Football Broadcasting Rights

Mark Field Excerpts

Tuesday 20th January 2015 Westminster Hall

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

It is a pleasure to serve under your chairmanship again so quickly, Mr Streeter. The subject of this debate is probably slightly less pressing for many people, but is none the less of great interest to all our constituents.

You will recall, Mr Streeter, that John Major famously evoked an image of cricket being played on village greens for the Britain that he thought we should all aspire to, but of course the reality is that football holds a special place in people’s hearts in all four parts of the United Kingdom and is, indeed, our national sport. On Saturday afternoons, up and down the United Kingdom, football supporters put on their coats and woolly scarves and hats and travel to support their teams. This cultural phenomenon stretches back 150 years in the United Kingdom. More recently, the growth of television has enhanced people’s enjoyment of football. It is probably fair to say that “Match of the Day” still holds a special place in everyone’s heart—the theme music, which I will not try to emulate this afternoon, still makes the hairs on the back of everyone’s neck stand up when it comes on. It is great to see “Match of the Day” enjoying its 50th anniversary this year.

Of course, there has been a revolution in football in the United Kingdom in the past 20 years with the advent of the Premier League and, in particular, Sky Broadcasting. I should probably declare a constituency interest, in that Sky is our third largest private employer, employing some 2,000 people in my constituency and contributing, at a conservative estimate, more than £30 million a year to the local economy. I am incredibly grateful for the work that Sky does locally and for the opportunities it provides to local people.

I share the concerns of many—I do not know whether the Minister would care to comment on this—about the way Sky is advertising gambling products alongside football. I do not know whether the Minister is aware of whether Ofcom or the Advertising Standards Authority plans to look at gambling and particularly the spot gambling that we see on Sky Sports News and during football matches. None the less, Sky has been an absolute force for good in revolutionising the way football is understood and enjoyed and the calibre of football. Football is now without doubt a cosmopolitan sport, not just in the Premier League but throughout the English leagues and in Scotland, with players drawn from throughout the European Union, from the Commonwealth and, indeed, from emerging footballing nations. That is a sign of a multicultural sport. I believe that it is not just because we have got away from mullets and short shorts that there is no great desire to go back to 1980s football.

It is interesting to look at the attendance figures for football grounds—as always, I am indebted to the House of Commons Library for its assistance. When the Premier League began in 1992-93, the attendance figures for Premier League grounds showed that only two thirds of the capacity was being taken up by supporters—average attendance in the stadiums of Premier League clubs was only 70% in 1992-93. Now, despite the economic conditions and the fact that the cost of football has risen for supporters, 95% of seats are taken at Premier League games. If we bear it in mind that 40% of games are on television—live to broadcast—that goes to show that the Premier League and the broadcasters have delivered a product that people want to buy.

[Mark Field (Cities of London and Westminster) (Con)]

It is worth making the point also that of course a number of larger stadiums have been built, from Old Trafford to the Emirates. The capacity at many of the premiership clubs is markedly higher than was the case before, so the statistic possibly slightly understates just how much more popular the game has become, notwithstanding the televisation. Many of us remember that in the 1970s and ’80s, when only a handful of games were shown at the weekend, it was felt that TV would be the ruination of football, yet in many ways it has proved to be the absolute opposite.

[Thomas Docherty]

The hon. Gentleman is entirely right. That, indeed, is my point. Vast sums of broadcast revenues are paid in. From memory, the deal that BT and Sky have with the Premier League is worth just over £3 billion for the current broadcast period. The hon. Gentleman refers to the very modern stadiums. I was at the Emirates a couple of years ago for a Champions League game. It is an absolutely modern, first-class, wonderful facility, and that is repeated up and down the country.

The problem, if I may digress for a second, involves those clubs that aspired to get into the Premier League, because of those riches, and have fallen along the way. They built those stadiums because they were holding on to the dream, the aspiration, of reaching the top flight and then found themselves in great difficulty. I do not believe that that is the fault of the Premier League or the broadcasters; it was a business decision taken by the boards of those clubs. Those of us who are a little older, Mr Streeter, will recall some of the great names of English football that have found themselves in very difficult situations in recent years. One need only think of Leeds United, whose board gambled everything. Reckless decisions were made by the board to aim constantly not just for Premier League status, but for Champions League status, with the additional riches that that brings.

It is worth remembering that the broadcast deal brings huge benefit to the grass roots as well. I am very grateful to the English Football Association for the briefing that it provided to me and, I think, to other hon. Members, which shows that hundreds of millions of pounds are coming down to grass-roots football as a result of the deal. The Premier League is also right to point out that through the parachute payments and the solidarity payments paid to lower league clubs, it continues to support grass-roots football. Whether we represent constituencies in Scotland, England, Northern Ireland or Wales, it is without doubt the case that every young boy’s ambition is to play in the Premier League.

[Mark Field]

The hon. Gentleman makes a perfectly valid point. It is important that we stress that although many people feel that footballers are earning untold riches, certainly compared with those of a generation or two ago, and perhaps too much money, from the television funds does go directly to the talent, there is still huge investment in the grass roots of the game, which has transformed the game over the past 20 years. Does the hon. Gentleman agree that unfortunately in terms of this debate relating to Ofcom, there has not really been any serious attempt to demonstrate how just showing more matches, as Ofcom suggests, would lower the cost to the subscriber? The TV deal that has been done, which has gone onwards and upwards, none the less does sustain and is of interest to—

[Mr Gary Streeter (in the Chair)]

Order. Thomas Docherty.

--- Later in debate ---

[Mr Vaizey]

It is not for me to accept or reject that point, but I will elaborate on my answer. Virgin Media would say that, because fewer matches are broadcast, consumers pay more money for their pay TV packages because there are fewer matches to go around and therefore less competition—that is the argument in its crudest form. If this were a court or a competition appeal hearing, an extremely expensive Queen’s counsel would no doubt pick me up on how I have characterised the argument.

As the hon. Gentleman indicates, there is a counter-argument. First, the Premier League would talk about its success over the past two decades. Both he and my hon. Friend the Member for Cities of London and Westminster have pointed out the increase in live attendance at Premier League matches over the past 20 years and the commercial success of clubs due to the way the Premier League sells the rights to live matches. I was inadvertently in the position of, in effect, supporting a socialist solution: the Premier League selling its collective rights. The hon. Gentleman made a compelling point, which will be of particular interest to my hon. Friend, on whether we could introduce collective selling into the City of London, whereby the top-performing traders collectively negotiate their salary with the rest of the company, so that the difference between the highest earners and the lowest earners is somewhat smaller—but I digress, and no doubt that is not helpful.

[Mark Field]

I would not describe myself as a socialist in any way, but the collective system has worked very well, which is greatly to the credit of all concerned. It is worth putting it on the record that Sky has done a terrific job of transforming the broadcasting of the game, in tandem with the BBC and other providers. I feel that Virgin Media’s complaints are unfounded. There is no evidence to suggest either that there is dissatisfaction with subscription rates or that subscription rates would be lowered if we had more games on TV.

[Mr Vaizey]

I cannot be drawn on that point, except to say that I have described Sky’s acquisition of Premier League rights as a bit of a chicken and egg situation. Sky’s success has been built on having those Premier League rights, but there is no doubt that Sky has brought extraordinary innovation to broadcasting Premier League games.