PARLIAMENTARY DEBATE
English Football League Governance: Derby County FC - 18 January 2022 (Commons/Commons Chamber)

I am appearing at the Dispatch Box in place of the sports Minister—the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston)—who is taking a Bill through Committee. Like many Members across the House, I know how important football clubs are to local communities, and I appreciate how worrying it is to see them under jeopardy. I feel that particularly as a fan of Crystal Palace, a proud south London club that went through a similar experience about 11 years ago. It went through administration and was bought out by Steve Parish, avoided relegation, and is now in the premier league, so there is always hope, even in the darkest hours. Because the Government understand how important football clubs are to our local communities, we launched a fan-led review of football governance, and are working at pace to respond to the excellent report from my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch).

I turn to Derby County. The situation is worrying for fans, the local community and football alike. No one wants to see a founding member of the Football League in administration and facing threats to its survival. Of course, Derby County has won silverware in the past, and I pay tribute to Wayne Rooney for his sterling work as manager this season—I never thought I would hear myself saying those words in the House of Commons.

We should be clear that the governance surrounding the administration of Derby County football club is a matter for the English Football League, the administrator and the club. However, the Government take a close interest and are receiving regular updates. The sports Minister spoke to the English Football League last night to understand exactly what is going on, and to urge all parties involved to take a pragmatic approach to securing the future of the Rams. I call on the English Football League, the club and the administrators to play an active and urgent role, within their remits, in seeking to facilitate an urgent solution to the situation.

The EFL has asked the administrators for details of a funding plan that will enable the club to complete this season. The administrators have tabled some options that are available to them, and the EFL has extended the deadline for proof of funding, in line with its regulations and policy. I understand that some bidders are interested in purchasing the club, and I very much hope that those conversations reach a fruitful conclusion as quickly as possible. Yesterday, the EFL issued an extensive and transparent update on its handling of the matter, which I commend to the House.

Of course, this matter raises questions about the wider financial sustainability of football. The fan-led review made a number of proposals directly addressing how to prevent clubs ending up in such situations, and the Government are considering them carefully. We have however endorsed in principle the review’s primary recommendation, which is that football requires a strong, independent regulator to secure the future of the national game. In the meantime, the Government, and my hon. Friend the sports Minister in particular, will continue to engage closely with the EFL and Members—particularly those who represent the fine county of Derbyshire—and call for urgent pragmatism from all parties involved, so that they find a solution quickly and save this fantastic club.

As always, my hon. Friend is an outstanding advocate for Derbyshire and for matters that concern her constituents and football fans across the county and the broader region. I agree entirely with her point. Football clubs are an integral part of the fabric of their local communities; I certainly feel that in south London with Crystal Palace, and I know that colleagues across the House and their constituents certainly feel the same about their football clubs.

The sports Minister has been in close contact with the English Football League. We want to see it working urgently, pragmatically and rapidly to resolve the outstanding issues standing in the way of a takeover by a new owner, who we hope can invest the money needed to turn the club around. The sports Minister is pressing the English Football League very hard on these points; I am sure that he will do so again and that the English Football League will be listening to our proceedings this afternoon, hear the message from this House and act accordingly.

On my hon. Friend’s final point, I am afraid that I do not know whether the sports Minister has spoken to the administrators yet, but since she has raised the point so forcefully and eloquently, I will certainly ask him to do so as soon as I leave the Chamber.

I thank the shadow Minister for her question. Clearly, the Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire, is doing everything he can to urge the various participants, especially the English Football League, but also the administrators and the other clubs involved, to find a resolution to this complicated situation.

I would add two points. First, I would not tar all football owners with the same brush. Those clubs I know about, particularly Palace, have been well managed, so it cannot be said that football owners as a whole conduct themselves badly. Secondly, the problems at Derby County are long-standing, and long predate the fan-led review. We are moving at pace to make sure that the fan-led review is implemented, and that work will happen as quickly as possible.

