By Idlan Zakaria
Associate Professor in Accounting, Birmingham Business School
The Football Governance Bill, aimed at setting up an independent football regulator to oversee non-sporting matters impacting the football industry, was mentioned in the Kings’ Speech on 17 July; one of 40 that underlined the government’s legislative priorities in the upcoming parliamentary session. The bill was already tabled during the previous parliament by then-Secretary of State for Culture, Media and Sport Lucy Frazer, but was not completed due to the dissolution of parliament for the July 4 General election.
Given that the bill was not completed in the previous parliamentary session, it is not considered to be ‘carried over’ and will therefore undergo the process from the beginning. This, interestingly, offers the government a fresh opportunity to re-look at some of the concerns key interest groups like the Football Supporter’s Association (FSA) and Fair Game had when the bill was initially put forward in March. We now have a chance to extend the current proposed remit to one that is more inclusive and holistic, focusing not just on the financial aspects but an approach that takes into consideration a responsible business perspective.
Moving beyond superficial corporate social responsibility projects, responsible business as a concept brings a stakeholder-led approach to business practice. A responsible business is one that does not only focus on profitability, but also driven by values that emphasise the need to improve the quality of life of those affected by it, by way of ethical practices, an emphasis on sustainable practices and ensuring fair and equal working conditions. The idea that these goals are not competing goals with profit, but rather complementary concepts, is unpacked by Thomson and Bates (2022) who outline the urgent need to move away from a singular focus on profit: an approach championed by economist Milton Friedman in the 1970s but increasingly losing its appeal as the fallout from such an approach becomes more and more evident.
Nowhere else does this need to be more importantly emphasised than in the football industry, where the juxtaposition of commercial business and community wellbeing sits, albeit among jostling elbows. To some, the community spirit is less obvious as the game becomes more commercialised, and such a view is valid but what also is worth bearing in mind is that commercialisation is focused on the super-elite: the Premier League – which constitutes approximately 20% of the professional football pyramid in England.
In the tabling of the bill by the Conservative government, a major concern was the focus on the financial aspects of the industry, but a much more limited oversight on other concerns that are important to football. This is not to underplay the financial issues – indeed the erosion of importance placed on the heritage of the game and the lack of protection afforded to clubs and fans stem from the financial issues related to poor oversight and governance. But it would be remiss to stop there when there is now an opportunity to be more inclusive and wide-ranging.
The bill is focused on financial sustainability of clubs – but there cannot be financial sustainability if environmental sustainability is not at the forefront. The threat of climate change and its impact on football has been researched and discussed not just in academic circles but within the football industry itself: there is an opportunity here to emphasise on the need for clubs to focus of this, at the very least by way of a dedicated segment on climate change and sustainability in the proposed State of the Game report.
Applying a responsible business lens where all stakeholders are considered (and not just shareholders), the existing bill for instance is relatively silent on players. Stephanie Peacock, the current Parliamentary Under-Secretary for Culture, Media and Sport, proposed while in Opposition for a larger role for players in the bill. The absence of an ‘employee’ focus in any stakeholder-led legislation seems jarring: with Peacock now in government, it would be an opportunity to explore this aspect further.
Another aspect of the game of football that has become increasingly important is the issue of equality, diversity and inclusivity. Football anti-racism charity Kick It Out’s annual review for 23/24 has reported a significant increase in abuse that is race, religion and gender related compared to previous years. Providing power for the Independent Football Regulator to sanction clubs – or at least have oversight – on EDI issues should be considered.
The opportunity to have a second look at something is not one that comes by often, and when it comes to legislation, is one that is fraught with due process and a reluctance to challenge the status quo. The tabling of the Football Governance Bill by the Labour government offers an opportunity to take a look at this again – we should, and we can do better.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the University of Birmingham.