Louie French MP: speeches 2025

Speeches

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I am sure that the Minister will have heard that contribution from my hon. Friend and will be able to pick up on that in her comments. He is right to identify that such a distinction has been made in the Bill. What does this mean? For example, will an hour-long Twitter poll on what a club should do be sufficient? We have seen how clubs have sought to use X in some quite funny ways at times, but on something as serious as this, we need proper consultation. Instead, does the Minister expect that clubs will engage in a full, proper and open consultation with their fans, such as one that includes a call for evidence, votes on different proposals and genuine engagement from the clubs themselves? Otherwise, this all risks just being for show, rather than real consultation. Why stop at just consultation? If a proposed change is sensible, justifiable and supported by a club’s reasoning, why would the club not be able to win over the majority of its fans, if the fans agree it is in the best interests of the club? Why are the Government, in this Bill’s drafting, afraid of allowing fans to have a real and final say on these matters? This is not about allowing fans to micro-manage a club; it is about recognising that the symbols, colours and names of clubs are all held in trust, not owned in a transactional sense. Football club owners are, in truth, temporary stewards. Their role is not to reshape the soul of a club but to protect it and hopefully strengthen it before passing it on. Far too often we have seen the reverse: owners who arrive with branding ideas and marketing consultants, determined to reshape the club’s visual identity to fit a certain commercial strategy, often with little or no understanding of the local footballing tradition in that community. Supporters have had to campaign, protest and plead to get what should have been theirs almost by birthright: a say in the symbols of their club. Does the Minister agree that clause 49, if limited to just consultation, risks becoming just a tick-box exercise, particularly in clubs without strong fan representation models in place? There is a precedent for this kind of requirement. In Germany, the so-called 50+1 rule ensures that fans retain majority voting rights over key aspects of club identity and operation. In Spain, the socios model does so too. To be clear, we are not calling for full fan ownership, but we are saying that, on issues of identity, the final word should ultimately rest with the fans. Let us remember that this amendment would apply only to three specific heritage areas: the club’s official name, the badge—or crest, depending on how we want to describe it—and the home shirt colours. This is not about banning innovation or marketing altogether. It is simply saying that, when it comes to fundamentals, supporters should have a say.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I recognise the hon. Gentleman’s experience with Derby, and I understand his point. That is why I said there are a number of opinions, and this a very controversial subject. I have engaged with EFL clubs as part of this process, and we get a variety of opinions, even before we get to asking the Premier League clubs for their opinion, so I absolutely understand his point. This amendment is about trying to exclude parachute payments from this part of the Bill, rather than trying to take a decision on what parachute payment levels should be in any shape or form. That is the distinction we seek to make with the amendment, and I commend it to the Committee.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I will not rehash the Minister’s description of the clause, but it raises a number of questions about the interpretation of the clause and the requirements on clubs. What guidance will be provided to clubs to determine what constitutes a “relevant” change in circumstances, because that is very open to interpretation? What might such a change look like? We are not trying to micromanage, but we think clubs might find it helpful to understand, even if it is via a list of frequently asked questions from the regulator, what constitutes a change of circumstances so that they do not accidently fall foul of well-intentioned drafting. Could the duty to notify a change in circumstances be accidentally disproportionate to lower league clubs? We have discussed at length that those clubs generally do not have the same administrative resources as the big clubs. Will the regulator look to have a more flexible approach to clubs lower down the pyramid that may not have the ability to notify as quickly as those at the top?

