Football Governance Bill [HL]

Lord Parkinson of Whitley Bay Excerpts

2nd reading
Wednesday 13th November 2024 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the noble Baroness, Lady Twycross, for moving the Second Reading of this Bill and for the generous and comprehensive way she set out all the work that has gone into it to get us to this point. I am also grateful, as is my noble friend Lord Markham, for the time she gave earlier this week to discuss the Bill with us. As noble Lords may know, and as the Bill team was warned when we were working on the Bill before the election, I am not the world’s greatest football aficionado, but it is a mark of the power and allure of the beautiful game that none of us can be mistaken about the central part that it plays in our national life.

In 2010, I had the pleasure of standing for election to another place in my native city, Newcastle upon Tyne. I was an eager, first-time parliamentary candidate and had been campaigning for nearly 18 months when the election was finally called, so it was a chastening reminder of most people’s priorities to see the front page of the local papers on 6 April 2010. That was the day that Gordon Brown finally went to the Palace to seek a Dissolution. More importantly, on Tyneside, it was the morning after Newcastle United had won promotion back to the Premier League after their relegation in 2009. The Newcastle Evening Chronicle that day was a commemorative edition, offering 10 pages of photographs, analysis and reaction from the fans. Tucked away in the corner was a tiny news in brief: “Prime Minister calls election—full story, page 11”. So I have never been in doubt about where football stands in the nation’s priorities—understandably, since it is one of this country’s greatest inventions and exports.

As we begin our scrutiny of this Bill, it is worth casting our minds back to 26 October 1863. On that date, gathered in the Freemasons’ Tavern on Great Queen Street—the same tavern, incidentally, in which the Conservative Party conference was held for the first time four years later—Ebenezer Morley, along with the representatives of a dozen other London clubs, came together in a spirit of camaraderie and shared passion to form a body that would unify the rules and practices of the sport they loved. From that meeting came the Football Association—the first association of its kind, and one which has formed the model for governing bodies around the world.

The year 1888 saw another key moment in the football canon. It brought the creation of the English Football League—again, a world first—followed a year later by the establishment of the Northern League. It was with this development that the professionalisation of football really took hold. Without that Victorian spirit of imagination and enterprise, the game of football as we know it today would not exist.

Since its inception, football has been a great unifier—indeed, even a peacemaker. It was a football match that famously brokered a momentary truce on the Western Front on Christmas Day 1914. Since the inaugural FIFA World Cup in 1930, football has brought nations together around one central purpose—the love of a game—in friendly competition. Over the years, football tournaments have flourished across the globe. It has become by far the most popular and loved sport in the world. All that would not have been possible had it not been for that evening in October 1863 here in England.

Why dwell so heavily on the history of this beloved sport? It is because history is at the heart of this Bill. Football is woven into the fabric of our nation. It is central to the identity of millions of Britons. It is the thread that binds communities together—communities such as my home town, where Whitley Bay FC are a source of great local pride, not least as the record-holding, four-time winners of the FA Vase. Football generates memories, creates its own traditions and is infused with the spirit of every player, every fan and every club.

Across the country, thousands assemble weekly in all weathers to cheer on their favoured team: the club supported by their parents, their grandparents and their great-grandparents before them. A football club is more than just a patch of soil; it is hallowed turf, nourished with the blood, sweat and tears of generations. The badge worn on the heart of every player is not merely a picture but a symbol—of hope, of heritage, of devotion. That is what English football is all about and that is why it is so important for us to get this Bill right.

A football regulator will work only if it is able to protect the beating heart of the game and if it strikes a balance between protecting the past and the future of clubs and competitions. There is much in the Bill that does indeed strike that balance, and I am proud that it was the previous Government who commissioned the review that led to its creation. I repeat the thanks the Minister gave to Dame Tracey Crouch and to the tens of thousands of fans who took part in that review and helped to shape it. The work has always enjoyed cross- party support, as the Minister noted, and I welcome the fact that the new Government have sought to continue it so swiftly.

As I have discussed, the Bill attempts to tackle the issue of heritage. The regulator will have an explicit duty to protect the unique history of each and every club and to ensure that the links between clubs and their communities are immutable bonds that can never be broken. But we must not ignore the fact that the Bill before us today, as the Minister candidly set out, is not the same as the Bill that was under discussion in the previous Parliament. Key safeguards that were intended to preserve elements of the independence and sustainability of the leagues have been changed. There are four areas of this new Bill that we on these Benches will be examining particularly keenly during its passage through your Lordships’ House.

First, in considering the principle of a regulator, we support the establishment of the independent football regulator. We are pleased that it will have a role in preserving the history and heritage of clubs and that it will protect against the threat of rogue owners, some of whom in the past have asset-stripped clubs for their own gain. But we remain concerned about the potential for regulatory overreach. We must be vigilant against mission creep, as is all too often the case with regulatory bodies. A key word in the Minister’s speech was “proportionate”. If this new regulator becomes too deeply involved with the minutiae of clubs’ finances, we risk damaging one of our most significant cultural institutions and greatest exports. If the regulator becomes too prescriptive in its requirements, how will clubs retain their competitiveness against their global rivals? Any outcome that sees a reduction in investment and creates a possibility for English football to lose its premier status must be seen as a failure. It is our job to ensure that this does not happen.

Secondly, the Bill brought before the last Parliament explicitly excluded parachute payments from the scope of the regulator. This Bill, as the noble Baroness outlined, has removed that exclusion. The Government have reasons for this, as she has explained, but we remain unconvinced. We know that payments to relegated clubs are vital for the financial sustainability of those clubs. When a club is forced into the Championship from the Premier League, its overheads do not decrease yet its income does. Football clubs are not like just any other business; they cannot simply cut costs. Without parachute payments, clubs facing relegation would be forced to the financial precipice. Surely any risk of a club being forced to enter administration because of action taken by the regulator would be the polar opposite of the aim of this Bill. That too is an outcome we must resist.

Thirdly, I turn to the backstop mechanism—a term that, I admit, still brings me out in hives after years of discussing Brexit deals. The backstop in this instance was first envisaged as a last resort, to be called on only should neither party agree on the distribution of revenue. But there are absolutely no guarantees that this will be the case. If one party wants to trigger this mechanism, it may do so whenever it wishes. The binary choice presented by the backstop, and the inclusion of parachute payments in that mechanism, could lead to a scenario where the regulator forces one business to give its money to another. Setting aside the financial risks in that, the potential for protracted legal action could have very injurious implications. If league organisers and clubs cannot be certain that they will receive the income they expect and if they cannot anticipate how often they may be bogged down by lengthy and costly battles in the courts, how will they be able to produce the business plans required by the regulator for licensing purposes? Of course, the financial sustainability of the whole football pyramid is of the utmost importance, but there must be at least some recognition in the mechanism of the unique role that the Premier League plays as the ultimate funder in the financial vitality of the English league system.

Finally, one of the laudable aspects of this Bill is the attempt to improve fan engagement. Given that the Bill was born of the fan-led review, it is only right that those who give their support to the sport should be engaged by the clubs they love so dearly. But there are important issues to examine here. How do we define who a fan is? Who decides? Will clubs be allowed to choose with which groups or people they engage? Will the regulator? What impact will this have on supporters’ engagement and on clubs? We must also grapple with the fact that fan engagement can go only so far. Once we have decided what constitutes a supporter, what role will they have? Perhaps the noble Baroness can elaborate on this, either today or as we go into Committee. Will fans come to welcome this regulator? Just as the referee on a pitch adjudicates between players and thus frequently draws the ire of both teams, will this regulator attract the same criticism from supporters?

Since that October evening in 1863 that established the foundations that have allowed football to flourish in this country, football clubs have become the nuclei of communities across the country, institutions steeped in meaning and heritage that have inspired generations. Football has become one of the central elements of our national identity but, like so much of our national heritage, it is a precious and delicate inheritance. If we do not treat it reverently, we risk destroying what makes it great. As we seek to regulate football, we must keep our eye on what makes it so special and act in the spirit of those who met in that tavern in Holborn 161 years ago. The motto of Whitley Bay FC is “Ludus est omnis”—“The game is everything”. Those wise words are worth keeping in mind as we scrutinise this important Bill.