Football Governance

Debate between Steve Rotheram and Thérèse Coffey

Thursday 9th February 2012 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger, and that of Mr Havard, the previous Chair, who probably prefers the oval ball, but accepts that the round ball game—the beautiful game—touches all four nations of the United Kingdom. I am delighted that three of those nations have been represented in the debate at some point.

I thank other Committee members. For a football fan, this was a fabulous inquiry. The hon. Member for Liverpool, Walton (Steve Rotheram) was a bit gutted not to be on the Committee at the time. However, he should take credit for having been part of the main inspiration for the inquiry in that seminal debate in Westminster Hall some time ago. I hope that he is proud now to be part of the Committee that was able to put the report to the House for consideration.

There is no question but that football is probably our most successful export. I appreciate that Sepp Blatter thinks that the Chinese invented football, but I firmly believe that it is the English version of the game that has gone around the world. Indeed, we seem to be importers of talent nowadays, but our game is no worse for that. The extent of professional football here goes far beyond anything we saw in Germany, in terms of the number of teams and the quality of football, as the right hon. Member for Bath (Mr Foster) mentioned. That is reflected in the fact that we have had such success in European competitions.

Success perhaps eludes the three lions. Of course, we all hope to put that right in 2012 in Poland and Ukraine, and in Brazil in 2014. But as I will mention later, that is one reason why the Committee felt that it was important to do something about football governance.

I will try not to repeat too many things that my hon. Friend the Member for Folkestone and Hythe (Damian Collins) said and I will try to develop a few different points, but I echo his tribute to David Bernstein. I ought to say that I am parliamentary fellow to the FA at the moment, so this is not being done in an attempt to get free tickets for any game, or anything.

I was looking at the evidence from 29 March 2011, when the Committee visited Wembley stadium to take evidence from the FA. At that time I brought up the issue of governance and Fabio Capello’s contract. All I can say is that David Bernstein’s responses that day gave me confidence, as did his actions, in respect of exactly what happened with the captaincy of England—and in the situation in the past 24 hours.

David Bernstein has persuaded the council, the shareholders and other board members to bring on two new independent non-executive directors. That has happened and already they are making a contribution to the board. Give credit where it is due, despite the fact that he is a Manchester City fan. As we all know, we can be very tribal in the main Chamber, but we are all here for the greater good of football.

[Steve Rotheram]

Does the hon. Lady agree that the FA still needs to do more to become fully inclusive? An FA board needs to reflect all society and include, for instance, people from different socio-economic and cultural backgrounds and minority ethnic groups and perhaps even women.

[Dr Coffey]

Of course, one of the new independent directors is a woman, which was a little bit of a surprise, but I was delighted that a lady with a pedigree at Millwall is already making a contribution at the highest level of the game. Kelly Simmons is in charge of the national game and does a great job working with communities.

A lot has been said about the ownership of football clubs and financial fair play. I was keen to ensure that the model of a significant owner was not condemned as a particularly bad thing. I say that because that is one reason why we are able to have so many clubs throughout the country. I do not want to come across as patronising, because I was born in Wigan and grew up in Liverpool and have always believed that it was working man’s philanthropy. Others ensure that their theatre keeps going or donate to the Royal Opera House and there is no greater thing than to keep a local football team going. I do not pretend to be an Ipswich fan. I always want them to do well. But whether it is Marcus Evans at Ipswich Town or the infamous Delia Smith, saying, “Come on, let’s be having you,” up at Norwich, it is important that people invest in something that is critical to their community.

Everyone is worried that the huge amounts of money coming in have skewed the field somewhat, and financial fair play will go a long way towards addressing that. I am impressed that the owners of Manchester City have basically put equity into their finance, as opposed to loans—that is a good thing—and it has to some extent shaken up the premier league. However, when the rules are introduced we must ensure that there are no loopholes, which we saw in Germany, when okay money has not been invested—a €100 million sponsorship deal for a particular team was the way of getting money in, and it went straight through to the profit and loss.

Football Clubs (Governance)

Debate between Steve Rotheram and Thérèse Coffey

Wednesday 8th September 2010 Westminster Hall

[Steve Rotheram]

Give us an easy one! The tribal nature of football, which I will come to later if I have the opportunity, can sometimes override the common-sense approach. The example that the hon. Gentleman gives is a good one. Although the economics stack up in favour of Liverpool and Everton sharing a football ground, there are not many examples in the whole of the United Kingdom of such ground-sharing schemes. It is like suggesting to a Man United supporter that they share Manchester City’s stadium. If that is what the hon. Gentleman is suggesting, it would be a difficult proposal to sell on the doorstep.

There are those who would say, “Leave them to it. Keep politics out of football and football out of politics.” The UK Government have traditionally veered away from being heavy-handed in football business, leaving the sport to its own internal devices and regulatory systems. However, the game itself is now a huge, complex and lucrative industry, which, by definition, impacts on the economy. Premier league clubs alone are saddled with an estimated cumulative debt of about £3 billion. We ignore that and the culture it has permitted it at our peril.