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I am still unclear on that point, but I am happy to have the answer in writing. Who will pick up the bill when the levy cannot be charged to clubs, and what will that bill look like? I am not at all clear about how that will play out in practice. I am not sure whether I am misunderstanding the Minister, and I am happy to have it in writing, but I am not clear what it means.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I beg to move amendment 133, in clause 53, page 42, line 3, at end insert— “(1A) But the IFR may not require a club with fewer than 10 full time equivalent employees to pay the IFR a levy in respect of a chargeable period during which the club is a licensed club.” This amendment would exempt clubs with fewer than 10 full time equivalent employees from having to pay the levy.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I have a few questions. How will the regulator assess whether a club has sufficiently fulfilled its duty to keep fans informed? Could the requirement to disclose information during insolvency proceedings create additional reputational or financial risks for clubs? How will the clause be applied consistently while respecting confidential obligations to creditors? We have spoken a lot about insider information. If the Minister does not have the answers today, it would be helpful to get them in writing in order to understand how some of these complex legal matters might work.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  The clause sets out the consultation process that the Government’s new regulator must follow before introducing or amending the rules governing the industry levy that clubs will pay to fund the regulator’s operations, as we discussed on clause 53. The clause is designed to ensure that any such changes are not made in a vacuum and that the regulator consults the right people, provides a draft of the rules and gathers feedback before finalising anything. On the face of it, this is a welcome safeguard, but, as is so often the case with this Bill, the detail deserves much closer scrutiny. Let us be clear: the industry levy is not a trivial matter. It is the mechanism by which clubs will fund the regulator, and the amount of levy and the method by which it is calculated or collected could have serious financial consequences, especially for clubs operating on tight margins, as we have discussed. We are talking about a compulsory statutory payment, not a voluntary contribution or a negotiated fee. Any change to the rules governing the levy must therefore be subject to robust scrutiny, proper stakeholder input and full transparency. The clause requires the regulator to consult a named list of stakeholders as well as any others it considers appropriate. It also requires a draft version of the proposed levy rules to be published as part of the consultation. So far, so good. But—this is a significant but—the clause also includes a major loophole. The clause states that the Government’s regulator does not need to consult at all if it considers the proposed changes to the levy rules to be “minor”. Crucially, the regulator itself is to determine whether such a change is minor. Why is the regulator being permitted to define what counts as minor without any external check, threshold or approval? That creates a dangerous conflict of interest where the Minister’s regulator becomes the judge and jury in its own process. What is minor to the Government’s regulator may be highly significant to lower league clubs, such as a League Two or National League club trying to manage a tight budget. Once again, the Bill has a significant risk of regulatory mission creep. We must consider the cumulative effect of so-called minor changes: one small rule adjustment may seem harmless, but several such changes made without consultation could over time significantly alter the levy framework, placing new burdens on clubs without ever facing proper scrutiny. That is how regulatory creep begins, and that is precisely what the clause should be guarding against, but, as drafted, it does not. Would the Minister consider amending the clause to define “minor” changes more clearly, perhaps by setting out objective criteria or requiring approval from the Secretary of State, Parliament or an independent panel? Alternatively, would she consider a threshold mechanism where changes with a financial impact above a certain level must trigger consultation regardless of her own regulator’s view? I suspect that the answer to those questions will be no, which is why I tabled amendment 102, which would remove the regulator’s power to skip consultation when it determines a change to be minor. The intent behind the exemption may be practical and be—to avoid unnecessary bureaucracy—but in reality it gives the Government’s regulator unilateral power to decide whether stakeholders should be consulted on changes that could have material financial consequences. Crucially, the definition of “minor” is left entirely to the regulator’s own judgment, as I have said. There is no objective test, no threshold and no review. Will the Minister explain why the Government believe it is acceptable for a statutory regulator to decide, on its own authority, when it is allowed to bypass the requirement to consult clubs and stakeholders that will be legislated for by Parliament? In every other walk of regulated life, such exemptions would be expected to come with clear limits or external oversight, yet in this instance we are effectively giving the Government’s regulator the ability to mark its own homework. Let us not forget that the levy is not an optional contribution but a statutory obligation. Clubs will have no choice but to pay whatever is set, which means that even small changes could have big consequences, particularly for those lower down the pyramid. What may seem minor to the regulator may not seem so minor to a National League club balancing its books. Does the Minister recognise that cumulative so-called minor changes could, over time, significantly increase the regulatory burden on clubs without ever triggering a formal consultation? That is the risk of leaving this loophole in the Bill. It is not just about what the Government’s regulator might do today; it is also about what a future regulator—possibly a more activist regulator, although I hope not—might decide in years to come. We need to close the door now before that risk becomes reality. If clubs are to have confidence in the new regulatory regime, they must feel that major financial decisions will not be made without their involvement. Even the perception that the Government’s regulator could tweak the levy regime unilaterally using the exemption for minor changes could erode trust, particularly