Sport: Football Clubs Debate

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Lord Bourne of Aberystwyth

Main Page: Lord Bourne of Aberystwyth (Conservative - Life peer)

Sport: Football Clubs

Lord Bourne of Aberystwyth Excerpts
Thursday 30th October 2014

(9 years, 8 months ago)

Lords Chamber
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Lord Bourne of Aberystwyth Portrait Lord Bourne of Aberystwyth (Con)
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My Lords, I congratulate the noble Baroness, Lady Taylor of Bolton, on initiating this debate. She has considerable knowledge in this area, and interest and passion as a supporter of Bolton Wanderers and in her involvement in the parliamentary football club. It is refreshing to listen to a politician with hinterland; indeed, I had the privilege earlier in the year to attend a play, “This House” by James Graham, at the South Bank which seemed very much dedicated to the noble Baroness.

The thrust of this debate has been about English football or the English league, which of course encompasses Welsh clubs, too. My noble friend Lord Greaves rightly reminded us—I should perhaps refer to Members’ allegiances as I go along: his is Bradford Park Avenue, which must have been good preparation for becoming a Liberal Democrat—that the Football League goes beyond the league, and it is vital that we remember that.

Scotland and the Scottish League, referred to by the noble Lord, Lord Watson, in the context of Dundee United, have similar concerns. Of course, these are rightly dealt with from Holyrood, although I am sure that there is an exchange of good practice with Scotland and Northern Ireland, too—and, indeed, with the Republic of Ireland, as the League of Ireland faces similar challenges to our own.

A generation ago, football in Britain was in decline. Most games were played before a few thousand diehards in dilapidated, down-at-heel grounds. There was often toxic racism on the terraces and in the grounds, and massive ground trouble, something the noble Baroness referred to. Overseas hosts of our matches feared the arrival of the Brits, and not because of the football. Now, five of the top 10 football clubs in the world by revenue generated, according to Deloitte’s, are in the Premier League: Manchester United, Chelsea, Manchester City, Liverpool and Arsenal—supported by the noble Lords, Lord Knight and Lord Collins of Highbury. Both noble Lords are clearly very rich if they can afford season tickets there. I will return to the Fanshare scheme later, but this demonstrates the global phenomenon that the Premier League is, and it is important that we do not lose sight of the progress made while acknowledging that there are problems still to be addressed, namely—as highlighted today—fan involvement and engagement and fan ownership: that is absolutely right.

The Government are committed to helping supporters have better engagement with the clubs that they back, and more of a say on how those clubs are run. Some clubs have already made progress on that. English football has a long and colourful history, spanning everything from globally supported Premier League clubs, as I mentioned, to community clubs that are coaching the stars of the future and opening up sport to enthusiastic young fans and participants.

Since 2010 the Government have worked closely with football authorities on a wide range of issues, such as governance and financial sustainability. The close partnership has seen toughened-up rules on ownership tests—seen at play in, for example, Hereford recently—as well as improved financial transparency. In parenthesis, I say to the noble Lord, Lord Knight, that Premier League clubs are all public companies, so they are obliged to file accounts in accordance with the requirements of the Companies Acts. That is true of the Premier League clubs, though not of the whole League.

There are ongoing issues that need to be addressed in relation to debt and to ownership. The Culture, Media and Sport Select Committee football governance inquiry—how that trips off the tongue—of 2011 produced a final report in 2013 which made a range of recommendations for football as a whole. These included the setting up of an expert group. That final report came out in January 2013, not quite two years ago. Such an expert group, it said, should look at barriers to supporter ownership. That is important. One recommendation which was taken up, from an interim report, was for supporter liaison officers, who have been notably successful at, for example, Doncaster Rovers. All Football League clubs have brought them in. They have been a great success in some clubs and no doubt in time they will become entrenched and refined elsewhere.

Other countries have, culturally and historically, come at this from a different angle. Some clubs on the continent have much higher fan ownership, such as Bayern Munich and Barcelona, which are culturally and historically different from our own. In the English League we have some good examples of supporter ownership: ASC Wimbledon—backed by the noble Baroness, Lady McDonagh, and the noble Lord, Lord Watson—is an example. Portsmouth Football Club is an outstanding example, as too are Wrexham and Swansea. I know a bit about Swansea because I follow and support the Swans—or at least I did until they defeated Leicester City last weekend, as Leicester City is the team I have supported since childhood. They have not yet been forgiven for that.

Other successful schemes have been mentioned. The noble Lord, Lord Kennedy, referred to Millwall’s scheme and its community involvement. That is something else we should not lose sight of: all clubs have great community involvement and do fantastic work in their local communities and for charities. We should acknowledge that and thank the clubs for it.

Many other clubs have worked hard to establish supporters’ trusts, which have pursued ownership or part-ownership of their clubs. This is a welcome development and why the Government have established an expert group to look at this matter following the Select Committee’s recommendation. The Minister for Sport, Helen Grant, launched the expert group on supporter ownership and engagement on Tuesday 21 October at Portsmouth Football Club, a club which, in many ways, has pioneered supporter ownership. The group was developed in partnership with Supporters Direct, an excellent grass roots organisation. Supporters Direct was established in October 2000 in recognition that clubs need to be closer to their fans and communities to promote sustainable spectator sports clubs. Its mission is to increase the influence of supporters through ownership and involvement. I pay tribute to what they do.

My noble friend Lord Holmes of Richmond, who supports Wolverhampton Wanderers, referred to the importance of safety and inclusion. I could not agree more with that. I pay tribute to his work in that regard with London 2012, which were the most inclusive Games we have ever seen. The expert group is to be chaired by Joanna Manning-Cooper, so I say to the noble Baroness, Lady McDonagh, we have a woman in a prominent role who will no doubt deliver. I have no doubt that she will give a warm welcome to Karren Brady when she takes up her role here in the weeks to come.

The first meeting of the group will be in November when precise terms of reference will be agreed by the FA, along with Supporters Direct and the chair. Those people are the driving force behind this. I can tell the noble Baroness, Lady Taylor, that this will not be kicked into the long grass. There is a commitment that this group will report before the general election. There is a feeling around the House, which I think is shared in another place, that it is important to get this right and that fans are rightly involved with their clubs. They are the lifeblood of clubs but sometimes we lose sight of that.

Consumer issues, including the pricing of tickets, will be looked at. We cannot all afford a season ticket for Arsenal. We have to help kids to get in by looking at how prices can be brought down. Some clubs which have not necessarily pursued community ownerships of their clubs have done that. For example, West Ham United has a “kids for a quid” scheme where kids often can go to a game for a pound. There are consumer issues about the pricing of tickets, the pricing of the strip and so on, as well as about the naming of a club. I offer reassurance to the noble Lord in relation to the issue with Hull Tigers. That was blocked by the football authorities; they sometimes get these things right.

Members have referred to the existing legislative framework. In the Companies Act 2006, there is an obligation on directors to take account not just of the providers of capital, the shareholders, but of stakeholders generally, which would include the community and fans—the consumers. Perhaps it is relatively early in the lifetime of the Companies Act, but these issues have not been tested in the courts yet. However, directors should be paying attention to the interests of the community and fans.

These all are important issues. It has been a very good debate. I thank all noble Lords for their participation but, once again, I thank the noble Baroness for bringing this important issue to the House. I encourage people to engage with the expert group. Its terms of reference and priorities will be set out within the next month. Then it is open to people, including the Labour Party, to contribute, so that we can get things moving in the direction that we all want, do not lose the great value that our football league is to the economy and the communities, and ensure that fans are much more widely engaged throughout the football league.