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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