I remind hon. Members that there have been some changes to normal practice to support the new call list system and ensure that social distancing can be respected. Members should sanitise their microphones using the cleaning materials provided before they use them, and dispose of the cleaning materials as they leave the room.
Members should speak only from the horseshoe and can speak only if they are on call lists. This applies even if debates are under-subscribed. Members cannot join the debate if they are not on the call list. Members are not expected to remain for the winding-up speeches. I remind hon. Members that there is less of an expectation that they stay for the next two speeches once they have spoken, to help manage the attendance in the room. They may wish to stay beyond their speech, but they should be aware that doing so may prevent Members in seats in the Public Gallery from speaking—I think we are all right with that today.
That this House has considered the future of football governance.
It is a pleasure to serve under your chairmanship, Ms Fovargue. There is nothing new about a debate in this place calling for change in the governance of football; too many of us have been here before. Times have changed, however, and there are many now joining the call for change. Covid has turned a spotlight on the weaknesses in the game’s governance and the inequity of the distribution of the game’s wealth.
Football is our national game: 14.5 million people attended premier league matches in the 2018-19 season, and 18.4 million attended matches in the championship. Premier league clubs generated £3.3 billion in tax revenue to the Government and contributed £7.6 billion to the economy in 2016-17. Throughout the country, football trusts play a role in supporting our communities. They lead in tackling racism, deprivation, sexual discrimination and many other social issues, and I pay tribute to every single community trust for the work they have done to support people in need during the covid epidemic.
The English leagues have a huge international following. Their popularity is the envy of many other countries and of the UEFA. I want to go on record as congratulating the premier league on its success, not just here in the UK, but by becoming a global brand of which we should all be proud. Football is so important to the nation, from local communities to being a major contributor to our national economy, that it is important on so many levels that we do not stand by and watch the pyramid that sustains it crumble.
Despite there being such enormous wealth in the game, that money is not distributed fairly—too much is absorbed at the top in players’ wages. The wage bill for the 14 premier league clubs, aside from the big six, is bigger than that of all the Bundesliga clubs put together. The salary arms war waged is entirely contained within the premier league and those championship clubs that overstretch themselves to try to get to the top division. It is unacceptable that premier league clubs can spend £1.2 billion on transfer fees while English Football League clubs are dangling over the abyss during this crisis. We cannot go on with this casino attitude to football’s success, and the time for regulation has come.
Both MPs for Bury are here, who have very strong views in respect of the Bury situation. When we are talking about governance, we have to decide who the footballing authorities are governing on behalf of. The problem with the Bury situation was that the EFL had no interest in protecting the interests of thousands of Bury fans. It had no interest in the social and economic impact that simply abandoning Bury to the wolves was going to have. We have to think very hard about what the fiduciary or first interest of the regulator is if we are going to have a new regulatory system.
I do not entirely agree with the hon. Member’s version of the events around Bury. I think the Football League would have taken action against individuals involved in Bury if it had the power to do so. I had long discussions with the Football League about a similar situation that arose at Charlton Athletic, which could have quite seriously gone down the same route as Bury. What the Taylor review really demonstrates—I have a copy of it—is that the rules need changing, so that the EFL has the powers to deal with those individuals. Some of the problems that arose with Bury arose before the individuals that we might have concerns about became involved, so it was a complex situation. This is the sort of thing that needs a fundamental review, so that we can ensure that the regulators of the game have the right powers to be able to deal with these situations.
We also need to consider whether clubs should have to register their accounts, with a projection showing how they will finance themselves for not just the current season, but the future season, including any contracts they have in place, such as players’ wages, during that period. There is a lot that can be done to improve the amount of information that clubs must provide to the regulator so that it has a racing chance of being able to oversee the game, and see where problems might arise.
The situation in the championship, where they spend 107% of their turnover on players’ wages, is ridiculous. That clearly needs regulating. It is driven, to some degree, by clubs that come from the premier league and have the solidarity money. However, the fact remains that to get into the premier league, some clubs are running huge risks, and we do not have the power in the regulations at the moment to prevent that from happening.
These changes have been highlighted by the Taylor review into Bury and things that have happened to other clubs, which shows that this is an area of regulation that needs serious looking into and needs change. I know how the EFL struggled to deal with the situation at Charlton Athletic, and it was on the side of the club all throughout that process, in my opinion.
It is a pleasure to serve under your chairwomanship, Ms Fovargue. I thank my hon. Friend the Member for Eltham (Clive Efford) for securing this debate. Although I was born and grew up in the west midlands, my family, my friends and now my social media followers will know that I am a die-hard Liverpool fan. I have my dad to thank for that. That means that I know what it is like to care about the club and to go through the highs and, of course, the lows. While I am a Liverpool fan and I bleed red, I am also very proud to represent thousands of passionate Sky Blues fans, I am here today for them.
