Football is more than just a sport in this country – it is a cornerstone of local pride and community identity. It contributes £8bn to our economy, with the Premier League, Championship, and other leagues providing over 100,000 jobs in local communities.
As a proud and lifelong Middlesbrough supporter, I know the fierce pride with which we support our local teams. At time of writing, Boro are still fighting for the playoffs, while the women’s team have won their league and earned promotion to the National Division.
In recent months, I have also been able to support Thornaby FC, and I want to again congratulate their women’s senior team for winning the North East Regional Women’s League earlier this month.
I see first-hand the real societal value football clubs bring to communities like mine. Initiatives such as the development of the state-of-the-art Southlands Centre, run by the Middlesbrough FC Foundation, create jobs and promote physical and mental well-being.
Thornaby FC also have ambitious plans to grow their community involvement and increase opportunities for local sports participation. I recently met with the club’s new Chief Executive, Alison McGee, whose family business, Durata UK, has done so much to support grassroots sport on Teesside through sponsorship. I was hugely impressed by the ambition she, the board, and everyone at Thornaby FC has to develop the club’s facilities and its role in local life.
Football Governance Bill
That is why I want to commend the Football Governance Bill for bringing forward vital measures to secure the sustainability of governance and finance in our beloved football clubs.
I particularly welcome Part 6 of the Bill, which offers an essential financial reset for football clubs by introducing a backstop for financial negotiations between the Premier League and the EFL.
Two seasons ago, just 25 clubs received 92% of English football’s distributable revenues – around £3.3bn – leaving the remaining 67 professional clubs to share only 8%, or £245mn.
The Fan-Led Review concluded that “fair distributions are vital to the long-term health of football” and that proportionate contributions from the Premier League to the lower leagues were urgently needed.
Additionally, parachute payments – originally intended to assist relegated clubs – have evolved into “trampoline payments,” providing certain clubs with an unfair financial advantage and limiting promotion opportunities.
The consequences are severe. Championship clubs are often forced to overspend to remain competitive, frequently relying on borrowing. In 2022/23, 45% of Premier League clubs operated with negative cash flow, while in the Championship, only one club – benefiting from parachute payments – managed a positive cash flow.
The backstop will provide much-needed clarity and enable clubs to implement sustainable spending practices, helping to prevent the kind of insolvencies we have sadly seen at Bury and Macclesfield.
The English Football League described the Bill proposed by the party opposite as “deficient and incoherent” with regard to parachute payments. This Labour government has addressed those shortcomings by introducing a backstop for financial distribution negotiations that tackles both parachute payments and financial disparities between leagues.
I also welcome Part 2 of the Football Governance Bill, which introduces the Independent Football Regulator. The IFR will ensure sensible, fan-focused measures in club governance and Part 4 of the Bill, which empowers the Regulator to determine the suitability of prospective new club owners, protecting fans from inadequate or exploitative ownership.
This Bill will give fans a greater voice in club decisions and protect club heritage. Clause 46 and Clause 48 require clubs to demonstrate that any decision to leave or move from their home ground will not affect the financial sustainability or heritage of the club. Furthermore, Clause 49 requires clubs to secure the support of the majority of fans before altering the crest or colours of the team’s home kit.
The Football Supporters’ Association also endorses the Bill, particularly supporting Part 4, which blocks any attempts to join a breakaway European Super League.
Football is the beautiful game – and we must ensure it remains the people’s game.
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