Football Governance Bill [ Lords ] (Tenth sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Tuesday 17th June 2025 Public Bill Committees

[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.

Football Governance Bill [ Lords ] (Seventh sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Thursday 12th June 2025 Public Bill Committees

[Stephanie Peacock]

I thank my hon. Friend for tabling the amendments. Home grounds are a vital asset for all clubs, so I do understand his intent.

Regarding changes to the ownership of a home ground, the potential adverse outcomes are entirely financial. We do not believe that they impact the heritage of the club, which is why clause 46 does not require any heritage consideration or fan engagement. Additionally, decisions about the financial arrangements of a home ground are commercial decisions and therefore we do not think it is appropriate to legislate on them. However, I will reassure my hon. Friend that if the sale of a club’s home ground would result in the relocation of the club, fans absolutely have to be consulted about that, as per clause 48, which we will discuss later. We know how much home grounds matter to fans and communities, but this clause is purely about protecting a club’s financial position.

[Mr Dillon]

I seek some clarity on the relocation of a ground. White Hart Lane was demolished and rebuilt on a similar, but bigger footprint. Obviously, at Old Trafford, Manchester United’s owners are talking about building on land next to the stadium. Personally, I would not class either of those moves as the relocation of a ground. However, in the Bill would they count as relocation, because those new stadia are not on the same footprint as the original stadium?

[Stephanie Peacock]

I will double-check that point, but I believe they would. I also refer to the points we discussed earlier in the Committee: clubs may want to move for a particular, legitimate reason—to improve their ground, or because they have to due to flooding in adverse weather, for example. We appreciate that these are not all bad actors and it is not all bad faith, but I will double-check that point and come back to the hon. Gentleman. We know how much home grounds matter to fans and communities; this clause, together with the owners and directors test, is about protecting the club’s financial position and its balance sheet from asset stripping by bad actors.

Football Governance Bill [ Lords ] (Eighth sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Thursday 12th June 2025 Public Bill Committees

[Stephanie Peacock]

Clause 48 places a duty on clubs not to relocate from their home ground without approval from the regulator. As we just discussed, home grounds play an important role in the history of a club and are often the club’s most valuable asset. These grounds are where many thousands of fans watch their teams play every weekend. Relocating them to areas that have no connection to the heritage and history of a club can have a significant impact on those supporters and the local area, as we saw when Wimbledon moved to Milton Keynes, which my hon. Friend the Member for Sheffield South East just spoke about.

The impact of a home ground relocation on fans and the club is why we are legislating for the regulator to pre-approve any proposal in that regard. As subsection (4) of the clause sets out, the regulator must be satisfied that the proposed relocation would not “undermine the financial sustainability” and significantly harm the heritage of the club. This Government have added a requirement for the regulator to be satisfied that the club has taken

“reasonable steps to determine the views of… fans”

and taken those views into account.

The Government do not want to stifle development where it brings value and aligns with the heritage of the club. The clause makes the important and necessary recognition of the vital role that home grounds play in communities and adds an extra layer of protection to them while leaving room for clubs to evolve and continue to develop. I commend the clause to the Committee.

Question put and agreed to.

Clause 48 accordingly ordered to stand part of the Bill.

Clause 49

Duty not to change crest, home shirt colours or name without approval

[Mr Lee Dillon (Newbury) (LD)]

I beg to move amendment 140, in clause 49, page 40, line 31, at end insert—

“(1A) A regulated club must notify the IFR if it is considering making any material changes under subsection (1) and the IFR must monitor the reasonable steps taken to independently establish that the changes are supported by a majority of the club’s fans.”.

This amendment would require the IFR to take steps to independently oversee a club’s fan consultation process on the material changes specified.

--- Later in debate ---

[Stephanie Peacock]

As I said, the FA, with oversight of the levels of football, is in a good position to ensure that name changes do not have unintended implications for clubs that are outside the regulator’s scope. It has done that point on names well. That is why we want to leave it to do the good job it is doing.

[Mr Dillon]

I thank the Minister for her response. Although the Bill tackles financial sustainability, it has a real ability to rebuild trust between fans and football clubs. I feel that all three amendments are still worthy of being pressed to a vote, and I commend amendment 140 to the Committee.

Question put, That the amendment be made.

