Chelsea Football Club

Lord Hain Excerpts

Thursday 31st March 2022 Lords Chamber

Asked by

[Lord Hain]

To ask Her Majesty’s Government what criteria they have set for granting a new licence that would permit the sale of Chelsea Football Club.

[Baroness Penn (Con)]

The Office of Financial Sanctions Implementation in the Treasury considers all licence applications on a case-by-case basis. OFSI does not publicly disclosure the details of specific applications it receives. Any licence issued under the Russia regulations will be in line with the purpose of the regulations, which is to encourage Russia to cease destabilising Ukraine and cease undermining and threatening the territorial integrity, sovereignty or independence of Ukraine.

[Lord Hain (Lab)]

My Lords, as a Chelsea fan for 57 years, may I ask whether will the Government ensure that no winning bid loads debt on the club like the Glazers did to Manchester United? Will Ministers also bar the Pagliuca consortium bid headed by the chair of Bain Capital, which remains highly entwined with Bain & Company, recently indicted by a South African judicial commission for acting unlawfully and referred for prosecution. Bain cynically and ruthlessly disabled the country’s tax collecting agency by conspiring with the corrupt former President Zuma for a £8 million fee. Chelsea and the Premier League must not be contaminated with such despicably corrupt business practices.

[Baroness Penn (Con)]

My Lords, the Government do not want to prejudge any decision Chelsea may make; it is for the club to ensure the best owners are found. We would expect all due diligence and assessment of owners to happen before an application for a licence for the sale of the club is made, which obviously we would consider on its merits.

--- Later in debate ---

[Baroness Penn (Con)]

I thank the noble Lord for his bedtime reading recommendation and join with him in the spirit of what he says about the need for greater fan involvement in the governance of football.

[Lord Hain (Lab)]

My Lords, can I press the Minister again? She really has not answered the Question, I am afraid. The Government have imposed all sorts of restrictions on the club. It cannot sell programmes; it cannot do all sorts of things, and now the Government are saying that it has nothing to do with them in terms of how the bids come out. That is simply not right, surely.

[Baroness Penn (Con)]

It is correct that the financial sanctions do not change the ownership of frozen assets. We do not control the frozen assets and it is for the club to determine the process of the sale. The Government’s role in this is to consider any licence application under the sanctions on its own merit, and that is what we will do.