English Football: Financial Sustainability and Governance

Stephanie Peacock Excerpts

Thursday 6th March 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stephanie Peacock)]

It is a pleasure to serve under your chairmanship, Mr Turner. I congratulate my hon. Friend the Member for Earley and Woodley (Yuan Yang) on securing this important debate. I begin by acknowledging that English football is world-leading. As well as sitting at the heart of communities up and down the country, English clubs have fans in every continent, and attract the best players from across the world. The premier league is one of our country�s best exports. Along with the EFL and the national league, it contributes billions of pounds to our economy and supports thousands of jobs, as has been outlined across the House in this debate. Its success and infrastructure support and inspire the next generation of footballing talent in English towns, villages and cities. It is because of this success that the Government want the sport to thrive for generations to come, securing the financial sustainability of the football pyramid.

My hon. Friend the Member for Earley and Woodley, who represents Reading football club, has been a vocal supporter and campaigner on the governance and sustainability of football. She is right to raise those concerns. Reading, like so many of the other clubs that have been spoken about today, is an example of why this debate and the legislation are so important. Calls for change to secure the sustainability of football in this place date back to the cross-party Select Committee report of 2011. We then saw the ill fated super league attempt that resulted in the fan-led review. The review, led by former Conservative Sports Minister Dame Tracey Crouch, identified the need for an independent football regulator. I thank and pay tribute to her for her commitment and work. I have been pleased to be part of the women�s parliamentary football team with her, alongside so many other amazing women.

The previous Conservative Government published their Football Governance Bill�their legislation on this matter�on 18 March 2024, just less than a year ago. How time flies! That continued the cross-party consensus that existed until very recently. Members on the Government Benches and Conservative Benches were elected on manifestos that committed to bringing forward an independent football regulator. We on the Government side of the House are following through on that commitment and are on the side of football fans.

I will take this opportunity to address some of the specific questions put to me in this debate; if I cannot go into much detail, I will be happy to meet hon. Members. The hon. Member for Hinckley and Bosworth (Dr Evans) has taken a great interest in this subject. He asked about a second look. A new Government Lords amendment would require the Secretary of State to review the whole regime after five years. More specifically, if an owner were found to be unsuitable by the regulator, they would have the right to request a review of that decision. That review would be taken by the board. There is also a right to appeal to the Competition Appeal Tribunal.

[Dr Luke Evans]

The decision to take FA cup replays away, for example, was taken by the FA itself without any consultation; that is the difficulty. That is a prime example of the heritage of the game being taken away, and that mechanism would not quite address that. I will be happy to meet the Minister to talk through an idea that may well fit.

[Stephanie Peacock]

Great; I will be happy to meet the hon. Gentleman and I am really sympathetic to his points, but the Government cannot and do not want to be involved in all issues, and the regulator will not be able to cover them all. However, let us meet after the debate to discuss his ideas.

My hon. Friends the Members for Basingstoke (Luke Murphy) and Bracknell (Peter Swallow) mentioned non-league football. I visited Basingstoke during the general election. Non-league governance is for the FA, as I set out in the Adjournment debate secured last week by my hon. Friend the Member for Redditch (Chris Bloore). I appreciate all the challenges that have been outlined as I have seen them first hand in my own constituency. The Liberal Democrat spokesman, the hon. Member for Wokingham (Clive Jones), posed a number of specific questions. I will not comment on individual cases, but I was pleased to meet him before Christmas and will address some of his points later in my speech.

To answer the shadow Minister�s specific question, I have met UEFA, we have a good relationship and it has not raised any issues. We do not publish private correspondence, just as his Government did not. Growth is central to this Government�s aims.

[James Wild]

I have to say that it is very curious that we know that this letter exists�it has been confirmed in the other place that it exists�and yet the Government repeatedly refuse to publish it, despite the potential impact that political interference with the governance of sport could have. Why does the Minister not just ask UEFA for permission to publish the letter and give it to Members?

[Stephanie Peacock]

The hon. Gentleman is an experienced Member of this House who I know spoke on Second Reading of the Bill. His Government, like this one, did not publish private correspondence, but I can absolutely assure the House that I have met UEFA and it does not have any issues.

As the Member of Parliament for Barnsley South, I know how important a club is to the community. Barnsley FC is a huge part of my town, and the community trust does amazing work, but Barnsley football club narrowly avoided administration 20 years ago. Football clubs mean everything to local people, with family, friends and neighbours coming together to watch games, win or lose. In turn, football would be nothing without its fans.