--- Later in debate ---

[Mr Dillon]

It is a privilege to serve under your chairship, Ms Butler. New clause 24, tabled in my name, seeks to introduce a fair and transparent exemption procedure for football clubs in administration. When a football club enters administration, it is not merely a financial event; it is often a crisis that rocks the entire community, as we saw in Bury. Supporters, many of whom have been lifelong followers, are left facing uncertainty and fear for the future of their club, which is often the heartbeat of their town or city.

New clause 24 seeks to strike a vital balance by maintaining the integrity of the levy while allowing compassionate and evidence-based interventions when a club is on its knees. It would ensure that exemptions are not handed out indiscriminately, and that the regulator must assess each case on its merits and satisfy itself that the club’s financial difficulties are not a calculated move to evade its levy responsibilities. Most importantly, the new clause would give clubs a chance.

[Stephanie Peacock]

I thank the shadow Minister for his amendment, and I thank the hon. Members for Cheltenham and for Newbury for their new clauses. I acknowledge the intent behind them.

We will shortly discuss the levy in more detail when I speak to clauses 53 and 54, but in short, the Bill gives the regulator the power to collect a levy to recover its running costs from football clubs that hold an operating licence. I will outline why the Government intend to resist this amendment and these new clauses before directly answering some of the specific points that hon. Members have put to me.

The levy arrangement follows the precedent of other regulators, such as the Financial Conduct Authority, the Competition and Markets Authority and Ofcom. As the regulator is designed to improve the financial sustainability of English football, it is vital that the associated costs do not burden clubs, especially those further down the pyramid.

Amendment 133 and new clause 5 seek to address similar issues relating to ensuring that small or lower-league clubs are not burdened by unaffordable costs as a result of this regulation. I assure the Committee that the Bill is already designed with National League clubs in mind. The regulator will be tasked with improving the financial sustainability of football, and placing an undue burden on small clubs would be completely contradictory to that aim.

Clause 53(10) introduces a statutory requirement for the regulator to have regard to each club’s individual financial circumstances, and the league in which it plays, when setting the levy. Given that requirement, we expect that the levy will be proportionate, with the Premier League—specifically the six clubs with the highest revenues—covering the majority of the cost. That solidarity will reduce the burden on clubs lower down the pyramid. No club should be charged more than it can afford.

Through its levy rules, the regulator will also have the power to exempt clubs from paying the levy. That power, provided by clause 53(8), ensures that there is a mechanism to avoid burdening clubs. If certain conditions set by the regulator through rules are met, the regulator has the discretion to exempt clubs from paying the levy—that answers the shadow Minister’s question. The power will work in conjunction with the requirement on the regulator to consider each individual club’s financial resources, and the competition in which it plays, when setting the levy, as well as the requirement to consult all regulated clubs on its levy rules.

On new clause 24, I agree wholeheartedly that the regulator should not place an undue burden on a club that has already entered administration. I reassure the hon. Member for Newbury that the regulator will set out its levy methodology, including the discretion to set the levy according to a club’s individual circumstances, and to exempt a club completely if specified conditions are met.

The regulator has a core objective of improving the financial sustainability of English football, and I am confident that it will be cognisant of the impact that the levy could have on any club, and especially a club in administration or other financial distress. The Bill’s provisions, such as the regulator’s discretion to exempt certain clubs from the levy, if necessary, account for that core objective.

In response to the shadow Minister, I note that there is no cap, but the regulator can set costs related only to its functions. As I have just outlined, under the powers granted to the regulator by the Bill, it could exempt small clubs from the levy, if that is deemed necessary. However, we do not think that mandating a complete exemption in legislation is appropriate. Exempting a whole league before an assessment has been made of whether clubs in that league can afford the levy would be disproportionate.

[Stephanie Peacock]

There is no cap. However, I draw the hon. Gentleman’s attention to the regulatory principles we addressed earlier in the Bill. Obviously, the regulator needs to be proportionate and reasonable. The regulator will guide its operations according to those principles.

[Mr Dillon]

On the allocation of the levy, the Minister said that the top six teams would cover the majority. Can she point to where that is in the Bill? Is it the top six financially or in league positions?

