Football Governance

Justin Madders Excerpts

Monday 25th April 2022 Commons Chamber

[Nigel Huddleston]

I have had many conversations with my hon. Friend about the situation at Derby County and I know how passionate she and several other colleagues are about the situation there. We are very confident that, with the new regime and the independent regulator looking particularly at financial regulation, the chances of clubs going into administration again and getting into that difficulty would be considerably reduced because there would be much closer scrutiny of the finances. As my hon. Friend the Member for Folkestone and Hythe (Damian Collins) mentioned earlier, ongoing, real-time scrutiny of the finances will be pivotal. However, circumstances can change and emergencies can happen both domestically and internationally. Can we guarantee that these measures will ensure that no club will ever go under? No, we cannot, but they will be massively impactful in significantly reducing the chances of that happening.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Since the Glazer family became the owners of Manchester United, they have taken more than £1 billion out of the club, much of it to service debts they incurred buying the club in the first place, which they subsequently loaded on to the club. I do not think that kind of toxic business model has any place in football or any other business, so I hope the Minister will be able to confirm that that kind of arrangement will be banned altogether under the new regulator.

[Nigel Huddleston]

As I have said, financial regulation, looking in detail at the finances and sustainability of clubs and at how they are spending their money, will be at the heart of the independent regulator’s role.