Professional Football (Regulation)

I congratulate the hon. Member for Manchester, Central (Tony Lloyd) on securing the debate. Due to time constraints, I shall not go through all hon. Members' contributions in turn, but they showed that he has hit a raw nerve, and the message to the football authorities and the Government is clear. I have been thinking about this issue for some time. From an Opposition perspective, it comes down to three questions. First, does our party accept that there is a problem? Secondly, if so, what do we think should be done about it, and who is best placed to take that action? Thirdly, following on from that, what is the appropriate role of the Government? To start at the beginning, is there a problem? The debate has clearly shown that the answer is yes, although opinion is divided about whether that is a natural consequence of the depth and severity of the recession, which was a point that the hon. Gentleman touched on, an inevitable consequence of a high-octane sports industry, or something altogether more serious and structural. The hon. Gentleman mentioned the situation at Manchester United, and others have mentioned the finances of West Ham and Portsmouth, which have recently been in the news. In the Football League, the travails of Crystal Palace, Stockport County, Watford and Cardiff City, among others, have been well documented, and it is almost certain that we do not know the full extent of troubles elsewhere. However, in trying to come to a fair and balanced judgment on the matter, which I suppose is in many ways the role of the Government, it is fair to say that there are a few mitigating factors. We are coming out of the longest and deepest recession since the 1930s. In such circumstances, it would be extraordinary if clubs were not facing real financial difficulties. Secondly, debt on its own is not a particularly useful measure to assess a situation unless it is allied to turnover. Thirdly, conventional measures can be meaningless, particularly for some of the premiership clubs that are owned by an extremely wealthy individual who stands behind it. That was demonstrated recently when the Chelsea owner simply converted the club's debt into equity. Finally, there is pressure from UEFA, which was mentioned by the former Minister for Sport, the right hon. Member for Sheffield, Central (Mr. Caborn), whom I think I can call my right hon. Friend. I strongly believe that sport is a national competency that should be regulated and governed here in England, but it would be wrong to ignore Europe as a factor. Our clubs are key to UEFA's competitions, and we need its support if we are to bring home the 2018 World cup. Furthermore, its goal of ensuring good financial management of clubs is one with which we would all agree. The issue is whether a one-size-fits-all approach across the many different structures prevalent in European football is the best way forward. Therefore, given the well-publicised troubles of several clubs and the external pressures on football, it is impossible to conclude that there is not a problem, although it is perhaps not as terminal as has been suggested. Having reached that conclusion and accepted that there is a problem, the second question is what we think should be done about it, and who is best placed to do it. I absolutely agree with the many hon. Members who said that football is a great deal more than simply a business. It has always been a central tenet of my party's sport policy—and indeed our wider approach to politics—that we should free up individuals and bodies to run and regulate themselves. The bodies in football that are responsible for governance and regulation are the Football League, the premier league and the Football Association, and the question is whether they are able to sort this out themselves. I entirely agree with my hon. Friend the Member for Cities of London and Westminster (Mr. Field) when he says that the Football League has come a long way. Unsurprisingly, I pay tribute to my friend and former colleague, Lord Mawhinney, for his work in this area. Among other things, the Football League has produced a 10-point sporting sanction, as Crystal Palace has just found out. It publishes agents' fees, has a workable fit and proper persons test, and has introduced a salary cost management protocol. In governance terms—this point was picked up earlier—it also has at least two independents on its board. Despite the recession, the league's attendance over the past five seasons has topped 60 million, and it is now at its highest level for that league for more than 50 years. Sitting suspended for Divisions in the House. On resuming—