PRESS 2004 RELEASE

LINK TO 2008 FOOTBALL INQUIRY

Strictly Embargoed until 12 noon, 11 February 2004

11 February 2004

Football MPs call for radical

re-distribution of football finances

The Report of the All Party Football Group’s Inquiry into Football and its Finances concludes that the increasing financial divide in football needs to be addressed as a matter of urgency.

The Report also makes clear, however, that for the game as a whole to benefit from re-distribution, all professional football clubs must meet tougher corporate governance standards. It recommends that the powers of the Independent Football Commission (IFC) should be beefed up and their decisions become binding on all parties before statutory regulation is considered.

Alan Keen MP, Chair of the All Party Football Group (APFG), said:

“Football is richer today than ever before, but more clubs than ever before are going to the wall. Why? It was this paradox that our Inquiry looked to answer.

“After nine months of detailed investigation, we have concluded that the financial divide in football between the ‘haves’ and ‘have-nots’ must be tackled urgently. However, it is not good enough just to throw money at lower league clubs without reforms to ensure they are run better in future.

“We welcome recent moves by the football authorities to address some of these issues. We have not called for a statutory regulator … yet. The jury is still out on the IFC and we believe it should be given more resources and more powers, including the ability to make binding recommendations, before a decision to introduce a statutory regulator is taken.”

The APFG Report is the conclusion of a detailed nine month investigation by an Inquiry Panel representing over 150 MPs and Peers. In the course of its Inquiry it took written evidence from dozens of interested parties and heard oral evidence from over 40 witnesses including the football authorities, club chairmen, fans, ex-Sports Ministers, journalists, administrators and agents.

The main findings of the Report fall into five broad headings. The key recommendations include:

Re-distribution

Premier League to double the broadcasting revenue it re-distributes to the rest of football
More re-distribution of TV money within the Premier League
Detailed research needed into the financial impact of the Transfer Window
Football Authorities to be given duty to promote competitiveness of the game
Consultation between football authorities and all clubs on the re-introduction of gate sharing

Insolvency

Strong support for severe points deduction for clubs going into administration
Wage-capping to be considered by Premier League if experiment in Football League/Conference proves successful
Abolition of the ‘football debts’ rule

Corporate Governance

Immediate introduction of the ‘Fit & Proper Person’ test
All professional football clubs brought into line with best existing corporate governance practice
Full accounts published annually and passed by AGM
Supporters’ views represented at Board Level
Tax-breaks offered to establish Supporters’ Trusts
Football Supporters Federation should be funded by football authorities
FA to be more representative of modern Britain

Regulation

IFC left to complete first full three year term before decision taken on introducing a statutory regulator
IFC to receive complaints directly rather than by referral
IFC be funded directly by Government and budget significantly increased
Football authorities to incorporate IFC into their rules to make its decisions binding
Comprehensive licensing system along UEFA lines to be introduced throughout the professional game
All professional clubs to have budgets approved two seasons in advance
All agents to be licensed and all payments to be disclosed
Introduction of an Agents Levy to be re-distributed to grass roots game

Broadcasting

Future Premier League contracts to include limited number of games to be broadcast by free-to-air channels
‘Decisive Qualifying Matches’ to become Listed Events
The norm for a majority of a club’s home league fixtures to kick-off at 3pm on a Saturday

-- ENDS --

NOTES TO EDITORS

The remit of the Inquiry into Football & Its Finances by the All Party Football Group covered all aspects of football finances with particular reference to:

· The impact of new broadcasting contracts on football’s finances

· The cost of success in today’s increasingly competitive game

· The increasing cost to fans of being a football supporter

· The growing divide between the Premiership and the Nationwide League

· The impact of increasing wage bills on clubs

· The role of Government in supporting the national game

· The importance of maintaining support for grassroots football

2. The following MPs and Peers from the Group formed a Panel that considered the submissions and heard oral evidence from interested parties:

3. Transcripts of the seven Oral Evidence sessions of the Inquiry will be put on the All Party Football Group’s website (www.allpartyfootball.com) on Wednesday 11 February.

4. The All Party Football Group is one of the largest all party groups in Parliament. Currently it has over 150 members. Its officers are:

Chair: Alan Keen MP

Vice-Chair: Claire Ward MP

Vice-Chair: John Greenway MP

Vice-Chair: Bob Russell MP

Secretary: Peter Pike MP

Treasurer: Clive Betts MP

5. Further Copies of the Report may be obtained priced £15 , on publication, from the office of Alan Keen MP, Chair, All Party Football Group, House of Commons, London SW1A 0AA. Please make cheques payable to “All Party Football Group”.

6. For more information about this release, please contact:

Tim or David on 0207 219 2819

info@allpartyfootballgroup.org.uk