Football Governance Bill [ Lords ] (Tenth sitting)

Lee Dillon Excerpts

Tuesday 17th June 2025 Public Bill Committees

[Max Wilkinson]

No, several.

I have been to many football matches at more than 50 Football League grounds, and every time I have attended with groups of people who have been in the pub until the last possible moment, forcing down an extra pint—or an extra lucky gin and orange, which was a tradition that a group of my friends used to have—before a game. They did that because they knew that once they got into the ground, they were subject to ridiculous rules that meant they were not treated as adults. These people were very much adults. They were drinking real ale and talking about cricket, sport and things they had done at work that week. They were not football hooligans. We know that the majority of people who watch football matches are not football hooligans.

These rules date from a bygone era when people were concerned that everyone who went to the football was a hooligan. The atmosphere in grounds these days is entirely different from what it was back in the 1980s and 1990s, when things happened that nobody would want to see now. We are drifting in the right direction, back towards standing in stadiums—that is positive—and we need to start drifting back towards a situation in which we treat football fans as adults and recognise that the current ridiculous ban means that people are more likely to be more drunk at football.

[Mr Lee Dillon (Newbury) (LD)]

It is a pleasure to serve under your chairship, Mr Turner. People can sit on the terraces at Twickenham and watch rugby union while having a pint of Guinness. Does my hon. Friend agree that that causes no concern around behaviour, and could easily be transferred to the football stadium?

[Max Wilkinson]

I agree. The assumption that football fans are hooligans is clearly not borne out by the statistics any more. We need to take a real-life, real-world view of what happens as a result of these rules.

As the shadow Minister said, the new clause does not say that everyone must drink at football grounds or that the ban must be overturned. It puts the issue in the context of a review, after which clubs might be able to reintroduce alcohol in stadiums. That is important. I believe that the hon. Member for York Outer (Mr Charters) recently suggested such a measure, so there is clearly cross-party support.

--- Later in debate ---

[Mr Dillon]

I beg to move, That the clause be read a Second time.

New clause 22 relates to a consultation on changes to kick-off times. For football fans across the country, last-minute changes to suit TV schedules have a direct impact on their plans for that sporting event, whether having to procure a hotel because they cannot get home from the game as public transport is not running, or having to change their whole plan and maybe resell their ticket. The 2025 FA cup final had a kick-off time of 4.30 pm, and in the year Wigan beat Man City it was a 5 pm kick-off time. The last train to leave for Manchester from London is at 9.01 pm. So if the FA cup final this year had gone to extra time and penalties, fans would not have been able to make that last train back home to Manchester. As a Manchester United fan, I am not one for protecting City fans, but it just seems ludicrous that for the 2025 FA cup final, the BBC wanted to keep the kick-off at 3 pm because it had Eurovision later that night to schedule and ITV wanted a 5.30 pm kick-off because it knew that would increase its revenue. Both clubs were consulted, the broadcasters were consulted, but the fans were not. This clause seeks for the regulator to have a role in adjudicating on kick-off times.

Listening to the Minister in response to other amendments, I was concerned she may consider ruling out this clause out because it affects commercial activity and broadcasters. I am now hoping it falls under the purview of operational and match day issues, and the regulator will have power to intervene.

[Stephanie Peacock]

The Government do not believe that it is appropriate for the regulator to intervene in the sporting calendar, including interfering with match day timings. This clause would widen the scope to cover on-pitch decisions, which is something we wish to avoid. However, I am aware of the issues that the hon. Gentleman has raised regarding the impact timings can have on fans. There may be consequential issues such as match day travel and club communication with fans that would be captured by “operational and match day issues” as one of the relevant matters for fan consultation discussed in our debate on part 5. In most cases, however, the kick-off time itself is not always an issue that club have enough control on to adequately consult fans and respond to opinion. To mandate them to do so could therefore be problematic. It is well within the gift of the leagues and the governing bodies to address concerns surrounding kick-off times, and the Government remain in conversation with stakeholders to ensure that fans are engaged properly by those bodies on this issue. For these reasons, I cannot accept the new clause.

[Mr Dillon]

I am disappointed in the Minister’s response. I think it is a crucial aspect. However, noting the numbers in the room, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 23

Duty to create emergency fund

(1) As a condition of purchase of a regulated club the new owner may, if required by the IFR, pay an amount equal to the club's quarterly forecast expenditure into an emergency fund (referred to in this section as “the fund”).

