Football Governance Bill [HL]

Lord Watson of Invergowrie Excerpts

Report stage
Tuesday 11th March 2025 Lords Chamber

[Lord Markham (Con)]

My Lords, I thank my noble friend Lord Moynihan for his vital and very sensible amendments in this group. As he has touched on, there could be some serious unintended consequences unless we introduce his amendments to the Bill. The Premier League, as we have said many times, is the most successful football league in the world. One of the major reasons for that is its openness to global investment and its attractiveness for that. Foreign investors have played a transformational role in modernising clubs, developing world-class infrastructure and cementing English football to an elite global brand. They have helped to create the most competitive and commercially successful football league in the world.

Yet without my noble friend’s amendment, the Government will be introducing a regulatory framework that could unfairly target foreign-owned clubs, placing them at a disadvantage compared with those owned by UK investors. That is not fair, not necessary and not in the best interests of English football. I am sure that this is not intended by the regulator, but it could be one of those unintended consequences as to where some of those decisions might fall. The amendment asking for Treasury advice, for want of a better word, ensures that the IFR is not sleepwalking into some of these difficulties, which I hope will be seen as very sensible and helpful in all of this. As my noble friend mentioned, most important is that any investor has a clear set of rules that they can rely on, and which are guaranteed and completely transparent.

[Lord Watson of Invergowrie (Lab)]

The noble Lord, Lord Moynihan, was briefer than I had anticipated; I had intended putting this point to him. We have had a lot of discussion about the intervention of UEFA in terms of the regulator not being able to take into account UK government foreign policies and trade policies, following that provision having been withdrawn from the Bill. How does that differ from Amendment 26, which expects international trade agreements to come within the consideration of the regulator? Surely the two are the same. In either case, they are getting into the realms of government policy, which UEFA has made it quite clear it is unhappy about.

[Lord Markham (Con)]

This amendment is trying to avoid that and do it the other way around. Our trade agreements are in place already and well-known. We are asking the football regulator to do many things, but I would not expect it to know, because of the large levels of foreign ownership, how its decisions might disproportionately affect some segments versus other segments and how that could trip over some of the World Trade Organization agreements or other such bodies. That is what we are trying to protect against. Hopefully, it is not even relevant, but again it is trying to ensure that we do not sleepwalk into something that is thoroughly unintended. This is a simple precautionary amendment to avoid such unintended consequences.

So, as I say, we must all recognise that our existing trade agreements are not just beneficial but vital for our future growth. The Government have repeatedly said, quite rightly, that growth is their number one mission. All we are trying to do with this amendment is make sure that we do not inadvertently trip up on one of those and the regulator has one of those unintended consequences, because clearly none of us wants to see that happen.

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[Baroness Twycross (Lab)]

This group contains a number of government amendments to the regulatory principles. I am grateful to noble Lords from across your Lordships’ House for the engagement we have had over the past few weeks both in Committee and in meetings. It has been helpful.

First, on Amendment 17, we all know that football without fans is nothing. It has always been the intention that the regulator would engage with fans and any others impacted by the regulator’s decisions, where they are relevant. It is vital to the Government that the essential value of players and fans to English football is demonstrated both in the legislation and the regulator’s engagement. I thank my noble friends Lady O’Grady and Lord Watson of Invergowrie for their engagement in ensuring that that value is reflected in the legislation, as well as my noble friends Lord Bassam of Brighton and Lady Taylor of Bolton, and the noble Lord, Lord Addington, for their support for this amendment. This amendment will clarify that intent and make it explicit in the Bill. It will both reflect the essential nature of players and fans to English football and ensure that the regulator is directed to engage with both groups.

Turning to Amendments 18 and 19 concerning light- touch regulation, I thank the noble Lord, Lord Pannick, for tabling his amendment and for his extensive discussion of this issue with me and officials. We agree wholeheartedly that light-touch regulation should be the aim of the regulator. It should have a bias—against unnecessary intervention, against excessive burdens on the industry, towards co-operation and engagement before intervention, and towards proportionate interventions that deliver real benefits. That is why I have tabled Amendment 18 to clarify the intention that the regulatory regime should be light-touch.

