Football Regulation
Debate between John Whittingdale and Clive Betts(1 year, 1 month ago)
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The Minister for Media, Tourism and Creative Industries (Sir John Whittingdale)
I start by congratulating the hon. Member for Reading East (Matt Rodda) on securing this debate. As he mentioned at the start of his remarks, it was the intention of the Minister for Sport, my right hon. Friend the Member for Pudsey (Stuart Andrew), to respond to the debate, but he has had to return to his constituency urgently for reasons that I think colleagues will fully understand.
In his remarks, the hon. Gentleman highlighted the deep concern that he and many of the fans he represents have expressed regarding football ownership. I pay tribute to his commitment, and to theirs; having listened to his description, we understand how difficult it must have been for those fans over the past few years. We are very much aware of the passion and interest that many hon. Members feel about the long-term sustainability and governance of English football, and their commitment to their local clubs. I thank the hon. Members for City of Chester (Samantha Dixon), for Strangford (Jim Shannon) and for Sheffield South East (Mr Betts) and my hon. Friend the Member for Southend West (Anna Firth) for their contributions to this debate. In particular, as a Member of Parliament for Essex, I am very much aware of the difficulties faced by Southend United, and my hon. Friend has been a fantastic champion for the fans of that club.
The presence of those hon. Members in this debate demonstrates how important football clubs are to the lives of people in this country. In 2011, when I chaired the Culture, Media and Sport Committee—quite a considerable time ago now—we conducted an inquiry into football governance. It is somewhat depressing that, 12 years later, we are still debating many of the same issues. However, I hope that the inclusion of the football governance Bill in the King’s Speech yesterday will reassure the hon. Member for Reading East and others that this Government are intent on delivering and safeguarding the future of football clubs for the benefit of communities and fans.
The hon. Gentleman has talked about his own local club, steeped in the fabric of its community. It has been relegated, suffered sporting sanctions and faced financial penalties because of reckless decisions made by owners and terrible mismanagement. We have also heard about poor and non-existent governance practices, with fans being prevented from influencing key decisions that affect them and having to petition local councils, in some cases to protect stadiums. All such incidents threaten the long-term health and sustainability of all clubs, not just Reading.
We have heard about how English football clubs make significant contributions, and also about what happens when the community is let down by irresponsible owners in charge of football clubs. No employee, be they a player or, indeed, someone in the club shop, should fear not being paid. It is the local communities and fans that are the lifeblood of these clubs, and they bear the brunt and fallout of bad ownership decisions. They see where the structures are not working for the good of the game, and they can articulate most clearly how these are set right.
My colleagues in the ministerial team have prioritised engaging with fans and listening to their concerns, and I would like to pay tribute to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) for leading the fan-led review of football governance. This has been of immense value in developing the White Paper and during the period of the consultation we held earlier this year. I would like to thank the Football Supporters Association for its support; its contribution has been extremely valuable.
Too many clubs have been brought to the brink with unsuitable owners taking over, stripping them of their assets and refusing to fund them any more. We are committed to breaking this cycle of inappropriate ownership, financial instability and poor governance practices. That is why the inclusion of the Bill in yesterday’s King’s Speech is so important. The Bill will establish an independent football regulator, which will put fans back at the heart of football and help to deliver a sustainable future for all clubs. It will strengthen the governance and financial resilience of football clubs to protect the national game and clubs linked with communities and fans. Crucially, the regulator will address systemic financial issues in football, while providing the certainty and sustainability required to drive future investment and growth. This will ensure that English football remains the global success story and tackles the harms that exist.
The Bill will give fans more of a voice in the running of their clubs by setting a minimum standard of fan engagement. Clubs will need to meet this, and will be required to comply with the FA on its new rules for club heritage. It will give fans a veto over changes to the badge and home shirt colours, in addition to the strong existing protections for club names. Most clubs have a strong relationship with their fans and consciously engage them in decisions about club heritage, but not all do. For instance, fans of Cardiff City and Hull City will understand the importance of these measures after they recently had to battle to bring back or to keep their club’s colours and badge. Likewise, the new system will create strengthened owners and directors tests to make sure a club’s custodians—their owners and directors—are suitable.
Mr Betts
I think the consultation with fans is absolutely at the heart of this. It was at the heart of the fan-led review, and I pay tribute to the hon. Member for Chatham and Aylesford (Tracey Crouch) for that. For the fans, it will be really important that the legislation specifies how fans groups will be appointed as part of the consultation, and it should not be left to the owners of clubs to decide which fans they want to talk to and which they do not, because that is at the heart of the current problems in many clubs.