is a great national institution built on history, local pride and community loyalty. However, that does not mean it should be run by quangos. Clubs should be encouraged to improve their governance, not be coerced into uniformity. They should be supported to succeed, not strangled by red tape.

Schedule 4 is one of the most important parts of the Bill, because it defines the gate through which every club must pass before they can be allowed to simply play football. We owe it to those clubs and their fans to ensure that the gateway is firm but fair, principled but practical, and clear, not vague. That is why we will be seeking further assurances from the Minister that the Government’s regulator’s use of these powers will be proportionate, transparent and subject to proper scrutiny. Without that, we risk creating a regime that may prevent future failures, but at the cost of stifling ambition, independence and the very lifeblood of our national game.

Football Governance Bill [Lords] (Fourth sitting)

Kevin Bonavia Excerpts
Stephanie Peacock Portrait Stephanie Peacock
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The hon. Gentleman shouts his CV from a sedentary position.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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Members of the Committee may have heard of the case Pepper v. Hart, which showed that courts do look at what is said in Parliament. What we say here does matter.

Stephanie Peacock Portrait Stephanie Peacock
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I am grateful to my hon. Friend for that comment. The intention of the regulatory principle is not to list every possible stakeholder that the regulator should ever engage during the course of regulation. That would be a slippery slope to an enormous list that risks missing persons off. Rather, the broader group of those affected by decisions are captured by this provision, even if they are not explicitly mentioned. That is why I am very pleased to give those assurances to my hon. Friend the Member for Sheffield South East.

Football Governance Bill [ Lords ] (First sitting)

Kevin Bonavia Excerpts
Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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I am a season ticket holder of Sheffield Wednesday and work very closely with the supporters trust there.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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I am a member of Tottenham Hotspur football club.

Jim Dickson Portrait Jim Dickson (Dartford) (Lab)
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I am a Crystal Palace season ticket holder.

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Louie French Portrait Mr French
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I thank my hon. Friend for that contribution, because that is exactly the point I am trying to make. Now or in the future, we do not want the appointment of whoever is appointed as chair to be marred by perceived conflicts of interest. As I have said, that would undermine that crucial and important role of the regulator in the football pyramid. As the Minister has said—I agree fully—we hoped that clubs and leagues would have come to a consensus many years ago that would have solved many of the issues that still exist in football. The chair of the football all-party parliamentary group, the hon. Member for Sheffield South East, who sits on this Committee, has done more work on this issue than most people in the room—I thank him for that—but the fact is, we are here now to set up a regulator who is supposed to be independent of politics and of having any perceived bias for any league or club, and that is difficult.

I make this point again, without being unsympathetic to the situation for this or previous Governments: trying to find a person with the right skills and expertise to fulfil the role, without having any of those risks of bias, is very difficult. We have sought to find the right person, with the right blend of skills and experience, who would almost certainly have to come from within the football world or the regulatory world. Of course, if they come from the football world, there would always be issues of perceived bias.

Kevin Bonavia Portrait Kevin Bonavia
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It is a pleasure to serve under your chairmanship, Sir Jeremy. I see what the shadow Minister is trying to do with the amendment, but if we want proper transparency, what is special about football compared with other appointments? If the shadow Minister is really concerned, should we not look at the public appointments system, rather than setting precedents in Bills? We could end up with a hotchpotch of different legislation, which would make football need to have this, but not the BBC, for example. It does not make sense. This is surely not the right forum for the change.

Louie French Portrait Mr French
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I understand the hon. Member’s point. I welcome his first comments on the Bill today, and I am sure we will hear more from him as it develops over the month. My point is that the Committee has the Bill in front of us right now. I am not involved with the Cabinet Secretary or any legislation regarding that role. I am the shadow Minister for sport, and my job is to analyse the Bill in front of me as an Opposition spokesperson. We can only deal with the here and now and the Bill in front of us, so I do not see the argument. There is a lot of whataboutery—

Football Governance Bill [ Lords ] (Second sitting)

Kevin Bonavia Excerpts
Louie French Portrait Mr French
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I disagree. As I have said, we are here today to set the guidance for what we think is an appropriate level of pay. We believe that fans on the street will think that this amendment is fair and proportionate, and that the chief executive of the football regulator should not be paid more than the Prime Minister of this country.

I have a great deal of respect for the hon. Member for Sheffield South East. He made the comparison with a public servant, which is the point that I am trying to make. If we classify this independent regulator as a public servant—that is another rabbit hole that we probably do not want to go down now—should they be paid more than the Prime Minister, who should be the ultimate public servant in this country?

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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The shadow Minister talked previously about guidance, but that is not the proposal in this amendment. The amendment would put in primary legislation a figure that, as my hon. Friend the Member for Sheffield South East said, is set in law until Parliament decides to change it—is that not bonkers?

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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I will start by quoting this historic football match commentary:

“It’s Grimsby giving it away in a very dangerous part of the pitch, for the first time the visitors becoming the architects of their own downfall, it’s tucked in by the substitute Luther Wildin and Stevenage you sense are going up today!”

With apologies to my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn), that was the moment on 3 May 2023 when the Mighty Boro, Stevenage FC, scored the final goal in a match that sealed their promotion to the EFL league one, where they remain today. Our club, whose colours I am wearing, is part of the lifeblood of the town not just on the pitch, but off it, with the incredible work they do in the community. It is the exemplar of a local football club being a truly community asset.

I speak in favour of the Bill because it is not just about much-needed regulation, but about safeguarding the future of our national sport, ensuring financial stability for clubs across the pyramid and making sure our fans—the people who spend their money, week in and week out, to follow their team across the country—are given a real say in how their clubs are run.

