The Conservatives issued a caution against potential overreach of the Independent Football Regulator on Wednesday as the Football Governance Bill returned to Westminster.
Initially introduced into the House of Commons by the Tories, the second reading of an altered bill was introduced in the Lords on Wednesday by the Labour government.
But in the opposition’s first major speech on the Bill, given by Lord Parkinson of Whitley Bay on behalf of the leader of the opposition Kemi Badenoch, the Conservatives distanced themselves from key aspects of the bill.
Lord Parkinson raised concerns about potential overreach and mission creep of the bill, as well as issuing warnings surrounding fan engagement, parachute payments and a backstop which lets the regulator intervene in the business of a club.
The concerns largely mimic those of the Premier League, who have been against key aspects of the bill when it was both in the Commons and being reintroduced.
Bill concerns
“We remain concerned about the potential for regulatory overreach,” Lord Parkinson said in the House of Lords. “We must be vigilant against mission creep, as is all too often the case with regulatory bodies.
“If the regulator becomes too prescriptive in its requirements, how will clubs retain their competitiveness against their global rivals? Any outcome that sees a reduction in investment and creates a possibility for English football to lose its premier status must be seen as a failure. It’s our job to ensure that does not happen.”
On changes to parachute payments proposed in the bill, the Lord continued: “Football clubs are not like just any other business. They can’t simply cut costs without parachute payments.
“Clubs facing relegation would be forced to the financial precipice. Surely, any risk of a club being forced to enter administration because of action taken by the regulator would be the polar opposite of the aim of this bill, and that too is an outcome we must resist.”
After the second reading of the Football Governance Bill it will head to the committee stage, where it will be debated, analysed and discussed.
The House of Lords were urged by Fair Game this week to insert a “Wimbledon clause” into the bill, that would prevent any club from relocating without their fans’ consent.