Lucy Powell (Manchester Central) (Lab/Co-op) (Urgent Question): To
ask the Secretary of State for Culture, Media and Sport if she will
make a statement on the fan-led review of football governance and
the publication of a football White Paper. The Parliamentary
Under-Secretary of State for Culture, Media and Sport (Stuart
Andrew) Our national game has become a worldwide sport, loved and
followed by millions. The growth of the premier league, English
football’s...Request free trial
(Manchester Central)
(Lab/Co-op)
(Urgent Question): To ask the Secretary of State for Culture,
Media and Sport if she will make a statement on the fan-led
review of football governance and the publication of a football
White Paper.
The Parliamentary Under-Secretary of State for Culture, Media and
Sport ()
Our national game has become a worldwide sport, loved and
followed by millions. The growth of the premier league, English
football’s top division, is an achievement to be celebrated. Our
grassroots game is a force for good to bring people and
communities together across the country. However, the findings of
the fan-led review made it clear that the underlying financial
and governance structures that support English football are
unstable and fragile. The review highlighted the perverse
financial incentives that encourage clubs to overspend on chasing
success. I pay tribute to my hon. Friend the Member for Chatham
and Aylesford () for her considerable work in
this area.
The issue is exacerbated by poor corporate governance. Some clubs
lack scrutiny of decision making, are poor at communicating with
fans and lack transparency in decision making. Defective industry
self-regulation throughout football has led to a high and growing
risk of financial failure among clubs. Indeed, one of my first
meetings as the Minister for Sport was with fans groups. I heard
at first hand how poor ownership and governance can leave clubs
at the mercy of careless owners.
The structural weakness, along with the risk of breakaway
competitions such as the European super league, threatens the
stability of the football pyramid as a whole and risks leaving
fans powerless and our national game in peril. The unique
importance of football clubs to their fans and local communities
means that the social cost of financial failures and the loss of
clubs would be significant. That includes the risk of
irreversibly damaging our valued cultural heritage.
Reform is needed to avoid those failures and prevent those
impacts from arising. It is clear that the game is in need of
significant reform. As I have stressed to the football
authorities on several occasions, there is much that football
could already be doing to protect the game. This includes
reaching a much-needed agreement on a new package of financial
redistribution for the football pyramid, and, again, I urge them
to solve this issue.
The Government responded to the fan-led review in April 2022, and
we will publish a football governance White Paper this week. This
will set out a clear and well thought-through package of reforms
that will ensure that the foundations of the game are strong and
that the game can continue to thrive.
I make a commitment that Ministers will come before the House to
make a statement with a full announcement on how we intend to
reform our national game for the future and for fans, and we look
forward to ensuring that hon. Members have the opportunity to
fully scrutinise those proposals.
Mr Speaker
I call the shadow Secretary of State.
I thank the Minister for his response, but it is just not good
enough. Three weeks ago, the entire White Paper was conveniently
“leaked” to the press. He and I both know that it was ready to be
given to the House before recess, yet he has still not published
it today, and the Secretary of State has not even turned up. The
very well-received fan-led review, conducted by the hon. Member
for Chatham and Aylesford (), was published more than a
year ago. It was welcomed by both sides of the House, and the
Government committed to implementing it in full. However, five
months later, they dropped the ball and would commit only to a
White Paper, which we have been waiting for ever since. Fans,
football clubs and their communities deserve better and this
Government are letting them down. Can the Minister tell the House
why he has not published it today, or before today, given that it
was clearly expected before recess?
There is widespread support for an independent football
regulator, and for the recommendations of the review. The
arguments for that grow stronger every day: Bury FC has
collapsed; and Derby County nearly went under. From Southend to
Scunthorpe, other clubs stand on the brink. A European Super
League is back on the table. Manchester City and the Premier
League face years in the courts. Negotiations over the sale of
Manchester United, Liverpool and Everton are going on as we
speak, and we are still nowhere on those financial settlements
for the pyramid.
Fans are desperate for a proper say and for assurances about
ownership and sustainability of these global and local assets,
yet without a regulator these assurances cannot be made. Will the
Government take responsibility for clubs that go bust, that
spiral into decline or that are bought by unsuitable new owners,
in the years they have wasted bringing in the regulator? As we
will see again today, Parliament fully supports these proposals.
Labour is fully committed to them. The Minister is facing an open
goal, so instead of constantly passing it back, can he just put
the ball into the back of the net?
