Summer Adjournment

Gareth Thomas Excerpts

Thursday 18th July 2013 Commons Chamber

[Mr Jim Cunningham (Coventry South) (Lab)]

When I applied to speak in this debate, I was not aware that I would secure a meeting, along with my right hon. Friend the Member for Coventry North East (Mr Ainsworth), with the Minister of State, Department for Culture, Media and Sport, the right hon. Member for Faversham and Mid Kent (Hugh Robertson). I therefore intend to be conciliatory in speaking about what has happened to Coventry City football club.

Many people will be aware of the long-running dispute between Coventry City football club and the owners of the stadium in Coventry, the Ricoh arena. We had a debate earlier this year on the matter so we need not go into the details of the dispute again. I also raised the matter earlier during Question Time.

The situation has developed and matters have come to a head. Coventry City FC is now due to play its home games at the Sixfields stadium in Northampton. Neither I nor the people of Coventry have anything against Northampton and I am sure that it is an excellent stadium. However, the fans will have to make the round trip at great expense, which will be beyond many of them financially. Coventry has been the home of the club since it was founded and I am sure that Members can imagine the great disappointment among Coventry fans and residents that the club is having to leave its home city.

I want to make three points. First, I understand that all sides in the dispute are having a good deal of difficulty in having productive negotiations. I do not wish to go into the reasons why that might be. However, I believe that it is vital to bring all sides of the dispute to the negotiating table. A compromise arrangement can still be thrashed out that would enable the club to continue playing at the Ricoh arena. I am only asking for a temporary solution to be found until a long-term solution can be reached. I call on all the parties involved to put aside their grievances and work constructively together to see whether an interim agreement can be reached.

I believe that the sports Minister is well placed to mediate in the dispute and I have called on him to do so. Earlier today, my right hon. Friend the Member for Coventry North East and I had a productive meeting with the Minister in which we put across our views on the situation. I obviously respect the privacy of that meeting, but I will just say that we now know that he will certainly be talking to the Football League.

Time is running out before the season begins and I hope that the discussions will ensure that the club stays in Coventry.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

If I am lucky enough, like my hon. Friend, to catch the eye of the Chair, I hope to make some broader points about the power of football supporters within their clubs. Does he agree that the supporters of Coventry City, who are organised through the Sky Blue Trust, have done a sterling job in supporting him and my right hon. Friend the Member for Coventry North East (Mr Ainsworth) in campaigning for Coventry City to be able to play within the bounds of the Coventry conurbation?

[Mr Cunningham]

I certainly pay tribute to the fans of Coventry City. They have had great patience and have given me and my right hon. Friend the Member for Coventry North East a lot of support. I cannot praise them highly enough. They are now in the situation of having to travel 70 miles to a stadium outside Coventry, which will cost a significant amount. With the economic situation these days, people are finding it hard to make ends meet, to say the least. The fans have been very loyal to the club over many years, in good times and in bad.

Secondly, the Football League has given approval for the club to play at Northampton. I understand that that might be contrary to the Football League’s own regulations, but we will have to wait and see about that. I disagree with the decision to grant approval because I do not believe that all avenues of negotiation have been exhausted. Until a week ago on Monday, I thought that there was a very good chance that we would make progress with the three main parties in the process. However, when the Football League gave its approval, that took the pressure off all sides to get together and resolve the situation. That was a weapon that the league could and should have used.

I believe that there should be an inquiry into whether the Football League’s regulations have been fully complied with. However, if we assume that they have been complied with, it is still shocking that the situation has reached this late stage without the Football League taking action. To let the situation unravel to the point where a football club cannot play in its home city without the league intervening seems to me to be ridiculous. There should be a review of the Football League’s regulations to ensure that cases such as this one and that of Wimbledon are not repeated.

Thirdly, on a related point, we all know how serious a problem debt can be for football clubs. Debt, rent disputes, company buyouts and takeovers can all be felt by the team and the fans. It is time for a review of the company law relating to football club ownership to take into account the fact that football clubs are not simply businesses. They are not commodities to be bought and sold to make a profit. They mean more than that to the players, the many people involved in a club and, importantly, the fans. It is a great shame when fans can no longer watch their team because of the financial decisions of a few business people. I believe that there should be a review of the law relating to football club ownership and clubs’ financial arrangements. It should not be possible to get into this sort of situation without anything improper or illegal occurring. At some point, Government regulations should prevent this late stage from being reached.

I hope that all Members who are present agree that urgent discussions are essential if a compromise is to be reached that will keep the club in Coventry next season. I urge all sides in the dispute to come together for the future of the club and I call on Ministers to consider carefully this issue and the changes that might prevent such a situation from occurring again.

--- Later in debate ---

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

I am grateful to you, Madam Deputy Speaker, for giving me the opportunity to take part in this pre-recess debate. It is a pleasure to follow the hon. Member for Congleton (Fiona Bruce). I certainly endorse her hope that the Department for International Development will use some of its resources to facilitate more positive communications of the sort that she describes with North Korea. I hope she will forgive me if I do not promise to read the heavy tome that she recommended on my summer holidays, but I thought she made a very interesting and important contribution.

