UK

How much would a Labour government change football?

Published

5 months ago

June 16, 2024

admin

Politics can shape the future of football at the best of times, but after the past five years it’s arguably as important as ever to gauge how Westminster will approach the national sport.

With some clubs facing extinction, attempts at a breakaway league, the rise of the women’s game and state ownership, there are many ways the sport could move up the next government’s agenda.

The most pressing matter will be the landmark Football Governance Bill, which was introduced by the Tory government but broadly enjoys cross-party support.

As football finance expert Kieran Maguire told Sky News, there is an argument football is “so embedded in the fabric of the country that it needs protecting” – which is what this bill aims to do.

“A football club is a monopoly supplier, if you support Wolverhampton and they go out of business, it’s simply not the case that you can just go and support West Bromwich Albion,” he said.

“Because of that intensity, it needs protection – from owners, from changing the identity of club.”

As the England men’s team kicks off its Euro 2024 campaign on Sunday, many eyes will shift between football and politics over the next three weeks.

So how would one affect the other; how could Labour’s plans affect fans and what questions remain?

An independent regulator

Bury FC’s collapse in the summer of 2019 prompted the Conservatives to include a fan-led review of football governance in their general election manifesto that year.

The recommendation was to create an independent regulator to ensure financial resilience across leagues and fans are consulted on club heritage matters – more on this later.

While the bill was brought before MPs in March this year, parliament ran out of time to complete its progress into law when the general election was called, meaning it will fall to the next government.

Sir Keir Starmer is an Arsenal fan and Labour have committed to “establish an independent regulator” in its manifesto.

Jon Tonge, a Bury fan and politics professor at the University of Liverpool, told Sky News he senses the next government “may come under pressure” to soften regulations.

“You’ve got the behemoth that is the Premier League saying these proposals amount to over-governance and it’s possible a Labour government might water down these proposals,” he said.

Sharing the wealth

One of the immediate issues for the new regulator to tackle could be the stand-off between the Premier League and the English Football League (EFL), which runs the three divisions below.

England’s top flight says it gives £1.6bn to the wider game every three years – 16% of its total revenue – including non-league football and grassroots.

The Premier League currently gives about £340m a year in funding to the EFL and new plans by the board would increase this to roughly £500m a year over six years, according to Sky Sports News.

But at a meeting in March, Premier League clubs rejected the board’s plan, insisting they first want to reform the financial system governing them before thinking about parting with more money.

Top-flight clubs spent more than £400m on agent fees alone in the 12 months to 1 February, an increase of nearly £100m from the previous campaign.

If a deal cannot be agreed, a backstop would give the regulator powers to impose an agreement between the Premier League and the EFL.

In the meantime, clubs such as former Premier League mainstay Bolton Wanderers, Bury, Wigan Atheltic and Derby County have entered administration over the past five years.

Tests for ownership

Something fans have been crying out for are more stringent tests and checks on prospective owners of their football clubs, partly as a way to guard against the financial challenges already outlined.

To that end, the regulator would operate a strengthened owners and directors’ test with statutory powers.

It would have access to agencies and branches of government, enabling the regulator to carry out enhanced due diligence on adequacy and source of funds.

Owners and directors deemed unsuitable will be subject to a removal direction giving them a period of time to leave the role and placing them under restrictions on the control they can exert.

While there are many factors for the regulator to consider when it comes to the suitability of club owners, the elephant in the room is likely to remain where it is.

State ownership

The UAE’s purchase of Manchester City more than 15 years ago marked one of the most controversial chapters in the Premier League’s history – the introduction of state ownership.

A Qatari group failed to take over Manchester United last year, while Saudi Arabia’s sovereign wealth fund took over Newcastle United in 2021.

It raises questions around sportswashing, with countries with poor human rights records owning beloved community assets in the world’s most valuable league.

But it’s unlikely a Labour government would address state ownership, according to football finance expert Kieran Maguire.

“The bill will not address state ownership, it very much makes it clear the government doesn’t want to get involved in moral or ethical decisions,” he said.

Prof Tonge agrees.

“State ownership is not going to disappear, it’s actually likely to increase,” he said.

