The other aspect of the Bill that addresses sustainability is that it will now give the regulator powers to deal with bad owners—not just at first instance when they are buying the club, but once they are in charge of it. I thank the Minister for writing to me and clearly setting out the powers that the regulator will have to deal with owners who no longer seem able to run a club properly, by intervening and taking responsibility for the club away from them. It would be helpful to put that letter in the public domain and the Library.
Louise Haigh Portrait Louise Haigh (Sheffield Heeley) (Lab)
- Hansard - -

Despite being a lifelong Barnsley supporter, I am still grateful to my hon. Friend for hosting the Sheffield Wednesday supporters’ trust yesterday and for his leadership on this issue. What was reflected back to us by the supporters’ trust is how unfair the current situation is. Clubs—and therefore the fans—are punished when irresponsible owners like the current owner of Sheffield Wednesday, Chansiri, behave appallingly and do not put the fans first.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

My right hon. Friend is absolutely right. I will turn in a second to what the EFL can do now.

For all that the Minister has been helpful in explaining what the regulator’s powers will be, the problem is that we are left in the meantime without a regulator and doubts about what the EFL can do in that regard. My hon. Friends the Members for Reading Central (Matt Rodda), for Reading West and Mid Berkshire (Olivia Bailey) and for Earley and Woodley (Yuan Yang) will be very much involved with the Reading supporters’ trust and can tell us all the problems that they have experienced. My hon. Friend the Member for Morecambe and Lunesdale (Lizzi Collinge) has similar problems with her club. There have been similar problems for Derby and its fans, as hon. Friends will know, and the Secretary of State will know about Wigan.

The situation at Sheffield Wednesday is dire. The owner has failed to pay wages for three months over the course of this year. That affects not just the players—some of whom may be well off, while others are not; the administrative staff, clerks and all those people have not been paid for two months in some cases. The owner has not paid His Majesty’s Revenue and Customs on two occasions. It is clear that he is simply running out of money.

What actions can the EFL take? We welcome the investigation that it is now conducting into what is going on at Hillsborough, but it is clear that although Chansiri was funding the club to the tune of about £10 million a year, he has now run out of money. Rob Brookes of the Wednesday supporters’ trust has done a brilliant analysis of Chansiri’s companies in Thailand, which are, by and large, now losing money. He is not able to fund the club, so where has the money been coming from to keep it going for the past two or three years? Has he borrowed it? If so, who has he borrowed it from? What are the conditions on that borrowing? Are the people who lent him the money now effectively running the club and telling Chansiri that he cannot sell it? He has turned down many approaches to sell the club and is demanding ridiculous prices for it. Has the money been borrowed from reputable sources? I do not know; I am not making an accusation. The only person who can clarify this awful situation is Mr Chansiri himself, but he will not comment on it.

We welcome the EFL investigation. As my right hon. Friend the Member for Sheffield Heeley (Louise Haigh) says, we want the EFL to find out what is happening, and to be transparent and open about what it knew about the whole issue. Why, when Chansiri produced a business plan in March, did the EFL accept it? How far did it question that plan? Having given the EFL a business plan saying that he was financially sustainable, he failed to pay wages hours later. He had two five-hour engagements with the fans and never once mentioned his problems funding the club.

As my right hon. Friend the Member for Sheffield Heeley said, what we do not want is for the EFL to come in and its only actions be to punish the club with transfer embargoes and points deductions to the point where a sustainable sale to someone else is not possible. I say to the EFL: you are the only hope we have until the regulator comes in, so please work with the fans’ trust and others to find the best way forward. Tell us what you knew and what you know now, and expose what Chansiri has been doing, because it is an absolute disgrace that a club of Sheffield Wednesday’s stature should be reduced to this situation.

We have heard today that, because of the Safety of Sports Grounds Act 1975, Sheffield city council has issued a directive that unless work is done on the north stand roof, it will close part of the ground come the start of the season, but the club has known about that for three years. This is an appalling situation. I ask the Minister and the Secretary of State to talk to the EFL about how far they can work with them to save the situation.

I welcome the Minister for Sport’s letters to me, the commitment to fan engagement and the commitment on the FSA’s role going forward, but the regulator must have the powers to intervene if it feels that external competitions such as the club world cup interfere with our domestic competitions. I thank her very much for her engagement right through this process.