Football Governance Bill

Steve Brine Excerpts

2nd reading
Tuesday 23rd April 2024 Commons Chamber

[Lucy Frazer]

To address the point about the Bill being long overdue, the Labour party said for some time that it would do something about this issue but did absolutely nothing. Since I have been Secretary of State, we have had a White Paper and a response to it, and we have drafted a Bill at speed. We have introduced the Bill, and I am delighted that it is having its Second Reading today. I recognise that the Labour party supports the Bill, and I am very grateful for its collaboration. I am very pleased that Chesterfield are in a good place. We want to see ownership that works across the field.

[Steve Brine (Winchester) (Con)]

I am very proud that our Government are bringing forward this Bill. Others had opportunities to do so but did not, and it is very important. I shall support its Second Reading tonight, because it is important to protect the football pyramid. The Bill talks about guaranteeing that fans will be consulted on key decisions that impact on them, which it will do in one respect, but fans of teams lower down the pyramid will be affected by the decision last week to get rid of FA cup replays, which are a lifeline for many clubs by providing opportunities to get a big draw at Anfield, Old Trafford or even Tottenham Hotspur Stadium. Obviously this Bill will not touch on that, but does the Secretary of State have any comments on this issue?

[Lucy Frazer]

My hon. Friend is absolutely right, because those David and Goliath fixtures are part of the magic of football. I know that replays have been a welcome source of income for smaller clubs throughout the years. I spoke to the FA about this issue at Wembley on Saturday, but as he will know, these are decisions for the football authorities. This Bill will ensure that we have appropriate financial regulation in place.

--- Later in debate ---

[Thangam Debbonaire]

My hon. Friend raises the most important point, which is about how fans feel. There should be no taking of reckless risks and there should be no jeopardising of a club’s future, and that is important. Any business owner—the hon. Member for Bosworth (Dr Evans) mentioned businesses—knows that they have to think about what level of risk they are going to take. Fans are at the heart of football, which is one of the things that makes football special and unique, and what fans want is such an important feature of our discussion.

[Steve Brine]

I will ask the same question that I asked the Secretary of State, because the hon. Lady could be the Secretary of State this year. I do not know whether she goes to watch football—perhaps she goes to watch Bristol Rovers in her own city—but she will know that, earlier this year Bristol Rovers had the mighty Norwich City at its stadium. It had 10,000 fans for a mid-week FA cup replay, which was really important to the club. Bristol Rovers has called on the FA to reverse its decision to scrap FA cup replays. This Bill is about financial resilience and viability throughout the pyramid, so what is the Opposition’s view of the FA’s decision last week?

[Thangam Debbonaire]

I am grateful to the hon. Gentleman, who says that the Bill is about financial resilience. Obviously, Bristol Rovers is my local club, and I listen to what it has to say, but I also listen to what fans across the country have to say, and they are clearly very upset about that decision. My right hon. and learned Friend the Leader of the Opposition has made his views on this extremely clear, because we really think that replays are part of the game. [Hon. Members: “Hear, hear.”] He has said that replays are an important part of our game, and we can hear that in the reactions of my right hon. and hon. Friends behind me. However, as the hon. Gentleman says, replays are not part of this Bill, and we are focused on financial resilience. He will know how much I have enjoyed being at Bristol Rovers. I was on the terraces only the other week watching them lose to Reading, but that is part of the joy of football—that and the pies—isn’t it?

I want to talk about how revenue is distributed throughout the football pyramid, because that is an important consideration of this Bill. One of the many ways the Bill sets out a future for the regulator is on financial distribution. It is down to the leagues themselves to reach a deal on broadcast revenue distribution, but it saddens us all that, at the moment, a deal still seems a long way off. It seems that there has been something of a breakdown in communication. I have met many of the interested parties and listened to concerns, and I appreciate that this is complex and not easy, but I urge both sides to come to an agreement.

However, if those negotiations cannot result in a deal once the Bill is enacted and the regulator is in operation, the regulator will have the power to select one of the two options put forward by the parties. That important backstop power should be used as a last resort, but it is clearly important that such a power exists. Given how important the backstop is, will the Minister say what work has been undertaken to ensure that that specific part of the Bill works in practice? Is it legally watertight? Are there questions that still have to be answered? From my engagement with stakeholders there seem to be many important questions that still need to be answered and we will be exploring them further in Committee, but will the Minister give us a bit more of an indication at this stage regarding what work has been done and what that will mean in reality?

Proportionality will be key for us all. As many Members across the House have said, we want the game to succeed and to continue in the great future that it has for the whole country. Proportionality is important. With all legislation and regulation we must strike the right balance, and nowhere more so than with the licensing scheme for clubs. That is the mechanism through which a majority of the regulation and enforcement will be delivered, and it is right that the regulator will be able to tailor a club’s obligations proportionately, especially when it comes to clubs in the national league—many hon. Members represent constituencies in which there is a national league team. We support an appropriate transition period, to enable clubs to prepare for this process. We must bring clubs of all sizes into the system in an appropriate way.

Colleagues have also mentioned sanctions. As the Bill stands, the regulator will not be able to impose points deductions on clubs that break the rules. Labour backs that decision, but I know how much this issue matters to colleagues across the House and to fans up and down the country who are understandably devastated when their clubs are hit with points deductions as a result of decisions that the fans have no power over. After the formation of the regulator, the leagues will continue to have their own financial rules, and there is nothing to suggest that points deductions for breaches of the league’s own rules will not continue. Nobody wants to see points deductions for corporate or financial mismanagement, least of all fans. I hope, and I know fans hope, that the regulator and licensing scheme will mean that clubs are more financially sustainable, and that breaches of league rules and the associated points deductions are much less likely. Again, if the Minister would like to address that when summing up the debate, that would be helpful.

Football clubs are the pride of our towns and cities. They are an important part of our civic identity and the heart of our communities. New owners often bring important investment, but I know from speaking with clubs that it is about more than that. It is a big responsibility and honour to be the custodian of a football club, and owners should take that seriously. I know that is how it feels for the owner of my local club, Bristol Rovers.