“I think Labour would be reluctant to ban it, first of all because the horse has already bolted – if you’ve allowed it for one, how could you stop others following suit?”

The bill itself states in Section 37 (2) the regulator must take into account government “trade and foreign policy objectives” when making decisions on the suitability of new and existing owners.

Women’s football

Missing entirely from the Football Governance Bill is the women’s game.

The Lionesses won England’s first international trophy since 1966 when they won the Euros in 2022 and made it to the World Cup final the following year.

This season, the Women’s Super League has continued to shatter several attendance records, with Arsenal topping 60,000 tickets sold on two occasions.

But its success comes despite a stark contrast in funding compared to the men’s game.

Premier League clubs enjoy around £88m each year in investment into their academies for young talent, whereas the FA’s budget for women’s academies is just £3.25m per year.

The top flight says it is investing £21m into women’s and girls’ football between 2022 and 2025.

Kelly Simmons, former director of the women’s professional game at the FA and consultant for Run Communications’ women’s sport division, says funding would “transform the game overnight”.

“The game is growing at an incredible rate and I said at the FA I think women’s football will be the second biggest sport here in my lifetime after the men’s game,” she told Sky News.

“And yet it’s absent a lot of the time in big discussions that go on with football stakeholders.”

The ban on women’s football was only lifted in 1971 in the UK and Ms Simmons believes it may be time to consider reparation payments for the time lost.

“There’s just not enough cash in the women’s game and the answer would be to include them in solidarity payments from the Premier League,” she said.

“All football would benefit from that… it’s opening up football to half the population that has previously been excluded.”

Super League

Meanwhile, in the pursuit of even greater revenue streams at the top of the men’s game, the idea for the European Super League was born in 2021.

Manchester United, Chelsea, Arsenal, Liverpool, Manchester City and Tottenham Hotspur were going to join the likes of Barcelona, Real Madrid and Juventus in a hugely lucrative new league.

Backed by an initial £3bn debt-financed loan from US investment bank JP Morgan, the 15 founding clubs were in line to receive an “infrastructure grant” of up to £300m just for signing up.

Free from the threat of relegation or failure to qualify, the founding 15 would have been guaranteed a spot in the league each season regardless of their results.

The move was deeply unpopular and the fan backlash in England was so fierce each of England’s contingent pulled out.

Some in Europe have refused to totally let go of the idea, but Labour’s manifesto is unambiguous on the matter.

“We will never allow a closed league of select clubs to be siphoned off from the English football pyramid,” it states.

FA Cup replays

While a new government is likely to greenlight powers to ban new leagues, it probably won’t get involved in changes to longstanding competitions such as scrapping replays in the FA Cup.

“I think it would be a backwards step, because we’d be allowing an operational issue to be impacted by the regulator,” Mr Maguire says.

“FIFA and UEFA have specific rules over government interference and that would play into the hands of those who are opposed to the introduction of a regulator.”

FIFA has previously suspended national associations over undue government interference, meaning their clubs and national teams are unable to compete in FIFA or UEFA events.

Heritage

The loss of FA Cup replays may be mourned by some fans as a blow to the country’s football heritage, but they’ll likely have a greater say in their club affairs.

Labour’s manifesto states: “Labour is committed to making Britain the best place in the world to be a football fan.

“We will reform football governance to protect football clubs across our communities and to give fans a greater say in the way they are run.”

Travel costs

Costs associated with matchdays have priced some fans out, with rising ticket prices and increasingly expensive train travel forcing some to miss out on games.

Going to support your team away from home – as tens of thousands do each weekend – can cost north of £100 if travelling by rail, sometimes for a service that may be delayed or overbooked.

In April, Labour announced plans to renationalise the railways if the party wins the general election.

The party said the taxpayer would save £2.2bn each year – but would that mean cheaper fares?

Shadow transport secretary Louise Haigh admitted there is no agreement to reinvest those savings into the railway, meaning that money could be given to other priorities in health or education, for example.

She said it is Labour’s ambition to make fares more affordable.

“I can’t today set out that we will lower fares, not least because they are incredibly complex and regulation needs reform as well,” Ms Haigh added.

News IO

UK

How much would a Labour government change football?

Trending