Hon. Members have spoken so well today about what clubs mean to their communities. We have heard from so many: Reading, Aylesbury United, Oxford United, Brighton and Hove, Luton Town, Grimsby Town, Norwich City, Chesterfield, Coventry City, Port Vale FC, Derby County FC, Morecambe FC, Carlisle United FC, Basingstoke Town, Bolton Wanderers, Bracknell Town, Mansfield Town and Weston-super-Mare. That really shows the strength of debate up and down this country and across this House. Despite bigger revenues than ever coming into the game, too many loyal fans have had their attention forced away from the pitch and into the troubles of malicious ownership, mishandled finances and ultimately the worry that their cherished clubs might be lost.

[Dan Aldridge]

While the Tories and Reform might be happy to see rogue owners running roughshod over fans and players across the country, does the Minister agree that this Labour Government will not allow fans to be taken for fools any longer?

[Stephanie Peacock]

My hon. Friend is right: the Government are on the side of football fans. That is why we have introduced the Football Governance Bill: to put fans back at the heart of the game.

[Mr French]

Given the last intervention and the ongoing auditions for Parliamentary Private Secretary roles among Labour Members, I must push the Minister: at what point will introducing a regulator and the measures that she is discussing lower ticket prices for football fans?

[Stephanie Peacock]

The hon. Gentleman should know that that is a commercial decision, but we have made a change so that fans will be consulted. We think that it is the right change. Our Football Governance Bill will put fans back at the heart of the game. It will protect club heritage, take on rogue owners and secure the financial sustainability of English football.

[Dr Luke Evans]

Will the Minister give way?

--- Later in debate ---

[Stephanie Peacock]

I have been very generous with my time and have already taken one intervention from the hon. Gentleman, so I will make progress.

Too many clubs have faced the precipice. There have been more than 60 instances of administration since 1992. That is simply unacceptable, so in the short time that I have left today I will turn to the detail of our legislation.

The Bill will introduce a new regulator for the game. It is intended to cover the top five levels of the men�s game. There will be strengthened tests for owners and directors. It will make clubs more financially resilient and will put fans back at the heart of their clubs. This is designed to be a light-touch regulator. At a very basic level, owners need to do three things: be an appropriate owner, have a sensible business plan and have proper engagement with fans on key issues. I will take each in turn.

Being an appropriate owner means that club custodians must be suitable; we are protecting fans from irresponsible owners. Having a sensible business plan means that clubs will need clear financial plans, with detail on risk management and resource plans for owners. Having proper engagement with fans on key issues means setting a minimum standard for fan engagement. We are ensuring protections on changes to club crests, home kit and club names and giving fans a voice in the day-to-day running of their club.

Clubs will need a licence to play. They will not be able to join closed-shop breakaway leagues or move around without proper consultation. A football-led solution is always the preferred outcome to financial distribution. In the Bill Committee on the previous Bill, Dame Tracey Crouch rightly said that

�distributions are an issue for football�

but that if no solution is found, it is

�important for backstop powers to be there to intervene���[Official Report, Football Governance Public Bill Committee, 21 May 2024; c. 234.]

If a football-led solution is not reached, the regulator will be ready to step up, if asked, to facilitate a solution as a last resort. The state of the game report will underpin that, informing the regulator�s work through a broad review of the financial health and economic issues in football at any given time.

As I have stated more than once, the Bill is very similar to its previous iteration, but we have made some moderate changes. Fans will have a greater voice and will be consulted on changes to ticket prices. We have brought more clarity and certainty to the backstop, so all issues relevant to redistribution can be considered. By removing the provision on following Government foreign policy, we are making the regime more independent.

The Bill is a historic piece of legislation that has been developed over several years, including by the previous Government, who recognised the need to regulate. Indeed, the Conservative manifesto said:

�We will introduce laws to ensure our fans never again face the threat of clubs in England joining breakaway closed-shop competitions and giving them more of a voice through the Independent Football Regulator.�

[Lizzi Collinge]

rose�

--- Later in debate ---

[Stephanie Peacock]

I am about to conclude, so I will not give way.

I believe that the Bill will protect and promote the sustainability of English football in the interests of fans and the local communities it serves. Given the urgent issues that I and other hon. Members have highlighted today, we are determined to make sure that the regulator is up and running as soon as possible. I thank hon. Members for contributing to this huge debate, which has shown how much the House wants to see the regulator introduced.