Coventry City has a long, loud and proud history. They were FA cup winners in 1987 and an inaugural member of the premier league. Following some difficult years, the club is again on the rise, having been crowned league one champions last season and now competing in the championship once again.
However, the club is also an important example of the need for fans to have a greater say in the running of their clubs. Although the club was initiating the plans to build a new, modern stadium at the turn of the millennium, its financial position meant that it did not own the newly built Ricoh Arena. That led to the club playing home matches at Sixfields Stadium—a 70-mile round trip to Northampton—in the 2013-14 season, before returning to the Ricoh the following season, thanks to a fantastic campaign led by supporters and the local paper, the Coventry Telegraph.
The club was once again forced to play home matches outside of Coventry in 2019, this time at St Andrew’s in Birmingham—a 38-mile round trip from the city. That is where the club plays its home matches now. Fans are forced to travel out of the city to watch their club. For them, it is an absurd, ridiculous and, frankly, disgraceful situation. The solution is simple. Coventry City football club should be playing football in the city of Coventry. Since being elected, I have been determined to do everything I can to help resolve this situation.
It is a pleasure to follow the hon. Member for Coventry South (Zarah Sultana), and the hon. Member for Eltham (Clive Efford), who I will call my hon. Friend from our time working on the Select Committee together.
It is 10 years since, as a newly elected Member of Parliament and a new member of the Digital, Culture, Media and Sport Committee, I attended a Westminster Hall debate on football governance in the wake of the financial collapse of a number of big clubs. The room was packed, and on the basis of the tenets discussed in the debate and the impassioned speeches given, the then Chair of the Select Committee, my right hon. Friend the Member for Maldon (Mr Whittingdale), initiated the inquiry into football governance that reported in 2011 and then again in 2013. During my time as Chair of the Select Committee, we looked at football governance in the context of player welfare in the case of Eni Aluko’s complaint against the Football Association. We also looked at the collapse of Bury football club just before the general election last year. The debate in this place has been running for many years, and remains unresolved.
We should be clear why we have this complaint about football governance and what it is that we are seeking to reform when we talk about improving the governance of the game. We want clubs to be financially sustainable because they are community assets. They temporarily belong to a businessman or an owner, but then someone else will acquire them. Most of the clubs have been going for more than 100 years; they have survived two world wars, the great depression and every crisis this country has faced in that time, and they have kept on going throughout, at the centre of their communities.
We want to ensure that fans have a voice in the way that their game is run. We want to ensure that player welfare is central to the administration of the game and that there are good systems of redress and complaints processes. One thing we learned from Eni Aluko’s case against the Football Association was that there were no proper processes for someone making a complaint of unfair treatment against the Football Association. We want to respect the fact that these are community assets. Their importance to the community goes far beyond putting on matches on match days. They are involved in all sorts of community support through player development, community welfare, adult education and training, and they are incredibly valuable to the communities they serve. That is what we are trying to preserve.
It is a pleasure to see you in the Chair, Ms Fovargue. I thank my hon. Friend the Member for Eltham (Clive Efford) for bringing this debate. As he said, football is our national game. We invented the modern sport of football, and it is popular around the globe with millions of people watching.
Despite covid-19, the Premier League remains in a strong position. Those running the Premier League have managed to generate previously unthinkable levels of income through commercial deals. Yet much of that money leaks out of the game, to agents or, more pertinently for this debate, to owners. Much of the money washing through the game does not get reinvested in it. Although we have had some £600 million invested in grassroots football over the past couple of decades, thanks to the Football Association and the Premier League, that is less than premier league clubs spend in one transfer window. While my constituency has benefited, with great new facilities at Neston High School and the Vauxhall Sports Club, which, for the record, I occasionally play on when circumstances allow, there is still a long way to go. Beyond that investment, we have too many second-rate pitches, which are rendered unusable by a day or two of heavy rain. Our grassroots facilities still compare unfavourably with those in top footballing nations. Only one in three of our grass pitches are of adequate quality. We only have half the number of 3G pitches that Germany has.
We know the pressures local authorities are under to balance the books. There is little left for discretionary spending on improving sporting facilities, which means that pitches are often left with poor drainage, resulting in some areas of the pitch having more mud than grass, and little or nothing in the way of changing facilities. In many ways, the pitches of today are worse than the ones I played on as a child. More of the money in the game needs to reach the grassroots level.
Does the hon. Gentleman think there is a strong case for financially powerful and sustainable clubs, such as Manchester United, taking a charitable view with neighbouring clubs that are struggling financially and need direct help? Bury is approximately half an hour from Old Trafford. Does he think we should put in place mechanisms for premier league clubs to help clubs in financial difficulties lower down the pyramid, especially if they are geographically close and have other links?