Let me start by paying tribute to my hon. Friend for the tremendous work that she has done in convening the fan-led review and producing such a comprehensive and detailed report. I can assure her that the Sports Minister is working on this as a matter of urgency. We have accepted the key principles of the fan-led review. It is a detailed review with a large number of detailed recommendations, and we want to make sure that we get the response right while doing so as quickly as possible. I can assure my hon. Friend that that work is happening very quickly, and I would be happy to ask the sports Minister to meet her to discuss the implementation timetable. I spoke to him earlier this afternoon and he is fully seized of the need to move fast.

The right hon. Lady makes her point with power and eloquence, and I echo her sentiments. As I said in my opening comments, I hope the English Football League, the other clubs involved in this saga and the administrators are listening to our proceedings this afternoon and to the message she just gave, which probably commands support across the House. I hope they listen and act accordingly.

My hon. Friend the Chair of the Select Committee echoes the sentiments so powerfully expressed by the right hon. Member for Derby South (Margaret Beckett) a few moments ago. There is a significant burden on the English Football League and on the other clubs involved to get this matter sorted out urgently, and I agree with my hon. Friend’s sentiments in that regard.

On the timing, a number of details clearly need to be worked through. The fan-led review’s recommendations were very detailed, and primary legislation will be required. As my hon. Friend will know, the Government need to work through a number of pressing legislative priorities. I cannot make a commitment on behalf of my colleague the sports Minister—it would be wrong to commit a fellow Minister in respect of his portfolio—but I will ask him to speak to my hon. Friend, as well as to my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch), to discuss the timing.

If I may say so respectfully, the hon. Member’s comments about the sports Minister at the beginning of his question were rather unfair: he was in a Bill Committee, taking primary legislation through Parliament, and has now arrived on the Front Bench, having completed that important task. That was an extremely unfair remark.

On the other football clubs, legal proceedings are currently pending, but I think a pragmatic solution should be found. I know the sports Minister has been in touch with the English Football League about finding a pragmatic solution. There were similar issues with Crystal Palace 11 years ago—I think it was to do with Lloyds Bank—and a pragmatic solution was found; I expect the same pragmatism to be displayed in this situation.

Finally, the fan-led review touched on some of the issues in respect of debts. When that review is implemented, it will address the issues that the hon. Member raised.

I thank my hon. Friend for his question. There are obviously legal proceedings ongoing, but I think it would serve everybody’s interests—the interests of football more generally, as well as those of Derby County in particular—if those involved show pragmatism and help a proud and long-standing club to survive. As I said a few moments ago, when Crystal Palace was in a similar situation, the bank concerned did show pragmatism, and I call on all those involved, including other clubs, to show the same kind of pragmatism.

The hon. Gentleman raises an important point. One of the issues addressed by the fan-led review is precisely the question that he refers to, and I know that as the Sports Minister works through the response to the fan-led review, answers to that reasonable and important question will be forthcoming.

The Treasury, or Her Majesty’s Revenue and Customs I should say, as an unsecured creditor, is like any other unsecured creditor, and the administrator will treat it fairly and even-handedly, as it would treat any creditor in this situation. I do not think the existence of that debt, among other debts, is the obstacle to completion of the transaction; other issues to do with outstanding legal proceedings and matters that the EFL is responsible for are more immediate obstacles. That is why I repeat my call for the EFL and those other clubs, such as Middlesbrough, pragmatically to get this situation resolved as quickly as possible.

We all agree, without question, that the steps to ensure Derby County’s survival must be taken as quickly as possible. On the wider points made about football finance and the situation the hon. Member mentioned a few years ago, I would just point again to the fan-led review, led by my hon. Friend the Member for Chatham and Aylesford. It is precisely to deal with the issues that he quite rightly raises that the review was initiated and why my hon. Friend the Sports Minister will be acting on it.

It is important that the EFL and the other participants in this saga act quickly to ensure a successful resolution. As always, the proof of the pudding is in the eating, so let us hope, and indeed expect, that those results follow very soon.

