Football Governance Bill [HL]

Lord Addington Excerpts

Report stage
Tuesday 11th March 2025 Lords Chamber

Moved by

[Lord Addington]

3: Clause 1, page 2, line 4, at end insert—
“(c) meets the social responsibility duty set out in section (Social responsibility duty).”Member’s explanatory statement
This amendment includes in the definition of English football sustainability the social responsibility duty created by the amendment after Clause 51 in the name of Lord Addington.

[Lord Addington (LD)]

My Lords, the amendments to which I put my name are trying to point out the fact that we regard these football clubs as being social assets—things that should actually reach into their community. We were inspired by a series of meetings with various bits of the football community, because they did not seem to be taking it on board that wholeheartedly—so I proposed a series of amendments giving specific duties to what those clubs covered by this should do.

I give great thanks to the Minister, who clearly listened to at least the concept of this proposal, if not my particular idea, and has come up with the Government’s own Amendment 32. I am really here just to say that, if the Minister wanted to add to her amendment by accepting mine, I would be incredibly grateful—but her own amendment, bringing in corporate governance to the schedules of the Bill, is one that may give us a chance to grow and develop the idea of community interaction between clubs and the communities that they serve. That is very important. There has been far too much talk in this debate about financial aspects and great growth, et cetera. Nothing stays still for ever; Italian football has been very popular and may be again—who knows?

The fact of the matter is that these are things that we now regard as social assets, and clearly that is something that the Bill should embrace. Saying that they have an outstanding duty to their community is something that we should embrace. I would not feel bad if any of the other professional sports in this country took on some of this duty as well—I would welcome it with open arms.

I thank the Minister and look forward to her comments on my humble efforts, but this is very much the Minister’s championing of an idea, and I thank her and the Government for bringing forward her amendment, which I shall wholeheartedly support when it is moved.

[Baroness Brady (Con)]

My Lords, I support Amendments 3 and 32, which would make the economic and social impact of a football club part of its corporate governance requirements. It has become something of a cliché to point out that football clubs are deeply woven into the fabric of their communities, but it is such an important part of why football is so important in the lives of millions in our countries.

If I may, I will very briefly share what this looks like in practice, through the example of my own club, West Ham United. I am proud that our foundation reaches over 50,000 people annually across east London, operating in some of the most deprived boroughs in our country. When West Ham moved to the London Stadium, we made a commitment that this would not just be about a bigger stadium but about deeper community roots.

The foundation now delivers over 30 different programmes, focusing on health, education, employment and social inclusion. During the pandemic, players and staff personally delivered meals to vulnerable residents. The club and fans made significant financial contributions to local food banks. None of this was seen as charity; it was about responsibility. It is what a football club is all about. Our award-winning Players’ Project has seen first team players become ambassadors for specific community initiatives, giving not just their names but their time and their genuine engagement. These connections matter profoundly to local residents.

What makes these initiatives particularly powerful is that they leverage what football does uniquely well: they bring people together across the divides of age, background and circumstances. When a young person struggling with education attends a programme at West Ham United, they engage in ways that traditional institutions often cannot reach them. I have seen the personal impact for myself countless times.

The economic impact is equally significant. West Ham supports thousands of jobs, directly and through a supply chain predominantly sourced within east London. My club has contributed £323 million in gross value added to the regional economy through supply chain, supporting employment and the visitor economy. Match day brings vital trade to local businesses, where targeted employment programmes have helped hundreds of local residents find sustainable work.

These amendments would help to ensure that such contributions are not peripheral or dependent on the good will of particular owners but are fundamental to how clubs operate and are governed. I commend the Minister, as well as the noble Lords, Lord Addington and Lord Bassam, and the noble Baroness, Lady Taylor, for supporting these amendments. I know that this is a particular passion for the noble Lord, Lord Addington, in relation to his Amendment 50, which is also part of this group. I believe he has had some productive conversations with the Premier League about how we can build on our experience and support football charities.

I believe the league will now be examining how we can work with expert organisations, such as the NCVO, to make good governance advice more accessible to small community organisations. This would be a good use of the Premier League’s reach and profile within communities, so I am pleased it is happening.

Football clubs receive extraordinary loyalty and emotional investment from their communities. These amendments formalise that this relationship is reciprocal and should be embedded in governance structures. That is a perfectly reasonable thing to ask as we develop this new regulatory framework, so I fully support these amendments.

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[Baroness Twycross (Lab)]

I thank the noble Lord, Lord Addington, for raising this issue on Report and giving us the opportunity to discuss it further. I also thank him for his very kind words and, not least, for his persuasive arguments over the past few weeks. I am grateful to him and to the noble Lord, Lord Goddard, for their time on many occasions. I am also grateful to noble Lords from across the House, irrespective of whether they agree with the government position, although I feel that there was a general consensus.

I think that what we are all agreed on across your Lordships’ House, including the Government, is that clubs play a vital role in their local communities. It is a key part of what makes football our national game as well as our local anchor. However, as I previously stated in Committee, we believe that the noble Lord’s amendments would expand the scope of the regulator too far and are potentially overprescriptive, as the noble Lord, Lord Pannick, expressed much more elegantly than I can.

