Football Governance Bill [HL]

Lord Watson of Invergowrie Excerpts

Committee stage
Wednesday 27th November 2024 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I am not sure whether the noble Lord has sat down. I just want to make a few comments on some of the points that have emerged in a very interesting debate. The noble Lords, Lord Hayward and Lord Maude, talk about success—

[The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)]

Is it an intervention?

[Lord Watson of Invergowrie (Lab)]

It is not.

[The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)]

My Lords, it might be for the convenience of the House for the noble Lord, Lord Markham, to make it clear now whether he has not completed his remarks, in which case it would be appropriate for the noble Lord to wait a moment, or if he has sat down.

[Lord Markham (Con)]

We have had a good debate. When the Minister replies, can she explain why it is not felt appropriate to have these measures of success to get the overall financial wealth of the game? I will now sit down.

[Lord Watson of Invergowrie (Lab)]

I thought that the noble Lord had indicated that he had finished. On success, which the two noble Lords that I mentioned talked about, the whole question seems to me to be totally subjective. As the noble Baroness, Lady Brady, said, what is success for one club is not success for another. I suggest that for at least half the clubs in the Premier League, success is not being relegated rather than winning anything.

[Baroness Brady (Con)]

Just to clarify, I said that what sustainability is for one club is different from what it is for another, not success.

[Lord Watson of Invergowrie (Lab)]

That is interesting. Someone in the debate said that we should have financial sustainability and success. I think that in this setting the two, if not interchangeable, mean very similar things.

The noble Baroness, Lady Brady, and others, talked about the competitiveness and the jeopardy. As you can hear, although I am an AFC Wimbledon season ticket holder, I do not come from south London. When I lived in Scotland, my club was Dundee United. They were Scottish champions in 1983. Next season, Aberdeen were Scottish champions. There has been no team but Rangers or Celtic as Scottish champions in the 40 years since. That is a low bar, perhaps, but in fact only two clubs have won the Premier League more than twice in the 32 years of its existence. It is all very well to talk, as the noble Lord, Lord Markham, did, about Bournemouth beating Manchester City. Yes, it is always possible, but a club such as Bournemouth could never aspire to winning the Premier League. Only a very small number of clubs could realistically—

[A noble Lord]

Leicester City.

[Lord Watson of Invergowrie (Lab)]

I am going to come on to that in a minute. Only two clubs have won the Championship more than twice. Three clubs have won it once. If you ask people how many times Liverpool has won the Premier League they will probably say four or five. No, it has won it once, the same as Leicester City and Blackburn Rovers. Of course there is jeopardy; many clubs can be very competitive within a game, but winning the league is something different.

I know that noble Lords have talked about selling television rights and said that it is a very attractive league across the world, and I accept that. However, we have to tone it down a bit on the competitiveness of the Premier League, because there are not really all that many clubs that can aspire to become its champions. That is not to disparage it, but it is just a fact of the past 32 years.

[Lord Hayward (Con)]

Will the noble Lord accept that since 2000 the four major leagues in Europe—Spain, Italy, Germany and England—have effectively produced the same number of different champions in each case, either six or seven?

[Lord Watson of Invergowrie (Lab)]

Yes, I can accept those figures. I accept the noble Lord’s general premise, although I am not sure about Spain. I do not think that more than two clubs have won La Liga; actually, the two Madrid clubs and Barcelona have won it.

The noble Lord, Lord Moynihan, talked about comparing England with France and Germany. I am not sure that is a fair comparison because in Germany the clubs are fan- owned. No club can have more than 49% ownership—51% is owned by the members of those clubs. There is not a direct comparison there. Yet Germany has been disproportionately successful in European competitions over that same period.

I want to move on to something else that my noble friend Lord Mann talked about— the opposition of many on the Opposition Benches. Unless I misinterpreted my namesake, my noble friend Lord Watson seemed to say that he was not in favour of the regulator having the powers that the Bill suggests. On the question of the role of the state, I thought that my noble friend Lord Mann was going to say that the Taylor report, which followed the terrible events of Hillsborough, was driven by the then Prime Minister, Margaret Thatcher. Quite right—I do not think anybody would object to that. There are cases where state intervention is appropriate and the only answer. If it had just been decided that we would hope all clubs produced all-seater stadiums for safety reasons, we would still be waiting for some of them.

