Football Governance Bill

Sara Britcliffe Excerpts

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Sara Britcliffe (Hyndburn) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests. I want to put on record how proud I am of how hard the Minister has worked on this Bill. He is an absolute credit to this Government with what he has done here. The recent events around changes to the FA cup show just how pressing this Football Governance Bill and the establishment of the independent regulator are.

As we consider the implications and potential of this legislation, it is crucial that we approach the task with urgency, recognising how important it is for football clubs up and down our country. Football is not just a game in our country; it is woven into the fabric of all of our communities. The clubs that dot our landscape, from the grand stadiums of the premier league to the intimate grounds of the lower divisions, serve not just as teams to support, but as community hubs and sources of local pride. Yet, despite the critical role that these clubs play, the sustainability of the football pyramid is under significant threat.

The crux of the issue lies in the financial disparities that have grown ever starker over the decades. The Premier League, while a global success, has seen its financial might grow exponentially, far outpacing the rest of the pyramid. That imbalance is not merely a matter of elite success, but a structural issue that endangers the viability of clubs across all levels. Today, EFL clubs operate at a massive loss, collectively losing £471 million during the 2022-23 season alone.

The establishment of an independent regulator, as proposed in the Bill, is a measure long overdue. The regulator would have the authority not just to oversee but to intervene and correct the course, ensuring that financial sustainability is not a mere aspiration but a reality. It would have powers to impose financial solutions that ensure the viability of clubs, reflecting the needs of community clubs across England.

We must also address the need for fair distribution of revenues. As it stands, the financial gulf between the Premier League and the EFL has become a chasm. Reforms in revenue sharing and financial regulations are necessary to prevent smaller clubs from financial catastrophe when they fall from the Premier League, or attempt to compete without adequate support.

In supporting the Bill, we are acting to preserve the soul of football in England. This is about more than business; it is about ensuring that the joy, excitement and community spirit that football brings are not lost to financial mismanagement and unchecked commercial appetites. The Bill presents an opportunity to reform our football pyramid to be both competitive and sustainable. It ensures that clubs can continue to thrive for the benefit of their fans, local communities, and our national game. It aligns with the recommendations of the fan-led review, and responds to the clear need for greater fairness and foresight in our approach to football governance.

It would be remiss of me if I did not mention my local club, Accrington Stanley, which is one of the 12 founding members of the football league. Although it is famous for the milk advert, what people also remember is that in 1962 it had to resign its position from the football league and subsequently went into liquidation in 1966. That was not common then. Unfortunately, we are now seeing it happen with many of our clubs. I have spoken with the owner of my club, Andy Holt, about this legislation more times than I can remember. He is clear, as am I, that if we are to protect clubs lower down the leagues, we need not only to give them a level playing field, but to provide them with the space to invest in their communities, whether through investment in facilities or working with children and young people. This legislation is required.

I want to talk briefly about the suggestion from my hon. Friend the Member for Chatham and Aylesford (Dame Tracey Crouch) on redistributing fines to grassroots communities. I think that is a very good idea. I have seen the impact Accrington Stanley has locally. It really is the heart of the community. It brings the community together and I would hate to think of the counterfactual, where it was no longer viable for the club to continue serving my constituency in the way it does.

I therefore urge my fellow Members to support the Bill, and to stand for fairness, sustainability and the long-term health of English football. Let us ensure that the game we love is protected for future generations not just as a spectacle of sport, but as a cornerstone of the communities we serve.