Football Governance Bill [HL]

Lord Bassam of Brighton Excerpts

Committee stage
Monday 9th December 2024 Lords Chamber

[Lord Bassam of Brighton (Lab)]

We are talking here about a fundamentally different thing: the football pyramid and its sustainability. That is what this Bill is about. The question from the noble Lord, Lord Goddard, was entirely fair. Is it fair that the top 20 Premier League members and the top five clubs in the Championship get 92% of the television revenues generated, when it is the whole of the football world, in a sense, that helps generate those revenues? I do not think it is fair, and I want to hear the noble Lord, Lord Markham, comment on its fairness or otherwise.

[Lord Markham (Con)]

Is it fair that Federer, Djokovic and Murray earned so much in their time? Did Wimbledon not need all the players to take part for it to be so valuable? Is it fair that Verstappen has won the championship four or five times in a row and is earning far more than everyone else? That is about sporting competitiveness—or competitiveness in anything. It is not the role of a regulator to start to redistribute income; I believe fervently that we will then get the law of unintended consequences.

My noble friend Lady Brady talked about parachute payments. This weekend was a perfect example of why the Premier League is the most popular league in the world. Crystal Palace held Man City to a draw. Can you believe that Crystal Palace—fourth from the bottom, right on the edge of being relegated—would have invested that much in players if they knew that, if they got relegated, they would lose all that money and face almost financial ruin in the Championship without it? I do not think so. I think a regulator would have said, “Oh, Palace, it’s not very sustainable having all that money when you could go down”. That would fundamentally alter the competitiveness of those games. That is the value of the Premier League. People will tune in, because they know that it will not be a walkover between Palace and City in this example; they know that it will be a competitive game.

Countries all over the world are prepared to pay more money than anyone else to see these games because they are competitive. Take the Bundesliga or the Italian or Spanish leagues: there are two or three top clubs and then a lot of also-rans, so it is not competitive in the same way. That is the danger we face here. By allowing regulators to redistribute income, on the basis that it is not fair that the top clubs are getting more, you will alter the whole competitiveness of the structure. Again, we say that it is not fair, but is it fair that the Championship is the sixth wealthiest in the world, while the Premier League is the wealthiest? Why is that? First, it gets a lot of payments down from the Premier League as part of voluntary arrangements. Secondly, it is because of how the whole of football has been set up for clubs to be promoted: money is being invested to give them a chance.

We have all said many times that this is our number one industry worldwide—there is no doubt whatever about that. We then have the second tier, which is number six worldwide. There is nothing else like that, and I believe we are at risk of putting that whole system under threat if we meddle in these ways.

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[Baroness Young of Hornsey (CB)]

My Lords, I support Amendment 157. I declare an interest as a Premier League season ticket holder. I apologise to the Committee for not having been present during previous debates on the Bill, but I have endeavoured to keep up with its progress.

This part of our discussion seems to overlay lots of different and very complex issues, piling them all into one or two amendments. As I speak to Amendment 157, I will try to focus on governance and having independent, non-executive directors on boards, which is absolutely essential when looking at this issue. As the noble Baroness, Lady Brady, has pointed out, there is this idea of football clubs being not just a business or a commercial entity, as other commercial entities are. They are also considered to be community assets, so there is a wide range of stakeholders involved in the promotion, adoration, despair and all the other emotions that go with being a football fan. As has been rightly pointed out, it almost defines something about England.

It is therefore important to try to ensure, as far as possible without being too prescriptive, that we have independent non-executive directors on boards because of the accountability. At the moment, I think many fans feel that there is no accountability. I take on board a lot of the points made about how progressive and determined clubs are to counter the horrible things that happen online and elsewhere, but clubs have also not been terribly successful in changing the faces that sit around those boardroom tables. If we look at reviews such as Sir John Parker’s review of ethnic diversity on boards, there has been some improvement in some sectors. I would gladly be persuaded by those who know better if it is the case that diversity has been increased around those tables.

