Newcastle United Football Club: Regulation — House of Commons, 2019-01-24
Topic: Domestic Commerce
Chinyelu Susan Onwurah (Labour, Centre-left): I appreciate the hon. Gentleman’s interest in Newcastle United, and I have seen the figures in Deloitte’s report, which make Newcastle United the 19th richest club in the world. My concern is that those figures should be reported visibly for all clubs, particularly in the Premier League, where there is so much money going around Mr Ashley appears to be able to move assets between his privately owned companies at will, despite the club being a historic cultural icon and the other companies being of somewhat less reputable status and longevity We do not know what income the club is generating and whether that money is being used on the club. What is certain is that this transfer window, like the last one, is closing without money being spent on players or training facilities. Mr Ashley’s principal investment in the club has been in the form of loans, rather than equity—presumably to protect his financial exposure. Those loans are interest free, which is good, but as loans they can be called in if needed, so the sustainability of Newcastle United depends on his other businesses being successful That leads me to Mr Ashley’s business practices more generally. The BEIS Committee likened them to a Victorian workhouse, with employees being paid below the minimum wage. A "Dispatches" investigation found employees were publicly shamed for talking, spending too long in the toilet or falling ill, and lived in fear of being fired. Now Mr Ashley says that he is going to save the high street. Forgive me for being somewhat cynical, having seen how he has saved Newcastle United Newcastle United is an asset to our city, a cultural giant in our lives. I explicitly pay tribute to the fantastic Newcastle United Foundation, which uses the power and passion of football to do great work across the north-east and is, in part, funded by the club, although again that funding is not transparent. The Premier League also uses some of its vast wealth for the benefit of local communities, at least what can be spared from expenditure such as its £5 million farewell gift to departing executive chairman Richard Scudamore Neither Newcastle United nor the Premier League consider themselves to be accountable to fans. As many constituents have made clear to me, fans feel powerless before the slow destruction of what we believe in. Newcastle United is the beating heart of our city, and we should be able to protect it That goes to the heart of the matter. Why is it that a person can buy a stately home in the wilds of Wiltshire and not be able to change even a window frame, but they can buy Newcastle United, which is in the heart of Newcastle, and strip it of its assets without so much as an eyebrow being raised? Why is football left largely to regulate itself when other businesses, from pubs to social media companies, must meet social requirements I know that the Minister recognises the importance of football clubs and the custodian role of owners, because she said so during the recent debate on Coventry City. Will she now put that recognition into action? Will she launch an inquiry into the reporting requirements of premiership clubs, using Newcastle United as a test case? Will she ensure that that inquiry answers the financial questions that I have raised? Will she ensure that supporters have a voice on football club boards, as Labour has called for? Will she make reputable custodianship a requirement of club ownership? The fit and proper person test is clearly not fit for purpose It is with great sadness that I say that I have come to the conclusion that football is broken. Its governance has not kept pace with its income, and money has won over sport. We cannot turn back the clock, but we can put in place effective regulation so that financial transparency enables the beautiful game’s true splendour to shine forth once more.