English Premier League Football

Lord Hunt of Kings Heath Excerpts

Thursday 25th July 2013 Lords Chamber

[Lord Hunt of Kings Heath]

My Lords, I speak as an occasional supporter of Forfar Athletic and as a season ticket holder of Birmingham City. The noble Lord, Lord Birt, talked about the joys. Supporting Birmingham City mainly teaches you to come to terms with the disappointments of life—except for one game against the Arsenal.

It is a great pleasure to take part in this debate. I have no doubt that the noble Lord, Lord Bates, is right that we should celebrate the magnificence of the Premier League. The excitement is clearly palpable; the statistics quoted by the noble Lord are indeed impressive. I have no doubt that he is right about the contribution that it makes to the image of our country and to its coffers. He is right, too, to celebrate some of the successes. However, there are also some downsides and I thought that some of the points put to the House by my noble friend Lord Lipsey were very pertinent.

I share with a number of other noble Lords real concerns about issues to do with governance in football that go beyond the Premier League to other league clubs as well. I commend the fantastic work in this area of Supporters Direct. Its concern is that so many sports clubs are being put in jeopardy because of vested interests, poor financial management and inadequate standards of governance. This has been backed up by the CMS Select Committee, which has done some magnificent work in this area. It has real concerns about the ownership of clubs and about the fact that the ability of league authorities to investigate ownership issues seems to be very limited and at risk.

The Select Committee found, for instance, that while the Premier League was able to invest more in procedures and specialist assistance to find out the identity of the ultimate owners of some of the clubs, the Football League was not in such a good position, relying only on information provided by the clubs themselves which is then checked against records in the public domain. Remarkably, neither league is prepared to provide to fans the information that it holds and put it in the public domain.

I mention this because it is extremely relevant to the plight of two clubs in the West Midlands. They are not in the Premier League at the moment—so I hope that the noble Lord will forgive me—but they have been and aspire to be again, although when is a matter of some conjecture. I refer noble Lords to Coventry City, who won the FA Cup, remarkably, some years ago. On Saturday, thousands of supporters marched through the city centre protesting at plans for the club to play its home games at Northampton Town, 30 miles away. No wonder the fans are angry at the contemptible way in which they have been treated by the club owners. I refer noble Lords to a debate in the other place on 12 March in which Mr Bob Ainsworth raised this issue and talked about the financial difficulties of Coventry City. He said:

“Five years ago, when it had lost its ground … and most of its assets, the club was sold to the hedge fund Sisu … Sisu specialises in acquiring distressed assets, and under Sisu the club’s ownership is multilayered, opaque and partly offshore in the Cayman Islands”.—[Official Report, Commons, 12/3/13; col. 63WH.]

It is clear that the interest of supporters is right to the last as a priority.

My own club, Birmingham City, is owned by a holding company based in Hong Kong and registered in the Cayman Islands. We have a major shareholder, Carson Yeung, who is at the moment on trial in Hong Kong on charges of £60 million of money laundering. The holding company, Birmingham International Holdings, was censured by the Hong Kong stock exchange for breaching rules in September 2012. There have been major delays in presenting the audited accounts of the club. Very recently, the Birmingham Mail reported that the parent group of Birmingham City has been told to demonstrate its plans to sell the club or it will not be allowed to trade on the Hong Kong stock exchange again. Stock market chiefs demanded to know what plans Birmingham International Holdings Ltd had for the club and how it was going to deal with “management integrity concerns” regarding Mr Yeung, who, as I have said, is now standing trial for money laundering.

While this dreadful ownership problem has been going on, the club has been relegated, the players have been sold and there is real concern about the future. The supporters, who turn up through thick and thin—or thin and thin, as it sometimes is—seem to be considered least. They are the heart of the club yet they are treated with absolute contempt by just about everyone concerned. What are the football authorities doing about this? Can one turn to the authorities to intervene? The answer is no. They do not intervene and they do not disclose information about ownership. They do not seem to respond to the needs of the supporters at all.

What is the Minister going to do about Birmingham City? More generally, the Select Committee recommendations are right in relation to ownership and the involvement of supporters on the boards of clubs in the future. The Minister for Sport has made some excellent responses to this issue but the football authorities are completely unable to govern themselves. That has been staring us in the face for years. I do not want to see statutory regulation in sport but in relation to football they are not going to be able to sort it out for themselves. They cannot see that their interest, first and foremost, should be the supporters or the interest of the national team. I am afraid that the time has come for statutory regulation.