Calvin Bailey Portrait Mr Calvin Bailey (Leyton and Wanstead) (Lab)
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I thank my hon. Friend for giving way. He is telling a very similar story to that of my local club, Leyton Orient. Its fans warmly welcomed the reinvestment from David Gandler, building on the leadership of the chairman, Nigel Travis, who has delivered sustainable growth, promotion to league one, clear championship ambitions and a new stadium, and has strengthened the community with up to £6.7 million in social value. Does my hon. Friend agree with me that all ownership transitions should be like this and should follow this model of fan engagement?

Kevin Bonavia Portrait Kevin Bonavia
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I certainly agree with my hon. Friend. We both represent constituencies with clubs that are good examples of what can be done, but our duty here is to safeguard our clubs and all clubs in this country from future failure. They are not businesses; as I have said, they are community assets.

Last season, 23.7 million people attended matches in EFL competitions, demonstrating the profound connection between these clubs and their local communities. It is not just on the pitch that clubs are contributing to their communities. In the same season, EFL clubs contributed over £1.2 billion of social value through their community programmes, with my local club’s community arm, the Stevenage FC Foundation, alone generating £10.7 million of social value in my constituency and the wider area. In that timeframe, the foundation also delivered 185 training sessions per week, engaging over 15,000 unique participants annually and delivering over 9,000 hours of activity. That is an incredible feat.

However, the financial stability of all clubs across the football pyramid is in a precarious place, with EFL clubs expected to lose around £450 million this season alone. Alongside this, the financial disparity between the premier league and the EFL is stark. In the 2022-23 season, 20 premier league and five EFL clubs with parachute payments received 92% of the distributable revenues, while the remaining 67 professional clubs shared just 8%. This imbalance undermines the systemic sustainability of English football, and I am glad that this Bill proposes change so that a 75%-25% split of combined media revenues between the premier league and the EFL will become the new normal and provide much-needed financial support to EFL clubs.

It is clear that the financial situation in which we find ourselves across the pyramid is untenable, and this has directly led to financial crises in clubs across England. It is beyond belief that the Conservative party, which sat on its hands for most of the past 14 years, claimed in its manifesto that it wanted an independent football regulator, so why on earth do we not have cross-party consensus on this principle?

Louie French Portrait Mr Louie French (Old Bexley and Sidcup) (Con)
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Quite simply, because it is no longer independent.

Kevin Bonavia Portrait Kevin Bonavia
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The hon. Member will know that the Bill has been improved to make the independent regulator more independent, for example—and there are plenty of examples of improvements in the Bill—by giving the regulator a greater ability to actually regulate the game. Conservative Front Benchers say they support independence and say they want regulation, but many of its Members do not like regulation at all. This is not a party that believes in protecting the national game; it is a party that wants to play party political football with something that should have cross-party consensus.

Alongside the financial stability that this Bill will bring to our clubs, we need to respect fans’ involvement in these community assets, so I want to pay tribute to all the clubs that already engage in good faith with their fans. I am proud of the work that Stevenage have done to involve fan representation in their yearly engagement plan, and for the initiatives of other clubs, such as Blackpool, whose directors I chatted with at the match with Stevenage last week. They explained how they had had a pint with Tangerine fans from across the country to hear their views on how the club should be run. That said, they did get a bit lucky at our place, although I am sure my hon. Friend the Member for Blackpool South (Chris Webb) would agree with me that both our clubs have great foundations and trusts that support their fans.

I am also pleased that the amendments the Government have made to the Bill during its passage in the other place actually do strengthen that independence, as I said to the shadow Minister, the hon. Member for Old Bexley and Sidcup (Mr French). Under this Bill, poor and reckless behaviour that ignores local fan communities will not be tolerated by the regulator. This Bill provides the safety net that clubs need to be financially secure and to be able to deliver for their local communities for a long time to come. Let us all support this Bill, and therefore support our fantastic football clubs.

None Portrait Several hon. Members rose—
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Oral Answers to Questions

Kevin Bonavia Excerpts
Thursday 16th January 2025

(4 months, 3 weeks ago)

Commons Chamber
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Paul Davies Portrait Paul Davies (Colne Valley) (Lab)
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8. What steps her Department is taking to support grassroots sport.

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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10. What steps her Department has taken to support grassroots sport in Stevenage.

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Stephanie Peacock Portrait Stephanie Peacock
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Biodiversity net gain is a legal requirement for all new developments and is not specific to sports facilities. The Government are working with Sport England, the Football Foundation and wider grassroots sport to help reduce the sector’s impact on the environment. That of course includes supporting these organisations in meeting their obligations regarding biodiversity net gain. I understand that the Football Foundation will meet officials from the Department for Environment, Food and Rural Affairs, which oversees the implementation of biodiversity net gain, to discuss this issue further.

Kevin Bonavia Portrait Kevin Bonavia
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I thank the Minister for her response. Last year, in my constituency, the Stevenage Football Club Foundation delivered more than 9,000 hours of activity in grassroots sports and engaged over 15,000 participants, generating nearly £10.7 million-worth of social value. This did not happen only in my constituency. Last year, the 72 English Football League community club organisations delivered more than £1.2 billion-worth of social value across this country. Will the Minister commit to supporting local community club organisations, such as the Stevenage FC Foundation, in engaging local people and directly supporting communities?

Stephanie Peacock Portrait Stephanie Peacock
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I pay tribute to the Stevenage FC Foundation and the many other community organisations up and down the country for their important work. Local community club organisations use the power of sport to change lives through charitable and community activities, often through delivery across a range of areas, from health to wellbeing and employment. I have seen it in my own area of Barnsley, with Reds in the Community, which does brilliant work across my town.