Baroness Brady (Con)

My Lords, I support Amendment 191, which seeks to add the word “relevant” to Clause 37(2)(c). This would be an important adjustment that would bring additional clarity and guidance to the IFR, as it develops its ownership test. The clause currently requires the independent football regulator to consider “whether the individual is or has been a party to proceedings (other than criminal proceedings) in any court or tribunal”. This is a strikingly broad provision. It would allow any civil proceedings, regardless of their nature or relevance, to count against someone in an ownership determination; it may even be that the individual in question seeking ownership has brought the civil action or tribunal that, as a result, is likely to disqualify them from owning a football club. It is a very concerning approach. Amendment 191 would provide a much-needed safeguard against unintended and disproportionate outcomes. Let me take this opportunity to ask the Minister again the question I asked earlier in Committee—it is quite a fundamental question. Is the ownership test provided for in this Bill going to be subjective or objective? That was not made clear by the Minister when I asked the question before, so I would really like clarity—surely it cannot be both. Without this clarity, we risk creating an ownership framework that is open to arbitrary and inconsistent application, which would undermine investor confidence and, ultimately, the credibility of the regulator. This concern is particularly acute when we consider the clause as it stands. Most successful businesspeople who have lived rich and varied commercial lives will have been involved in civil proceedings at some point, somewhere in the world. These could range from contractual disputes to regulatory disagreements or employment tribunals, and very often instances where they were not at fault whatever but had to defend their interests or bring such cases themselves. Are we seriously suggesting that such proceedings should disqualify them from passing an ownership test? This is not a hypothetical concern. Civil proceedings can be entirely routine and, in many industries, reflect the complexity of modern business rather than any moral or professional failing. The absence of the word “relevant” means that such cases could be treated as a disqualifying factor, even when they have no bearing whatever on the individual's ability to responsibly own or direct a football club. This is not aligned with practice in any other regulatory sectors and will create an entirely unnecessary barrier to investment. Clarity on the scope and purpose of the ownership test is essential for not just the regulator but the entire football ecosystem, including investors, leagues and clubs. Noble Lords have already highlighted serious issues with the current drafting, not least the lack of definition of “significant influence”. On the very unclear situation of Newcastle United, the Minister confirmed that the Crown Prince would be subject to the owners’ test, and the issue of significant influence would mean that this is the case. At least that situation was clarified and he knows where he stands. Amendment 191 provides an opportunity to address at least one aspect of this mixture of problems by narrowing the scope of Clause 37(2) to focus only on what is genuinely relevant. This small change would provide greater clarity, fairness and confidence for all stakeholders in football. I encourage the Minister to reflect on this issue and the broader issues around this element of the Bill. As we move towards Report, it would be helpful to hear how the Government intend to address the now quite numerous concerns about the scope and application of the ownership test in the Bill.