English Football: Financial Sustainability and Governance
Lizzi Collinge Excerpts(2 weeks, 6 days ago)
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Lizzi Collinge (Morecambe and Lunesdale) (Lab)
It is a pleasure to serve under your chairship, Mr Turner. In Morecombe, the Shrimps are an integral part of our community. They bring together people from all backgrounds who share in our love of the Shrimps. The Morecambe FC Community Foundation runs a range of programmes that support education, health, social inclusion and sports participation. I am not the only parent from Morecambe who has had a child come back chattering about the professional footballers who came to help out that day.
Ms Julie Minns (Carlisle) (Lab)
I am grateful to my hon. Friend for giving way, not least because our respective teams are currently propping up the bottom of league two. She mentions the important community work that the Shrimps do, and that is vital. We are fortunate at Carlisle United to have very generous owners who have invested huge amounts of money over the last 18 months, but even I can see that community work can best be guaranteed by having a fairer distribution of revenues.
Lizzi Collinge
I wholeheartedly agree with my hon. Friend. In Morecambe, the football club is a community hub that we cannot afford to lose. We have the Shrimps Trust, which is a democratic and representative voice for the fans. The board of Morecambe really want us to survive and thrive and is doing everything it can to make that happen. It is passionate about our success.
The Shrimps have been under a lot of pressure in recent years due to a combination of ownership issues, financial instability and the threat of relegation. My hon. Friends have laid out coherently the challenges with financial flow, ownership and governance, so I will not go through them again. In my first speech in Parliament, I reiterated my promise to the Shrimps to deliver an independent football regulator, a stronger owners and directors test, better fan representation and much better measures on financial sustainability. I only hope that it does not come too late for Morecambe FC.
Stephanie Peacock
I have been very generous with my time and have already taken one intervention from the hon. Gentleman, so I will make progress.
Too many clubs have faced the precipice. There have been more than 60 instances of administration since 1992. That is simply unacceptable, so in the short time that I have left today I will turn to the detail of our legislation.
The Bill will introduce a new regulator for the game. It is intended to cover the top five levels of the men�s game. There will be strengthened tests for owners and directors. It will make clubs more financially resilient and will put fans back at the heart of their clubs. This is designed to be a light-touch regulator. At a very basic level, owners need to do three things: be an appropriate owner, have a sensible business plan and have proper engagement with fans on key issues. I will take each in turn.
Being an appropriate owner means that club custodians must be suitable; we are protecting fans from irresponsible owners. Having a sensible business plan means that clubs will need clear financial plans, with detail on risk management and resource plans for owners. Having proper engagement with fans on key issues means setting a minimum standard for fan engagement. We are ensuring protections on changes to club crests, home kit and club names and giving fans a voice in the day-to-day running of their club.
Clubs will need a licence to play. They will not be able to join closed-shop breakaway leagues or move around without proper consultation. A football-led solution is always the preferred outcome to financial distribution. In the Bill Committee on the previous Bill, Dame Tracey Crouch rightly said that
�distributions are an issue for football�
but that if no solution is found, it is
�important for backstop powers to be there to intervene���[Official Report, Football Governance Public Bill Committee, 21 May 2024; c. 234.]
If a football-led solution is not reached, the regulator will be ready to step up, if asked, to facilitate a solution as a last resort. The state of the game report will underpin that, informing the regulator�s work through a broad review of the financial health and economic issues in football at any given time.
As I have stated more than once, the Bill is very similar to its previous iteration, but we have made some moderate changes. Fans will have a greater voice and will be consulted on changes to ticket prices. We have brought more clarity and certainty to the backstop, so all issues relevant to redistribution can be considered. By removing the provision on following Government foreign policy, we are making the regime more independent.
The Bill is a historic piece of legislation that has been developed over several years, including by the previous Government, who recognised the need to regulate. Indeed, the Conservative manifesto said:
�We will introduce laws to ensure our fans never again face the threat of clubs in England joining breakaway closed-shop competitions and giving them more of a voice through the Independent Football Regulator.�
