Football Governance Bill [HL]

Lord Sentamu Excerpts

Committee stage
Wednesday 27th November 2024 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

That point was made earlier. I would not say every game is competitive, but I take the noble Lord’s point. I do not want to say any more at this stage because it is important that we get some clarity on how we go forward after this initial debate, because there are many important sections of the Bill that we need to look at in detail. The regulator will have a role, and we have to use this to make sure that it is absolutely clear. Some of the issues raised by noble Lords are legitimate, and until we can have our debates on each of these, we cannot quite see what shape this Bill and the role of the regulator will have. I thank noble Lords for the points made, and I think there are a lot of issues that we will follow up.

[Lord Sentamu (CB)]

My Lords, if we do not get up to Amendment 36, we have a big job ahead of us, so I am going to be very brief.

Take the BBC. The director-general, the chair and the board really try to work hard to meet its objectives. It is there to entertain, to inform, to educate—and those objectives live in the same organisation. I do not know why, in the same way, the regulator cannot see its job as one of sustainability and success as well as growth.

Football Governance Bill [HL]

Lord Sentamu Excerpts

Committee stage
Monday 16th December 2024 Lords Chamber

[Baroness Brady (Con)]

My Lords, I support Amendment 124. I think it introduces a sensible and proportionate idea: that the independent football regulator should have the power to delegate certain functions to competition organisers, such as the Premier League, the EFL and the National League, where it is appropriate. First, I want to consider the position of the leagues themselves, especially the Premier League and the EFL, both of which already play central roles in the regulation and operation of English football. These organisations are not merely administrative bodies; they are sophisticated, well-sourced entities with established systems for financial monitoring, licensing and governance.

For example, the Premier League currently performs all the UEFA licensing for clubs on behalf of the FA, demonstrating its capability to operate efficiently and effectively under stringent regulatory frameworks. It also has robust financial monitoring mechanisms in place, which ensure that clubs comply with obligations relating to profitability, sustainability and long-term planning. As I mentioned earlier in Committee, the Premier League also invests significant resources and time in performing its owners’ and directors’ tests to a very high standard, and intends to continue to do so.

Simply duplicating all these existing structures within the IFR would be inefficient and burdensome, as the White Paper that led to the Bill rightly acknowledged:

“The Regulator may wish to allow concurrent systems, or delegate responsibilities to industry bodies, in certain circumstances. It would manage this in a way that is coherent and simple for all involved, especially clubs”.


Unfortunately, however, no sensible delegation power currently exists in the Bill, so I commend my noble friends Lord Markham and Lord Parkinson for addressing this issue and allowing for this conversation. This amendment would align perfectly with that principle expressed in the White Paper. It would be a smart, almost unarguable step to take: delegation would allow the regulator to focus its resources, especially in the early years of its life, on areas where independent oversight is essential, such as addressing market failures and managing systemic risks. At the same time, it would give the regulator the option of leaning on existing processes or information systems where they are already successfully implemented.

Delegation would also address an important practical reality. The workload facing the IFR will be immense. I am not surprised that the EFL wishes to offload some of its costs to the regulator, and that is its right. In its early years, this regulator will have to establish itself, build capacity and gain the trust of stakeholders across the ecosystem. That is a big burden. Allowing it to delegate certain functions, with appropriate safeguards, ensures that it can deliver its objectives without being overwhelmed by administrative tasks that others are well placed to manage.

However, this clearly cannot be done on blind trust. The amendment includes what seem to be important safeguards: the IFR must ensure that any competition organiser meets the same degree of stringency, aligns with its objectives, and adheres to its regulatory principles. This would seem to protect the integrity of the regulatory framework, while avoiding unnecessary duplication and, therefore, unnecessary cost.

More broadly still, this amendment raises an important question that we must address about the future role of the Football Association. While the fan-led review’s position was that the FA’s current governance arrangements make it unsuitable to house the IFR at present, it also envisaged a scenario where one day this might change. As the review noted,

“the FA might at some point be a suitable location for IREF … However, the Review has concluded that this is not appropriate at this time”.

This amendment raises the possibility of the delegation of certain functions to the FA, as part of its reform journey. If the FA continues to modernise its governance structures and demonstrate the capability to take on certain functions, it could play a much larger role in football’s regulatory framework.

Indeed, I encourage the Government to consider including the FA in the scope of this clause as such, because it should meet the same rigorous criteria that the leagues have to. Delegation to football bodies could be tied to a broad review of football governance a few years into this regime. This review could assess not only the progress of the IFR but the readiness of the FA and other football bodies to take on greater responsibilities. This will ensure that the IFR can be a dynamic institution, evolving in response to the needs of the game and empowering existing bodies to step up, where it makes sense. I believe that all stakeholders, including the most ardent supporters of the fan-led review, as well as those worried about the unintended consequences of this delegation, could support this kind of sensible amendment.

Finally, but most importantly, in a letter sent to me by the general-secretary of UEFA only last week, he said:

“UEFA appreciate the background of the Football Governance Bill discussions and proposals, and we were encouraged by the intent of the original Fan Led Review which stated that this regulatory area should be returned to The FA in time. UEFA supports The FA and UK policymakers in ensuring that this is still the case”.


The FA told me, also last week, that it has recently told DCMS that

“the FA is willing to take on delegated powers from the IFR, if there are services that the regulator believes we can operate and deliver effectively”.

I ask the Minister: is it still the case, as UEFA and the FA seem to believe, that the Government intend the future delegation of powers to be handed back to the FA at some point? If it is, surely this is an amendment that the Government could and should support.

[Lord Sentamu (CB)]

My Lords, I have spoken only once—about my little club, York City—but I have attended all the Committee debates. First, I think that York City will find it puzzling if, for the first time that there is an independent regulator, the same Act will say that some functions will be delegated. That is a confusion. Down the road, that might be thought about, but we want to see this person—man or woman—who will be the independent regulator doing the job. If it becomes an impossibility or too burdensome, it is at that stage that you delegate. But to say in the Bill, right at the beginning, that certain functions will be delegated, maybe to some powerful clubs, will be a confusion.

Secondly, no one would want to be an independent regulator. If I had the ability to do so, I would tie down the job, because, otherwise, it muddies the water. What we have not teased out a bit more, unfortunately, are the amendments from the noble Baroness, Lady Brady, on consultation—that is the key bit. I hope that the Government will think through those amendments, because, without consultation, the little club of York City would think that somebody wants to swallow it up.

Remember that all football clubs are like tribes. They will defend their colours and their game. The only way to deal with tribes is to make sure that they are consulted. I think this amendment is unhelpful at this stage. Let us see what happens with the kind of regulatory power that is created. This independent person must actually be independent.

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I want to say a little about Amendment 124, which my noble friend Lord Markham has outlined and to which I have added my name. I am sorry that we have not yet fully convinced noble Lords across the Committee in favour of it, but it might be helpful to clear up some of the confusions which have arisen.

We are proposing delegating these duties not to clubs but to competition organisers. In doing so, we seek to avoid the sort of confusion that the noble and right reverend Lord, Lord Sentamu, has just highlighted about duplication in the regime. As noble Lords have pointed out, there are already football bodies which have a regulatory role—the Football Association, the Premier League, the English Football League and, indeed UEFA. They will retain many of those functions. As the noble Lord, Lord Pannick, knows well, Manchester City’s dispute with the Premier League is because of its powers to make some of the rules for the competition to which it relates. We are trying to avoid the duplication of regulatory functions. If an existing competition organiser has processes in place to carry out these functions effectively, why could the Secretary of State not direct the regulator to delegate them to these competition organisers and bring them closer to the clubs that are playing in that competition of their own free choice?

Football Governance Bill [HL]

Lord Sentamu Excerpts

Report stage
Tuesday 11th March 2025 Lords Chamber

[Lord Markham (Con)]

I will speak briefly about the growth amendment in my name. Like other noble Lords, I welcome the Government’s recognition of the importance of growth and, generally, I welcome the input from the Minister and the collaborative manner.

I want to make one point quite clear for the record. There are two main reasons for the success of the Premier League. First, as the noble Lord, Lord Birt, pointed out, it has 44% of the best players in the world. Secondly, every game is competitive. Why is that important in this context? Two elements that the regulator can be involved in could impact that. One is the backstop: if there is too much redistribution between the Premier League and the other leagues, the Premier League will no longer be able to attract the best players in the world, and that will impact the attractiveness of the sport. The other element is the parachute payments: if those are impacted to a degree that clubs no longer feel confident to invest in new players if they have just been promoted or are under threat of relegation—making those games less competitive—the Premier League will become less attractive.

That is why it is very important to put on the record that, instead of having one just dimension where the regulator considers the sustainability of clubs—that would always point it towards redistributing more money —it now has the twin objective of growth. That will mean that it needs to counter that with making sure that the Premier League and all of football is very successful—because it can attract the best players because it has the financial resources to do so—and that all clubs want to invest because they know that they have the safety net should they be relegated.

Again, I am very pleased to see that that extra dimension is now added in there. That will be an important point that the regulator will always have by its side as it considers the Bill.

[Lord Sentamu (CB)]

My Lords, at the end of the day, the purpose of this first amendment is simply to increase financial sustainability and to require the Secretary of State to do a number of things. The Bill as it stands clearly and simply states the purpose, review and key priorities:

“The purpose of this Act is to protect and promote the sustainability of English football”.


I for one would be content not to put in finance and many other things, because that opens a big can of worms. The Bill then spells out clearly in Clause 2 how to achieve that particular purpose. This amendment would truncate a big piece of work that has been done.

So I still support the idea that the purpose of this Act is to protect, promote and sustain English football. That is a wonderful way of doing it. The amendment would reduce it to financial sustainability and the Secretary of State having powers to do this, that and the other. This particular Bill is really about the independent regulator; do not suddenly introduce the Secretary of State in the purposes. So I would not like to support or go with this amendment, because it is not as careful and clear as the purpose we have at the moment.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Baroness Twycross) (Lab)]

My Lords, I thank the noble Lord, Lord Parkinson, for tabling his amendments, and for his kind words and his engagement on this Bill. I extend those thanks to all noble Lords from across your Lordships’ House for their engagement, and for the time and input that I have benefited from over the last few weeks and months.

I will start with Amendment 2. I reassure the noble Lord that, although the Bill does not specify the requirement to consider both prospective and current fans, this is implicit within the existing requirement. Football would not serve the interests of fans if the game were unattractive or unwelcoming to new fans. The regulator is also inherently future minded, with the requirement to focus on sustainability and the long-term protection of the club and its heritage assets. Future fans are therefore already required to be in the regulator’s mind when it makes its decisions. This is also reflected in the Bill’s Explanatory Notes.

--- Later in debate ---

[Lord Maude of Horsham (Con)]

My Lords, I think there is a severe danger of there being a consensus around the sentiments, at any rate, reflected in this group of amendments. The point has been made by a number of your Lordships that this is what good clubs do. Successful clubs are deeply rooted in, and serve, their communities, act as a focal point for social action and social activity, and can do enormous good.

On Thursday evening, I shall go, in hope, to watch Tottenham play in the Europa League. The following morning, I shall attend the governors’ meeting of the London Academy of Excellence Tottenham, which is a brilliant sixth-form academy that serves disadvantaged young people with academic promise from across the community. Its principal business sponsor is Tottenham Hotspur Football Club. Its premises are in the Lilywhite House, which is the office headquarters of the club. It is brilliantly successful. Tottenham, like most successful clubs, is deeply entrenched and embedded in the local community.

I therefore have some sympathy when the noble Baroness, Lady Fox, asks about whether this is necessary. The clubs that take their social and community responsibilities seriously because that is what they need to do as part of their success and their obligations—it is part of the debt they owe to the communities they are part of—will not find it a regulatory burden, because they are, as the noble Baroness said, doing it already. While I am generally allergic to new regulatory powers when the case for them is not overwhelmingly proven, I am willing to make an exception in this case.

[Lord Sentamu (CB)]

My Lords, I would like to offer praise to the noble Lord, Lord Addington, for having a go at a very necessary social responsibility question in his Amendment 3, so I thank him for doing it. His name is also on Amendment 32 in this group, which is a distillation of what I think he would like to say to already successful clubs that are engaged in social responsibility in their area. Amendment 32 would be the one I would go for if a vote were called, whereas the noble Lord’s Amendment 3 has woken us up to the possibility that if you are working in a community and living in a community, you have a responsibility to it—you should not just take the money out.

As a vicar in Tulse Hill near Brixton, when most of our houses were not in very good shape and I was living in a vicarage, I felt that my duty and responsibility to Tulse Hill estate and St Martin’s estate was to engage the local council fully, and it agreed to provide a lot of change as a result. I understand the question of responsibility, but I think Amendment 32 gets what the noble Lord wants in Amendment 3, so he should go for Amendment 32 and not for Amendment 3.

[Lord Markham (Con)]

From this side, I would like to join the recognition from all noble Lords about the social value that clubs bring. I need only to look at my six year-old, who is barely ever not wearing his Cole Palmer shirt, to know that it is much bigger than just an economic interest. Clubs fully understand that, and I think that point was made very well by all noble Lords—the particular examples from my noble friend Lady Brady were very well made.

Clubs realise that they are the leaders in their field, and I think we have all seen countless examples of them doing it again and again. In terms of getting the balance right, though, we shall talk later—the noble Lord, Lord Pannick, made the point as well—about wanting to make sure the regulator is light touch. I think the Government get that right in their Amendment 32—again, I think we all agree on the intentions—but the amendment from the noble Lord, Lord Addington, may go slightly to the other side of the fence. However, I think we have a united gathering, for want of a better word, around the Government’s amendment. From our side, we very much welcome that, and welcome the continued work of the clubs on the social front as well.

Football Governance Bill [HL]

Lord Sentamu Excerpts

Report stage
Monday 17th March 2025 Lords Chamber

In light of the debate that we have had, I hope the Minister will think that that is an appropriate step to take today. In my view, that would be in the interests of what we are all seeking to promote: the interests of football.

[Lord Sentamu (CB)]

My Lords, I will just add a penny’s worth. In the Bill, there is a backstop. Let us remember the history: the backstop was brought in to sort out the trade agreements after Brexit, and how Brexit would operate in Northern Ireland. Few people understood what a backstop was, and that was part of the trouble. We had to find a better way than what the backstop suggested.

Listening to the wonderful words of the noble Lord, Lord Birt, as well as the noble and learned Lord, Lord Thomas, and the noble Lords, Lord Pannick and Lord Burns, I hope noble Lords will forgive me for saying that they sounded to me very much like what Saint Paul writes in his letter to the Corinthians, chapter 13. The Corinthians were fighting among themselves. Who was better? Who had more gifts? “I’m for Paul”. “I’m for Apollos”. “No, I’m better than you are”. And Paul says, “Okay, fine. Let me show you a better way”. He talks about love. He talks about faith. He talks about hope. That was the better way.

What is being proposed by these noble Lords is a better way—a better way of resolving disputes that have to do with football. As I said before, football clubs are tribes. They think theirs is the best. Of course, we have to congratulate Newcastle. I live in that part of the world. I shouted a lot, even though I was watching on television, and lost my voice in the process. Football clubs have a tradition and a history; they are tribes. If you give them a backstop, you may be there for I do not know how long. The dispute resolution that has been recommended would be a better way of doing it.

Since we are doing regulation as a new thing, which has not happened in this country before, people need to have confidence that what you have written is not another sham rock on which this ship will find itself broken apart. A backstop sounds good but, in practice, I am afraid it has not worked so far, because everybody abandoned it.

So, I urge the noble Lord the Minister—she may feel “No, I haven’t got the authority to oppose this”—that it would be much better, when you come to respond, to say that you will take this amendment away and bring it back again at Third Reading. She may still reject it then, but it would be worth giving this some thought. It would help the House not to go through a system of rejecting every amendment. I have voted against some amendments because I was not sure they were helping the Bill—but if this one is pressed to a vote, I will definitely vote for it. But I agree with the noble Lord, Lord Pannick, that that is not the better way. The better way would be for the Minister to take it away and have a think about it so that, at Third Reading, it will come back.

[Lord Addington (LD)]

My Lords, we have heard a great deal of eloquence. This is a subject where there has been an almost seductive charm coming at me. There has also been the novelty of the noble Lord, Lord Pannick, applying for a pay cut; that is beyond belief.

What has always struck me is that this is a complicated process, where you have a big beast and a smaller one. The Government’s attempt has been to bring this forward. It may not be the most elegant solution but, let us remember, it is supposed to stop you getting there.

We have had years of this. Anybody who has been following this Bill, waiting for it to come forward, has had years of people not agreeing. We have had years of entrenched positions, of people thinking, “Oh, you have to have us as the greatest league in the world, otherwise it doesn’t work”. No—you have to be profitable. You cannot guarantee that the Premier League will be in a dominant position. That is what competition is. You have to have something that works, where people have to come together and talk.

Is the Government’s solution better than the one from the noble Lord, Lord Birt? I think the thump of hard reality is something we need. I will quote the noble Baroness back to her. I said that all sport tends to suffer from people sitting in darkened rooms, talking about themselves to themselves. The Minister said, “No, in this case, it’s people sitting in darkened rooms refusing to talk to each other”.

That is something I have carried through on. We have had people defending entrenched positions and people saying, “It is not fair”. They have changed over the course of this long debate. The first people to really irritate me were those in the EFL, two or so years ago, when they started on this. There has been no compromise here, no movement and no understanding of the family. If it is a family, it is in a soap opera somewhere.

So the Government’s position is the one that I would prefer, although I would not say that I am terribly happy with either. I look forward to what the Minister has to say. At the moment, I am slightly more in favour of what the Government are bringing forward.