among the smaller clubs that are already concerned. Consultation must not be seen as optional; it must be the default, not the exception. That leads me to amendment 103, which aims to improve the clarity of the Government’s regulator’s approach to any levy that it seeks to impose. The specific issue that it seeks to correct is that, under the Bill as drafted, the regulator must publish details of the levy as soon as is reasonably practicable before the start of a chargeable period. My amendment would require the Government’s new regulator to publish the levy rules at least six months before the beginning of the chargeable period to which they apply. It is about financial certainty, about clubs being able to plan and about not changing the rules on the eve of a new season. We know that many clubs, especially further down the pyramid, operate on tight annual budgets. They finalise player contracts, ticketing strategies and community programmes months in advance. A late change to the levy rate or calculation method could throw all that into confusion. The amendment would help to give English football clubs the clarity that they need to prepare. It would ensure that levy changes are not imposed at short notice and it would enforce a principle that reasonable regulators should provide advance notice of costs. What safeguards, if any, will the Government establish to ensure that levy changes are communicated to the affected clubs in good time? If the answer is that it will be left to guidance or good practice, that will simply be not good enough. Good intentions are no substitute for legislative certainty. Both amendments are modest, reasonable and—we believe—entirely consistent with the Government’s stated ambition to build a trusted and transparent regulator that works with clubs, not over them. We must get the process right. Clubs must know when a charge is coming and how much it will cost them and their fans, and they must be given a chance to respond. That is what the amendments would provide—nothing more and nothing less. Removing the minor change loophole would ensure that no future regulator could bypass scrutiny at its own convenience, and the requirement to provide six months’ notice would guarantee that clubs are not left scrambling to deal with cost changes with no time to prepare. This is about good governance, fair process and fiscal discipline. Clause 54 provides the procedural backbone for how the Government’s regulator will engage with the industry when amending leverage rules.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I listened very carefully to the Minister’s explanation of these amendments, which have been introduced at a fairly late stage. I hope she can provide some clarity on a number of questions. First, was it always the Government’s intention to have these separate streams of funding, as she has described, or is this a way of expanding the IFR’s powers to charge the levy? I am unclear about why the change has happened now, because we have obviously been through a lot of consultation and the Bill has been in the other place for some time. It is not necessarily clear why these changes have come about at this stage, so I would appreciate an answer. Lastly, when the Minister described the charges as non-leviable, the natural question was, “Who picks up the bill?” Are we talking about taxpayers, and if we are, what are those costs? Exposure to risk would obviously be a major concern for taxpayers and, I suspect, a number of Government Departments following the spending review. I appreciate her comments about how the Government believe that the functions may not be used or required, but there needs to be an answer about the risk of those non-leviable payments and what that might look like in the future.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  The clause sets out a series of duties that require various football stakeholders, including leagues and governing bodies, to notify and consult the Government’s new regulator in certain circumstances. At its core, the clause is intended to improve co-ordination and to prevent regulatory surprises, which in principle is reasonable. We all agree that where the governance of the game affects financial sustainability or club integrity, the Government’s regulator should be aware and engaged. I will focus on subsection (6), which is a far more consequential provision than it might first appear. I believe it strikes at the very heart of one of the most sensitive and important issues in football governance: the independence of sport from Government control. Subsection (6) imposes a statutory duty on specified competition organisers to consult the regulator when they either add or remove a relevant rule of a specified competition, or vary a relevant rule of a specified competition. I note the comments of the hon. Member for Sheffield South East about when the regulator is involved in a competition and when it is not, with regard to the FA Cup. Some clarity on that would be much appreciated. In short, the provision means that competitions such as the Premier League, the EFL and the FA Cup would be required—based on the wording of this part of the Bill—to consult the Government’s football regulator every time they change or amend a rule deemed to be relevant by the regulator itself. That might sound innocuous, but let us be clear about what it means in practice: for the first time, a politically appointed regulator, accountable to the Secretary of State, who has received donations from that regulator, would be given a formal, statutory role in the internal rule-making processes of English football competitions. This is not a light-touch oversight mechanism; we fear it might end up being a direct institutional influence. As we know, it is not compatible with UEFA’s requirements on the non-interference of Government. UEFA statutes are clear that national football associations and their affiliated leagues and competitions must be free from political or Government control. The relevant rule is article 7bis (2) of the UEFA statutes, which states: “Member Associations shall manage their affairs independently and with no undue influence from third parties.” Article 9 goes on to state: “A Member Association may in particular be suspended if state authorities interfere in its affairs in such a significant way that...it may no longer be considered as fully responsible for the organisation of football-related matters in its territory”. It is pretty clear that the FA will no longer be considered fully responsible for the organisation of football-related matters in its territory should the Bill pass with this provision. Moreover, FIFA echoes that approach in its regulations, particularly in article 14 of the FIFA statutes, which ensures that member