[Stephanie Peacock]

I am grateful to the hon. Gentleman for taking the words out of my mouth, because I was going to conclude by drawing the Committee’s attention to a letter placed in the Libraries of both Houses when the Bill was in the other place. The letter, dated 6 March, was sent by Baroness Twycross, who took the Bill through the Lords. I will not detain the Committee by reading out the letter—Members can look at it—but it breaks down the proportions. Obviously, costs are based on the impact assessment and are indicative, so they are not meant to be prescriptive; it is meant to be an indicator. The letter may be helpful if the Committee would like more detail.

Football Governance Bill [ Lords ] (Sixth sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Tuesday 10th June 2025 Public Bill Committees

[Stephanie Peacock]

We have seen too many instances of unsuitable custodians mismanaging clubs, taking risks that jeopardise a club’s long-term future, and disregarding the interests of fans and communities. It is evident that the industry’s existing tests have not been effective enough at screening and rooting out bad actors. Existing tests are conducted on a self-declaration basis, as the hon. Member for Cheltenham just mentioned. Consequently, those tests have allowed in owners who have long histories of business bankruptcies, and owners have later been imprisoned for crimes including money laundering.

That is why part 4 of the Bill establishes strong, new statutory owners and directors tests, including by giving the regulator the power to test the suitability of prospective new owners and officers before they can enter regulated clubs, as well as the power to test incumbent owners and officers in certain circumstances. The clause provides an overview of part 4 and signposts to the rest of the clauses in this part of the Bill. I commend the clause to the Committee.

[Mr Dillon]

It is a pleasure to serve under your chairship, Mr Turner. I thank my hon. Friend the Member for Wokingham (Clive Jones) for tabling new clause 15. It is the result of close co-operation between local parliamentarians and the Supporters Trust at Reading, which I have mentioned previously. I thank it for its constructive approach to the Bill.

The new clause mandates that individuals must notify the IFR if they are aware of any evidence that indicates a change in circumstances that could affect the ability of club owners or key personnel who are essential to the management and survival of football clubs to meet the statutory fitness criteria set forth in clause 26. It is widely recognised that whistleblowing is a vital tool for public scrutiny and accountability of individuals, and that wrongdoing and bad practice need to be called out. It is therefore essential that there are protections to encourage people to speak out. The new clause seeks to flesh out formal whistleblowing routes with regard to football ownership. Although I welcome and recognise the detail already included in the Bill on that, we need to go much further.

We need to expand the list of groups and stakeholders who would be required to report any concerns that they have about the suitability of owners or officers, including the governing body for the relevant league, the football supporters’ trust and the Football Supporters’ Association. It is often the case that those stakeholders have more knowledge about the day-to-day operations inside a club than fans, due to their proximity to the club’s inner workings. As many fans do not have the same connection or influence as such organisations, it is vital to provide a strong and accessible voice for them when issues arise, particularly when evidence concerning the survival of a club comes to light.

It is essential that the individuals listed in new clause 15 have the opportunity and route to escalate their concerns when necessary. If we take as an example my local EFL club, Reading, there may have been some people in the EFL and in the club itself who had suspicions about the deteriorating situation at the club long before those problems came to the surface and to the attention of the fanbase. If this new clause had been in place, it would have given stakeholders a formal route to raise such concerns and ensure that Dai Yongge was scrutinised properly. That could have gone some way to resolving the situation before the club ended up teetering on the brink; it is only recently that it has been sold and been able to recover.

To conclude, new clause 15 would enable accountability and monitoring of owners during their time in charge. Football club owners are temporary custodians of heritage assets that are vital to our communities; at the very least they should face regular scrutiny. It is for those reasons that I hope new clause 15 is accepted.

--- Later in debate ---

[Stephanie Peacock]

Yes, absolutely. We very much want that confidence to be established. We simply do not think that regulating junior employees, supporters trusts or the FSA is appropriate or proportionate. On that basis, I would be grateful if the hon. Member for Newbury did not press the new clause to a vote.

[Mr Dillon]

Given the assurances of the Minister, I am happy not to move new clause 15. I thank the hon. Member for Rushcliffe for seeking clarification about the atmosphere that will be created.

Question put and agreed to.

Clause 26 accordingly ordered to stand part of the Bill.

Clause 27

Duties to notify IFR of prospective new owner or officer

Question proposed, That the clause stand part of the Bill.

Football Governance Bill [Lords] (Fourth sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Thursday 5th June 2025 Public Bill Committees

[Stephanie Peacock]

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.

