Football Clubs in England: Financial Sustainability

Stuart Andrew Excerpts

Monday 7th November 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Stuart Andrew)]

I am pleased to respond to this debate and I am grateful to the hon. Member for Birmingham, Ladywood (Shabana Mahmood) for securing it. She opened her speech by discussing the challenge of representing two football clubs, and I imagine that that is quite a tightrope to walk. She rightly highlighted the long history of concerns that many of the fans she represents have expressed. I, too, want to pay tribute to their commitment. It must be incredibly difficult for them at times. She rightly pointed out, too, many of the complexities of the structures of some of those football clubs.

The interest and passion shown in this evening’s debate—and, in fact, since I took on this role only a few weeks ago—is testament to the huge importance that the House attaches to securing the long-term sustainability and governance of English football. I, too, want to pay tribute to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) for the amazing amount of work that she did, along with many other fans, in delivering that report.

Football clubs have an enduring importance in the lives of the people of this country. Many Members have spoken in this debate, and to me personally, of historic and local clubs woven into the fabric of their communities that have simply ceased to exist or have been relegated because of reckless decisions made by owners and appalling financial mismanagement.

We have heard—I have heard about this endlessly in recent weeks—of the poor or non-existent governance practices in some of our clubs, with fans locked out of key decisions that affect them, which threatens clubs’ long-term health and sustainability. Others have spoken of the clear need for a fundamental change in how money is distributed throughout the football pyramid to ensure the long-term health and competitiveness of our national game.

We have heard how English football clubs make significant contributions to all the local communities in which they are based. They are at the heart of local communities, but they also provide many jobs and support for local businesses that rely on them. Fans are the lifeblood of those clubs: they bear the brunt of the fallout of bad ownership decisions; they see where the structures are not working for the good of the game; and they can articulate most clearly how to set that right.

One of my urgent priorities when I became Minister for sport was to hear first hand from fans—I wanted to hear from them first—about where the problems lay in our national game and how we could address them, to ensure a sustainable and thriving future for football in this country.

[Kevin Foster]

I agree with the tribute that the Minister paid to fans. Certainly Torquay United Supporters Trust has made clear its views to me over a long period, and it engaged directly in the fan-led review. Can my right hon. Friend give us an update on when the Government will respond?

[Stuart Andrew]

I will certainly come to that in a moment; I am sure that is the bit everybody is waiting for—do not hold your breath. [Laughter.]

As I said, one of the first things I wanted to do was to meet the fans. They are the ones who are most invested in their clubs and who go and support them day in, day out, whatever the results, the weather or their fortunes. Without them, football in this country would simply not be the fantastic game that it is.

[James Daly]

Football is obviously all about its fans; does the Minister agree that it has a potential that is untapped by the state? What with the delivery of frontline services at community stadiums, the groupings and support and everything else that goes with that, the added social value is immense.

Does the Minister also agree that it has been an absolute pleasure to sit in the Chamber with the hon. Member for Birmingham, Ladywood? She should be incredibly proud of the passion she has shown for her community and her football team, and every single Birmingham City fan should be proud of what she has done today because it really does matter. Does the Minister agree?

[Stuart Andrew]

How could I possibly not agree with my hon. Friend? He is absolutely right. In the short few weeks I have been in this job I have really noticed the passion that everybody has for the sport. Fans sometimes get frustrated with their club’s performance, but their passion and loyalty are to be admired. My hon. Friend is absolutely right to praise the hon. Member for Birmingham, Ladywood for securing this debate.

As I said, I was keen to hear from the fans first, which is why they were the first people I met when I took on this role. I met representatives from the Football Supporters’ Association, Fulham Supporters’ Trust, Charlton Athletic Supporters’ Trust and Blackpool Supporters Trust to hear their stories. All those clubs had suffered at the hands of owners who used and abused their stewardship. This relates to the point made by the hon. Member for Strangford (Jim Shannon). Some of the stories I heard were frankly shocking, and some of the sacrifices that the fans had to make to make their point were astounding. The fact that Blackpool supporters boycotted their own club for four or five years really does show the strength of their feeling.

Too many clubs have been lost to the cycle of unsuitable owners taking over clubs, stripping them of their assets, as the hon. Member for Birmingham, Ladywood said, and leaving them as empty shells, as my hon. Friend the Member for Bury North (James Daly) said. Too many clubs have been brought to the brink, with owners refusing to fund them any more. We are committed to breaking the cycle of inappropriate ownership, financial instability and poor governance practices. I look forward to the debate that my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) has secured for tomorrow. He mentioned the issue of cryptoassets; I am sure we will be having that conversation for a good few months.

Since my meetings with fans, both the Secretary of State and I have met representatives from the football authorities—the FA, the Premier League and the English Football League—to understand their perspectives on reform, too. The policy is complex and it is important that we get it right. We are talking about matters of finance and governance, and I make no apology for taking the time to ensure that I have properly considered all the issues before me. That is why we continue to engage and hear views from a wide range of stakeholders, including the football authorities and, most importantly, the fans’ groups.

[Shabana Mahmood]

I totally understand that when we are trying to build a totally new regulatory regime, we have to make sure we have thought of every possibility and any unintended consequences, but will the Minister confirm that the end position he is trying to get to is an independent regulator and that he is trying to make sure that the regulatory regime is fit for purpose? The end state we must have is an independent regulator of English football.

[Stuart Andrew]

The hon. Lady tempts me to go a bit further than I can at this stage, but I can tell her that I am currently doing all the deep work on the White Paper because I want that to address many of the points she has raised.

Football can take forward some of the reform measures—such as financial redistribution throughout the leagues—now, and I strongly urge the relevant authorities to act and to do so quickly. Meanwhile, we have a new set of Ministers so we are taking a little time. We recognise that clubs are at the heart of many of our communities. Were I not to do the due diligence, I am sure that clubs would not be happy with me for not double-checking that everything is right. We are taking the time to consider the policy and consult the numerous stakeholders. We remain committed to publishing a White Paper setting out our detailed response to the fan-led review of football governance, but let me make it clear: the case for reform is not in doubt.

Question put and agreed to.