That is just one part of it. To me, this feels like a move for basic good practice. We have the Nolan principles and we have guidance from the Institute of Directors. All those kinds of guidelines need transparency and people to speak up for them who do not have an interest in a particular way on those boards.

[Lord Bassam of Brighton (Lab)]

My Lords, I have not had the chance yet to speak to my amendments but I am grateful to other noble Lords for participating in the debate and making their comments and views well known. I am slightly disturbed that the noble Baroness, Lady Brady, has rather overinterpreted my Amendment 156. I was not aware that I was in favour of imposing quotas, but it is an interesting point.

Amendment 156 is there simply to raise the issue of ensuring that in corporate governance, football clubs are obliged to improve the diversity within the club, not just among season ticket holders but among staff and senior managers. We have made great progress through football and its barrier-breaking approach to the world of sport over the last 30 or 40 years. I can remember some pretty unpleasant scenes at football grounds when I first started watching football seriously. Gladly, those have become much less frequent but there is a real and genuine issue about representation, particularly of black players then not getting opportunities in off-field representation at all levels of management.

I have received a useful briefing today from the Black Footballers Partnership, which points out exactly that. Only two of the current 92 league managers are black, despite black footballers making up 43% of the players. The Black Footballers Partnership data shows that despite achieving 14% of all FIFA pro licences and one in four of UEFA licences, black players secure only 4% of the coaching and other managerial roles. There is clearly something not right there.

It is important that clubs are obliged to think through some of these issues. Quotas may or may not be the way to do it but we have opportunity here for football to think about improving the levels of diversity, not just in football management but in all management positions and other roles within the clubs. As the noble Baroness, Lady Brady, said, clubs have led the way and have played a really startling and dynamic role over time.

With this amendment—and I am grateful to those who have signed it and spoken to it—I am trying to get football to begin thinking more widely about diversity in its broadest sense so that in the future it is just part and parcel of how it should be. I guess the noble Lord, Lord Hannan, would think that this is regulation creep, but I do not see it that way; I see it as setting standards for the future. Football has a proud reputation, and it is one it should build on.

In this amendment, we are seeking to encourage football to build on its reputation, because that is what needs to be done to make the world of football more inclusive and better reflect the society in which it is located. If we can do that, I think the values of football—competition and solidarity—will be much better represented. It would add to the fairness and equity that is there within a very competitive game.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, I think the motivation behind the amendment of the noble Lord, Lord Bassam, and the intervention by the noble Lord, Lord Goddard of Stockport, posits diversity as something you cannot possibly be against. Of course, we are all against prejudice—I hope—and that seems very commonsensical. In fact, the noble Lord, Lord Bassam, made the point that he tabled this amendment so we could have a proper discussion about diversity.

The problem for me is that diversity, in the context of governance of organisations, is already established across a wide range of organisations. I am afraid it has not been for the good of those organisations. I will address the problems of diversity as a bureaucratic intervention, especially in the hands of a regulator, and why I think it will not be good for football. That does not mean I am implicitly on the side of people who are racists or not interested in equal rights or fairness.

It is important that we have some perspective here. We might note that there are 64 different nationalities represented in the Premier League, as well as a myriad of religious denominations. For players in all the different football teams across the league, that is surely proof of meritocracy—rather than box-ticking diversity schemes—that provides the riches of talents, that is colour-blind and that is not interested in people based on their characteristics.

I also think we have huge diversity in fanbase, and it has not needed a regulator to organise schemes to ensure that English football is loved by hundreds of millions of people of all shapes and sizes, ethnicities and socioeconomic backgrounds across the globe. Meanwhile, female fans, players and popular momentum are propelling women’s football into the limelight. Therefore, I do not think that football is an example of a pale, male, stale institution that is waiting for a regulator to sort it out.