(2) Withdrawals cannot be made from the fund while the person who deposited the fund is the owner of the club.

(3) When a club’s quarterly forecast expenditure increases the owner must increase their deposit into the fund to match the increased forecast.

(4) If an owner does not update the fund to match an increase in the club’s quarterly forecast expenditure the IFR may suspend the regulated club’s operating licence until such time as the required deposit into the fund has been made.

(5) When a club files for insolvency the owner abrogates all claim to the fund and the fund may be accessed to pay club salaries and day to day running costs.

(6) When the owner who deposited the fund sells the club they may withdraw the fund but the fund must first be used to repay any debts accrued during the time period they were the owner.”—(Mr Dillon.)

This new clause gives the IFR an option to require new club owners to establish an emergency fund to provide for club operational costs such as player and staff wages in an emergency scenario.

Brought up, and read the First time.

[Mr Dillon]

I beg to move, That the clause be read a Second time.

This new clause introduces a duty to create an emergency fund if the regulator has concerns over the financial resources of a particular owner. If a player is not paid for two consecutive months, then under FIFA regulations they have the ability to terminate their contract with 14 days’ notice. However, that still means they are out of pocket. We know that there are real consequences from players not being paid, such as the contract termination that they may go through, the player and the fans having a loss of confidence in that club, and of course financial distress to individuals not paid. Clubs can have point deductions if they do not play players on time and registration embargoes as well. However, that still does not address the issue of the player and staff not being paid. As recently as March this year, the team of the hon. Member for Sheffield South East, Sheffield Wednesday, did not pay its players on time. This is a live issue that we see season in, season out. An emergency fund would mean that players could have recourse to be paid on time.

[Stephanie Peacock]

I thank the hon. Member for the new clause. While I understand the intent of adding this provision and creating an emergency fund, we have been clear that this is not a zero-failure system. Clubs can and do go into administration for many reasons, sometimes beyond their control. This regime tries to minimise the likelihood of that happening and gives them the best chance of being a going concern football club. This means that there is an assumption that a club will continue operating and meet its obligations for the foreseeable future

However, I reassure the hon. Member that the Bill’s strengthened statutory tests on the new prospective owners, as we discussed in the debate on part of 4 of the Bill, will work to deliver the intent behind the new clause. At the point of entry, prospective owners will be required to pass the financial plans and resources test. This will demonstrate that they have sufficient financial resources to run the club and have considered things such as the estimated running cost. This will help mitigate against any future need for an emergency fund.

On an ongoing basis, if a club is exhibiting an unsustainable level of risk, the financial regulation regime allows for specific discretionary licence conditions, which we discussed when debating part 3 of the Bill, to be put on clubs. Those conditions can relate to debt management, liquidity requirements and restricting the club’s overall expenditure. This is a far more proportionate approach to managing the risk of insolvency, rather than requiring owners to hold money that could be invested into the club to be used by default. This is likely to impact on levels of investment in the game. For those reasons, I urge the hon. Member to withdraw the new clause.

[Mr Dillon]

I thank the Minister for her response, and I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 25

Youth and community projects: duty on the IFR

“(1) The IFR must take steps to encourage regulated clubs to invest in youth and community projects.

(2) The IFR must, in pursuance of the duty in subsection (1), at least once a year report on the extent to which each regulated club has invested in youth and community projects.”—(Mr Dillon.)

This new clause requires the Independent Football Regulator to take steps to encourage clubs to invest in youth and community projects, including through annual publication of a progress report.

Brought up, and read the First time.

[Mr Dillon]

I beg to move, That the clause be read a Second time.

Many clubs already have excellent community outreach programmes and foundations with which they support their local communities. This is a simple new clause that just seeks the regulator’s ability to report on those involvements. I suspect that it would not push any existing club into having to engage, because I believe that they already engage with their communities. It is more about capturing that and selling to the wider public the benefits from the investment that football clubs make in their communities.

[Stephanie Peacock]

I thank the hon. Member for the new clause. Football clubs are instrumental in fostering more active and resilient communities. By harnessing the power of sport, this community outreach work promotes social cohesion, improves public health and makes a positive impact on people’s lives. The Government recognise and support the contributions of many clubs in helping to strengthen communities and get more people active, in line with the Government’s own priorities.

