Football Governance Bill [ Lords ] (Ninth sitting)

Max Wilkinson Excerpts

Committee stage
Tuesday 17th June 2025 Public Bill Committees

[Mr Betts]

I want to speak to amendment 141, which has been tabled in my name. To some extent, amendments 4 and 5 have been superseded, and I accept what the Minister said earlier about the arrangements in Government new clause 4 being a significant improvement on where we were before with the pendulum arrangements in the backstop. Also, they are a distinct improvement on where the last Government were, because they allow the regulator to look at parachute payments in a particular way. That is really helpful, because we cannot address the massive disparity of funding within football, and the cliff edge that exists between the Premier League and the Championship, without addressing the issue of parachute payments.

I want specifically to look at amendment 141, because it is about timing. I want to go through what I think is the time period that we will now move towards. If the Minister thinks that I am wrong, it would be helpful if she would explain that to me. Hopefully, if we get the Bill through before the parliamentary recess, and it comes into effect fairly quickly, the regulator can begin work next season. I hope that is the intention. In the first season, 2026-27, it is probable that the regulator will be bedding in—having discussions, getting arrangements with clubs, and trying to work towards the beginnings of the licensing system. I am speculating because we do not absolutely know, but it seems to me that is the sort of way we will go.

The regulator will also be starting to work on the state of the game report; hopefully, therefore, the regulator might have it by the end of 2026. Perhaps we could do it a bit quicker—we have encouraged the Minister to make it 12 months rather than 18. But assuming that the report takes 18 months, it will appear towards the end of 2026. When is the regulator likely to be in a position to implement a backstop, if that is deemed necessary? The regulator will be having discussions in the meantime, hopefully trying to encourage the leagues to reach an agreement. Best of luck with that! If the regulator does that in a year when previously it has failed over many years, it will have done a fantastic job and I am sure we will congratulate it. But if there is not an agreement, we will get to the backstop probably at the beginning of the 2027 season at the earliest.

The problem is that because of how “relevant period” is described in new clause 49, there will then be basically two years before the backstop kicks in. On that basis, this Parliament will not see any significant distribution of funding in English football. That will not come in until the 2029-30 season, after the end of this Parliament, because of the two-year gap between the regulator reaching a decision and then the backstop being implemented. Why, if we have gone all through this process?

We know what the problems are in the English football game. We know about the massive disparities of income and about the concentration of money not merely in the Premier League but in the parachuted clubs as well. The regulator has a responsibility to address the soundness and stability of English football and of clubs within English football. We know that the Championship clubs are massively overburdened with debt, as they all try desperately to compete to get into the Premier League. If all that is the problem, and the regulator is bound to address it, does address it, and decides the leagues have not resolved it so comes to implement a backstop, why then do we sit back and wait for two years for the backstop to be implemented? That is the issue. Having failed to stop the regulator and the inclusion of backstops within their remit, it almost seems as if the Premier League has decided, “Well, at least we can stop any of this happening in this Parliament in the hope that after the election another Government will come in and save us.” It is almost as though that is what it is trying to do.

I say to the Minister, kindly and carefully: have a think about this. There is an awful lot of concern—not just in the English Football League, but among colleagues. Clubs throughout the EFL have been speaking to their local MPs and saying, “We know what the problems are. We are electing you to Parliament to resolve those problems, and you committed to do that in your manifesto. Yet with this timescale, the likelihood is that by the time you get to the end of this Parliament you won’t have solved the problem. You won’t even have put anything in place to do so.”

At the end of this Parliament, I would like the Minister to be saying, “I am the Sports Minister who has substantially helped resolve the appalling distribution of finances in English football, which cripples our game and means that clubs are exposed to enormous cliff edges that put them unnecessarily into debt, and which leads to bad practice among owners.” There are many things to stop bad practice, but we could help by resolving the issue now and agreeing on something: not how the regulator should do its job, but that once the regulator has done the job it is at least allowed to implement within a timely period.

I hope the Minister will seriously consider amendment 141 and listen to other colleagues who may want to discuss these issues as well.

[Max Wilkinson (Cheltenham) (LD)]

It is a pleasure to serve under your chairship, Sir Jeremy. I rise to speak in support of amendment 141. The hon. Member for Sheffield South East has made a compelling case for its necessity. The Bill has a clear purpose, and we believe it broadly does the job. That is why we support it. Changing the previous version to include the parachute payments within scope is the right thing to do for redistribution of funds from those who can afford it, down to the smaller and lower league clubs that really need the help. Those are the people the hon. Member for Sheffield South East referred to. Those of us who represent football league clubs are being asked to do the right thing—to back the regulator to ensure that there is financial sustainability in the lower divisions.