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Football Governance Bill - Sitting 2 (Afternoon)

14 May 2024

Proposing MP
Ealing, Southall
Type
Public Bill Committee

At a Glance

Issue Summary

Virendra Sharma is chairing a session regarding the Football Governance Bill, focusing on the concerns of National League clubs about over-regulation and financial support. The statement discusses concerns about the Football Governance Bill and its impact on grassroots football clubs, emphasizing the importance of maintaining fair competition and community engagement. The discussion revolves around the Football Governance Bill and its implications for different levels of football leagues in England. Virendra Sharma concludes the session of the Public Bill Committee examining the Football Governance Bill by thanking witnesses and setting a deadline for the next segment. Virendra Sharma is addressing the Football Governance Bill and its implications for football club governance and financial sustainability. The statement discusses the Football Governance Bill and its impact on football governance in England. The speakers discuss concerns about the Football Governance Bill's impact on parachute payments and heritage protections for football clubs. Virendra Sharma introduces Tony Bloom and Steve Parish as witnesses for the Football Governance Bill Committee session. The statement discusses concerns regarding football governance, specifically focusing on the impact of FIFA and UEFA regulations on domestic competitions and the proposed independent regulator's role in ensuring competitive balance and sustainability. Steve Parish and Tony Bloom discuss concerns about the Football Governance Bill's narrow focus on regulating media money within the Premier League while ignoring broader financial issues affecting clubs across all tiers of English football. MPs are discussing concerns about the Football Governance Bill and the sustainability of clubs in various divisions. Virendra Sharma is chairing a session examining the Football Governance Bill with David Newton from the Football Association. The discussion focuses on the Football Association's (FA) role in governing football standards and heritage, including decisions regarding the FA Cup and player-related issues. The statement discusses the Football Governance Bill and its implications for English football, including the FA's role as the governing body and considerations for women's football. Jane Purdon discusses the progress of women's football and the potential role of a regulator in ensuring equality and diversity within football governance. Virendra Sharma announces the start of a session with witnesses to discuss the Football Governance Bill. The statement discusses concerns about the Football Governance Bill's impact on grassroots football funding and suggests potential changes to protect grassroots facilities. The statement addresses the financial disparities in football governance and the need for better revenue redistribution within the sport. Niall Couper discusses the need for increased investment in grassroots football through the Football Foundation and the importance of an independent regulator to set parameters for distribution deals. Virendra Sharma discusses the Football Governance Bill and its implications for football governance, fan engagement, and grassroots development. Virendra Sharma is concluding the session by thanking the witnesses for their testimony.

Action Requested

No specific action is requested. The statement provides insights into the concerns of National League clubs regarding regulation, funding disparities, and other issues like three up and three down rules and artificial pitches.

