Sporting Events Bill [HL] (First sitting)
Clause 3 sets out the conditions that must be satisfied before the framework can be applied to a sporting event. The event must take place wholly or partly in the United Kingdom and must meet either the significance or the strategic priorities. To meet the significance priorities, the sporting event must be likely to be of significant international or national interest, the sporting event organiser must have asked for the framework to be applied and the event must be likely to bring social or economic benefits to the whole or part of the UK. This clause sets out the criteria that may be taken into account in determining whether a sporting event is likely to be of significant national or international interest. They include the scale and reputation of the event, the number of people expected to attend the event from outside the UK, and the amount of media coverage expected outside the UK. To meet the strategic priority, it must be proven that hosting the sporting event will improve the UK’s chance of securing hosting rights for events that meet the significance priorities. I think all Members will recognise the international challenges when bidding for such events. That is something that goes across parties and will often involve successive Governments, with one Government starting the bid and then another Government hosting the event. Clause 4, which is entitled “Restrictions on application of framework”, sets out safeguards to ensure that powers over sporting events respect the devolved authorities. Before applying provisions that fall within the legislative responsibility of a devolved authority, the Secretary of State must obtain the relevant devolved authority’s consent. At the same time, the clause sets out that devolved authorities may only make regulations covering matters within their own legislative competence. Where ticket touting provisions are applied, the event must also take place at least partly within the relevant devolved territory. Amendments 15 and 16, tabled by the Liberal Democrats, would require all sporting events hosted under the Bill to be made free to air. Understandably, that has raised a number of concerns among sporting bodies. Before I get into the details of why the amendments would not just upset the apple cart but risk cutting the apple tree down completely, I will start by disagreeing with the terminology “free to air”. As my noble Friend Lord Hayward pointed out in Committee in the other place, we must pay £180 each year for a television licence. These events are therefore never free to air. Secondly, a review of the listed events regime is probably better placed to achieve the expansion of sports coverage—I do agree with the intentions of the proposal—than a blanket ban, which would be likely to have unintended consequences because of the complexities of global broadcast deals. At a glance, it may well look like an attractive proposition, designed to appeal to Liberal Democrats across the home counties. However, although we all agree that we want as many people as possible to enjoy major sporting events, good intentions and good headlines do not make good policy. These amendments would risk doing real damage to the very sports that they are meant to support. Broadcasting revenue is an essential source of funding for British sport. It does not simply benefit the elite clubs and athletes at the top of the game. That revenue flows down the sporting pyramid, supporting community clubs, grassroots facilities and the next generation of—we hope—world-beating British sporting talent. The Liberal Democrats should be under no illusion about the scale of the financial risk that they are proposing. For example, the Premier League’s current domestic broadcast deals with Sky and TNT Sports are estimated to be worth £6.7 billion over four years, and the English Football League’s deal with Sky is worth another £1 billion over five years. Those agreements demonstrate the enormous value that broadcasters place on live sport, and the income that British sport stands to lose if we undermine the commercial model that supports it. The question for the Liberal Democrats is simple: if their amendments put that income at risk, who will replace it? Where will the money come from to support sports clubs, maintain facilities and give young people the opportunity to participate in sport? I appreciate that their amendments start with major events hosted under the framework for which the Bill provides, but once the precedent is set and the likes of UEFA cannot sell their broadcast rights at market value, the effects will begin to pass from the international competitions to the feeder domestic competitions. What will the impact be on participation if that happens? I can answer for them: it will begin to fall, and once it does, it will be incredibly difficult to recover. It is all very well to demand that sporting events be made free to air. That is popular—I understand it—but someone still has to pay for the rights to broadcast them. If broadcasters cannot justify the cost of acquiring those rights, the financial consequences will not be confined to the boardrooms of elite sport; they will be felt throughout sport, including the community clubs and grassroots organisations that rely on this investment. The Liberal Democrats should recognise that the current system already delivers significant benefits beyond elite sport. In the 2024-25 financial year, UK sports invested a record £213.2 million of broadcast revenues into sport under the voluntary code of conduct. The Premier League, meanwhile, invested £1.6 billion into the wider game in the previous broadcasting cycle. Those figures matter. They demonstrate that commercial broadcasting agreements can generate substantial investment across British sport. We should be looking at how to build investment in sport, not introducing blanket restrictions that risk undermining it at any level. That is particularly important when grassroots sport is already facing significant financial pressures under this Government. The Liberal Democrats should not seek to add further uncertainty to the financial foundations of British sport through amendments that could jeopardise the broadcasting revenue upon which it depends. Let me be clear once again: I want more people watching major sporting events—I want children to be inspired by our greatest athletes, families to enjoy the biggest occasions and British sport to reach the widest possible audience—but we must recognise that accessibility and financial sustainability are not mutually exclusive. We can encourage wider access without imposing a blanket requirement that risks diminishing the value of the rights that help fund our sports. The answer is to review the listed events regime, make the most of the commercial broadcasting agreements, encourage investment in grassroots sports and ensure that the success of our biggest sporting events benefits communities across the country. Broadcasting revenues are an essential part of that sporting ecosystem, without which it would wither away. These amendments offer a superficially appealing solution that is undoubtedly popular, without adequately addressing the clear consequences.