Mr Speaker
Just before the Minister responds, let me add that the Secretary
of State did tell me that this was a serious leak. In which case,
I would like to know whether there has been a full investigation,
and at what point the House will be updated on that
investigation, which I presume has started.
Thank you, Mr Speaker.
I make no apology for taking time to ensure that the White Paper,
which we will publish this week, actually addresses what are
essentially quite complex and sometimes difficult issues. It is
important that we think about all aspects of the game. We do not
want to do something that might damage the commercial success of
the premier league. The Opposition may think that they can just
publish a report in a week, but I have taken a considerable
amount of time—and I am glad that I have done so—to meet all the
stakeholders involved in this and to listen to their varying
views. If the shadow Secretary of State had had the same
conversations, she will have seen that there are competing views.
It is important, therefore, that we take those carefully on
board, listen to them and ensure that we come up with the best
advice possible. We have also ensured that we have sought the
best external advice from those who have been involved in the
establishment of other regulators. That is the right thing to
do.
I must point out that it was this Government who commissioned the
review in the first place and, as I have mentioned a number of
times, that football need not have waited; it could have got on
with this, but it has not. We will publish our intention with the
White Paper this week so that we can celebrate what is good about
football and reform it where it is needed.
Mr Speaker
I call the acting Chair of the Select Committee.
(Ashford) (Con)
I will take a self-denying ordinance and avoid bad football puns
in asking my question—
Leave that to me.
Thank you; I will.
My right hon. Friend the Minister is aware of the huge degree of
unanimity across the House on the need for urgent reform, given
the many crises that we know have affected and continue to affect
clubs at the top of the game and further down the pyramid. On
that basis, I am pleased to hear that we will see the White Paper
later this week, but he will be aware that that is only one step
in the process. The White Paper will need to be followed by
legislation before we see a regulator or any of the other reforms
we want. Can he tell me whether it is the Government’s intention
to legislate in this Session, and if not, is it their intention
to legislate in this Parliament to introduce these much-needed
reforms?
My right hon. Friend is right to highlight the importance of the
issue. We will set out our plans for reform of the game in the
forthcoming White Paper. As with all Government policy, when the
Government commit to reform, legislation only follows when
parliamentary time allows, and we will be working on that at
pace.
(Sheffield South East)
(Lab)
Will the Minister just stop trying to deflect attention by saying
that football will sort itself out? The mess that the game is in
is because football has not sorted itself out. That is why we
need the Government to come in with a clear statement, a White
Paper and a commitment to legislate speedily. The message is
simple—he must have talked to the English Football League, which
says there is no chance of an agreement on funding with the
Premier League, because the Premier League holds all the money
and all the cards and it will never give to the rest of football
that which is enough to make the rest of the game
sustainable.
The hon. Gentleman likes to tease me regularly on this issue. I
agree with him; that is precisely why we will publish the White
Paper on Thursday, and I am sure he will be pleased with its
contents.
(West Bromwich East)
(Con)
Supporters groups are doing hugely important work. It has taken
groups such as Action for Albion and Shareholders for Albion to
highlight the genuine concerns about owners’ financial
mismanagement of West Bromwich Albion. Will the Minister ensure
that supporters groups have an enhanced role in football
governance when the White Paper is published later this week?
I pay tribute to my hon. Friend, who has been an active
campaigner on this issue and has worked incredibly hard with the
fans groups in her area. She is right, and that is why the first
meeting I had was with fans groups. I want to ensure that they
are the ones we consider most when we publish the White
Paper.
(Westmorland and Lonsdale) (LD)
I am concerned that the Minister, in his response, has pointed
the finger at least to some extent at the EFL and implied that he
has listened to owners as much as he has to fans. That deeply
concerns me. Two great challenges that football faces are: bad
and dodgy governance, and institutionalised unfairness of income.
Some 93% of football television income goes to the premier league
clubs, despite the fact that a majority of fans going to watch
games each weekend are going to EFL and non-league games, not
premier league games. Only 35% of transfer revenue from premier
league clubs goes to the EFL, even though the majority of British
premier league players have played in those lower divisions. Does
the Minister understand why many of us are concerned about the
tardiness of this process and the fact that Ministers seem to be
listening to the owners more than to the fans?