associations, such as the FA, remain autonomous and free from governmental or political influence. Article 15 of the FIFA statutes further requires members to be neutral in matters of politics and religion, to be independent, and to avoid any forms of political interference. Subsection (6) brings us dangerously close to the line, if not across it. Unfortunately for the Minister, the Government seem to be on the wrong side of that line. I will press the Minister on that point, because however carefully the clause may have been worded in terms of consultation, in reality it inserts the Government’s new regulator into the core rule-making processes of the football pyramid. Once that principle is established, the scope can grow. We know that there are international concerns about scope creep, as I mentioned when speaking to amendment 97. “UEFA is concerned about the potential for scope creep within the IFR. While the initial intent of the IFR is to oversee the long-term financial sustainability of clubs and heritage assets, there is always a risk that, once established, the IFR may expand its mandate beyond these areas”. Those are not my words. Will the Minister confirm whether UEFA has been consulted on the drafting of the clause, and whether the Government have received written assurances that this level of regulatory involvement is compatible with UEFA’s independence rules? If she has, will she place a copy in the Library? If she has received any correspondence to the contrary, will she also place that in the Library so that the Committee has confidence ahead of Third Reading and can scrutinise the provision properly? What safeguards are in place to prevent this from being interpreted—either in Brussels or somewhere else—as a breach of sporting autonomy? This is not theoretical—it is a real and dangerous risk for English football. Let us remember, in recent years, that other countries have faced disciplinary threats or warnings for perceived interference in football. We have seen federations sanctioned before. National teams and clubs have been threatened with exclusion from competitions. For example, Greece was briefly suspended from international football in 2006 after the Greek Government passed a law that interfered—that was the term used—with the autonomy of the Greek football federation, in violation of UEFA and FIFA regulations. In 1999, Moldova’s clubs and national team faced a ban from UEFA competitions, after it was deemed that there was political interference in the running of its football federation. In 2002, FIFA suspended Zimbabwe and Kenya from international competitions due to perceived Government interference in the football administrations of those countries.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  That is a fair challenge. To be clear, we are not talking about five-a-side teams. To give a straight answer, we are talking about backroom staff affected by the administration. We can see that in the wage bill at opposite ends of the pyramid in 2022-23, with the Premier League’s wage bill running at more than £4 billion and League Two’s wage bill sitting at just £96 million, or 2.4% of the Premier League’s total.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I appreciate the Minister’s comments, but it is very difficult to withdraw an amendment without clarity about the questions that we are posing. On that basis, I am afraid that we will not seek to withdraw the amendment. Question put, That the amendment be made.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Eighth sitting) · Hansard source

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  I have listened carefully to the Minister’s arguments, and she has made some helpful clarifications. However, due to the lack of a cap, as my hon. Friend the Member for Spelthorne said, it is difficult to rely on the letter for what club certainty might look like in the future. We have discussed at length how well-intentioned plans can easily spiral, which is why we believe amendment 133 is important in helping to safeguard the clubs with the smallest means and those lowest down the pyramid. Question put, That the amendment be made.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I completely agree with the hon. Member’s sentiment. We will seek to debate that when we come to our player welfare amendment, because we are concerned about increasing the length of the season to generate further revenues. The tournament in America and the Asia tour that has just taken place at Man United are probably the prime examples of the impact that can have on players. The English team, in their performance the other night, sadly looked quite tired. There is an issue around player welfare that we must all acknowledge, particularly given the demands to generate more revenues for the financial fair play rules. I thank the hon. Member for making that point; I am sure we will come back to it when we reach the player welfare amendment. On definitions and discretions in the clause, the Bill defines a prohibited competition in quite vague terms, and it is ultimately left to the discretion of the regulator. The explanatory notes state that subsection (5) sets out some factors that the IFR must consider when deciding whether to specify a competition as prohibited. What are the criteria for a competition to be deemed prohibited? Will they be set in primary legislation, by guidance from the Secretary of State or by the regulator? Is there a right of appeal if a competition is believed to have been unfairly designated as prohibited? On international alignment, there is another issue that we must highlight. We must accept that football operates in a global ecosystem, as we have discussed. English clubs routinely participate in international and cross-border competitions, whether that be the Champions League, the Europa League or the Club World Cup, as does the national team. How does the clause interact with UEFA and FIFA competition rules? What happens if, for example, a competition is sanctioned by UEFA but deemed prohibited by the football regulator, or vice versa? This is a real issue for the regulation. We would like some clarity from the Minister on how such a conflict would be resolved, because it would put clubs in a very confusing situation. On enforcement and penalties, clause 45 creates a legal duty not to participate, but what are the sanctions if a club does so? One assumes that it would lead to licence revocation, but what else? Would there be fines or points deductions? What penalties will the regulator look to enforce? Will they be proportionate? Will clubs be given prior notice and the chance to make representations? On unintended consequences, we must avoid stifling innovation and competitive evolution in the sport. Not every new