The regulator should be focused on areas of critical need, addressing genuine market failures rather than regulating on issues that the industry can solve. There are many different ways a club can make a difference and serve its local community. We have heard some fabulous examples throughout the Bill’s passage through your Lordships’ House, including a number we have heard today, such as that of West Ham during the pandemic, mentioned by the noble Baroness, Lady Brady, and my noble friend Lady Taylor of Bolton mentioned the charity work of her team, Bolton Wanderers.

This is why we are confident that government Amendment 32 strikes the right balance. We want to encourage clubs to continue their great work in their local communities without restricting the manner or form in which they achieve it. For example, clubs could match their community outreach initiatives to the size and resources of their clubs and to the specific communities’ needs and issues, which may vary. This could include the bespoke training for charities and community groups envisaged by the noble Lord, Lord Addington. Like him, we agree that the regulator can shine a light on this vital work carried out by clubs up and down the country and therefore encourage more outreach. That is why we have brought forward the government amendment, which would require clubs to report on the actions they are carrying out.

Government Amendment 32 would mean that the regulator includes clubs’ community contributions in its corporate governance code and adds criteria for what constitutes corporate governance for football clubs. I welcome support for the government amendment from my noble friends Lord Bassam and Lady Taylor, and the noble Lord, Lord Addington, who have co-sponsored the amendment. This is very much in the spirit of co-operation and discussion that we have had over the past few weeks. It will be explicit in the Bill that a club’s contribution to the economic and social well-being of its local community is part of its corporate governance. That will ensure that clubs outline how they contribute to their local communities in their corporate governance statement.

In answer to the noble Baroness, Lady Fox of Buckley, we do not think this is heavy-handed or overregulation; this is, as the noble Lord, Lord Maude of Horsham, said, what good clubs already do. If they were not contributing to their local community, they would, however, be expected to explain the reason for that in their statement. Their report would be published online to allow for public scrutiny so they can be held accountable for their actions or inaction. We believe this will encourage transparency and, as with the approach to corporate governance more widely, this will in turn encourage greater action in this space.

Above all, this approach will allow flexibility for each club to comply in accordance with their resources and size and in a way suited to their own community’s needs. Additionally, when the regulator publishes its corporate governance report on clubs, best practice can be shared with the industry. The approach will also ensure that we do not step on the toes of the likes of the FA, which already spearheads good social and community initiatives across football.

I hope that I have reassured the noble Lord that we are taking appropriate action to ensure that this important issue is captured without giving without rise to scope creep. For these reasons, I urge the noble Lord to withdraw his amendment, and I commend government Amendment 32.

[Lord Addington (LD)]

Well, my Lords, there were hints of normal service being resumed at the end of that. It just goes to show that we have to look at what we are actually trying to achieve here. If good clubs do it anyway, why should they be hamstrung by doing it when bad ones do not? That is something I would say: a bit of basic fair play. Also, the idea of light-touch has been spoken about very much in this debate—it is one of the mantras—but I just received information from the EFL saying that it is worried about this, because what does “light-touch” mean? Does it mean doing virtually nothing? The noble Baroness shakes her head, but we will possibly drag that out during the course of the Bill. I have heard Lords debates in which “light-touch” was described as being asleep at the wheel and only paying attention when there is a disaster.

I would hope that the careful use of regulation, encouraging people to do the things they should, is something we do not shy away from. The good ones do it—bravo—but let us make the rest join in. I hope that we can take this principle forward in this Bill and other pieces of legislation. Just because somebody is good does not mean to say that everybody will be. I do not know how many pieces of legislation have that principle running through the middle of them like a stick of rock. I beg leave to withdraw my amendment and look forward to supporting the government amendment when it is moved.

Amendment 3 withdrawn.

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[Lord Parkinson of Whitley Bay (Con)]

My Lords, I agree with my noble friend Lord Moynihan that the name of this group on the list circulated by the Government Whips’ Office is a little unfortunate. This is an important issue into which we stumbled unwittingly in Committee. It is not clear that even the amendment which my noble friend Lord Moynihan has moved would make the Bill hybrid. This is a question which needs to be considered separately. Both in the amendment which my noble friend Lord Markham and I brought in Committee, and in the other amendments brought by the noble Baroness, Lady Taylor, and the noble Lord, Lord Bassam, relating to National League North and South, we stumbled across the conundrum that my noble friend Lord Moynihan has set out: that, by trying to say in the Bill whom it regulates, there was a risk that it would have to be considered hybrid and dealt with in that way.

As my noble friend has said, this reflects the concern raised by the Delegated Powers and Regulatory Reform Committee of your Lordships’ House. In its eighth report, it recommended explicitly that this delegated power be removed from the Bill. It said:

“Government policy is clear—that the top five leagues of the men’s professional game should be regulated. This policy should appear in primary legislation, not be relegated to secondary legislation”.


