Football Governance Bill [HL]

Lord Addington Excerpts

Committee stage
Monday 9th December 2024 Lords Chamber

[Baroness Evans of Bowes Park (Con)]

My Lords, I speak in favour of these amendments, which would enhance the regulator’s approach. I particularly support Amendments 51 and 52, in the name of my noble friend Lord Maude. The language change may appear subtle—to replace “protect and promote” with

“monitor and where necessary intervene to safeguard”—

in the IFR’s objectives, but the implications for the regulator’s behaviour would be important.

The Minister has said several times in our previous debates that she believes the regulator’s approach should be proportionate. That is welcome, but I am concerned that the current wording of the objectives does not fully support that intention. We have discussed overregulation at length, and the potential for it is clear, particularly as we do not have a counterbalancing growth or success duty to guard against such an approach.

It is important to remember that most clubs, at all levels of the game, are well run. There is no justification for an overly risk-averse set of financial rules that can dampen investment and threaten our hard-won global leadership position, or for infrastructure investments that drive long-term value to be second-guessed. We can guard against such unnecessary interference and regulatory creep. My noble friend Lord Maude’s suggested wording could provide an underpinning for a more proportionate approach. It would recognise that most clubs manage their affairs responsibly and that football’s existing structures in the main work effectively, but would allow for targeted regulatory intervention for genuine issues that have been identified and where it becomes very clear that IFR action is necessary.

The systemic resilience objective requires particularly careful consideration, as we must set an appropriately high bar for macro-level interventions that may fundamentally change how football works. Changing this objective to one to intervene where resilience is “substantially threatened” would properly frame the backstop power as a true emergency brake. As the Minister herself said, it should not be a routine tool.

This matters hugely. As we have heard already in discussions in Committee, the football pyramid depends hugely on the Premier League’s commercial success. Constant intervention risk in a readily available backstop would create exactly the kind of uncertainty we do not want to see that could damage long-term investment. We must make sure that the backstop power genuinely is an “in case of emergency only” tool.

The commercial confidentiality provisions tabled by my noble friend on the Front Bench are equally important. As we know, football clubs compete internationally for players, commercial partnerships and broadcast value. Forcing the detailed disclosure of business strategies or commercially sensitive information could damage clubs’ ability to operate effectively in these markets.

This group of amendments is about ensuring that the regulator enhances rather than inhibits what makes English football successful: genuine competition, where well-run clubs can thrive through strong management, innovation and calculated ambition. Once again, we are talking about a set of changes that could provide the regulator with a lighter-touch, proportionate model of regulation. I hope the Minister will give them some serious consideration.

[Lord Addington (LD)]

My Lords, it might be convenient if I say a few words now. I remind the Committee that many of the people taking part today do not like regulation. I have heard that—a lot. I have a bad short-term memory because I am dyslexic, and I have got the message very clearly, so can we just leave it there?

The aim of the Bill is to create a sound framework for football. Even if you do not think those at the top are in trouble, everybody is agreed that, periodically, the other bits look as though they are going to collapse and fall away, or will have to be replaced, as well as all the little local dramas going on. That has been going on for decades, and we have all heard it.

We are going to have a regulator. The worst type of regulator is one that stands back and does not intervene until it is too late, and has to go in with a heavy hand. We want a regulator that we know will intervene and, as I put it at Second Reading, bite hard enough to leave a scar; a body that will actually do something and let people know that there will be consequences for not complying with the regulation. That is what the Bill is about—and what it has been about since the first version. I hope that we can progress on the line that we are trying to make the regulator work properly, and that we do not have too much repetition of points that have already been made.

[Lord Hannan of Kingsclere (Con)]

My Lords, I support my noble friend Lord Markham’s Amendment 71. It was criticised from all the other Benches on grounds of fairness. I just want to interrogate slightly what the critics mean when they say that this regulator will make things fairer.