We carefully considered the best way to deliver this aim, including whether to use the term “light-touch” in the Bill. We believe the regulatory principles should be as clear and specific as possible. Each time the regulator acts, it should be clear whether it has met the Bill’s requirements; that is, whether it has had regard to the principles. That is why our new principle in Amendment 18 centres around a test of necessity and whether the same outcome could be achieved in a less burdensome way. These, like the existing Clause 8(c) test of proportionality, reflect concepts that are well understood in public law and will give clubs, leagues and the regulator appropriate legal certainty.

“Light-touch”, by contrast, is not typical legislative drafting. That could make it difficult for both regulator and regulated to be 100% certain of their legal positions. As debates in Committee made clear, one person’s “light-touch” regulation is another’s “overreach”. Allowing a margin of discretion is a less novel concept, but we none the less have concerns about its legal certainty.

In our view, the wording “necessity”, “consideration of alternatives” and “proportionality” are clear tests that will let both regulator and regulated act with confidence. That is what our regulatory principles and government Amendment 18 deliver. I can assure the House that the principles in Clause 8, including our Amendment 18, enshrine a light-touch approach in law.

Finally, on government Amendment 20, this minor drafting change seeks to clarify the regulator’s responsibility under this regulatory principle. Although it will not materially change the effect of the principle, an obligation for a public body to have “regard to” is well precedented and understood by the industry.

For the reasons I have set out, I hope that the noble Lord, Lord Pannick, will not move his amendment. I beg to move government Amendment 17.

[Lord Watson of Invergowrie (Lab)]

My Lords, I would like to say a few words on Amendment 17 just moved by my noble friend the Minister. I tabled an amendment in Committee to try to ensure that the players appeared in the Bill, as originally they did not.

I very much welcome the fact that my noble friend has listened to the representations, not just by me and my noble friend Lady O’Grady but by the Professional Footballers’ Association and others, who have made the very reasonable case that, with the insertion of a reference to players as a group in this section, the regulator is expected to,

“so far as reasonably practicable, co-operate, and proactively and constructively engage”

with players. In effect, they become statutory consultees of the IFR, which is only appropriate because there is of course no football without the players. I very much welcome the wording that the Minister has come forward with; it meets my concerns and those of others.

The other part of this is the fans. I also put forward an amendment in Committee proposing that the fans should be defined in some way. I have had discussions with my noble friend the Minister. It was always going to be difficult. I assume that it will soon become the job of the regulator to define what a fan is. I still hold to the belief that you need to have some address for a fan if you are going to consult them. That is why I proposed in Committee that season ticket holders should be the best way of deciding who the fans are for consultation purposes, but I accept that it has not been possible to reach any kind of consensus on that.

I welcome the wording in this amendment. Again, I commend my noble friend and the Government on listening to representations and coming up with wording as a result.

[Lord Bassam of Brighton (Lab)]

My Lords, I will not add very much to what my noble friend has already said about the importance and value of having players and fans recognised in the consultation process, except to say that it is probably the most important part.

I was worried at the outset of the legislation—with the Bill that the party currently in opposition put in place before the election—that there was absolutely no reference to players or fans. They are an essential part. Without them, where would the game be? We might not be able to define what fans are, but they are many things, in many different ways and places. We sort of know what they are without being able to define them.

My noble friend Lady Taylor and I also signed up to Amendment 18, because I think it is important that there is a clear statement in the legislation to the effect that the best way forward is usually without recourse to excessive bureaucracy and regulation. If the IFR can find a way to do things that does not have to resort to that, then all for the good. For that reason, while I am encouraged by the amendment of noble Lord, Lord Pannick, the noble Baroness, Lady Brady, and the noble Lord, Lord Birt, and it certainly touches on a rather important point, I think the Government have matched that point with their amendment. I am not sure it is easy to define “light-touch”—no doubt, the noble Lord, Lord Pannick, will tell me that it is—but it is not a term that is commonly used in legislation, certainly not regulatory legislation.

I am pleased that this issue is being properly surfaced, and I am delighted that the Government have responded to it in a really positive way. I hope that both fans and players will be pleased to see that they have been written into this legislation.