Football Governance Bill [Lords]

Oliver Dowden Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Sir Oliver Dowden (Hertsmere) (Con)]

I refer to my entry in the Register of Members’ Financial Interests. Wherever I have been in the world, whether it is in Hertsmere or at the United Nations, I am always asked two questions: “When did you meet the late Queen?” and “Which football team do you support?” Such is the strength and reach of English football.

As I have said to this House before, English football is a cherished cultural and soft power that ranks alongside our greatest museums, galleries and stately homes. Indeed, I saw that again this Friday at my brilliant local club, Boreham Wood FC, led by the indefatigable Danny Hunter. Three generations of his family have sustained that club, sustaining community life, providing education, nurturing us through covid and facilitating the next generation of stars to rise all the way to the top of the premier league. I did not hesitate to act when English football was threatened by the rapacious greed of the proposed European super league, which would have deracinated six of our greatest clubs. It is in that resistance to the ESL that the roots of this Bill lie. The then Prime Minister, Boris Johnson, threatened a “legislative bomb”, which resulted in us bringing forward the governance review led by my excellent former colleague, Dame Tracey Crouch.

In our consideration of this legislation, I caution that English football survives on cut-throat competition in which the rewards for victory are high and the costs of failure are equally high. It is also dependent on significant levels of global investment. Well-structured investment is not a threat to English football: it is one of its great strengths. I could list many examples. We have Manchester City, which is backed by the Abu Dhabi United Group and which has posted record revenues of more than £700 million and profits of £73 million based on solid equity, not risky leverage. That is exactly the sort of leverage that is demanded. Likewise, Newcastle United’s new ownership, led by the Public Investment Fund, has brought more than £300 million of fresh investment without debt, so we have a thriving team and jobs created, with silverware returned. Beyond the premier league, we have seen what the injection of funds at Wrexham has done for its extraordinary ascent through the league. And at Tottenham Hotspur, their fabulous stadium is now expanding to include things like the Eubank-Benn masterclass at the weekend.

This all leads to the core question before the House, which I have very little time to address, but I will try to make my point succinctly. There is undoubtedly a case for regulation. The pyramid is not working, with £100 million for TV rights at the bottom of the premier league as opposed to £4 million at the top of the EFL. We need to address that—it is not sustainable. Likewise, the movement from the national league to the EFL is something that we need to expand, as exemplified by the 3UP campaign. However, before we go down this path, we should look at how circumstances have changed in the past year. Look at the change in the global investment environment, principally as a result of instability in the US, and at the national insurance hike faced by every club up and down the country. Is this really the right moment to proceed with further regulation?

Based on my 20 years’ experience in and out of government, I caution the House that when a regulator is created, however benign the intention, a self-serving bureaucracy always seeks to expand its scope over time. That will be the case for this piece of legislation, and this regulator will be on the front and back pages of the newspapers every single day. We have already heard arguments from Lib Dem colleagues for expanding the scope of the regulator before it is even up and running. In this changed environment, and given measures such as the backstop and its application to the pyramid and to parachute payments, I think there remains a window in which we can threaten this kind of regulation but not actually introduce it, because I fear the damage it will do.

[Peter Swallow]

Will the right hon. Gentleman give way?

[Sir Oliver Dowden]

I regret that I cannot give way. For the reasons I have described, I will be voting accordingly at the end of this debate.