May I first take the opportunity to thank Mr Speaker for granting me this debate? I also thank the hon. Member for Folkestone and Hythe (Damian Collins), who has been very helpful over a long period and has made some very interesting proposals to reform the Football League. In fact, he has proposed a Bill and I thank him again for allowing me to put my name on it. I also thank my right hon. Friend the Member for Coventry North East (Mr Ainsworth), who, like the hon. Member for Folkestone and Hythe, has been pushing for some changes to the practices of the Football League, particularly in relation to Coventry City football club. Both of them deserve a little recognition for the work they have done in this area.
My aim in this debate is to raise two key points. The first is the latest situation with Coventry City football club, and the second is what the story has shown us about the future of football governance and the need for urgent reform.
Two weeks ago saw a major development in the saga of Coventry City football club, with the announcement that the club is finally to return to Coventry after a year at Northampton. It follows a decision by the Football League that the club should pay Arena Coventry Limited, the stadium owners, just over £470,000. The club and ACL have agreed a two-year deal, which can be extended until 2018. Coventry will play their first game back at the Ricoh this week and I offer them my best wishes. Obviously, we want Coventry to win, to say the least.
We are all very pleased that the club is coming home. It is good news and nobody wants to be a killjoy. The supporters in the city are obviously very happy about the situation. I thank all those who played a part in making the breakthrough happen. However, in my opinion there is a distinct danger that, because Coventry have finally returned to the Ricoh, it will be thought that it is a case of problem solved, but that is not true at all: it is only a short-term solution. The past few years have shone a harsh light on the realities of football in this country and exposed many problems. Although the most immediate problem has been resolved, we must not disregard the deeper, underlying problems that have been exposed.
Let us be clear: Coventry City football club should never have been moved to Northampton in the first place. That the Football League allowed it to happen was disgraceful and demonstrates that it is simply not fit for purpose.
The first criticism is that Sisu Capital Ltd and, subsequently, Otium Entertainment Group have prompted doubts that they are fit to own or run a football club. They have clearly not acted in the best interests of the club and have had a total disregard for the supporters, the wider supply chain in Coventry and, of course, the people of Coventry itself. In my opinion, they wanted to bankrupt the Ricoh from the start, and even went to the lengths of seeking judicial review when they were unsuccessful and the Ricoh had survived as a result. They could not care less about the club itself, and see it purely as some sort of cash cow. How can we feel
confident that the same thing will not happen again in two years’ time, or even sooner, if the agreement breaks down for some reason? Therefore, although I am happy to see the club return, let us remember that we are not seeing a demonstration of good will and responsibility.
My second main criticism concerns the role of the Football League in this saga. I believe that it has simply not shown leadership and has not proved an effective governing body. It has finally taken notice and told the club to pay back some—not all, of course—of the money owed. Where was the Football League a year ago, when negotiations were at a standstill? Where was it when Sisu stopped paying rent? Where was it when Sisu called for judicial review, saying the council had acted unlawfully by keeping the Ricoh afloat? It was only in June that the judge threw the case out, and Sisu said that the ruling “removed any prospect” of its long-term return to the stadium.
The Football League has been conspicuous by its absence throughout. It can take little credit for intervening at this late stage. Its chief executive, Shaun Harvey, has made an incredible statement:
“When The Football League Board gave its consent to Coventry City playing its matches in Northampton, it did so with this outcome in mind.”
He went on:
“While we understand that the Board’s decision led to a significant amount of dissatisfaction amongst Coventry supporters, we would not be where we are today without it. On this basis alone, this very difficult decision has now been justified.”
I find that astonishing. How can the move to Northampton have been the reason for the return to Coventry? It is as though he is claiming that the Football League had some sort of master plan all along and knew from the start that this would happen, which I find very hard to believe. Quite simply, the Football League has not shown any leadership on this issue and has waited an unacceptably long time before intervening. This situation could have been dealt with years ago before it ever reached such a conflict.
Several problems therefore need to be addressed. The Select Committee on Culture, Media and Sport published a report back in 2011 that outlined some of the reforms that are needed. I will not go into them in detail, as we have raised them on many occasions, but I want to give an idea of the sort of reforms that I believe are needed to protect clubs such as Coventry in the future.
First, we need reform of the Football Association, the leagues and their structures. For example, we do not believe that the current board membership is conducive to a democratic and well-functioning system. Secondly, we need an independent regulatory body with a licensing system that will ensure clubs live within their means and protect their long-term futures, avoiding short-termism and speculative spending. Supporters Direct have been making strong proposals in this area, and they are well worth considering.
Thirdly, we need to abolish the football creditors rule. We have already discussed it at length in the House. It is indefensible: if a club goes bust through irresponsibility, only the interests of players and other clubs are protected, not those of local businesses or the taxman. This is outrageous, and it encourages recklessness. Fourthly, we need to make drastic changes regarding club ownership. It is almost comical how weak the fit and proper person test is. We need a far higher and more consistent bar.
Fifthly, I am very keen to make it easier for supporters groups to establish trusts and to encourage supporter ownership. I am open to considering incentives for supporters groups to run a club and to reinvest profits back into the club. I would mention Supporters Direct’s call for a community-owned sports club scheme, creating a special status and incentives for clubs owned by their fans. The proposal is very much worth the Minister’s attention. Those are just a few of the reforms that might help to prevent what has happened in Coventry from happening again, and that might help to re-establish the central importance of supporters in football.
We cannot keep seeing such disputes and disasters again and again. Coventry is not an isolated case. We could discuss Brighton, Wimbledon or Portsmouth, to name a few. Owners are changing the identities of clubs such as Cardiff City and Hull City on a personal whim. Nearly 100 times, clubs have collapsed because of overspending and bad management. The Football League is not up to the tasks of governing, ensuring that there is proper management and ensuring the future of clubs.
What action might the Government consider taking? The Select Committee report was clear that the Football Association was in need of urgent reform. The Committee urged the industry to take the opportunity to reform itself and said that, if it did not, there should be legislation. The football authorities made proposals for reform, but they simply did not address the key problems. The then Minister for Sport, the right hon. Member for Faversham and Mid Kent (Sir Hugh Robertson), wrote to the Committee agreeing with its recommendations and describing them as “much needed”. He continued:
“I have already been given drafting authority by the Parliamentary Counsel, and my officials have started working up a draft Bill and supporting documentation, should football fail to deliver. This Bill will reflect the conclusions of your report.”
I therefore want to ask the Minister at what point the Government changed their mind. Why has there been such a U-turn? There was hope that the Government might take on board the reforms that were suggested by the Select Committee, but that hope has dwindled. Finally, I ask the Minister whether there is any hope for legislation in this Parliament or in the future.
5.41 pm