Another major money-yielding industry that, until recently, was deemed untouchable and was pretty much left to get on with things on its own went belly up. On that basis alone, there is a strong case for the Government to intervene. I will go even further and say that the Government not only have a right but a responsibility to get involved. Football has received much financial and political support from Government over the past decade or so, and, at a national level, with Government support, it is bidding to host the World cup. Therefore, in return, the Government have a right to expect the highest standards of governance and a duty to step in when the game falls short of those standards, which it currently does.

However, the case is more nuanced than that; for many, it is personal. The football industry is unique because football is a product like no other. Supporters in general are not simply consumers who can exercise purchase power and walk away from the product if they are unhappy with its quality or performance. Football fans invest emotionally as well as financially in their clubs. Club allegiances, as we have just identified, are deep-rooted and passionate and are often passed down from generation to generation. They are inextricably bound with community ties and identities. In that respect, football, like politics, is tribal. It commands loyalty and constancy and requires member engagement if it is to thrive. The industry itself should recognise and respect that.

The issue is political in other ways. It is said that the new politics is about transparency and accountability, and about more rigorous and meaningful forms of democracy. It is precisely those democratic principles—transparency and accountability—that football followers wish to see enshrined in the conduct of their clubs. It is entirely in keeping with the spirit of the age that football fans should seek greater influence in how their clubs are run, particularly when they see the clubs being run into the ground by profit-fixated asset strippers with little or no understanding of or empathy with a club’s heritage or culture.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I congratulate my fellow Liverpool supporter on securing this debate. However, I do not agree that Governments should intervene in this matter. The whole issue has arisen, particularly for the supporters, because of the financial engineering that has been going on. Does the hon. Gentleman not agree that instead of trying to regulate in a particular way, we should use tax incentives to encourage mutuals, such as the Arsenal share scheme? Instead of debt-financed football clubs, which rely on tax incentives, we should have a different approach that encourages supporters’ ownership of the clubs.

[Steve Rotheram]

I think that if that recommendation emerged from this debate and was supported by Members in the hon. Lady’s party, that would be a fantastic outcome. Hopefully, during the rest of the debate, we can tease out some further recommendations.

This is a timely debate, because the calls for greater supporter involvement chime with the coalition Government’s much-vaunted big society idea. It is altruism that drives supporter activism. Supporters’ trusts are run by people who give their time, money, effort and skills for the love of the game. Their overriding motive is to see their clubs prosper, on and off the pitch.

If the big society is all about citizens engaging proactively with activities and institutions that impact on their lives and the shared life of their communities—although, frankly, it all depends on which Minister is trying to define it—football governance reforms provide an ideal opportunity for the Government to push for improved supporter representation and involvement.

The social benefits of supporter involvement are already in evidence. A report recently commissioned by Supporters Direct entitled “The Social and Community Value of Football” examined this issue in full and detailed the specific advantages of supporter ownership, including

“a greater sense of engagement and inclusion with fans and wider stakeholders; better integration with the community; more open and responsible governance; good relationships with local authorities, and partnerships with voluntary organisations.”

So there is really no excuse not to take this idea on board.

The Conservative party made the right noises in its election manifesto, pledging that

“we will reform the football governance arrangements so co-operative ownership models can be established by supporters”.

I note with a little concern that the coalition Government made a rather more non-committal promise to “encourage” reform in its coalition agreement in May. I may be splitting semantic hairs here, but I sincerely hope that that did not signal a downgrading of the commitment.

My own party has a proven track record on football governance reform. It was the Labour Government who introduced the umbrella organisation for fans, Supporters Direct, in 1999. It also commissioned the Burns inquiry into football governance in 2005, and tackled the Football Association and other football governing authorities in 2009 over their failure both to work together and to implement reforms. The new Government have talked the talk on the big society and the role of football supporters in the governance of football clubs. The challenge now—I throw down the gauntlet for the Minister—is to walk the walk.

I should say a word about supporters’ trusts, as they are crucial to the success of this kind of democracy in action. They are formal, democratic and not-for-profit fans organisations and they aim to extend supporter ownership, representation and influence at their respective clubs. Sadly, if unsurprisingly, they have commonly been founded in response to financial or mismanagement crises at a club; crises that have compelled supporters to take matters into their own hands.

On a far more positive note, supporters’ trusts are generally voluntary, they operate effectively on minimal funding and members are motivated purely by their passion for the game. In that respect, they are true grass-roots movements and their successes prove that fan ownership, control or representation can work. Many of them are run along the lines of the extremely professional Northampton Town Supporters Trust, which was established in 1992. At that time, it was the first collective of its kind. It enjoys a shareholding in the second division club, as well as representation on the board of directors.