Lord Moynihan (Con)

My Lords, I shall address Amendments 16 and 26, standing in my name on the Marshalled List. In moving this amendment, let me set out a number of legal issues that have been raised outside this House. To set them in context, what we are talking about tonight is the importance of the Premier League. It is watched by 1.9 billion people across 189 countries. It is the most successful domestic league in the world. Its financial support flows down through the football pyramid. It supports £8 billion in gross value added to the economy. It contributes more than £4 billion annually to the Exchequer and supports more than 90,000 jobs. The Championship, which it strongly supports, is the sixth most successful league in Europe. The issues which are central to this amendment reflect the importance of the Premier League, which generates more revenue internationally than domestically. It has attracted substantial foreign investment over recent years and operates within a complex international regulatory framework governed by UEFA, FIFA and numerous international trade and investment arrangements to which the UK is a party—though the FA will no longer play a part. The establishment of the IFR introduces unique risks of potential legal dispute with international investors and potential complications regarding the UK’s compliance with international obligations. Two significant issues arise. The first is the impact on foreign investors: many Premier League clubs have significant foreign investment, relying on regulatory stability, property rights protections and non-discriminatory treatment. The second is trade agreement compliance: the UK has international obligations, including investment protections within trade agreements and bilateral investment treaties requiring fair and equitable treatment, transparency and non-discrimination towards foreign investors. Non-compliance could trigger diplomatic repercussions and costly arbitration claims. The key legal risks which exist, are, I believe, threefold. The first, which we will come to discuss on a future occasion, arises from the assiduous work of the noble Lord, Lord Birt. The mechanism of the backstop as it is currently structured—and I will not go into it this evening except in the context of my amendment, to look at its legal implications—allows the regulator to impose financial redistribution without clear or predefined limits, effectively giving it the power to divert private commercial revenues arbitrarily. Such intervention poses a significant risk of constituting what lawyers call indirect expropriation, where regulatory action substantially diminishes the economic value of investments without fair compensation. Foreign investors protected by bilateral investment treaties have reasonable expectations of regulatory stability and fairness. An unlimited or unpredictable redistribution power would likely trigger claims under international investment treaties, arguing violation of their rights to fair and equitable treatment and protection from uncompensated expropriation. Secondly, as we have discussed earlier this evening, there are risks from new ownership rules retrospectively applied. The Bill proposes potentially retrospective and uncertain changes to the owners’ and directors’ test. These new, undefined ownership criteria could retrospectively affect existing owners, potentially forcing divestment of clubs by foreign investors based on criteria not in place at the time of investment. Such retrospective application could breach fundamental legal principles of fairness, stability and investor protection. It could be interpreted as discriminatory and arbitrary treatment under international investment law, leading to significant litigation risk and investor state arbitration claims, damaging the UK’s international credibility as a reliable investment destination. Thirdly, there are the risks of discrimination. Linked to the points I have just made, regulatory actions perceived as disproportionately targeting foreign-owned clubs, particularly through retrospective regulatory criteria, risk breaching international obligations of non-discrimination between national treatment and most favoured nation treatment. Investors could legitimately claim discriminatory treatment, triggering significant diplomatic and legal disputes. If there is validity in law to these concerns, my amendment is carefully designed to seek to mitigate them. It explicitly requires the football regulator to comply fully with the UK’s international trade and investment obligations, thereby avoiding unnecessary litigation or trade disputes. It mandates non-discriminatory and proportionate regulatory interventions, ensuring predictability and stability for international investors. Thirdly, in my second amendment before your Lordships this evening, early consultation between the football regulator, HM Treasury and the Department for Business and Trade to proactively manage compliance with international obligations will avoid regulatory paralysis. Embedding these protective measures in this Bill, which I see as being as helpful as possible to the Government on this front, clarifies the regulatory framework up front. It pre-empts costly disputes and ensures that the regulator aligns clearly with the UK’s international economic and diplomatic interests from the outset. It is, therefore, a helpful amendment. It is intended to be pragmatic and is necessary for addressing significant international and domestic risks comprehensively. It respects property rights, ensures regulatory proportionality and maintains international investor confidence, which is critical in the Premier League to ensure growth. It thus safeguards the UK’s attractiveness and reputation as the premier destination for global football capital. I beg to move.