As my intervention on my hon. Friend the Member for Coventry South (Mr Cunningham) indicated, in my speech I shall press the case for more action to support the right of football supporters to have a say in the governance of the football club that they follow, and to call for a higher proportion of television revenues to be directed into grass-roots support. As my hon. Friend made clear in his intervention, Coventry City is just the latest example of a club where supporters’ concerns are being ignored. The particular concern of the supporters’ trust—the Sky Blue Trust—and other supporters of Coventry City more generally is the owners’ desire to shift their club for a number of years some 35 miles away from where it currently plays, with all the difficulties for Coventry City supporters that that will signify.

I welcome the fact that my hon. Friend the Member for Coventry South and my right hon. Friend the Member for Coventry North East (Mr Ainsworth) have met the Minister. I understand that Coventry City supporters are shortly to take part in a demonstration outside the Football League to demonstrate their concern to the powers that be in the Football League. Given that the Football League’s strap line is “Real football, real fans”, one hopes that it will listen to the concerns of Coventry City fans and intervene.

[Mark Pawsey]

As the MP for a constituency that neighbours Coventry and with many supporters in my constituency, I very much hope that the Coventry City issue will be resolved. Does the hon. Gentleman agree that if Coventry City plays 35 miles away, there might be an opportunity to persuade Coventry City supporters to watch the oval ball game in the city of Coventry at the Butts stadium and see the Coventry rugby club restored to the power in the land that it once was?

[Mr Thomas]

If the hon. Gentleman will allow me, I will stick to the more general point about the need to give football supporters more say in the governance of their club. Nevertheless, he has made his point and I am sure that Coventry rugby club’s supporters will be delighted that he chose to make it.

The successes of Swansea City and Bayern Munich last season emphasise, in their very different ways, the success of clubs where supporters have a very direct and significant role in how their football club is managed. Swansea City is unique in the Premier League in terms of the involvement of fans in the boardroom. I think that it is high time that that situation changed. The Co-operative party, which I am lucky enough to chair, championed in the late 1990s the idea of football supporters’ trusts to help football supporters co-operate to buy stakes in the running of their clubs. Now many Football League clubs and, indeed, many non-league clubs—the famous cases of AFC Wimbledon or FC United through to the likes of Exeter and Chester—are directly run by their supporters through the mechanism of a supporters’ trust.

The involvement of supporters’ trusts on the boards of clubs helps to ensure that that authentic voice of the supporter is heard when the role of the club in the local community is being discussed, when ticket prices are being debated or when players’ wages and contracts are being agreed. Supporters’ trusts help to ensure that longer term thinking about the future of the club and the need for sustainable finances over the long term are being considered. They help to deliver added social value to their localities and, indeed, on occasion they can boost enterprise in the area.

The Football Association has been under pressure for some time from football supporters to bring forward reforms to football rules to give fans more influence. To date, they have resisted any measures that challenge the autonomy of Premier League club owners. The FA Council’s summer meeting took place last Saturday and sadly was no different from previous such meetings. So if the supporters’ voice is really going to be heard, it seems to me that three key measures are required for change.

First, legislation is needed to make it easier for supporters’ trusts to buy their club. There ought to be a right to buy for supporters’ trusts that allows them to purchase a club at the point of a club entering administration and before receivership at a fair market valuation.

Secondly, for most supporters of Premier League clubs, administration is not likely to happen any time soon and there is no obvious sign either that, despite warm words from some Premier League club owners or managers, a stake in the ownership of Premier League clubs is likely to be sold to supporters’ trusts. Legislation is also needed to embed a right to observe in law. In other words, if a proportion—say 10%—of season ticket holders at a Premier League or Championship club belong to the registered supporters’ trust, that trust ought to have a right to attend and observe board meetings at the club, to receive board papers and to be able, as a result, to question and hold to account the club’s owners and senior staff.

Both these measures would help to embed supporters in the heart of decision making about a football club’s future. Such decisions about the future of a football club should not be the sole preserve of wealthy owners. We need to remember that such clubs have been built on the back of ordinary supporters’ money and commitment and they surely have a right to have better access to the key decisions and decision makers in their club.

The third measure to which I draw the House’s attention is the funding of grass-roots sport, and other related football causes. In 2001, the Premier League agreed to give 5% of its total broadcast income to the provision of grass-roots facilities, and to encourage better provision for supporters. It now claims that that was just for one TV deal, and only for domestic broadcasting rights. I wonder whether we need a back-stop legal power to ensure that that 2001 deal continues into the future. Without such a back-stop power, the Premier League and Football Association have been able to reduce the amount of money given each year to the Football Foundation directly from football clubs.

The need for more investment in grass-roots sport, and perhaps for a lever to change the minds of owners and their defenders in Premier League and FA boardrooms, points to a need for a legal power to impose a levy. If such a levy were ever to be used, it must clearly be kept well away from the Treasury. I hope we would never need to use such a power, but perhaps the Minister would consider the possibility of a back-stop statutory power to get the FA and Premier League to be more serious about funding for grass-roots sport in the future. With a £5 billion broadcast deal, it is not unreasonable to expect the Premier League to offer 5% of its income for investment in grass-roots coaching and facilities.