Football Clubs in England: Financial Sustainability

Jim Shannon Excerpts

Monday 7th November 2022 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

I am pleased to have secured this Adjournment debate on the governance and financial sustainability of English football clubs. I am very lucky that Birmingham, Ladywood is home to both Birmingham City football club and Aston Villa. It is a privilege to advocate for both sets of fans, although it occasionally calls on all my skills of diplomacy—local football rivalries are very passionate things, after all.

My interest in the regulation of English football, or more accurately the lack thereof, has been engaged primarily because of the position in which Birmingham City fans find themselves. Like many in this House, I take the view that the only way to deal with financial and governance issues like those that have plagued Birmingham City over the past decade or so is for the Government to bring forward legislation for a new independent regulator of English football. The Government, of course, commissioned the fan-led review of English football. That review was undertaken by the hon. Member for Chatham and Aylesford (Tracey Crouch), and I pay tribute to her detailed work and advocacy on behalf of football fans all over the country. Many other Members across the House have also long campaigned for changes to be made to protect our national game. The Digital, Culture, Media and Sport Committee has done important work, as have the Football Supporters’ Association, the all-party group for football supporters, and campaign groups such as Our Beautiful Game. All of that campaigning has provided the background to the breakthrough of the fan-led review’s findings.

The Government were pushed into that review after the quickly aborted plan for a breakaway super league, which would have destroyed club football in our country. Those plans threw into sharp relief many of the issues in the game that, before then, were too easy to ignore and to leave to the clubs to sort out. We all know that things simply cannot carry on as they are. The current system incentivises teams in the premier league to spend unsustainably to remain in the premier league, and it incentivises teams in the championship to spend up to the hilt to get there because the financial rewards are so great. However, that is destabilising clubs and the whole football pyramid in our country. Too often, there are question marks over ownership and the potential motivations of those who buy English football clubs.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady agree that, although clubs may feel that they are owned by us fans, who buy the gear, attend the matches and use pay-per-view, the fact is that these clubs are big businesses and like any big business, they must be appropriately regulated and managed? I therefore fully agree that the House must do more to protect clubs from bottom-line share price profit as the driving force, as opposed to the love of the game, which we all have, and the desire for a club to perform as best as it should and could.