It is unfortunate that we have been unable to find a way around this problem. In one of the meetings which my noble friend Lord Markham and I had with the Minister and the Bill team between Committee and now, we asked them to go back to parliamentary counsel to see whether there was another way around this. No other way has been found, which is unfortunate.

I take the point that the Minister made in our conversation that it is very clear who is being regulated by this Bill in the first instance. There has been a lot of consultation with them, both during the previous Parliament and in this one. My concern, reflected in my Amendment 85, is about those who might be brought into scope—say the women’s game, or the National League North and South if, in due course, future Governments were to agree with the point that the noble Baroness, Lady Taylor, and the noble Lord, Lord Bassam, made in Committee. There are plenty of people in football who have not had the same degree of engagement with this Bill that the top five leagues have had which has got us to this point. That is why I tabled my Amendment 85, which concerns the dehybridising provisions of the secondary legislation that might be brought forward by this Bill to try to ensure that those football organisations that might come under the scope of the Bill in the future can have the same level of consultation and opportunity to give their views that the top five leagues in the men’s professional game have had hitherto.

I am grateful to all the minds that have been applied to this problem and to the members of your Lordships’ Delegated Powers and Regulatory Reform Committee for highlighting it. I regret that we have not been able to find a way of saying in the Bill who is being regulated but, as my noble friend Lord Moynihan said, none of us wants to delay the Bill by exploring this point further. I look forward to hearing what the Minister has to say.

[Lord Addington (LD)]

My Lords, this is an interesting one: hybridisation being caused, in effect, by naming some clubs, or rather the structures. The main thing here is that we want the Bill to progress. Any danger of hybridisation is something that we want to avoid. Thus I shall be resisting these amendments.

[Lord Pannick (CB)]

My Lords, the defect of imprecision is unfortunate, but it can be cured by secondary legislation, which is far preferable to the serious risk that the Bill would be hybrid.

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[Lord Addington (LD)]

My Lords, as the debate has progressed, I have become a little more concerned about this. There is clearly the idea that this independent body is going to be a political football—pardon the pun—kicked around at the beginning, in the form of the question of who is acceptable. We have to trust independence a little more, I am afraid. None of us will be happy with everybody all the time, but I think we have to have it.

[Lord Markham (Con)]

My Lords, I rise to speak to my noble friend Lord Parkinson’s Amendment 10 and to support the other amendments in this group. Our amendment is quite modest and uncontroversial, in that we seek to limit the number of individuals appointed to the expert panel to 20. I think we would all agree that 20 is actually quite a large number. It is the figure that was in the Conservative version of the Bill, which for some reason the Government removed. I must be honest, 20 sounds like a lot to me, so to enable that figure to be higher probably leaves us open to jokes such as, “How many regulators does it take to change a light bulb?” Twenty will definitely do it, and I hope the Government will be happy to bear that in mind. There is a serious point here. We talk about wanting a light touch and to remove red tape, but a body of more than 20 would definitely be unwieldy.

I support the amendments tabled by the Minister and others. I welcome transparency being at the heart of the regulator’s work, and it is entirely correct that any potential conflicts should be openly declared.

Finally, there is a consensus that Amendment 8 from my noble friend Lord Maude is a sensible move. As my noble friend said, we are perfectly happy to accept the assurances the Minister gave about subsequent chairs. She is happy for this to happen for the first chair, so the precedent has been set. I therefore hope that it is not a big ask that some assurances are made for future ones, and that there is flexibility in respect of the format.

I will also take the opportunity, given that there has been quite a bit of press speculation, to ask whether there is any update on the timing for announcing the potential candidates and when we might see them in place.

I hope the Minister will either accept this amendment or give an undertaking for Third Reading. If not, my noble friend will have our full support if he wishes to test the opinion of the House.

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[Lord Hogan-Howe (CB)]

Not surprised when that does not happen.

There is something within us that is very hard. The most obvious thing a football fan could do would be to stop going to the games to effect change in a club, but it is very hard for them to do so. Therefore, a regulator asking reasonable questions of a club about why it has increased ticket prices is a very sensible option. If it is there to check on the validity and, I suppose, the due diligence around the ownership, I would have thought that this is the very least it could do in looking around the due diligence and looking after the fans.

No one else really looks after the fans. Outside the Premier League, the quality of looking after the fans is pretty awful. From the toilets to the restaurants—if they ever pass as that—it has traditionally been pretty diabolical. I would have thought that the regulator ought to be looking at such things, as well as whether the money going into the club is straightforward and comes from the sources that are alleged. I will certainly support the ticket price amendment, should it be put.

[Lord Addington (LD)]

My Lords, having listened to this debate, I have discovered that I have no original points to make. I discovered, having had a quick discussion with the noble Lord, Lord Pannick, that if it is in law anyway, it is law. On enforcement capacity, probably the earlier amendment of the two was better or more relevant, but we have already said that it is out of scope following Committee.

When it comes to ticket pricing, it will be interesting to hear what the Government think will be done, or what is within the capacity of the regulator, to at least justify ticket price increases. There is enormous pressure for prices to go up, but you also have a duty to your community. I look forward to hearing what the Minister has to say on this. I will base any reaction on the Minister’s response.