Football Governance Bill [ Lords ] (First sitting)

Debate between Louie French and Kevin Bonavia
Louie French Portrait Mr French
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I thank my hon. Friend for that contribution, because that is exactly the point I am trying to make. Now or in the future, we do not want the appointment of whoever is appointed as chair to be marred by perceived conflicts of interest. As I have said, that would undermine that crucial and important role of the regulator in the football pyramid. As the Minister has said—I agree fully—we hoped that clubs and leagues would have come to a consensus many years ago that would have solved many of the issues that still exist in football. The chair of the football all-party parliamentary group, the hon. Member for Sheffield South East, who sits on this Committee, has done more work on this issue than most people in the room—I thank him for that—but the fact is, we are here now to set up a regulator who is supposed to be independent of politics and of having any perceived bias for any league or club, and that is difficult.

I make this point again, without being unsympathetic to the situation for this or previous Governments: trying to find a person with the right skills and expertise to fulfil the role, without having any of those risks of bias, is very difficult. We have sought to find the right person, with the right blend of skills and experience, who would almost certainly have to come from within the football world or the regulatory world. Of course, if they come from the football world, there would always be issues of perceived bias.

Kevin Bonavia Portrait Kevin Bonavia
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It is a pleasure to serve under your chairmanship, Sir Jeremy. I see what the shadow Minister is trying to do with the amendment, but if we want proper transparency, what is special about football compared with other appointments? If the shadow Minister is really concerned, should we not look at the public appointments system, rather than setting precedents in Bills? We could end up with a hotchpotch of different legislation, which would make football need to have this, but not the BBC, for example. It does not make sense. This is surely not the right forum for the change.

Louie French Portrait Mr French
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I understand the hon. Member’s point. I welcome his first comments on the Bill today, and I am sure we will hear more from him as it develops over the month. My point is that the Committee has the Bill in front of us right now. I am not involved with the Cabinet Secretary or any legislation regarding that role. I am the shadow Minister for sport, and my job is to analyse the Bill in front of me as an Opposition spokesperson. We can only deal with the here and now and the Bill in front of us, so I do not see the argument. There is a lot of whataboutery—

Football Governance Bill [ Lords ] (Second sitting)

Debate between Louie French and Kevin Bonavia
Louie French Portrait Mr French
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I disagree. As I have said, we are here today to set the guidance for what we think is an appropriate level of pay. We believe that fans on the street will think that this amendment is fair and proportionate, and that the chief executive of the football regulator should not be paid more than the Prime Minister of this country.

I have a great deal of respect for the hon. Member for Sheffield South East. He made the comparison with a public servant, which is the point that I am trying to make. If we classify this independent regulator as a public servant—that is another rabbit hole that we probably do not want to go down now—should they be paid more than the Prime Minister, who should be the ultimate public servant in this country?

Kevin Bonavia Portrait Kevin Bonavia (Stevenage) (Lab)
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The shadow Minister talked previously about guidance, but that is not the proposal in this amendment. The amendment would put in primary legislation a figure that, as my hon. Friend the Member for Sheffield South East said, is set in law until Parliament decides to change it—is that not bonkers?

Football Governance Bill [Lords]

Debate between Louie French and Kevin Bonavia
Kevin Bonavia Portrait Kevin Bonavia
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I certainly agree with my hon. Friend. We both represent constituencies with clubs that are good examples of what can be done, but our duty here is to safeguard our clubs and all clubs in this country from future failure. They are not businesses; as I have said, they are community assets.

Last season, 23.7 million people attended matches in EFL competitions, demonstrating the profound connection between these clubs and their local communities. It is not just on the pitch that clubs are contributing to their communities. In the same season, EFL clubs contributed over £1.2 billion of social value through their community programmes, with my local club’s community arm, the Stevenage FC Foundation, alone generating £10.7 million of social value in my constituency and the wider area. In that timeframe, the foundation also delivered 185 training sessions per week, engaging over 15,000 unique participants annually and delivering over 9,000 hours of activity. That is an incredible feat.

However, the financial stability of all clubs across the football pyramid is in a precarious place, with EFL clubs expected to lose around £450 million this season alone. Alongside this, the financial disparity between the premier league and the EFL is stark. In the 2022-23 season, 20 premier league and five EFL clubs with parachute payments received 92% of the distributable revenues, while the remaining 67 professional clubs shared just 8%. This imbalance undermines the systemic sustainability of English football, and I am glad that this Bill proposes change so that a 75%-25% split of combined media revenues between the premier league and the EFL will become the new normal and provide much-needed financial support to EFL clubs.

It is clear that the financial situation in which we find ourselves across the pyramid is untenable, and this has directly led to financial crises in clubs across England. It is beyond belief that the Conservative party, which sat on its hands for most of the past 14 years, claimed in its manifesto that it wanted an independent football regulator, so why on earth do we not have cross-party consensus on this principle?

Louie French Portrait Mr Louie French (Old Bexley and Sidcup) (Con)
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Quite simply, because it is no longer independent.

Kevin Bonavia Portrait Kevin Bonavia
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The hon. Member will know that the Bill has been improved to make the independent regulator more independent, for example—and there are plenty of examples of improvements in the Bill—by giving the regulator a greater ability to actually regulate the game. Conservative Front Benchers say they support independence and say they want regulation, but many of its Members do not like regulation at all. This is not a party that believes in protecting the national game; it is a party that wants to play party political football with something that should have cross-party consensus.

Alongside the financial stability that this Bill will bring to our clubs, we need to respect fans’ involvement in these community assets, so I want to pay tribute to all the clubs that already engage in good faith with their fans. I am proud of the work that Stevenage have done to involve fan representation in their yearly engagement plan, and for the initiatives of other clubs, such as Blackpool, whose directors I chatted with at the match with Stevenage last week. They explained how they had had a pint with Tangerine fans from across the country to hear their views on how the club should be run. That said, they did get a bit lucky at our place, although I am sure my hon. Friend the Member for Blackpool South (Chris Webb) would agree with me that both our clubs have great foundations and trusts that support their fans.

I am also pleased that the amendments the Government have made to the Bill during its passage in the other place actually do strengthen that independence, as I said to the shadow Minister, the hon. Member for Old Bexley and Sidcup (Mr French). Under this Bill, poor and reckless behaviour that ignores local fan communities will not be tolerated by the regulator. This Bill provides the safety net that clubs need to be financially secure and to be able to deliver for their local communities for a long time to come. Let us all support this Bill, and therefore support our fantastic football clubs.