I totally reject that accusation; if anything, I have spent more
time with EFL, the Premier League, the Football Association, and
fans groups and supporters groups than with any of the owners,
because I recognise that the changes we need to see arise from
the evidence that the fan-led review highlighted, much of which
came from hundreds of hours of work listening mainly to fans. The
hon. Gentleman’s interpretation of what I have said, as meaning
that I am spending more time with owners, is factually
incorrect.
(Bosworth) (Con)
The Minister is a diligent man, and I am pleased that he has
taken the time to look into the system and is coming forward with
a White Paper next week. He cannot comment specifically on the
Manchester City issue, but the fact that there are more than 100
charges—particularly about not co-operating —does raise
questions. Will he confirm that the independent regulator will
have the power to compel clubs to co-operate with the Premier
League and the authorities when they are dealing with such
important issues?
My hon. Friend is absolutely right to say that I cannot comment
on a live investigation. However, the case that he highlights
does not affect the reforms that we will introduce, which we know
are needed in football. We want football authorities to take
action where they can, and they have in this instance. I am sure
that he will be reassured by the contents of the football
governance White Paper that we will publish shortly.
(Eltham) (Lab)
The Government commissioned the fan-led review of football
governance, and it was the Government who published it. They did
not make it clear at the time that they intended to prevaricate
and then announce further consultation through a White Paper. One
wonders what it is the Government think they will find out from
the White Paper that they have not already found out from the
fan-led review. Will the Minister commit to implementing all 10
recommendations of the fan-led review, or is the White Paper
going to unpick them?
The hon. Gentleman will have to see what is in the White Paper
when we publish it this week.
(Southend West) (Con)
I absolutely welcome the Minister’s statement and the
Government’s commitment to implementing the fan-led review,
because although next month marks the first anniversary of
Southend becoming a city, our treasured football club, Southend
United, faces severe financial difficulties. Supporters’ clubs
have done a huge amount, but will the Minister meet me to discuss
what the Government can do, if anything, to help? Will he also
confirm that the upcoming White Paper will address the hugely
unfair redistribution of Premier League solidarity payments,
which is one of the reasons why Southend United is in the
position that it is?
I commend my hon. Friend for her work, particularly in support of
her local football club. I would be more than happy to meet her.
I can assure her that we are taking action exactly because of
examples such as the one she raises, as she will see in the White
Paper when we publish it.
(Leyton and Wanstead) (Lab)
I noticed that the Minister did not answer the right hon. Member
for Ashford () on when we will see the
implementation of the White Paper in primary legislation. Given
the way things are going, the danger is that it will be delayed
until next year. That is too late. A number of clubs are already
in serious financial straits, and a number of them could go under
within the next few months. As we have seen over the past few
years, that situation will get graver and graver, not better.
I absolutely recognise that the issue needs addressing. That is
why we have taken a considerable amount of time to get this
right, and I believe that we have. I think that the White Paper
will help us to secure our national game, but—as I said to my
right hon. Friend the Member for Ashford ()—when parliamentary time
allows.
Sir (Rochford and Southend
East) (Con)
I refer hon. Members to my entry in the Register of Members’
Financial Interests.
As has already been mentioned by a number of Members, Southend
United is in financial crisis. As well as involving fans, can we
involve the broader community? In the case of the Southend United
development, there will be an extra 2,400 social houses as a
result of the development if the club goes forward beyond the
insolvency in two weeks’ time.
I know that my hon. Friend and my hon. Friend the Member for
Southend West () have worked incredibly closely
together in support of the local football club. He is right to
highlight the significant role that all football clubs play in
our communities. Addressing many of those issues is precisely
what we sought to do in developing the White Paper, and I hope
that he will be satisfied when he sees it published this
week.
(Liverpool, West Derby)
(Lab)
Football without fans is nothing. The delay in the publication of
the White Paper should worry every supporter. What we need now is
protection for the future of the game: we need a regulator with
teeth and a fit and proper owners test that is fit for purpose.
As a Liverpool fan, I am worried about what we might face in
future—I am sure that every other supporter of a club is the
same. The delay in legislation harms the future of the game.
Events this week, with the publication of the independent review
of the events in Paris, which exonerated Liverpool supporters,
show that governing bodies such as UEFA and Governments have a
long way to go with regard to the treatment of supporters. We
must never forget that they are the lifeblood of the game, which
is why this is important—this is a crucial point in football
history. Will the Minister assure me that the White Paper places
supporters at the heart of decision making to ensure that their
voices are heard and that they can play a major role in shaping
the future of football in this country?
