Critics warn football regulation plans will hit smaller clubs hardest

Smaller, poorer football clubs will be hit much harder by proposed regulation of the professional sport than wealthier, top-flight sides, it has been warned at Westminster.

While Premier League teams would be able to “absorb” the additional demands imposed by new legislation, those in the lower divisions would likely have to bring in costly outside expertise, Parliament was told.

But responding to the criticism, the Government said there was no intention to “impose unnecessary, onerous and burdensome requirements” on clubs, which was “in no one’s interest”.

The exchanges came as the House of Lords continued their detailed scrutiny of the Football Governance Bill, which seeks to establish an independent regulator for the top five tiers of the men’s game.

Former chairman of the British Olympic Association, Lord Moynihan, said: “One of the areas that is of particular concern is actually the cost of this. It is new… and it’s novel. “I think it’s important, therefore, to have an opportunity in Parliament to consider the costs of setting up the regulator and the initial costs of regulation.”

The Tory peer pointed out all clubs covered by the Bill would need to be licensed and meet all the requirements “in this lengthy and comprehensive legislation”.

He added: “Given the likely cost of this intrusive legislation, I believe it is important to write onto the face of the Bill a review of the financial impact on regulated clubs of complying with the provisions in this Bill so football fans can (see) the true cost of Government-led regulation.”

Fellow Conservative peer Lord Jackson of Peterborough said: “We know many smaller clubs will be hit much harder.

“Premier League clubs with large existing compliance and legal teams will be able to absorb the extra staffing requirements and the new costs of compliance but those clubs in League Two or the National League which only have a few full-time employees will likely have to engage external support such as hiring lawyers or regulatory consultants.”

He added: “It will be a big question as to whether the clubs in the smaller leagues will be able to afford the new compliance, risk and legal officers that will be of necessity required in order to comply with the responsibilities outlined in the new Bill.”

On the cost implications, former Brexit Party MEP, and non-affiliated peer, Baroness Fox of Buckley, said: “I think it’s an underestimated threat of the Bill.”

Former BBC boss and independent crossbencher, Lord Birt, said: “I am a very strong believer in regulation, but my doubt is whether the scale of regulation that is imposed in this Bill is remotely appropriate.

“I worked in a world of highly effective but light touch regulation. I am sorry to say it but I think this whole dialogue illuminates the fact that we are in danger of creating a system which is over-complex, bureaucratic and will be stifling of a highly energetic and brilliantly successful part of the British economy.

“We need something which is highly effective but is much more light touch than it sounds at the moment. “Beyond cost is the impact over-stifling regulation could have on the system as a whole.”

Labour former minister, Baroness Taylor of Bolton, said: “I think it is right that we need a system that is proportionate and I think we have to be careful in what we are doing.

“But I don’t think we can afford to be complacent about the state of British football today. Yes, the Premier League is doing very well at the moment, but we have to acknowledge the difficulties of many other clubs and the serious need for some change in the way in which many football clubs are run.”

Responding, sports minister Baroness Twycross said: “It is vital in the Government’s view that the regulator is transparent about the burden that its regulatory activities may have on clubs so that it can be held accountable. “From the start we have been very clear that we wish to establish a regulator of football that will take a proportionate approach across all of its regulatory activities.”

She added: “We do not wish to bring into being a regulator that will impose unnecessary, onerous and burdensome requirements on clubs and neither did the previous government. That is in no one’s interest.”

Lady Twycross expressed concern that the debate may lead to smaller clubs being “unduly alarmed” and urged those with concerns to contact the Department for Culture, Media and Sport.