My Lords, I refer the House to my register of interests, in particular my position as vice-chair of West Ham United, who play in the Premier League.
One of the privileges of speaking in this House is that we can talk not only to the present moment but for the historical record. When the story of the Football Governance Bill is told, I hope it will reflect that this House asked the right questions, foresaw and understood the risks, and ultimately helped improve the legislation. I acknowledge that the Bill we return to today is better than the one we began with. That has not always been an easy journey, but Ministers have listened, for which I am very grateful, and some important safeguards have been added. For that, they really do deserve genuine credit.
We are now entering a new phase, moving from the politics of the Bill to the reality of the regulator. In doing so, I suggest that the new regulator will be judged against three simple but vital tests. First, will it protect growth? The Premier League is not just a domestic competition; it is one of the UK’s most globally admired exports, an economic powerhouse, a cultural asset, a voluntary supporter of the entire football pyramid and a £4.2 billion annual contributor to the public finances.
Future success is not inevitable. It is under pressure from a range of sources. FIFA and UEFA are expanding club competitions and business models that compete directly with the Premier League and put huge pressure on the domestic football calendar. Broadcast markets are changing very fast and in a number of competitive European leagues domestic revenues from broadcasting are falling, as we have seen in the example of Ligue 1 in France. Agent fees are rising, taking money out of the game. State-backed competitors, such as the Saudi Pro League, are changing the football economy. The EFL’s leadership appears to have chosen stasis over innovation.
In that challenging context, protecting growth must be front and centre for the regulator, not just because it is good for the Premier League but because that growth underwrites the very system that the regulator is charged with supporting. That system today includes record redistribution, rising solidarity payments, and the ongoing voluntary support for clubs up and down the pyramid. If we do not protect growth, we risk weakening the whole system. It must therefore be uppermost in everything the regulator does.
The second test is whether the regulator will truly be light-touch. This is a commitment that Ministers have repeatedly made. The proof will be in the pudding. The new independent regulator will have extraordinary powers that are unprecedented in global sport. That requires not just legal and policy constraint but cultural restraint. It must show grit, independence and judgment. It must be evidence-led and not driven by others’ grievances or agendas. Above all, it must demonstrate a proper understanding of football’s competitive dynamics, with a regulatory approach that offers clarity and certainty for clubs. Critically, that means protecting the competitive balance that is so central to the magic, appeal and value of the Premier League.
In other words, clubs in the same division must know how to comply with the financial regime and trust that they will not face opaque financial constraints that place them at an unfair disadvantage on and off the pitch. In football, a fair and level playing field is not a “nice to have”; it is a precondition for compliance. A disproportionate approach, where clubs do not know if they fall the right side of the line, or even which line rival clubs are aiming for, simply cannot work in football. It will be the fastest route to regulatory failure.
Whatever one’s views of party politics, the appointment of David Kogan as the inaugural chair is encouraging. He brings serious knowledge of the game and credibility across football. The regulator will have an early opportunity to set the tone through the approach taken in the “state of the game” review, the appointment of the board and the CEO, and the proportionality and clarity of the regulatory approach it instils in the first place.
The third test whether the backstop will truly be a backstop. This House has done important work to constrain and de-risk this power. I thank noble Lords including the noble Lords, Lord Birt, Lord Pannick and Lord Burns, and the noble and learned Lord, Lord Thomas, for their diligence, thoughtfulness and pragmatism. The legal, evidential and procedural safeguards now in place are appropriately strong. Under this model, the IFR board will need to consider incredibly carefully whether it could ever be in the best interests of English football to use this mechanism, which Dame Tracey Crouch described as “nuclear coding”. Thanks to an important government amendment, the IFR board must now exhaust all other regulatory tools before ever using the backstop. As the Sport Minister confirmed in the other place, that means using those tools and failing, not just imagining that they may not work.
However, the EFL’s current situation appears to rest solely on the promise of this lever, betting its future not on innovation but on a perceived regulatory shortcut. There is no doubt that the backstop has made the conventional, consensual approach to agreeing the distribution of Premier League revenue far harder. I can report to the House that the Premier League has very recently made a credible and generous proposal to the EFL, but this has been rejected by the EFL board. We must hope that common sense will soon return and that a new approach can develop in the best interests of the whole game.