competition is a threat; some may bring financial or structural benefits, or benefits for fans. As I and the Minister have highlighted, we must remember that the Premier League was technically a breakaway league from the old First Division. If that happened today, we believe that the Bill and the regulator would be responsible for preventing that league, and all the attributes and characteristics that we celebrate in this country, from existing. We have to look at innovation carefully, and the answer must not always be no if there are clear benefits to the country and to the game of football itself. We support the aim of preserving the integrity of English football, but the clause must be clearly defined, tightly drawn and fairly enforced. A law designed to stop the next European super league must not become a tool for bureaucratic overreach or political intervention by the regulator. The game belongs to its fans and its communities, not to the regulator or the governing body. I am interested to hear the Minister’s comments on my questions, particularly those about how the international system would interact with a prohibited competition.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  My hon. Friend the Member for Spelthorne and the hon. Member for Newbury highlighted the issue of friendlies. The Minister has indicated that she will come to that, but I do think we need some clarity as to what that might look like in practice. The end-of-season competitions are normally internationally designed, and although they may be endorsed by UEFA or FIFA, they would breach some of the conditions under the definition the Minister just gave. We need clarity about how this will work, because we do not want to put English football on a collision course with international football.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I appreciate the Minister’s comments with regard to amendment 110, which I tabled. I have listened carefully to her arguments, but it is still unclear to those of us on this side of the Committee why consideration of the Terrorism Act 2000 was not included in the list of factors set out in clause 37. We believe that is an oversight and, consequently, that the clause lacks the clarity that the amendment seeks to deliver in the Bill and that those who refer to it will seek going forward—in other words, the regulator. We will therefore press the amendment to a vote. Question put , That the amendment be made.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I must admit that—like other members of the Committee, to judge from their facial expressions—I am slightly confused by the reasoning the Minister has given in response to the hon. Member for Sheffield South East on this clause, and where the distinction lies between the ultimate decision to relocate the ground and the sale of the ground. The decisions are clearly interlinked, and I would argue that fans would have strong concerns if a club owner was seeking to sell the ground, which would in a number of instances lead to either a relocation or an impact on the club’s heritage. The sale, for example, could lead to the renaming of a stadium, and the fans would clearly have a view on how that would impact their support for the club. I ask the Minister to reflect on the hon. Gentleman’s points, because the clause seems to lack clarity on how that distinction is being made. I understand the point she is making about the financial considerations of owners, but the Government should reflect carefully on the argument against this clause, because it is not very clear to members of the Committee.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  On the point about risky situations and the risk-averse nature the Minister is describing, the Bill is clearer on disposable home grounds. I am intrigued to see how the regulator would deem a club either selling its freehold and then having a leaseback option, which we have heard has happened, or looking to move to a ground or stadium that it did not own and pay rent going forward. Would that be seen as a bad financial move or a good one by the regulator? It is not quite clear how it would work for non-disposable treatment of assets.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  Clauses 43 and 44 set out how ownership removal orders are to be made, and the legal consequences of non-compliance. Clause 43 matters hugely because it allows the regulator to force an individual to sell their ownership stake in a club. That is a serious and intrusive power, so we must ensure that it is used sparingly, lawfully and with robust safeguards. On process and fairness, we welcome the requirement in clause 44 to notify the person and allow representations to be made before an order is issued. However, is that enough? Will representations be meaningful, or will this just be a procedural tick-box exercise? I have some questions for the Minister. Will the regulator be required to give full written reasons for the proposed removal? Will the owner have access to the evidence relied upon? Is there a statutory right of appeal or review, and if not, why? Secondly, on liability and legal exposure, clause 44(6) imposes the liability for costs incurred by non-compliance with an order on to an owner. What types of loss are envisaged for owners? Are they just financial, or reputational and contractual? Who decides whether a loss is caused by the non-compliance, and is causation clearly defined? Could this lead to vexatious or opportunistic claims in the future? How will this work with ownership groups, when there are multiple owners of a club? On commercial realities, forcing the sale of a football club is not simple; in most cases, these are not liquid assets. The value depends on market conditions, the timing of the economy and sale, and obviously buyer availability and demand to purchase a football club. I therefore ask the Minister: will the regulator have a duty to ensure fair market value is preserved during a forced sale? What happens if the regulator’s actions or any delays cause the value of a club to fall? Could we see a situation where the regulator is frequently appearing in court on such claims? Fourthly, on the broader principle, the clause is in effect a power to force the sale of a privately-owned business. That is a major constitutional step. Property rights in this country matter, due process matters, and so does the rule of law. We need real safeguards, not just procedural gestures. We want to keep football in safe hands, but the clause needs to be clearer, fairer and more restrained in its use. It must not give the regulator quasi-judicial power without necessary oversight of Parliament. That is not regulation; we believe it would be overreach. I would be interested to hear the Minister’s comments on my questions.