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Football Governance Bill - Sitting 3
16 May 2024
Type
Public Bill Committee
At a Glance
Issue Summary
The statement discusses the Football Governance Bill and its implications for players in professional football, particularly regarding player recognition and welfare. Ben Wright discusses the financial sustainability in football, emphasizing the importance of regulated and scrutinized club ownership decisions rather than imposing artificial restraints on player wages. Christopher Chope questions Sanjay Bhandari about reports of discriminatory behaviour in football. The speaker discusses the challenges of regulating football for equality, diversity and inclusion, highlighting issues such as representation, transparency, and cultural barriers. Sanjay Bhandari discusses the Football Governance Bill's provisions for incorporating EDI requirements into club licensing systems and improving data transparency reporting on discrimination incidents. Christopher Chope is discussing with witnesses about the Football Governance Bill and its impact on supporters' trusts. Christopher Chope addresses concerns about the Football Governance Bill, focusing on the need for brief questions to accommodate multiple colleagues. Tim Payton discusses the Football Governance Bill and its importance in addressing threats to the competitive balance of English football, particularly regarding revenue distribution and fan engagement. The statement discusses the importance of effective fan engagement and consultation within the Football Governance Bill, emphasizing the need for a robust regulatory framework. The statement addresses the issue of football club governance and the use of stadium collateral for loans, highlighting cases where such practices have led to financial difficulties.
Action Requested
Mr Wright suggests that the regulator should consult players on new competitions and include their importance in the regulatory principles. He also notes that while player welfare is not explicitly covered by the bill, it can be addressed through a code of governance and existing mechanisms like contracts.
Key Facts
- The Professional Footballers’ Association (PFA) has approximately 5,000 current members.
- The PFA provides support to about 50,000 former players.
- Mr Wright notes that player welfare issues are already addressed through established mechanisms and enshrined in contracts.
- The financial sustainability in football depends on proper regulation and scrutiny of club ownership decisions.
- A regulator should ensure clubs make sustainable budgeting decisions rather than artificially suppressing wages.
- Women’s football is currently outside the scope of the Bill due to its different stage of development compared to men’s football.
- Sanjay Bhandari is the chair of Kick It Out, an equality and inclusion charity in football.
- Kick It Out received just under 1,000 reports of discriminatory behaviour last season.
- Racism, sexism, misogyny, homophobia, transphobia, Islamophobia, and antisemitism are among the dominant forms of abuse reported.
- Football is not like banking or other industries as regulators cannot put a club out of business due to political ramifications.
- Clubs should represent the local communities they claim to serve.
- South Asians make up only 10% to 15% of players at grassroots level, 0.5% of professional players, and 1% of the academies from age six.
- BAMREF is working effectively with the FA and PGMO on developing a pipeline for Black and Asian referees.
- The Football Governance Bill aims to incorporate EDI requirements into the club licensing system via the code for governance.
- There are currently between 200 and 300 mechanisms for reporting discrimination incidents in English football, which do not share data with each other.
- Schedule 5(7)(2) of the bill includes a non-exhaustive list of corporate governance requirements that could be amended to include EDI.
- The Bill aims to address equality, diversity, and discrimination issues.
- FIFA has established a committee to explore allowing club games to be played overseas.
- Clause 48(4) relates to the duty not to relocate football clubs.
- Christopher Chope has six colleagues who want to ask questions.
- The European Super League incident sparked the need for legislative action.
- Payton suggests the inclusion of two INEDs on each club's board as an early warning system for issues like overspending and risk-taking.
- Fans advocate for a fairer distribution of broadcast revenue down the football pyramid.
- Alistair Jones mentions that only six out of 51 clubs have remained in the Premier League since its inception in 1992.
- Tim Payton advocates for a framework where supporters' trusts and other organizations can report ineffective consultation to the regulator.
- Shaun Bailey questions how fan representation can be formalized as a delivery channel without conflicting with corporate identity.
- Alistair Jones mentions a case involving West Bromwich Albion where an owner borrowed money from the club to fund another business portfolio without proper governance.
- The previous owner failed to repay the loan three times before it was finally paid back by the new owner last month.
- Sarah Turner suggests protecting training grounds and other assets in addition to stadiums.
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