Source · Select Committees · Culture, Media and Sport Committee
Recommendation 6
6
Deferred
Paragraph: 31
Limited progress on EDI outcomes in football highlights need for universal standards
Conclusion
The inclusion of concrete, universal EDI measures in the new Football Governance Code is a necessary step to address the significant concerns about a lack of EDI oversight in football. The work on EDI done by the leagues to date has not been undertaken collaboratively and opportunities to pool resources to avoid duplicating work have been missed. We welcome the acceptance from the football authorities Football Governance 19 that they should be doing more to improve EDI outcomes across football. However, while we welcome the standards that organisations have introduced since 2014, the limited progress on EDI outcomes over the past decade means we are sceptical of the claims that this work will now suddenly be done collectively without the need for an industry standard through the Football Code.
Government Response Summary
The government outlines its commitment to establishing the Independent Football Regulator with backstop powers to intervene on financial distributions and bringing forward legislation. However, it does not specifically address the recommendation for concrete, universal EDI measures in the new Football Governance Code.
Paragraph Reference:
31
Government Response
Deferred
HM Government
Deferred
As set out in the White Paper, the Government’s strong preference is for a football-led solution and ideally there would be no need for regulatory intervention in financial distributions at all. However, we agree with the CMS Committee that although parties have had ample time, they have made slow progress on reaching an agreement. Given the importance of the structure and level of distributions for the financial sustainability of clubs across the pyramid, the Regulator will need to have targeted statutory powers to intervene as a last resort if football fails to reach an agreement. This backstop mechanism needs to be carefully designed to ensure it delivers the right outcomes and incentives with minimum regulatory involvement, which is why we are working with leading academics, regulatory and industry experts, and the clubs and leagues themselves to design an effective mechanism that encourages a lasting solution that works for football. Conclusion We welcome the CMS Committee’s dedicated work in this area and share the Committee’s passion to drive this important work forward. We are aware of the need to act quickly and decisively to protect football clubs and the communities they serve and we have been working at pace to develop our plans for regulation. However, English football is a £6 billion industry with a unique market structure and complex commercial dynamics. As such, it is crucial that we take the necessary time to work closely with key stakeholders to design a bespoke regulatory framework that allows for a flexible, agile and proportionate approach, thereby balancing the need for change with the importance of ensuring continued global success. As set out within our ‘A Sustainable Future – Reforming Club Football Governance: Consultation Response’, published in September 2023, we will continue to engage with key stakeholders to finalise policy and the Government remains committed to bringing forward legislation to put the Independent Football Regulator on a statutory footing as soon as parliamentary time allows. Department for Culture, Media and Sport September 2023