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I thank the Minister for those remarks. I suspect that a letter of clarity would be helpful for all Members. There is a risk that FIFA, or UEFA, as we have seen with the Nations League in recent years, looks to introduce a new competition, whether at club or international level, that would contradict the regulator. As we have spoken about at length, and as the hon. Member for Sheffield South East has described, the different governing bodies of UEFA and FIFA are often in competition with our national competitions. We have to ensure that clubs are not forced to choose between a licence in the English game and partaking in international competitions. We fear that could drive acceleration toward a breakaway league, rather than prevent one.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I beg to move amendment 110, in clause 37, page 28, line 28, at end insert— “(fa) whether the individual is a member of a proscribed organisation as per section (3) and schedule (2) of the Terrorism Act 2000.” This amendment requires that IFR, in determining whether an owner or officer has the requisite honesty or integrity, to consider whether the person is a member of an organisation proscribed under the Terrorism Act 2000. It is a pleasure to serve under your chairship again, Ms Butler. I welcome all Committee members back for day four. Amendment 110, tabled in my name, requires this Government’s regulator, in determining whether an owner or officer has the requisite honesty or integrity, to consider whether the person is a member of an organisation proscribed under the Terrorism Act 2000. Clause 37 sets out the framework under which the Government’s football regulator must assess whether an owner or officer of a football club meets the required standards of honesty, integrity and competence. This is an important part of the Bill. Football clubs are not like ordinary businesses, as we have discussed; they are institutions rooted in community, tradition and even national identity. Those who control them must be held to the highest standards and supporters quite rightly expect that clubs should be fit to uphold those responsibilities. The Government’s regulator’s task in clause 37 is to ensure that persons in positions of influence over our national game are financially sound and professionally competent. However, the clause as currently drafted leaves the test for honesty and integrity open to interpretation—arguably too open. That is why we have tabled amendment 110, which provides a clear and unambiguous requirement that, in determining whether a person has the requisite honesty or integrity, the regulator must take into account whether that person is or has been a member of an organisation proscribed under the Terrorism Act 2000. Let me be clear: this is not about political views, past associations or guilt by implication, but about having a national minimum standard of moral fitness. It should be inconceivable that a person with demonstrable ties to a terrorist organisation could pass the fit and proper person test to own or operate a football club in this country. Football clubs are part of the fabric of British civil society. They are symbols of local pride and national values, and they have international reputations. To allow a person associated with a proscribed group, many of which pose active threats to our national security, public order and democratic way of life, to take a controlling interest in such an institution would be not only morally indefensible, but deeply dangerous. This is not a hypothetical concern. We live in an increasingly globalised football economy and genuine questions have been raised in recent years about the sources of funding, ownership and political influence across the game. My amendment does not attempt to legislate morality in broad terms; it simply anchors the Government’s regulator’s assessment in existing law, specifically the Terrorism Act 2000, which provides a clear, publicly available list of proscribed organisations that Parliament has already determined pose an unacceptable risk to our way of life. By incorporating that into clause 37, we do two things. First, we clarify the threshold for what constitutes a failure of the honesty and integrity test, giving both clubs and the regulator a clear reference point. Secondly, we send a signal to not just fans and communities here at home, but investors and foreign Governments abroad, that English football will not be compromised by individuals whose allegiances lie with organisations committed to violence, extremism or the subversion of our national interest. Football is a global sport, but it must still reflect and uphold our national values. It is not alarmist or over-zealous to say that those who control our clubs must have a character as close to unimpeachable as possible. We are asking them not to be saints—unless, perhaps, they own Southampton FC—but to be the pillars of the community that we already expect them to be.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I will not question the experience of my hon. Friend, whose military background is far greater than one I could even dream of on a PlayStation, let alone in practice. He makes a valid point that English football is much more than just the Premier League. We take enormous pride in all the leagues in our country, as we do for British football more broadly. They are some of the most watched leagues in the world, with amazing clubs and competition. Competition across the pyramid is what we seek to promote and preserve going forward. The proposed European super league rightly provoked outrage from fans, clubs and Parliament itself, and rightly collapsed after pressure from all those groups, but we must be cautious about giving a regulator the power to prohibit competitions on open-ended grounds. As the Minister has said, the Premier League probably would not exist in its current form if we had sought to prohibit it around 30 years ago.