Both the amendments I am concerned about, Amendments 156 and 249, mention the clubs’ employees and monitoring and reporting on staff diversity. But I think we need to take heed of some of the negative lessons from other workplaces, particularly the public sector. Whatever the intention, too often an over-preoccupation with diversity is less likely to create more fairness for staff but does create an explosion of jobs for human resources—HR—apparatchiks, who manage the diversity and inclusion schemes that we set up.

It is worth noting that Britain has one of the largest HR sectors in the world. It is one area of growth that somebody somewhere might be proud of, although I am rather in despair at it. According to the British Labour Force Survey, there was an 83% increase in HR jobs between 2011 and 2023. As journalist Lucy Barton pointed out, that means that HR workers currently outnumber NHS doctors three to one. Let that sink in. A lot of this growth is due to job creation in relation to EDI demands. I do not think we should go ahead with these amendments on diversity and inclusion but, if we do, I propose some sort of cost-benefit analysis. The salaries needed for the hours and hours of paperwork that the regulator will be checking that the clubs do could be incredibly financially burdensome—even crippling—on many clubs.

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[Lord Hannan of Kingsclere (Con)]

My Lords, I assure the noble Lord, Lord Blunkett, who knows how much I respect him, that I have had no contact at any point with the Premier League, unless you count occasionally buying a ticket to one of the member clubs. Far from filibustering, my intervention on the previous round was the first time I had spoken since Second Reading, and I kept it to about four minutes. I opposed this Bill very strenuously when it was proposed in the previous Parliament. I am sure he will allow that it is not exactly the same Bill. It has been beefed up in various ways, and those ways need scrutiny.

One of the ways in which it has been beefed up, even short of the amendment from the noble Lord, Lord Bassam, is in strengthening the EDI provisions. I have to stand back and ask whether it is proper for a regulator to tell private clubs what kind of people should be their ticket holders. Is there not a basic principle of proportionality and property here that says it is in your interest to have as many ticket holders as you can, and it is in their interest, if they are interested, to come? Does that intersection of who wants to come and how much they are prepared to pay not represent the right place in a free society? We are not some autocracy where we impose values on free-standing organisations.

In our present mood we sacralise the values of EDI but tomorrow it may be something else, and that would be equally wrong because there is such a thing as freedom. There is such a thing as a private space, and that is an essential building block of a free society. The noble Lord, Lord Bassam—he will correctly me if I get this wrong—says it is shocking that only 4% of senior management positions are held by black people. According to the 2021 census, the proportion of black people in the UK is 4.0%. In other words, without any intervention, without anyone telling them what to do, we happen to have an exactly representative number. But even if that were not the case—even if, as the noble Lord, Lord Bassam, was saying, there is a much higher proportion of black players in Premier League clubs—surely that is meritocracy. Why would it be the business of government to try to bring that number into line with the population?

[Lord Bassam of Brighton (Lab)]

Does the noble Lord not think it is rather odd that in a sport where something like 43% or 44% of the players are black, very few of those players make it through into management positions in those same professional leagues? Does he not think there is something slightly amiss there?

[Lord Hannan of Kingsclere (Con)]

The figure that is out of whack with the population is the number of players, not the number of managers, which is exactly in line with the population as a whole. The noble Lord may have a problem with that. I do not have a problem with that because it is plainly meritocratic. Clubs are interested in winning, so they pay people who are going to produce the results that they want on the pitch. If their fans are not happy with it, they stay away. That is how the system works and why, frankly, I think the whole Bill is wrong. I realise I have lost that argument, but we are not some insecure South American junta that has to tell private clubs what to do and appoint commissars over sport.

I do not want to be accused of filibustering this one, and I have gone just over three minutes, so I will finish by saying that if we are to have this wretched regulator, let us at least make it as proportionate and as in line with the rest of our law as possible, on which note I will support the rest of the amendments from the noble Lord, Lord Blunkett, because it seems quite sensible to bring any regulator into line with the usual standards of corporate governance.