[Mr Dillon]

I am grateful to the Minister for her response, and I thank the hon. Member for Sheffield South East for drawing that conclusion from the Minister in his useful remarks. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Question proposed, That the clause stand part of the Bill.

[Stephanie Peacock]

The state of the game report will allow the regulator to better understand the finances and economics of the industry and its individual clubs. This, in turn, will inform the regulator’s approach and decision making across the regulatory framework.

Clause 10 requires the regulator to publish the report and sets out the topics that it must cover, including an overview of the main issues affecting English football and whether any features of the industry are jeopardising the regulator’s ability to deliver its objectives. These are deliberately broad and non-specific topics, affording the regulator some discretion as to what to cover. In essence, this means that the regulator can cover any matter that it considers relevant at the time, providing it relates to the functions of the Bill.

I would like to take this opportunity to provide further reassurance to my hon. Friend the Member for Sheffield South East on his earlier amendment. We would expect at this stage for it to include distributions, and powers lie within the Bill for the regulator to do that. I want to put that on record once again, further to our earlier debate. It will depend on which issues and features of the market are relevant to its objectives and the regulatory regime at any given time. However, the report is still constrained by its link to only matters relevant to the regulator’s function, so I reassure the Committee that this cannot be an avenue for scope creep.

The clause also requires the regulator to publish its first report no longer than 18 months after the competitions and scope of the regulation have been specified by the Secretary of State, as we have discussed. Subsequent reports must be published at least every five years after this but, as we have just debated, they could be more frequent if the regulator considers it appropriate. These timeframes balance the importance of a timely first report with giving the regulator time to undertake the necessary in-depth analysis.

Finally, the clause sets out clear consultation requirements, including an open process of inviting suggestions about the issues to be included in the report, as well as targeted consultation on a draft report, which I hope speaks to some of the comments from the hon. Member for Newbury on his previous amendment.

--- Later in debate ---

[Stephanie Peacock]

I thank my hon. Friend the Member for Sheffield South East and the hon. Member for Cheltenham for tabling new clauses 2 and 6. The Government recognise the intent behind them, and we agree that the regulator should help clubs to comply with regulation as much as is reasonably possible. It is in everyone’s interests for clubs to become compliant quickly and with as little additional burden as possible. It is vital that the regulator helps clubs get to grips with its regulatory regime, which is why we have been very clear that the regulator will operate an advocacy-first approach, and why provisions for a collaborative approach are already in the Bill.

For example, the regulatory principle of clause 8(b) encourages the regulator to co-operate and constructively engage with clubs. Regulatory principles (c) and (d) encourage the regulator to ensure that any action is proportionate to the benefits expected from it.

In relation to the specifics of the new clauses, we disagree with any provision that would require the regulator to provide financial assistance to clubs to comply with requirements imposed by the regulator. That would amount to redistribution by the back door, given that the Independent Football Regulator would be levying some clubs in order to provide financial assistance to others. That is not the regulator’s role, and we do not believe it should be. On training, the regulator can work with clubs to ensure that they fully understand the regulation and what is expected of them. Of course, in cases where this is necessary, the regulator can appoint a skilled person to assist the club in resolving issues in respect of a relevant infringement. For the reasons that I have outlined, I am unable to accept the new clauses and I hope that they will be—

[Mr Dillon]

I seek further clarification from the Minister. Subsection (1)(c) of both new clauses refers to

“unregulated clubs who are reasonably likely to become regulated clubs in the next football season.”

They would stand outside the remit of the Bill if unamended, but would the Minister’s view be that the regulator should engage with those clubs that may be just about to come into the regulated area?

[Stephanie Peacock]

That is a really good question. The regulator can engage with clubs outside of scope, such as those in the National League North and South, to assist with the application process. I hope that answer gives clarity. It is a very good question from the hon. Gentleman. However, for the reasons that I have set out, I am unable to accept the new clauses, and I hope that they will be withdrawn or not pressed.

Football Governance Bill [ Lords ] (First sitting)

Debate between Lee Dillon and Stephanie Peacock

Committee stage
Tuesday 3rd June 2025 Public Bill Committees

[Mr Lee Dillon (Newbury) (LD)]

I sold my shares in Manchester United to the phoenix fund, which exists to buy the club if it ever comes back on the market.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)]

For clarity, my interests are declared in the ministerial register.