The hon. Gentleman raises a very important and reasonable point. My hon. Friend the Sports Minister has just confirmed to me that in his conversations last night with the English Football League he called on it to facilitate exactly the kind of conversations that the hon. Gentleman just mentioned. It is our hope that those conversations reach a resolution very quickly. The statement that the hon. Gentleman just read out from Middlesbrough football club is encouraging, but obviously actions will speak louder than words.

Once again, my hon. Friend makes some important points, and I am sure fans of Derby County will be grateful to him for his magnanimity in the way he framed his remarks. I believe that the issues he raises will be picked up by the fan-led review to make sure that these risks do not arise again.

The hon. Gentleman raises an important issue. A number of people have concerns about the role that agents play—not least football clubs, managers and indeed sometimes players themselves. It is a slightly, and I choose my words diplomatically, opaque—I was going to say murky—business. As the Sports Minister responds to the fan-led review, this will be an issue that he addresses.

If the current system had been functioning perfectly or properly, there would have been no need for the fan-led review. There are certainly shortcomings, as my hon. Friend points out, which the fan-led review is designed to address. On the way in which the EFL’s rules may have precipitated or triggered the current situation, I repeat my call and, I think, the call of all hon. Members on both sides of the House for pragmatism from those involved, including the EFL, to get this matter resolved as quickly as possible to save a great club.

The hon. Gentleman is right that it requires primary legislation; and the Sports Minister, who is sitting next to me on the Front Bench, is working through those plans. As I said a few moments ago, the proposals are quite complicated in some areas and we need to make sure we get this right. Obviously it would be terrible if we acted too quickly, did not get the details right and ended up not fixing the problem. The Government’s intention is to legislate as quickly as we can, but we want to make sure we get this right to avoid the situation reoccurring.

I share my hon. Friend’s call for urgency. The Sports Minister, as I said, spoke to the EFL last night, and he will continue urgently and forcefully pressing the participants in this saga to get a resolution. I repeat my call for all those involved—the EFL, clubs such as Middlesbrough, the administrators—to demonstrate flexibility and pragmatism in getting this sorted out. My hon. Friend the Sports Minister will be driving that forward.

I do not accept the allegation that the Government have been dragging their feet. It was the Government who commissioned the fan-led review in the first place, and we have accepted its recommendations in principle. Detailed work is now taking place to get it implemented. As I said in response to a previous question, we need to make sure the details are right. Although we are acting with urgency, we do not want to act so fast that we make a mistake in the legislation. On putting fans at the centre, the clue is in the name: it is a fan-led review.

I think there is agreement across the House that what happened to Bury football club was a catastrophe for the local community. We must make sure the same does not happen to Derby County. All of us, on both sides of the House, will understand how devastating it is when a local football club disappears, as Bury did. Let us hope and take action to ensure that that never happens again. I am very sorry to hear my hon. Friend’s assessment of the EFL’s conduct in the Bury football club situation. I can only repeat my plea, or demand, to the EFL to acts rapidly and pragmatically. Once again, to make sure these things do not happen again, the independent fan-led review and the Government response to it is vital. Just to be clear and to clarify, the Government accept the principle of an independent regulator and are studying very carefully the other recommendations. We will respond as soon as we can.

The hon. Member makes a very powerful and eloquent point. As I said in response to the points made by the right hon. Member for Derby South (Margaret Beckett), I am sure the EFL is listening to our proceedings and I am certain it will act accordingly.

The hon. Lady is right. It is a difficult situation to suffer a 21-point penalty. Back in 2010, my team, Crystal Palace, had a 10-point penalty and avoided relegation on the final day of the season. I hope—demand, really—that Derby County continue and survive. I hope they continue fighting on. I know they will show the spirit required to get every single point they can as they fight not for survival as a club, but for survival in the Championship. I wish them every bit of good luck in doing that.