[John Robertson in the Chair] — Football Clubs (Governance)

Part of the debate – in Westminster Hall at 10:14 am on 8 September 2010.

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Photo of Barbara Keeley Barbara Keeley Shadow Deputy Leader of the House of Commons, Shadow Minister (Health) 10:14, 8 September 2010

And those from much further afield. The constituents who have contacted me are also members of the Manchester United Supporters Trust. They have become disillusioned with how their club is being run and are concerned about the state of the national game. They think that football must start to be regulated properly and have its governance reformed.

Many Manchester United supporters in my constituency are greatly concerned that their club is now the most heavily indebted club in the world, after a hostile and highly leveraged takeover by the Glazer family in 2005. My right hon. Friend Hazel Blears touched on the debt situation of that club. Prior to the takeover, the club had no debt at all. It now services debts in excess of £750 million. Although the club is still reporting a healthy operating profit, the money is not necessarily going into improving the club; it is being spent just on servicing the debt. The 2009 report by the all-party group on football points out that supporters paying off the debt in such situations do not even have a tangible influence over the direction of the club. As with Portsmouth's situation, the longer-term future of the club is no longer assured.

That level of debt and uncertainty has a clear impact on supporters. Many feel that the decisions made by controlling interests in the club in the boardroom do not demonstrate long-term commitment to the club and its supporters. That is why dissatisfaction sometimes breaks out and there is a sea of green and gold instead of red at big matches at Wembley. My constituents rightly feel it is time for dedicated football fans to be given some sort of stake in the clubs that they and their families have helped to build over many years.

Football clubs are an integral part of the community, and their ownership and financial management should not just be dealt with through company law. Indeed, I remember when Manchester United behaved as if it was part of the local community in Trafford, where the club is based. When I was a Trafford councillor, a young David Beckham came to open a new centre for young people leaving care. Members of the team made visits to schools to read to children during reading weeks and the players were much more involved in the community that was home to their club. That changed and the players started to be seen more as a corporate resource. Prices for tickets and kit increased dramatically and players' salaries soared. It has become much harder to see clubs such as Manchester United as part of our local community.

There should be stronger regulation to ensure that those owning and running football clubs understand their wider responsibilities to the community. Football clubs should not be run on the basis of massive debt, which can threaten the stability of both individual clubs and the health of the game as a whole. At the moment, the game has clear laws enforced by referees and assistants on the field. However, off the field, it is like trying to play a game with hardly any pitch markings, unclear laws and no referees. That is why, off the field, various forms of financial crisis are appearing all over the place-from Cardiff City to King's Lynn, from Chester City to Southend, and from Manchester United and Liverpool to Portsmouth. We could say that governance in the football industry is no better than the governance of the banking industry over recent years.

There is plenty of legislation on football, but it is directed at the fans-for example, on all-seater stadiums, football banning orders and controls on drinking in sight of the pitch. What about some legislation to constrain what goes on in the boardroom? Legal models from elsewhere could be adapted to work in England and Wales. We have heard about examples from Germany, but there are also examples in France, the United States and Canada. Spain already has a national sports law that establishes a statutory national sports council and a special company status of sporting limited company. That law is not perfect-I understand that the Spanish Parliament is considering reforming it-but it does give a clear legal context for professional and amateur sport and recognises the unique characteristics of professional sports clubs. Will the Minister say whether he has considered or intends to consider other models of governance for professional sports clubs?