That is one of the issues that we will probably come to later. The other one is the question of who is a fan. It is not for today, but it is very important to define what a fan is. The noble Lord, Lord Jackson, talked about Peterborough and how Posh fans are spread right across the fen-lands and beyond. If you are defining a fan, it really has to be a season ticket holder, because otherwise you cannot pin them down. Manchester United and all the big clubs have fans across the world. You could not possibly consult them. I am sensitive that noble Lords will not necessarily agree with that. What about somebody who cannot afford a season ticket or who is not physically able to go to a match? I accept that, so we have to try to pin that down, and it will be one of the most difficult aspects of the Bill, because if we are going to take the views of fans into account, we have to have a means of corralling them and then taking those opinions. At this stage, I do not see how we can do that beyond season tickets.

My noble friend Lady Taylor talked about the sustainability and the success of English football, not just the Premier League but right down the system. The noble Lord, Lord Goddard, talked of Stockport County. They sunk right down to level 6 in the National League North after going through some very traumatic periods, but have been able to come back up to level 3. My noble friend Lord Mann talked about AFC Wimbledon; in nine years they came from, basically, parks football to being back in in the Football League. It is natural that we tend to concentrate on the Premier League, but there has to be some understanding that the clubs below them are important. I am being opportunistic, but the Labour Government have talked about fixing the foundations. In any sense, when you look to go forward, you must have strong foundations. The foundations of English football are right down at the grass roots. I am not talking about the amateur level.

[Lord Jackson of Peterborough (Con)]

The noble Lord references Amendment 10 tabled by the noble Baroness, Lady Taylor of Bolton. Will that amendment not potentially embed in primary legislation an economic concept of moral hazard? It is an economic term: a situation where a party has an incentive to take risks because it does not have to bear the full costs of those risks. That is going to be on the face of the Bill for the new regime, and will be directed by the new regulator. Is that not the case?

[Lord Watson of Invergowrie (Lab)]

We will have to see how that comes out in debate. I am not quite sure what the import of that amendment is. That is one of the issues about the role of the regulator. Noble Lords, particularly on the other side of the Chamber, are seeking to give him or her greater powers or influence than intended in the Bill. The noble Lord, Lord Moynihan, said at one point that we do not need a regulator because nothing is wrong. There is something wrong, because the Premier League and the English Football League have been unable to reach agreement on the disbursement of the funds from the top level to levels below. That is one of the problems in the system at the moment.

[Baroness Brady (Con)]

There is a deal in place agreed by all parties on how funds are distributed; 16% or £1.6 billion is distributed. It is also important to note that the Premier League has more title winners in the last 15 seasons than La Liga, the Bundesliga and Serie A, and the fewest number of titles won by one club than any other top European league over the same period, which shows it is competitive. That is why it is the best league in the world and the most valuable, and that is what we have to protect, because without that broadcast revenue the whole pyramid suffers.

[Lord Watson of Invergowrie (Lab)]

I know the noble Baroness has experience with one of the major Premier League clubs but, in a sense, she has made my argument for me. The other leagues are less competitive, but I am just saying that if only four clubs can win the championship twice in 32 years, it is not spread very wide, and I would like to see it spread more widely, as many other people would—no doubt including those at her own club.

[Lord Markham (Con)]

I think the noble Lord misunderstands what I meant by competitive. It is not just which teams can win the Premier League overall and, as the noble Baroness showed, more teams can win here than anywhere else. It is the competitiveness of every single game, because the value is that you have so many games that people all around the world want to pay to watch, so they are interested in watching all the games. Brentford might not win the league, but they know they are going to be competitive against Man City and Liverpool and Arsenal, and they are the games that people want to watch. When we talk about competitiveness, it means that every single game is competitive and that is what the viewership wants to see, and drives the value up of the rights.

[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.