Politics Explained

Why is the Football Governance Bill back on the pitch?

It’s the kind of well-meaning bill that if it succeeds will hardly be noticed, though as Sean O’Grady points out, pleasing the top clubs and their fans, and the lower league clubs and their supporters, will be a difficult task

Wednesday 13 November 2024 13:16 EST
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New regulator to have 'targeted powers' to stop football clubs from joining breakaway leagues

Football is becoming a political football. Well, sort of, the irony being that the Labour government has adopted legislation on football regulation that was planned by the Conservatives before the general election was called and the final whistle blew on the Sunak administration (a record-breaking home loss, so to speak).

The removed and altered Football Governance Bill has now been thrown back onto the parliamentary field of play, and we may expect it to be kicked around a bit before becoming law. It’s the kind of well-meaning bill that if it succeeds will hardly be noticed; but if it harms the national game in any way, and upsets the fans, we may end up with crowd trouble and an electoral pitch invasion. The trick will be to boost fans’ participation and protect the poorer clubs financially without damaging the Premier League’s global pre-eminence. Lots to play for…

What’s the origin of the bill?

It all dates back to the uproar when some of the “elite” English Premier League clubs tried to join a putative European Super League. The attempt failed but the Johnson government of the time announced a “fan-led” review of the game, headed up by former sports minister Tracey Crouch. The review also dealt with issues arising from the collapse of Bury FC, the influence of foreign and sovereign state ownership of clubs, and the distribution of the vast wealth generated by the Premier League. Hence the Football Governance Bill, which was to establish an independent regulator, give fans more say and restrain “rogue” owners from asset-stripping clubs.

What’s new?

Under the Labour version of the plans, the football regulator will no longer have to consider the UK government’s foreign and trade policy when approving club takeovers. On the other hand, the regulator will be able to settle the amount of money the Premier League gives to the English Football League (EFL) and the lower tiers of football in cases of dispute. Currently, that stands at about £358m over three seasons, or 15 to 21 per cent of the Premier League’s revenues (mostly from TV rights). Of that, three-quarters goes to the Championship, ie the second tier.

Controversially, the regulator will also have reserve powers over substantial “parachute payments” paid to clubs relegated from the Premiership after a year (that is, if they don’t go straight back up). The EFL thinks these stymie competition by making life harder for clubs perennially in the lower leagues.

There will be “a clear commitment” to do more to improve equality, diversity and inclusion; but there’s not much in the current plan for women’s football.

What could go wrong?

The fans, a considerable constituency and plenty of whom are in marginal seats, could get annoyed by the new set-up and that could make the government highly unpopular. No minister wants such a high-profile policy flop on their hands. The secretary of state, Lisa Nandy, a Wigan Athletic fan (League One, the third tier of English football), is well aware that pleasing the top clubs and their fans, and the lower league clubs and their supporters, will be a difficult task, though her aims are impeccable.

At this early stage in the parliamentary game, she’s doing her talking “off the pitch”: “For too long, financial instability has meant loyal fans and whole communities have risked losing their cherished clubs as a result of mismanagement and reckless spending. This bill seeks to properly redress the balance, putting fans back at the heart of the game, taking on rogue owners and crucially helping to put clubs up and down the country on a sound financial footing.”

What does the opposition say?

Stuart Andrew is the shadow secretary of state for culture, media and sport, and was minister for sport in the last government, responsible for this very bill. His aims and objectives therefore aren’t so very far removed from Nandy’s, and the principle of an independent regulator is acknowledged. So football is unlikely to become a political football – unless the new system causes serious unrest on the terraces. In that case, Andrew will no doubt execute a skilful Cruyff turn, leaving Nandy at serious risk of substitution by her manager, Keir “Toolmaker” Starmer, the well-known Arsenal legend.

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