Coventry City Football Club Debate

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Department: HM Treasury

Coventry City Football Club

Kevin Foster Excerpts
Tuesday 15th January 2019

(5 years, 3 months ago)

Westminster Hall
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Jim Cunningham Portrait Mr Cunningham
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My hon. Friend the Member for Coventry North East (Colleen Fletcher) and I have both written to the Football League to ask for a meeting, and that is pending. Obviously this matter is sub judice, so I do not want to go too far into the court case. Suffice it to say that, in the interest of progress, Sisu perhaps should set aside its application to go to the courts until we have tried to resolve the issue in another way. That would show a lot of good will on both sides.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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The hon. Gentleman is right to highlight the role that Sisu has played over the past five years. The hon. Member for Coventry North East (Colleen Fletcher) and I actually voted for the financial restructuring that stopped it bankrupting the company that then operated the stadium. Does the hon. Gentleman agree that the blame for where the club is must fall four-square with Sisu, and that continuing to mess around in the courts is not going to move the club forward in any way, shape or form?

Jim Cunningham Portrait Mr Cunningham
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I agree with the hon. Gentleman, who has contributed to our debates on this issue since coming to the House—I might disagree with him on other matters, but I give credit where credit is due. Sisu should sit back and reflect. It certainly has to get away from trying to distance itself from the club and saying that the club is a separate entity. We all know that it is not, and that must be made clear. I am certainly doing so in this debate.

While Sisu has spent huge sums on legal action, the real consequences have been felt by the club. There are huge doubts about Coventry City’s future at the Ricoh arena. Wasps is refusing to keep the tenancy going, while Sisu continues its legal action. Regardless of the validity of Sisu’s claim, it has again left the fans suffering as a result. As I said, the club’s short-term future must be the priority. Coventry City must stay at the Ricoh arena next season. No other option is acceptable. To achieve that, all parties need to get back around the negotiating table.

There are currently too many red lines preventing talks. I understand the concerns of Wasps, but I ask it to reconsider for the sake of the city. For its part, Sisu must consider what it might gain from continued legal action. All fans agree that no judicial win would outweigh the risks the club faces. At some point the legal battle will end, either in the Supreme Court or before that stage, but that could still take many months—time the club simply does not have.

I have long argued that a mediator from outside football should adjudicate the dispute. Mediation has been attempted, with an apparent lack of success, but if the parties will not get back around the table, a mediator must bring them back. I want to talk to the Secretary of State about exactly how we take that forward, but that is another matter. I hope that the Minister will indicate whether the Secretary of State will meet us, along with the other local Members, to discuss the matter.

Too many football clubs have faced similar problems. In the Football League, those include Charlton, Portsmouth, Blackpool, Bolton and many others. In Scotland, of course, the famous Glasgow Rangers suffered a massive fall from grace due to liquidation. All those clubs have faced slightly different issues, but the common factor is poor stewardship by owners. Football club owners own something far more important than just a business. They owe it to the local community to run the club carefully and responsibly.

The fit and proper persons test is failing. It simply allows too many football clubs to fall into the hands of inappropriate people. I back Labour’s pledge to empower fans. A perfect fit and proper persons test is impossible, so we must limit the damage that owners can cause. We could learn from the protection that football stadiums receive through the Localism Act 2011. If grounds can be protected as assets of community value, then clubs should be as well. Owners who mistreat their community clubs cannot be allowed to get away with it. The Government must consider ways to definitely give power back to the fans. Along with other MPs, I will now look to meet the Government and the English Football League as soon as possible. I have already indicated that and the Minister is aware.

Coventry City has enjoyed some notable successes on the pitch in recent seasons. However, with huge questions over the future of the club, the city has been left in the lurch. It is a terrible irony that this is happening in the year in which Coventry is the European City of Sport. A continuation of the tenancy at the Ricoh must now be agreed immediately. Discussions over the club’s long-term ownership are needed, but the focus at the moment must be on the club’s survival.