Football Governance Bill [Lords]

Yuan Yang Excerpts

2nd reading
Monday 28th April 2025 Commons Chamber

[Yuan Yang (Earley and Woodley) (Lab)]

Let me begin by declaring my entry in the Register of Members’ Financial Interests. I think most of us have agreed today that football has a governance problem. Just last Friday, I attended a meeting with Sheffield Members of Parliament and fans of Sheffield Wednesday—fans who are desperate for their owner to sell their club, so that we can share the lessons from Reading football club. We are well aware of the problems of bad ownership at Reading; its stadium is in my constituency. Our club is on the brink of expulsion from the English football league, after its absent owner was disqualified by the EFL more than a month ago. Reading and Sheffield Wednesday are the tip of the iceberg. As we have heard during the debate, and as we have seen over the last few years, there have been crises at Wigan, Derby, Portsmouth, Bury, Bolton, Macclesfield, Southend and beyond. Football definitely has a governance problem. I am heartened that this Labour Government are serious about fixing it, although sadly the same cannot be said for all parties in the House.

It is shameful that the Conservative party, which initially backed the Bill, has spent the past few months delaying its progress. In those months, many Members, including me, have spent our time fighting for the future of our local clubs. Every day is another day on which Reading fans are left in the dark, another day when Reading staff and local businesses are left waiting for late wage payments. I ask Conservative Members: how much longer would you like us to wait? The shadow Secretary of State likes to talk about business and the economic case. I ask him this: when the average club in the championship spends more than 100% of its revenues on wages, and when, according to the non-governmental organisation Fair Game, more than 50 of the top 86 clubs in the country are technically insolvent, with liabilities exceeding their assets, is this a successful market? Is it a functioning market? I would argue that that is not just unfair, but financially unsustainable. As we heard from the hon. Member for Gosport (Dame Caroline Dinenage), self-regulation has not worked, so we need to find a system that works.

[Joe Robertson]

Has the hon. Lady not received a payment of £8,000 from the man whom her own Government want to install as an independent chair of an independent regulator? Does she not accept that that is a major compromise of the independence of that chosen nominee?

[Yuan Yang]

I have already declared my interest, and I do not agree with that intervention. It is for us in this Chamber to decide whether we want a regulator, and whether we want the Bill to be passed. The Leader of the Opposition has said that she believes that any regulator would be a waste of resources. I presume that that means that her party believes that football does not need regulation. It is for the Select Committee—previously chaired by the hon. Member for Gosport, who, in her speech, seemed to support the idea of independent regulation—to scrutinise the appointment of regulators.

Reading is one of the oldest clubs in England. It once prided itself on good governance, and was known for “the Reading way”. Since the current owners took over, we have seen four winding-up petitions and five points deductions. Sadly, the EFL, which tries to support and intervene, has been unable to effect change for our club because it lacks sufficient regulatory powers. This is where the new ownership test, as well as the new licensing regime proposed in the Bill, would have been so helpful. Reading’s crisis was avoidable, and if we had a strong, independent football regulator, we could start to fix football’s governance problems.

[Mr Quigley]

As a Sheffield Wednesday fan, I understand the financial pain that clubs experience. Does my hon. Friend agree that the Opposition do not actually know why they are objecting to the Bill?

[Yuan Yang]

I feel that I have seen a lot of fancy footwork from the Opposition that probably belongs on the pitch.

We need to build a football system that is fair, transparent and sustainable. That is why I strongly welcome the Bill, and in particular the creation of an independent football regulator. I also strongly support the new owners and directors test, but let me be clear: this regulator must have real teeth. As well as a light touch, it must have the right touch. I hope that, as well as having the power to disqualify bad owners, it will also have the power to enforce that disqualification, and that the Bill, by being able to force the sale of shares or through other interventions, can ensure that the regulation bites.

I am confident that this Bill will support clubs around the country. As I said in my Westminster Hall debate, we need a regulator that passes the Reading test, so that fans of other clubs do not have to go through what we have had to endure. I have spoken to the Sports Minister and the Secretary of State a number of times about Reading, and I am grateful that we share a vision of what English football could be—although I am sure the Sports Minister will disagree with my particular vision that Reading deserve to defeat Barnsley this weekend in order to reach the play-offs. I hope that Ministers will, in theory, support a strengthening of the ownership test by the time this Bill leaves the House.

[Olivia Bailey]

I congratulate my hon. Friend on her excellent campaigning on this issue. Does she agree that Reading football club is at the heart of the community in Tilehurst—in my constituency—and in her constituency? We have to act to protect clubs like Reading. Does she agree that in their obfuscation on this legislation, the Conservatives are letting down fans of Reading football club?

[Yuan Yang]

I agree with my hon. Friend that the Conservative party is letting down many Reading fans, not just in our constituencies but in many neighbouring constituencies, as well as fans across the country.

This matters because Reading are not just a club but a community institution. They are a source of pride, opportunity and identity, which I am heartened that many thousands of fans have come together over the current crisis to try to save. Over 10,000 fans have signed my petition to launch an inquiry into the governance at Reading, and over 30 Members of Parliament belonging to various parties spoke in the Westminster Hall debate that I led, on the topic of financial sustainability in football. That demonstrates how much football clubs mean to people, but unless we act to change how football is governed and run, fix the distribution model, rein in reckless spending and stop absent owners hiding from fans, we will keep losing community clubs up and down the country.

Football deserves better, fans deserve better, and with this Bill we have a once-in-a-generation chance to get it right.