I thank the hon. Gentleman for his question. We were all glad to
see that the Liverpool fans were exonerated. The fact that they
faced such disgraceful action was appalling. My right hon. Friend
the Secretary of State will shortly meet her French counterpart
to understand what lessons are being learned from that awful
incident. The hon. Gentleman is absolutely right that the fans
need to be at the heart of this, which is why they were the first
group that I met when I was appointed, as I said at the
beginning. They have been foremost in my thoughts when I have
been working on the White Paper.
(Middlesbrough South and East
Cleveland) (Con)
I welcome the Government’s commitment to bring forward the White
Paper this week. I want to press the Minister on three points.
First, it is important to ensure that we have a robust test for
the ownership, particularly foreign ownership, of our clubs.
Secondly, it is critical to ensure that the parachute payments
for relegation do not make it almost impossible, frankly, for
clubs to break into what risks becoming the closed shop of the
premier league. Thirdly, as several hon. Members have said, it is
central to ensure that we legislate in a timely fashion. I gently
point out to the Government that we are not overburdened with
legislation on Thursdays, for example, so there is scope within
the next year to bring forward legislation to deliver a great
outcome for the game that we all love.
My right hon. Friend is absolutely right to highlight that the
ownership of our clubs is an important area of work. We know that
there are some very good owners and some very bad owners; that
will be addressed in the White Paper. It will also address the
fact that we want to see payments go down the pyramid, so that
there is more financial sustainability. On committing to
legislative time in Parliament, as a former Whip, I know how much
trouble I would be in if I were to step on the Whips’ plans, but
I will certainly emphasise his point.
(Putney) (Lab)
The Prime Minister promised to implement all 10 of the fan-led
review’s recommendations before the World cup, including having
an independent regulator and giving fans a key role in decisions
about selling stadiums or changing a team’s name, colours or
crest, yet he failed to even publish a White Paper in time. Can
the Minister commit that all those measures will be covered in
the White Paper that is now coming out this week, and can he
commit to making them law this year?
I am in terrible danger of repeating myself, but I assure the
hon. Lady that many of the issues that she has raised are
included in the White Paper. We have taken careful consideration
of all the points raised, not just in the review, of course, but
by other stakeholders, as she will see in just a few days.
(Strangford) (DUP)
I thank the Minister for his response. Obviously, I understand
the caution that he is referring to, but as an avid football fan,
I know first hand the disconnect between fans and club owners.
Does he agree that the owners and directors test, as proposed in
the fan-led review, is a workable solution to ensure that the
sophisticated business regulations required are produced as a
result of the review?
Of course, the owners and directors test is an important element
of the White Paper. We want to ensure that the people who own the
clubs are not reckless with that ownership—they are custodians of
important community assets. We want to ensure that that happens
and I am sure that the hon. Gentleman will enjoy reading that
section of the White Paper.
(Barnsley Central) (Lab)
Over the years, we have seen some owners treat football clubs
more like cash cows than the community assets we all want them to
be. Pending the publication of the White Paper later this week,
will the Minister say whether he thinks there is merit in
ensuring that any new owner seeking to take control of an English
club is subject to a more stringent fit and proper persons
test?
Yes.
(Newcastle upon Tyne Central) (Lab)
We are on our way to Wembley, and I am sure the Minister will
join me in wishing every success to Newcastle United in the
league cup final on Sunday. However, he must know that even that
success will not erase the years of anger and frustration at
unsuitable, unaccountable, and sometimes downright dodgy
ownership within a Premier League that is out of touch and does
not seem to care about fans. Fans should be at the heart of
football, but this Government are messing with the heart and soul
of fans. Will the Minister commit now that the White Paper will
institute an independent regulator and that fans will have real
power in the beautiful game, and that those measures will be in
place by the start of the next season?
I am looking forward to attending that match at the weekend, and
I already have a list as long as my arm of people who want to
join me. The hon. Lady is right; she is an advocate, and other
advocates such as my hon. Friend the Member for Hyndburn () have talked about the
club Accrington Stanley and all the work it does and how
important the fans are. The hon. Lady is right to raise that
issue, and I can assure her that throughout this process, I have
tried my best to ensure that the voices of fans are heard in the
White Paper that will be published this week.
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