Leeds United

Jason McCartney Excerpts

Tuesday 21st June 2011 Westminster Hall

[Damian Collins]

My hon. Friend is absolutely right, which is why the issue of the rules concerning the ownership of clubs is so crucial here. Fans have the right to know who owns their clubs. It was incredible that the FA and the Football League maintained a situation in which they did not know who the ultimate owners were. Such information is the least that the football fans should expect. I have no objection to overseas investors bringing in money to English football, but we have a right to know who they are and where that money comes from.

[Jason McCartney (Colne Valley) (Con)]

I will give my hon. Friend a breather from all those murky statistics that he has been firing at us. As a Huddersfield Town fan, I feel lucky that our chairman, Dean Hoyle, is a self-made millionaire. He has been a Town fan all his life and is doing a fantastic job. Some businesses in my Colne Valley constituency, such as a balloon company down the road from me, suffered and were owed money when Leeds United went into administration. I have been working closely with the Huddersfield Town Supporters Trust, and we have been talking about having supporters’ representation on the boards of football clubs. Does my hon. Friend agree that that would be a good step forward, because it would allow more transparency, as my hon. Friend the Member for York Outer (Julian Sturdy) has mentioned?

[Damian Collins]

Supporters’ representation on the boards of clubs can be a good thing. Clubs should create a model that works best for them. A template model may not be appropriate for all football clubs. At the heart of the problem that my hon. Friend raises is the football creditors’ rules on which I touched earlier in my remarks. Until those go, it does not matter how many supporters there are on the boards of clubs, because clubs are still free to run up debts. They have to pay back debts not to local businesses but to former players who may have left some years ago or to a football club at the other end of the country with which the community has no direct relationship. That is morally wrong, which is why the rule must go.

Moving on from the statistics of the Leeds transactions to the simple bread and butter issues around why FSF would seek to sell the club at a time when the club’s value was rising, why would there not be marketing around the world for such an asset and an opportunity for bidders to come in? Where indeed did the money come from for Ken Bates to buy the club from FSF? We do not know how much that sum was, but there must have been some sort of a transaction. If it was a nominal fee, it would bring into question the relation between Ken Bates and FSF. Those are questions that the club will not answer, so will the Minister ask his colleagues at Her Majesty’s Revenue and Customs to contact the authorities in Nevis to try to resolve these issues about where the supply of money came from for the purchase of Leeds United?

In the words of the judge, it remains “exceedingly puzzling” that Astor and FSF were unconnected. No rational explanation has ever been given for why Astor would waive its £17.6 million on condition that Bates and FSF, which were responsible for its losing all that money in the first place, were given the club back. FSF was not even incorporated when Bates took over as chairman of the club, so who were the investors and where did their money come from? Who were the owners of Leeds United for the six years in between? The identity of FSF’s beneficiaries has never been disclosed to the football authorities or anyone, not least to the club’s fans.

Ken Bates said on oath and to the football authorities that he did not know who the investors were and stated that they were not connected to him. The Government should satisfy themselves that no regulations regarding the payment of tax or the purchase of companies were compromised in the case of Leeds United. The football authorities need to review the administration of their rules on club ownership and how they best apply the fit and proper persons test.

That situation must never be allowed to happen again in relation to the purchase and ownership of a major English football club. We are critical of how FIFA has recently tried to enforce its own code of ethics and its own inquiries into its own people, and of the farce we saw yesterday, where the FIFA ethics committee dropped its case against Jack Warner in return for his agreeing to leave FIFA. There will be no investigation or declaration of all the serious allegations of corruption that were made against him.

We cannot truly have a voice of authority on all those issues around the world, as we should do considering that we are one of the world’s great footballing countries with some of the greatest football fans in the world, until we resolve all the domestic issues. The unanswered questions around Leeds United—both financial ones and those that affect the governance of football—are crucial to our setting our own house in order.