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I thank the hon. Member for that valuable contribution and for telling us his experiences as a Derby fan. There are many examples that have been drawn on in various aspects of the Committee’s debates, and I suspect that there will be more going forward. Just to be clear, we are not seeking to press the provision to a Division. The point we are making is that we want the strongest owners and fittest people to run clubs, but we also want to ensure that the regulator is seen to be acting lawfully and in a balanced way at all times, to avoid any issues of impartiality. I understand the point the hon. Member makes, which is why I have always supported strengthening ownership tests, even in the previous Parliament. We do not believe that exclusion based on reputational judgment or politics should come into these kinds of judgment. The Government must not forget that they are regulating not just football clubs, but people’s lives, reputations and livelihoods. That demands humility, caution and a presumption in favour of freedom and innocence, unless the case for restriction is absolutely clear and overwhelming. Where there is doubt, the Government’s regulator must not fill in the blanks with its own qualifications or prejudices. The Opposition support the need for disqualification in serious cases, but we continue to press the Government to ensure that the clause is not open to abuse, and that football remains a competitive, plural and fair environment, rather than one policed by the regulator, acting as judge, jury and executioner in uncertain circumstances. Clause 39 empowers the regulator to give a removal direction in requiring an unsuitable owner to take all reasonable steps to cease being an owner by the end of a specified period. The exception to this requirement is when an owner did not have prior regulatory approval, and the regulator can exercise its power to make an ownership removal order within three months, starting from the determination day. The clause requires the football regulator to inform the owner of the club and relevant competition organiser before giving a removal direction. It also requires the football regulator to notify the owner and the club of the possible enforcement action for not complying with the direction. It is because of powers such as these that the regulator must be seen as independent. If a Government regulator is to order the removal of incumbent owners, this could be seen by competition organisations as clear interference, which as we have discussed at length, and could cause many issues for English clubs, especially when competing in UEFA and FIFA competitions. I would be interested to hear some assurances from the Minister about how that might work in practice. If the Government’s regulator is to tell clubs that they must change ownership, how confident is the Minister that that will not breach the rules that we have discussed? This goes back to a point I made in a previous sitting about something that is a theme of the clauses in this group. Giving the owner or officer of a club notice of a regulatory action that is coming will hopefully allow them the rights of representation and challenge, if they feel that they have been handled wrongfully, but it also opens up issues around insider information, particularly with regard to a club’s valuation. I suspect that all hon. Members appreciate that such a change, particularly at the top levels of ownership, will have a dramatic impact on the valuation of a club. We want to understand how the regulator will deal with that issue to ensure that insider dealing, in particular, does not become a widespread issue where the regulator is trying to enforce its actions, as provided for by these clauses. We want to understand how that will work in practice, to ensure that these clauses do not have unintended consequences. Clause 40 empowers the regulator either to issue a removal direction to an unsuitable officer, requiring them to take all reasonable steps to cease being an officer by the end of a specified period, or to give such a direction to the relevant club, or both. It requires the independent football regulator to inform the owner, club, and relevant competition organiser before giving a removal direction. It also requires the IFR to notify the owner and the club of the possible enforcement action for not complying with the direction. I have the same question about this clause as for the previous one: how will the risk of inside information be managed? Clause 41 empowers the regulator to prohibit an unsuitable owner or officer from carrying out specified activities or exercising specific rights and/or to issue a direction to the club requiring it to ensure that the unsuitable owner or officer does not exercise specified activities or rights. The clause provides a non-exhaustive list of such activities and rights, including any right “to vote on any matter relating to the…club’s activities”; appointing, terminating or changing the terms of appointment or responsibilities of any officer or employee; changing the corporate structure; and undertaking any specified actions without obtaining prior approval from the independent regulator. Clause 41 also requires the IFR to notify the owner and the club of the possible enforcement action for not complying with the direction. Such action could seriously impair the ability of a club to function while it seeks a new owner or officers, as ordered by the regulator. As we all know, it takes a significant amount of time to find a new owner, and many may be deterred by perceived interference in English football, compared with other nations without a state regulator. Clause 41 may cause more damage to a football club than the owner, who the regulator cannot dismiss. How will the Minister ensure that the regulator uses these powers only if and when deemed strictly necessary? Clause 42 relates to situations where directions under clause 41 would impede a club’s ability to operate effectively or comply with regulatory requirements. It empowers the IFR to temporarily appoint an officer to carry out a specified function, or redistribute functions among existing officers. It stipulates that those functions must be specified, must be for a specified amount of time, and can be revoked or varied by another order. It specifies that an interim officer is not subject to the duties and requirements placed on officers by the Bill. It also requires the IFR to notify the owner and club of the possible enforcement action for not complying with the direction. Clause 42 adds to the fear that the regulator could erode the independence of English clubs and how they operate. It empowers the regulator to effectively govern a club while seeking to remove unsuitable officers or owners. Given the time that it takes to find new ownership, that situation could last for a considerable period and cause massive issues on the pitch with regards to investment and transfers—as we discussed in a previous sitting—and how the club functions. It would also leave the regulator wide open to criticism if its actions lead to relegation, for example, for a particular club. Does the Minister think that there is a risk that such a club could be barred from international competitions—as I suggested earlier—or that the Government’s regulator could be left wide open to legal challenge if it directly impacts a club’s performance on the pitch, or its financial performance off the pitch while such considerations, or changes of ownership, take place?

