The petition of residents of Newcastle upon Tyne Central,
Declares that football is an integral part of Newcastle upon Tyne’s social and cultural wellbeing; notes that fans of Newcastle United are heavily invested both financial and emotionally in the success of the team; further that the current manager Rafa Benitez needs the support of both fans and the club’s owner; further that this support should include investment in players, training facilities and community engagement; and further that the owner Mike Ashley has not made this support forthcoming.
The petitioners therefore request that the House of Commons urge the Government to take action to prevent unscrupulous football club owners from exploiting the clubs, their fans and local communities, with particular reference to Mike Ashley and Newcastle United FC.
And the petitioners remain, etc.—[Presented by Chi Onwurah, Official Report, 24 July 2018; Vol. 645, c. 984.]
[P002251]
Observations from the Under-Secretary of State for Digital, Culture, Media and Sport (Tracey Crouch):
The Government note the petition of 24 July, and make the following observations:
The Government welcome the opportunity to respond to the concerns raised over the ownership of professional football clubs and in particular that of Newcastle United FC, one of our oldest and best supported clubs.
In order to take up a controlling interest in a club, individuals must prior to becoming an owner, and then annually, pass an Owners and Directors test (formerly fit and proper persons). The Test is an assessment of who is legally fit to own a football club. It is based on a set of objective criteria, such as whether an individual is banned from being a company director or has been involved in more than one administration at a football club since 2004.
The football authorities have agreed to keep the Owners and Directors Test under regular review and to listen to supporters’ concerns. This commitment is set out in the Government’s Expert Working Group’s report on Supporter Ownership and Engagement published in early 2016.
The Premier League has additional, wide-ranging rules in the areas of club ownership and finance. Under League rules, the ultimate beneficial owners of all clubs must be publicly disclosed. The full chain of ownership must also be disclosed to the League. Prospective new owners have to meet the Premier League Board and provide extensive detail on the sources and sufficiency of funding they have in place.
Clubs must also submit information on the financial structure of any proposed investment, and a business plan demonstrating that all liabilities can be met for at least 12 months ahead; submit independently audited accounts to the Premier League each season; and submit quarterly reports demonstrating they are up to date with PAYE and NI payments to Her Majesty’s Revenues and Customs.
The Government wholeheartedly recognise that football clubs are valuable to their local communities, and the utmost care should be taken by their owners and stakeholders to protect their long-term future. Further, the Government recognise that fans have every right to ask questions of those that run their clubs. It is essential we have healthy football clubs, and owners who care for and respect their tradition and fan base.
The Government have invested significant time over the last few years to find ways to improve supporter engagement beyond the customer relationship, into recognising them as an integral part of clubs’ success. A key recommendation (which is now enshrined in football’s rulebooks) from the Government’s Expert Working Group on football supporter ownership and engagement is that all clubs in the top four divisions must ensure there is open dialogue between club owners/senior executives and their supporter groups on the matters of most importance to the running of the club. These meetings lead the way in ensuring fans are better informed and consulted on club activities, including its financial standing, future plans; and other matters of real importance. The Government believe this structured engagement is helping to build relationships over time.
Turning specifically to Newcastle United FC, the Government are not aware of any failing by the current owners to meet the Premier League’s requirements to ensure facilities are maintained to the required standard, to comply with the financial reporting and ownership criteria rule outlined above, nor the requirement to meet with supporters to discuss matters important to the running of the club. The Government, however, have noted the concern among supporters that has led to this petition and would encourage the ownership of Newcastle United FC to review the way they currently engage with fans to see if more can be achieved in this area.
The Government will continue to hold the football authorities to account for ensuring there are regulations in place that encourage good governance, sustainable investment and ensure there is dialogue with supporters.