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Brentford chair says football governance bill not good for smaller clubs

Much of the opposition to the Football Governance Bill has been led in the House of Lords by West Ham’s Karren Brady and the bill has undergone a mauling.   The Commons can, of course, remove the Lords amendments, but one issue is how much political capital the Government is prepared to use up on the Bill, given that it has declared a deregulation agenda in the interests of economic growth.

Baroness Brady has her critics so it was a smart move by those opposed to the Bill in its present form to get Brentford chairman Cliff Crown to write a critical article in the Financial Times.  Brentford and their manager are widely respected for what they have achieved in financial terms against the odds.

The full article is available on the Pink Un’s website but some crucial passages are repeated below, followed by my comments.

‘Football is built on ambition, dreams and sometimes heartache. At Brentford FC, we’ve lived that journey. We’ve risen through the ranks to establish ourselves in the Premier League. It hasn’t been easy, but our success proves what’s possible when clubs take calculated risks, invest with confidence, and dare to dream. ‘

‘The UK government’s football governance bill seeks to safeguard the future of the game, and its intent is commendable. Fans deserve a regulatory system that addresses poor ownership, protects club heritage, and ensures financial sustainability. But as this legislation takes shape, we urge caution. Regulation must not damage the very qualities that make football in this country extraordinary. ‘

‘English football is one of the UK’s greatest global assets, admired worldwide for its unpredictability, drama and competitive balance. Yes, the Premier League has been a sporting success. But it is also an economic powerhouse, contributing billions in annual GVA, and supporting tens of thousands of jobs and grassroots programmes across the country. Its success is no accident. It’s the product of a system that rewards ambition and innovation. ‘  

‘Mechanisms like parachute payments, which support relegated clubs, have provided, on promotion, us with the confidence to invest in players, facilities and infrastructure while we plan and prepare for any eventuality. Without them, many clubs wouldn’t be able to take some of the bold steps required to compete at the highest level.’

‘Yet the proposed regulatory framework threatens to make it harder for smaller clubs like Brentford to challenge the elite. The introduction of backstop powers, allowing the regulator to intervene in the distribution of Premier League revenues, creates uncertainty and risks stunting investment and long-term growth across the pyramid.’

‘Overregulation risks deterring investment, reducing competitiveness and undermining the league’s appeal. If we impose an overly intrusive framework on the Premier League, we risk it losing the edge that it currently enjoys over rival competitions.    We at Brentford support the broad goals of the football governance bill, but the details need refinement. ‘

Rather than duplicating the regulation that already exists in football, the focus should be on augmenting it. Parachute payments must be preserved as a critical mechanism for maintaining competitive balance. And sustainability rules should be framed in a way that encourages responsible investment, not stifles it.   Football thrives on ambition, taking chances and dreaming big. So let’s protect those clubs who dare to aspire and inspire. The game’s future depends on it. ‘

A Brentford fan I contacted commented: ‘I’m not sure what I think about this. The trouble with parachute payments is they badly distort competition in the Championship. And, while I obviously love the Brentford story, our success at promotion and consolidation in the league (much like Brighton)  is the exception rather than the rule. I’m not sure good policy springs from outliers.’

In my book Political Football  I set out the case for a regulator, e.g., the ‘rogue owner’ problem, but also argued that the regulator should not been asked to do much as then they would be likely to fail. I do think that parachute payments distort competition in the Championship and they need to be scaled back.  

As for the backstop powers, they are there to encourage the Premier League to reach more generous subsidy agreements with the EFL and the non-league system, but they should only be usd sparingly and as a last resort if agreement cannot be achieved through negotiation.

Second hand copies (very good condition) of Political Football are available on Abe Books for £8.46 plus postage.

 

 

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