Football Governance Bill

Robin Walker Excerpts

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Mr Robin Walker (Worcester) (Con)]

I will support this legislation because many of the steps it takes are very necessary. I hope it will mean that Worcester City will never leave Worcester again. Much of what I am hearing about the need to protect the financial sustainability of clubs and leagues also applies in the smaller but still important world of rugby union. As the Secretary of State will know, and as the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), who is sitting next to her, knows very well, Worcester Warriors are currently without a place in professional rugby. If this legislation succeeds, will she consider applying it to other sports, or introducing legislation for other sports, where that is required to sustain opportunities in the professional game?

[Lucy Frazer]

As my hon. Friend knows, the Under-Secretary of State for Culture, Media and Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), and I have spent time looking at the issues in rugby, and continue to do so. We are setting out what we hope will be a strong financial framework for football. This is being watched closely by other countries that are looking into what they will do in football. Of course if other sports want to look into this, they can.

I move on to the backstop power. Obviously, broadcast revenue is a hugely important source of income for clubs up and down our top-tier football leagues, but the current distribution of revenue across the top five divisions is not sufficient, and football has not been able to come to a suitable new arrangement. Not only does that contribute to problems of financial sustainability, but it can have a destabilising effect on the sport. To avoid that in future, the regulator will have new, targeted backstop powers to help ensure a sufficient flow of money. However, those powers are intended only as a last resort, and can be triggered only if certain conditions are met. The backstop mechanism has been designed with the industry and leading experts to give football incentives to reach a timely compromise, thereby delivering the right outcomes while minimising costly regulatory involvement.

The final part of the regulator’s job is improving the corporate governance of clubs. We will establish a football club corporate governance code, and will require clubs to report regularly on their corporate governance, setting out how they have applied the code and why that is suitable for their circumstances.

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[Thangam Debbonaire]

The hon. Gentleman seems to be saying that it is a subjective test. I was asking whether there are any objective tests, because I think that is important in terms of fairness. Where are they objective, where are they subjective? Concepts such as competency can be interpreted both objectively and subjectively, and I would appreciate the Minister’s clarification of what he views as the Government’s position.

[Mr Robin Walker]

One issue we came across in the huge difficulties that Worcester Warriors went through was that it had a director who was approved on the basis that he had been approved by the footballing authorities. He was approved because he was a practising solicitor, but it turned out he was a disbarred practising solicitor. Is it vital that a regulator has the ability to check information given to it, so that even if people provide misleading information to a regulator, it has the ability to intervene and strike those people off as appropriate directors where necessary?

[Thangam Debbonaire]

The hon. Gentleman explains exactly why it is so important that the owners and directors test will work. That is why I am addressing these remarks to the Government—it is, after all, their Bill. I would like to know substantially more from the Minister in answer to the questions that I and others have raised.

Fan engagement is crucial and we back fans having a greater say in how their clubs are run. Therefore it is right that the Bill requires that if a club proposes changes to club crests or colours, it has taken reasonable steps to ensure that those changes are supported by a majority of fans. Fan engagement should not be reduced to a box-ticking exercise, and neither should it be one size fits all. Engagement must be meaningful and appropriate, and suitable for each club.

The women’s game is not explicitly mentioned in the Bill, but we would all agree that it has had a stellar few years. It is growing quickly, bringing new crowds to stadiums, and introducing lots of girls to the joys of physical activity. I am determined to see the women’s game grow even more. I have already mentioned that proportionality is a key principle that must be considered during the passage of this Bill. Having listened to what representatives of the women’s have to say, I do not think it wise to introduce regulation to the women’s game before it is ready or unless it is necessary. It is right that there are powers in the Bill to introduce regulation to a league designated by the Secretary of State that could, if necessary in future, include the women’s game. I will be monitoring that closely, in collaboration with representatives from women’s football.

The governance of English football is in a position of uncertainty, and on this Government’s watch that uncertainty has been allowed to carry on far too long. That has been, and continues to be, to the detriment of clubs and their finances. After the passage of this long-awaited Bill and the establishment of the regulator, I hope that football will be able to enter a new period of governance stability. As the Bill progresses, that is what Members across the House should be aiming for, and what fans across the country deserve.