That is why we made an amendment to corporate governance provisions in the other place. This addition was explicitly to include a club’s contribution to the economic and social wellbeing of the local community within the definition of corporate governance in the Bill, and so require clubs to report on these contributions as part of the corporate governance statement. This reflects that football clubs are more important to their communities than a typical local business. This reporting could include, for example, whether a club has invested in youth and community projects, and we would expect any club that does so to report on it as part of its corporate governance statement.

I am afraid that I disagree the regulator should be required to encourage a specific type of community investment. As we discussed when debating schedule 5, the Bill is deliberately not prescriptive when it comes to corporate governance. That gives the regulator flexibility to write its code in consultation with the industry, and it gives clubs flexibility to explain how they are applying that code. This is about encouraging best practice and greater transparency around the operations and activities of the club. This should steer all clubs toward better governance, without micro-managing how they are operated.

As we have been clear, the regulator cannot start mandating specific changes to a club’s corporate governance, such as quotas for board members. The same applies to community outreach. Of course, we recognise that it is important and should be encouraged, but we do not believe that it is appropriate to encourage a specific, prescriptive type of community action that all clubs should undertake. That is not in line with the approach that the Bill takes to corporate governance, and would not be in line with the light-touch approach to regulation that we all want to see. That is not to take away from the huge contribution that clubs make, and I take this as an opportunity once again to pay tribute to the Barnsley FC Community Trust.

[Mr Dillon]

I thank the Minister for her response, and welcome the recognition of clubs’ community work in the governance statements. The new clause would add a requirement around youth because, whether on literacy or childhood obesity, football clubs have a unique power to engage young people through their very presence as a shining example to look up to. However, I accept the Minister’s remarks, and beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Stephanie Peacock]

On a point of order, Mr Turner. I thank all the Chairs who have presided over this Committee; as always, I am thankful for your guidance and support throughout the sittings. I thank all those who have contributed their views on the Bill, both in this iteration and the version that the previous Government introduced. A number of important stakeholders—players, clubs and many more—have shared their views and enabled us to bring forward the Bill that we see today. In particular, I thank the Premier League, the EFL, the National League, football clubs across the country and the Football Supporters’ Association. Their engagement has been vital, and I am grateful to them for working productively to ensure that the Bill takes steps towards a future where football can be enjoyed for generations to come.

I pay tribute to Dame Tracey Crouch, whose brilliant work on the fan-led review of football led to the introduction of the Bill. Her work and expertise have been invaluable, and I thank her for her dedication to making the game fairer. I also pay tribute to the officials in the Department for Culture, Media and Sport, who have been working often very long hours on the preparations for Committee stage; I am grateful for all their help. I pay particular tribute to Adam, Ellen, Charlotte, Kaz, Lucy, Robbie, Conor, Matt, Beth, Leah, Kyle, Lewis, Comfort and Callum for their hard work on the Bill. I also thank those in my private office in the Department for their work to support me in taking the Bill through Committee as the Minister. My particular thanks go to Chris McAlister for all his work on this; the head of my office, Matthew Phillips; and of course Helen Elston. I also thank my parliamentary office, Millie, Karen and Anna, who supported me in opposition, when I was in the shadow Minister’s place.

I thank all members of the Committee for their contributions. It has been excellent to see such strong feeling in the debate. I know that Members have aimed to represent fans and their constituencies in the best possible way. I thank the Committee for such a lively and thoughtful debate throughout the sittings. I particularly thank my hon. Friend the Member for Lewisham North for keeping us all in check and on time; my opposite number, the hon. Member for Old Bexley and Sidcup; and the hon. Member for Cheltenham. I also pay tribute to House officials, and thank them for their work to support us as elected representatives. The work that they do in this place is invaluable and I, like I am sure many other hon. Members, are incredibly grateful.

It has been an excellent debate, and I am proud that the Government have delivered on our manifesto commitment by finally bringing in the Bill. I conclude by quoting Dame Tracey Crouch’s last contribution in Committee. She spoke of

“the people who just go and watch the game because they love it and it is important to them deep inside their soul.”––[Official Report, Football Governance Public Bill Committee, 23 May 2024; c. 246.]

It is for those people who love the game that we have proposed these measures. I believe that the Bill introduces much-needed changes that will protect football so that they can continue to enjoy it for generations to come. That is what we have delivered today.