Key Facts

  • Steve Thompson is the managing director of Dagenham & Redbridge football club.
  • Darryl Eales is chairman and majority owner of Solihull Moors football club.
  • National League clubs are concerned about excessive regulation and financial reporting requirements.
  • English Football League Two clubs receive £519,000 in Premier League solidarity money compared to £69,000 for National League clubs.
  • There is a perception among supporters that three up and three down rules and artificial pitches will be addressed by the regulator.
  • Darryl's step nine team costs £50,000 annually to run.
  • Solihull Moors receives £60,000 annually in solidarity money from the National League.
  • The Bill aims to prevent owners from separating club ownership from stadium tenure.
  • Four clubs have had to dig up artificial pitches due to regulations.
  • The National League has developed players on loan from higher leagues.
  • Steve Thompson's league introduced HMRC reporting rules about 20 years ago.
  • Clubs face immediate registration embargoes if they are behind with HMRC or VAT payments.
  • Steve Thompson worked to kick the BNP out of Barking and Dagenham using his local football club.
  • The session concludes at 3 pm.
  • Ian Mather introduces himself as the director of Cambridge United football club.
  • Sharon Brittan introduces herself as the chairwoman of Bolton Wanderers football club.
  • Virendra Sharma is addressing the Football Governance Bill.
  • The MP requests concise responses due to the number of questions.
  • Sharon Brittan discusses the dire financial circumstances at Bolton Wanderers five years ago.
  • Rick Parry has led an organisation in the right way over the past five years.
  • The Premier League is not currently working with Sharon Brittan on amendments needed for the Bill.
  • Real-time monitoring of clubs' finances would have helped prevent issues such as those experienced by Bury, Derby, and Bolton.
  • Ian Mather fears that the Bill does not work in key places regarding parachute payment clauses.
  • Sharon Brittan criticizes the Premier League's argument as weak and lacking substance.
  • The speakers highlight the importance of sustainable financial management for football club ownership.
  • Tony Bloom is chairman and owner of Brighton and Hove Albion Football Club since 2009.
  • Steve Parish is co-owner and chair of Crystal Palace Football Club.
  • The Super League proposal was seen as a threat to the integrity and meritocracy of English football.
  • FIFA and UEFA are expanding their tournament offerings, which may conflict with domestic competitions.
  • The FA works well with the Premier League in terms of maintaining domestic tournaments like the FA Cup.
  • UEFA distributes approximately 5% of its income to solidarity payments, compared to the Premier League's 16%.
  • Clubs can be promoted without parachute payments; on average, one club per year receives them.
  • The Bill defines relevant revenue primarily as broadcast income, which differs significantly for smaller clubs versus larger ones.
  • The Premier League is more egalitarian by distribution compared to other European leagues, with a ratio of 1.8:1 versus Germany's 3:1.
  • Tony Bloom mentions three liquidations since 1992 despite many clubs losing money each year.
  • Steve Parish and Tony Bloom warn that eliminating parachute payments would be disastrous for the Premier League.
  • Tony Bloom cares about every football club in the country.
  • Clubs like Stoke and Sunderland face financial difficulties after losing parachute payments upon relegation.
  • Tony Bloom's preference is for a collaborative solution involving the Premier League, EFL, and National League.
  • David Newton is head of football operations at the FA.
  • The state of the game report will reflect the whole football pyramid.
  • Competition format matters should remain with football authorities.
  • The FA discusses quarterly meetings with leagues and players’ unions on employment aspects.
  • The FA Cup is considered an integral part of English football heritage.
  • Decisions about replays were made considering a congested fixture calendar influenced by European commitments.
  • No lower league club will lose out financially due to the removal of replays.
  • UEFA and FIFA statutes prevent state interference in football governance.
  • The decision regarding FA cup replays is based on a complex fixture calendar.
  • The FA Council has final approval over club name changes in top tiers of English football.
  • Consultation includes local stakeholders, MPs, and fans' groups.
  • The Bill preserves the FA’s position as the governing body for all levels of English football.
  • Women in Football has submitted a written submission focusing on the workforce and women in football.
  • Karen Carney wrote a review on the future of women’s football under Government support.
  • There are 10% of Premier League directors who are women, with no change since 2019.
  • Jane Purdon is part of an implementation group run by DCMS and the Secretary of State.
  • Virendra Sharma is chairing the Public Bill Committee meeting.
  • Robert Sullivan is CEO of the Football Foundation, an independent charity funding grassroots football facilities in England since 1998.
  • Niall Couper is CEO of Fair Game and a former fan-elected member of AFC Wimbledon's Dons Trust.
  • Simon Orriss works with Fair Game as head of legal providing general legal support.
  • Grassroots football facilities are struggling across England.
  • The Football Foundation reports that demand for high-quality pitches is set to double over the next decade due to growth in women’s and girls’ football.
  • Robert Sullivan is concerned about how current Bill provisions might affect funding distribution to grassroots initiatives.
  • 58% of clubs in the top four divisions are technically insolvent.
  • For every £1,000 a Premier League club receives from broadcasting deals, National League North or South clubs receive only 14p and National League clubs receive 57p.
  • The Football Foundation aims to invest in community infrastructure and programmes.
  • The Football Foundation currently receives 2.5% of £3.19 billion.
  • Clubs that thrive are more forward-thinking in terms of EDI representation.
  • A proper governance code needs to include EDI representation.
  • The Football Foundation needs a thriving elite end of football generating revenue.
  • Clubs need grassroots engagement, excitement, and growth among kids playing football.
  • There is concern about club relocation based on financial considerations without fan consultation.
  • There are no further questions from Members.
  • The Committee thanks the witnesses.
  • Further consideration of the Bill is ordered to be adjourned until Thursday 16 May.
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