There is nothing to prevent that from happening now. Manchester United’s reserve games used to be played at Gigg Lane, providing a financial benefit for the club. I have been persuaded that we need to formalise this help, because I am concerned about some of the strings attached to the recent discussions on support for league clubs. I think the inequality of distribution of money has highlighted clearly why the Digital, Culture, Media and Sport Committee said earlier this year that the current business model for football is unsustainable.
As the hon. Member for Folkestone and Hythe (Damian Collins) highlighted, the governance of football in this country is unlike any other. The financial muscle of the Premier League, which has an income 12 times that of the FA, distorts everything else. The financial power it has must be used more widely for the greater good. Recent developments suggest that the Premier League understands that and recognises it has a financial responsibility to the rest of the game. However, I hope I will be forgiven for being a little cynical about Project Big Picture and what it really meant.
The extra cash for Project Big Picture would have been welcome in the short to medium term, but the strings attached to it and the further concentration of power that were part of the deal could only, I think, come with a huge health warning. What was being proposed would have baked in an uneven playing field, because the price of that extra cash was preferential votes for longer serving clubs, thereby ensuring that the interests of football as a whole would forever be dictated to by the biggest clubs. The proposals would have meant a reduction in the size of the Premier League, and so naturally less opportunity for promotion to it. The league cup and community shield would also have been cancelled. Premier League clubs would have been playing fewer games overall—except that they probably would not have been.
The reduction in the number of fixtures might have been designed not to ensure that elite athletes in the Premier League got extra rest between games, but to pave the way for a European super-league that, in the long run, would hoover up all the power, all the attention and all the money. My hon. Friend the Member for Eltham said that it would not be easy to establish such a super-league, but in the last 25 years we have seen enough in football to know that, in the end, money talks. The Premier League clubs would have got their way.
It is a pleasure to serve under your chairmanship, Ms Fovargue, I congratulate my friend, if I can call him that, the hon. Member for Eltham (Clive Efford) on securing the debate. I have had the opportunity to speak to him about Charlton Athletic before, so I know he is a very learned and experienced man in these matters.
It goes without saying that this is a raw subject for us in Bury. It is genuinely hard to put into words what the loss of Bury football club has meant to the community. It has had a detrimental impact on thousands of people’s lives, and very few things can do that. Very few things link people, regardless of their age, sex or background, and people came together each week in a collective, positive atmosphere to support Bury. That has been taken away from them.
This is a debate about football governance. We have a system in place, but if we as MPs are going to look at what should be there or what we would recommend, we have to ask, “What is the purpose of governance?” Other points have been well made about how we see football clubs: are they just individual businesses like WH Smith or Barclays bank? Are they simply businesses to be regulated on that basis? I am a supporter of Bury football club but not a fan—there is a difference. They are entities that survive because of that loyalty and an emotional connection between them and their supporters. One can hardly argue that we go to WHSmith because of an emotional connection.
I am only using that as an example, but it is an important example. Earlier I asked the hon. Member for Eltham—and it was a genuine question—who any governance would be on behalf of. He said it would be on behalf of the game, but the game is a very wide thing and lots of people have very different interests in it. One person could be involved in supporting Manchester United, which plays in the premier league and all the other things it competes in, whereas Bury’s major ambition is essentially to stay afloat—to simply survive in the league it is in and have a sustainable business model to support its local community. If we as MPs were to recommend statutory regulation, we would say that the first duty of the regulator must be to the fans: the people at each and every club in the country who pay their money every week to go and watch their team. This is about what is in their interest. Bury is the example, right or wrong, of the monumentally detrimental effect of the loss of a football club.
Does my hon. Friend agree that the problem with the Football League system is that it is run by people like Mr Dale? It is run by the chairs of the clubs, regulating each other. They do not want people sticking their noses into the way they are running their clubs because if it is done for one club, it will be done for another.
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Although the Bury debacle showed that the professional game needs saving from itself, we also need to recognise that the money in football attracts some bad actors. Bury also showed that we must strengthen the rules to empower the authorities to keep corruption out of the game. Corrupt individuals circle around football looking for opportunities to make fast money. These people move in on vulnerable clubs and wait for their moment; when a genuine owner comes along, they tie the club up in knots, become an impediment to progress and then offer the would-be owner a deal to get them out of the way.
The football authorities and the Government must work together to change the rules and to legislate, if necessary, to protect football clubs and other sports clubs from this kind of criminality. The manner in which they operate might be within the law, but let us be clear that this is a fraud to extort money, and it must be stopped before more clubs fall foul of these crooks.
