Commons Sense

House of Commons · Ministerial Statement

English Football League Governance: Derby County FC

18 January 2022 · 13 other contributors

Opened by Chris Philp Con Croydon South

Culture, Media & Sport

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Chris Philp raised concerns about english football league governance: derby county fc in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The Minister addressed the concerning situation at Derby County Football Club, emphasising its importance to local communities.
  • He highlighted that the club's administration is a matter for the English Football League, the administrators and the club itself.
  • The sports minister engaged with the EFL, urging them to facilitate an urgent solution.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Chris Philp

The Minister addressed the concerning situation at Derby County Football Club, emphasising its importance to local communities. He highlighted that the club's administration is a matter for the English Football League (EFL), the administrators and the club itself. The sports minister engaged with the EFL, urging them to facilitate an urgent solution. The EFL has asked for details of a funding plan from the administrators and extended the deadline for proof of funding as per regulations. The Minister noted potential bidders interested in purchasing the club and highlighted ongoing work on governance reforms to prevent similar situations in future, including endorsing a strong independent regulator.

Other contributors (13)
  • Pauline Latham Con Derbyshire North

    Question

    Expressed concern over Derby County's situation, questioning whether the EFL is acting in the best interests of fans. She raised issues regarding ruling on football debts and outdated insolvency guidelines, as well as an arbitrary deadline set by the EFL. She also asked for assurance that club administrators are being held accountable.

    Minister reply

    Agreed with concerns expressed and reiterated the Government's commitment to pressing the English Football League to act urgently and pragmatically. The sports Minister is in constant contact regarding Derby County’s situation, and he will be contacted immediately about speaking with the administrators.

  • Alex Davies-Jones Lab Pontypridd

    Question

    I am grateful to the hon. Member for Mid Derbyshire (Mrs Latham) for bringing this urgent matter to the House today... May I urge the Minister and the sports Minister to do everything in their power to secure the club’s future for the sake of fans, players, staff, the city and the wider community?

    Minister reply

    I thank the shadow Minister for her question. The Under-Secretary of State for Digital, Culture, Media and Sport is urging all participants to find a resolution... Secondly, the problems at Derby County are long-standing, and long predate the fan-led review. We are moving at pace to implement the fan-led review.

  • Tracey Crouch

    Question

    I congratulate my hon. Friend the Member for Mid Derbyshire (Mrs Latham) on securing the urgent question... Given that clubs think that the recommendations in the review would lead to greater sustainability in football, will the Minister give a bit more detail about the pace at which implementation of the report’s recommendations is being considered and will be responded to?

    Minister reply

    Let me start by paying tribute to my hon. Friend for her work... 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.

  • Margaret Beckett

    Question

    I can confirm everything that the hon. Member for Mid Derbyshire (Mrs Latham) said about the importance of this issue in the city of Derby and across the whole area... None of those participating in it would be forgiven.

    Minister reply

    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 today.

  • Julian Knight

    Question

    A little over a year ago, the sports Minister and I were in almost daily communication about the EFL’s financial crisis... We all know there is limited time to bring forward legislation, but this is clearly an urgent priority. Will my hon. Friend commit today to give us a timetable for when legislation will come forward?

    Minister reply

    My hon. Friend echoes sentiments expressed by the right hon. Member for Derby South (Margaret Beckett)... On the timing, a number of details need to be worked through. The fan-led review’s recommendations were detailed and primary legislation will be required... I will ask him to speak to my hon. Friends.

  • Toby Perkins Lab Chesterfield

    Question

    I have to say that there will be real disappointment among Derby County fans that the sports Minister is not here to respond to this question... Will the Minister tell us what the sports Minister is doing to ensure that Middlesbrough and Wycombe’s claims against Derby County’s previous owners do not prevent the club from being purchased?

    Minister reply

    The hon. Member’s comments about the sports Minister were rather unfair: he was in a Bill Committee, taking primary legislation through Parliament... On the other football clubs, legal proceedings are currently pending, but I think a pragmatic solution should be found.

  • Clive Efford Lab Eltham and Chislehurst

    Question

    We all accept the special role that football clubs have in their local communities, but they are treated like any other business. With the current rules and laws, it is difficult to intervene effectively. The football regulator needs to be established quickly with the necessary regulations.

    Minister reply

    The Government's intention is to legislate as quickly as possible for an independent regulator. However, we need to ensure that the legislation is correct and avoids making mistakes.

  • Justin Tomlinson

    Question

    Although football finance expert Kieran Maguire warned about financial issues in 2018, it took 19 months for the EFL to act. The situation has escalated out of control and the Minister should get all parties together to find a solution.

    Minister reply

    The Sports Minister is working urgently to press the participants in this saga to resolve the issue. We need all involved, including the EFL, Middlesbrough, Wycombe, and others, to demonstrate flexibility.

  • Chi Onwurah Lab Newcastle upon Tyne Central and West

    Question

    The Government have repeatedly failed to act on financial sustainability and effective governance. Does the Minister think that the pace of the Government’s response matches the importance of football in people's lives? Will he commit to putting fans at the top of the football pyramid?

    Minister reply

    We commissioned the fan-led review, which we are now implementing carefully. Fans should be put at the centre as they led this review.

  • James Daly

    Question

    The situation with Bury FC shows that football clubs are engines for social and economic good; their loss impacts communities deeply. The Minister must ensure the EFL acts pragmatically to avoid similar situations in future.

    Minister reply

    We understand how devastating it is when a local club disappears, as seen with Bury FC. We need urgent action to prevent this happening again and will study the fan-led review recommendations carefully.

  • Tony Lloyd

    Question

    The EFL has failed in its duty on fit and proper person tests for owners of clubs. The Minister must convey that there is no confidence in the EFL's ability to govern football effectively.

    Minister reply

    We need real pressure on the EFL so we do not lose another great club while waiting for legal force from the fan-led review recommendations.

  • Alison Thewliss

    Question

    Derby County faces a difficult situation with a 21-point penalty and financial/legal uncertainty, making it hard to keep players. Does this mean there is a catch-22 situation?

    Minister reply

    It is a tough situation but we demand that Derby County continues fighting for survival in the Championship.

Shadow Comment

Pauline Latham

The shadow minister expressed deep concern over Derby County's situation and the broader implications for football clubs. She questioned whether the EFL is acting in fans' best interests and pressed on why the EFL refuses to rule on certain claims regarding football debts. She raised concerns about outdated insolvency guidelines affecting Derby County, as well as the arbitrary deadline set by the EFL. Latham also requested assurance that administrators are being held accountable for their actions.

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