We are famously a fair-minded people—you can always appeal to a Brit’s sense of fair play—but the word can be ambiguous. Does it mean equity, merit or need? Suppose that the noble Lord, Lord Bassam of Brighton, and I were to buy a cake together, and he spent £3 on it and I spent £2. What would be the fair distribution? Would it be a 60:40 distribution—in other words, dependent on what we had put in? Would it be 50:50? Would it depend on which of us looked hungrier—in other words, based on need? Sometimes these things are all merged together.

I find that, in politics, the word is a kind of boast; it is used to mean, “Look at me: I am a nice, caring person”. It is a way of signalling your decency: “Mirror, mirror on the wall, who’s the fairest of them all?” When applied to this particular case, we are in danger of entering into a kind of Atlas Shrugged world, where we politicians and state regulators decide what is fair, rather than leaving it to those most involved.

The noble Lord, Lord Addington, says that we want a regulator that can bite and leave scars. I would rather not have the scars. I would rather have our extremely successful football system unscarred. He added that it existed for decades without regulation, which I think tells us something. I accept that we have lost that argument and will get some kind of regulator, but I appeal to the Government, at least on the other amendments in this group.

The Minister, at Second Reading and again at the start of Committee, repeatedly said that she wanted the scope of the regulator to be restricted, and I do not for a second doubt her sincerity. We also have heard lots of people on all sides already trying to extend its scope—not to limit and circumscribe it but quite the opposite. Indeed, if we look down the list of some of these amendments, we see that, even before it has come into law, people are saying that it needs to apply to women’s games, we need regulations on diversity of ticket holders, and so on.

--- Later in debate ---

[Lord Markham (Con)]

My Lords, I rise in support and to give an example of a similar unintended consequence. This is around the 3 pm kick-off on Saturday games and not allowing those to be televised. Again, that was set up exactly because Premier League games, if they were televised, would impact the attendance of the Championship League and other EFL games, because they knew that people would be watching those games instead. Within that regulatory framework, they had a view on the impact of how that one competition could impact the other competitions.

In a similar way, what the noble Lord, Lord Mann, is trying to do is to add, in proposed new paragraph (d), the impact on the women’s game and make sure that it is one of the considerations taken into account. Without it, you could be taking action around the men’s games in the competition that has those unintended consequences—so I support it.

[Lord Addington (LD)]

My Lords, the amendment from the noble Lord, Lord Mann, is one of those that reflects real life. Anybody who has set up any club of any structure at any point knows that, if you are working between two bodies—I have seen it very much at junior level between rugby and cricket clubs—their interests seem suddenly to contradict each other under a new set of circumstances. I hope that the Minister will have a reassuring answer about the flexibility and ability of the regulator to intervene and try to find a way forward, because this is a real problem that will occur every now and again. It is probably not a structural thing, but “Is the flexibility there?” is a genuine question. I do not think any of us wants one of our regulators to suddenly start having a negative effect.

My Amendment 70 in this group basically says that support should be available for the women’s game. We have already covered this issue at some length, so I will not go much further than to say that we should not exclude giving the women’s game some help, because it is developing and going forward, and it is very important to the foreseeable future of developing elite-level sport in this country. We should address that by having another look and asking what the capacity is.

I see that the noble Baroness, Lady Taylor, is ready to speak to her amendment. Can we find out what flexibility there is and what the regulator is seen to be doing to handle these not quite down-the-line situations, where there are positive outcomes that we hope would be facilitated by it?

[Baroness Taylor of Bolton (Lab)]

My Lords, I will say just a word, because Amendment 72 in my name and that of the noble Baroness, Lady Grey-Thompson, is included in this group. We have, to a certain extent, discussed this already, because this reflects on the kind of support that clubs would get were they to seek a licence, get a provisional licence or try to comply with the regulations that will be there. The Minister was very reassuring when we discussed this previously, but I hope that, at some stage during the passage of the Bill through either House, we can get a little more detail on how this may work in practice.