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  Clause 47, as the Minister has just outlined, creates a new legal duty on clubs not to enter administration without the prior approval of the regulator. This is an unprecedented intervention: a regulator potentially blocking access to what is, in most sectors, a standard insolvency mechanism. We understand the intent to prevent abuse of administration as a means of dodging financial responsibility and to help protect club continuity. However, this clause raises serious concerns about the balance between corporate law and football regulation going forward. As drafted, subsection (1) says, “as soon as reasonably practicable after the body considers that there is a reasonable prospect of an administrator of the body being appointed”. I would therefore naturally ask the Minister: what constitutes “reasonably practicable” and “a reasonable prospect”? We all appreciate that, in most examples, an owner’s wealth is generated not by the club itself but other business interests. It may become very difficult to determine what is “a reasonable prospect” if we are looking at business interests far from football. Administration is recognised as part of UK insolvency law, which the Minister referred to, and it exists to help distressed businesses rescue viable parts and protect creditors where possible. Blocking access to administration could make things worse, not better, specifically if it delays actions or deters future buyers. Why are the Government confident that the regulator is better placed than insolvency professionals to determine when administration is appropriate? On some of the practical risks, insolvency situations often develop quickly, and clubs may need to act fast to avoid a complete liquidation of assets. A duty to obtain the regulator’s approval would therefore add delay and could risk total collapse where speed might be essential. We have seen that in a number of club takeovers over the years. Will there be an emergency approval process for an administrator? Within what timeframe does the Minister expect the regulator to respond? Is there a default route if it does not respond in a quick enough time? On consistency with company law, clause 47 effectively overrides the Companies Act 2006, creating a two-tier insolvency regime for football clubs. That is not a small step. It sets a precedent for sector-specific interference into commercial law. What discussions has the Minister’s Department had with the Insolvency Service and the Department for Business and Trade on this specific clause and mechanism going forward? Are there any comparable sectors in the UK where companies would be forbidden from entering administration without the regulator’s consent? Lastly, on unintended consequences, could this provision make distressed clubs less attractive to investors who fear regulatory delays? I fear that it may. It may also push clubs to delay taking action, making outcomes worse for creditors, fans and staff in the longer term. It could also expose clubs to legal risks, if creditors challenge a failure to act promptly to directors. The Opposition support strong oversight, but clause 47 must not become a regulatory roadblock in moments of crisis. Football clubs must be able to act swiftly to protect their future. The football regulator should be a safeguard, not a barrier to survival. We urge the Minister to have a close look at some of those questions and hopefully provide some answers today. We fear that this clause, as drafted, may have a number of unintended consequences. Ordered, That the debate be now adjourned. —(Vicky Foxcroft.)

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  The hon. Member for Sheffield South East has stolen some of my lines. As always, he picked up the ball and put it in the net, as would be expected of the chair of the football all-party parliamentary group. There are inconsistencies in what is being discussed, and he was right to highlight them. Clause 45 introduces a legal duty on clubs not to enter or operate a team in a competition deemed to be prohibited by the regulator. As has been discussed, the clause is clearly a response to the threat posed by breakaway leagues such as the attempted European super league a few seasons ago. While the intention behind the duty is understandable—to protect the structure and integrity of English football—the mechanism raises serious questions about competition and proportionality, as the hon. Gentleman just touched on. First, on the principle, we agree that the pyramid structure of English football must be preserved wherever possible. Promotion and relegation are sacred principles of our game, and competition on and off the pitch must be upheld. The competitive nature of English football is what makes it so great. This season, certainly in the Premier League, has probably been slightly dimmer because it has been perceived to have not such great competition for the Championship and in relegation, as things were determined quite early in the season. The Opposition have some sympathy with, in particular, the National League’s 3UP campaign, which has sought to close the gap between the National League and League Two. If we are looking at how to close the gap between the Premier League and the Championship, which has been the main argument from proponents of the Bill, we must also look at the bottom half of the pyramid to see how that competition can also be improved. That is a principle of fairness and competition for which I have a lot of sympathy.

• 12 Jun 2025 · Football Governance Bill [ Lords ] (Seventh sitting) · Hansard source

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  I will not dwell on this point too much, but the implications of this amendment and the ones that we were just discussing are not hypothetical; we have seen real-life examples of where this issue has become a real one for football clubs. So, we seek some clarity from the Minister about how the regulator would act in such scenarios in the future. As I said in my previous comments, I think the disposal of a ground is probably slightly clearer than the relocation of a ground. However, I will use the example of Coventry City football club. When they moved to the Ricoh Arena, I believe that the stadium was jointly owned by the local council and another group. I assumed that the club moved to a new stadium with the best interests of the club at heart. I had the pleasure of going to Coventry’s old stadium when Charlton played Coventry in the FA Cup, but that is a bit by the by. It was in need of improvements; most people would have thought that. How would this measure work? We know that Coventry ran into a number of issues with the Ricoh Arena, which I believe is now owned by the Frasers Group. At that point in time, when the club moved, would that move have been deemed to be in the regulator’s purview of an inappropriate action by the previous owners? I ask that question because this is a real-life example of where it is not clear how this legislation would apply. As Parliament, we have to be clear how we intend the regulator to behave in such situations, because, as I say, that was a real-life example of how football clubs might seek to improve their stadia when they do not have the assets to do so themselves.