Football Governance Bill [HL]

Lord Knight of Weymouth Excerpts

Committee stage
Monday 9th December 2024 Lords Chamber

We need the proper governance that you would expect in any well-run business so that the owners are protected from undue attack and the fans know that the club is being properly run, and you cannot have a representative of the fans without a proper governance structure. It is as simple as that. I say to the noble Baroness, Lady Fox, that, because I am determined that we do not go on until 3 am or into Christmas, I will leave it at that. It is as simple as the amendments outline: we need a code of practice that everybody understands and that they can adhere to, so that on a weekend or an evening we can get the kind of game out there that the fans deserve.

[Lord Knight of Weymouth (Lab)]

My Lords, I shall speak to Amendment 157 in my name; I am grateful to those who have added their names. It seeks to add to the governance requirements for licensed football clubs that there should be at least two independent non-executive directors appointed to their main board. The remit for these directors should follow the definition set out in the UK Corporate Governance Code developed by the Financial Reporting Council. I thank the Arsenal Supporters’ Trust for its support for me in putting this amendment together.

As your Lordships know, independent non-executive directors bring independent expertise, scrutiny and accountability to a board, and would have a key role to play in upholding the principles of the Bill around financial sustainability and supporter engagement. I had a quick look and noted that Brighton & Hove Albion Football Club have several independent non-executives; West Ham are reported to have a couple; Liverpool have solely Kenny Dalglish; and Arsenal have simply the noble Lord, Lord Harris of Peckham.

I think we should have more than just the one. The appointment of independent non-executive directors, and their role in advising and scrutinising a club’s financial position, can be an effective check and balance. It is likely to mitigate the need for an independent regulator to intervene regularly, as more issues will be successfully addressed through the accountability that independent non-execs provide.

They can also safeguard the interests of the association’s stakeholders and membership, as the code sets out. In this case, that means supporters. The UK Corporate Code sets out how independent non-execs have a role in overseeing effective engagement with stakeholders. In the case of football, this would of course be adopted to cover supporters and would really help to develop progress on the requirement for effective fan engagement by providing independent senior voices who would play a key part in ensuring effective dialogue with fans.

In that vein, the DCMS requires all national governing bodies for sport to appoint independent non-executive directors to their boards, as set out in the sports governance code. So I ask the Minister to set out provision for independent non-execs on the face of the Bill, or give us reassurance that the regulator itself will bring forward requirements around this issue in the governance code that it will produce.

[Lord Markham (Con)]

I would like to support absolutely these amendments. I say for the record—and I am sure that I speak for all contributors to these debates—that I am making these points because I care deeply about football and about what is best for football. I think these amendments absolutely do that.

I have many examples of sitting on boards as an independent non-exec director; they are absolutely the sort of people we want, making sure that a club is putting forward appropriate business plans that are sensible, and sometimes taking a risk—risk appetite is in these amendments—but with the right approach to doing so. Having that balance on the board, of owners, supporters and independent, wise heads, has got to be a sensible thing. With that in mind, I offer my support for the amendments.