These problems existed before covid, but the pandemic has exposed weaknesses in the governance of the game. The solutions extend far beyond what is needed to respond to the immediate crisis. There is no going back to business as usual, and the Football Association must become the regulator that it is meant to be. I commend the Football Supporters Association and Our Beautiful Game for the work that they have done in this area.
We need an independent review of the governance of the game, in which fans and all other stakeholders can participate. The Premier League has initiated a review on the back of the controversy surrounding Project Big Picture. The Government were wrong to dismiss Project Big Picture out of hand; it raised many issues that we will have to take on board and that are worthy of further consideration. Any future review will have to address issues such as future funding for women’s football, football for people with disabilities and football for lesbian, gay, bisexual and transgender communities.
The Premier League has chosen to reject Project Big Picture and conduct a strategic review that will have implications for the whole of football—for the FA, the English Football League, fans and players. Richard Masters, the chief exec of the Premier League, told the Digital, Culture, Media and Sport Committee on 10 November that the 20 clubs on the PL board have agreed the terms of reference for the review. I wonder whether the Minister has seen the terms of reference, because I cannot find them anywhere. We are told that the review will involve fans, the English Football League and the FA. Have they seen the terms of reference? Can the Minister confirm that the Premier League’s review will be voted on by the 20 premier league clubs alone?
The current 20 shareholders of the Premier League find themselves in their respective positions of power by an accident of history, and it does not qualify them to make important decisions on behalf of the future of the game. By the time that the Premier League strategic review is voted on, three of them might have been replaced through relegation. Only five of the original 12 clubs that started the Football League are currently in the premier league. Should they have a say? Should the other seven that started the Football League have a say in the future of the game? Some 49 clubs have been in the premier league, which shows the extent to which the English Football League clubs have a stake in the premier league. Should they have a say in the strategic review?
The short-termism and self-interest that club owners have shown over the years excludes them from making decisions on behalf of the wider football family. I understand that premier league clubs will vote on the recommendations of the Premier League exec. I have nothing against the people in the Premier League exec, but I think they genuinely believe that they know best for the rest of us. They are unable to see the bigger picture, however, because they are blinkered by the business that they have to defend. They see the premier league, but we see football and its entire family. They believe that football is best run by the richest and most powerful clubs in the land, which have demands that go far beyond the domestic game—we would be foolish to ignore that fact.
The financial gains to be had from playing matches across Europe against similar clubs, packed with more of the biggest names in the game, are irresistible. The Champions League will grow in 2024, when the pressure on domestic fixtures will increase. We have already seen youth teams used in domestic cup competitions. We need to plan for that, not bury our heads in the sand and pretend business as usual will work.
In the Digital, Culture, Media and Sport Committee hearing on 10 November, we were told by Greg Clarke, who was still the chair of the FA, that for the big six clubs to break away from the premier league, they would need the approval of not only the FA, but FIFA and UEFA. The threat that comes from the big clubs moving away to some super league is not as great as some people would make it out to be, because they cannot dictate the terms of any future review of the game.
The Football Supporters Association manifesto for change, “Saving the Beautiful Game”, the Premier League’s strategic review, the Taylor review into Bury and Project Big Picture—albeit that some people oppose some of the ideas in it—all highlighted one undeniable truth: that reform is necessary. Given all the competing interests that there are in this subject, the suggestion of an independent panel to take on the task of resetting the governance of the game is very attractive. The FA clearly needs fundamental reform, and the FA Council itself has passed a motion that commends the work of the Football Supporters Association and its manifesto for change.
The opportunity is there to bring about change in the governance of the game in this country. If the Government do not act, I suspect there is a Back Bencher in this room who will bring a Bill before Parliament to bring about that change. The Government can either be dragged along on the coat-tails of a private Member’s Bill, or they can lead the charge for change.
It is no longer acceptable to allow the Premier League to dominate the game in the way that it currently does. The Premier League has consistently and throughout this covid crisis shown that it is incapable of looking at the bigger picture, without looking first to protect its own interests. The time for change has come, and I hope the Government will support that call, get on board and help lead that change.
That is not the only issue affecting the club. The financial hit of the pandemic and the restrictions has been severe for football clubs across the country, including Coventry. The sport winter survival package announced last week failed to provide any support for the English Football League. As the Sky Blues chief executive, Dave Boddy, said this week, that puts the national sport at severe risk. He has written to the Prime Minister to say that the club, along with all English Football League clubs, has been hung out to dry by the Government. While premier league clubs have the wealth to weather the storm, and while there is hope that the Government will bail out the English Football League, clubs should not be in this position of financial insecurity.
There have to be guarantees and financial support for all of our clubs to survive. None of them should be at risk, and it should not be sink or swim. A football club is more than a business: it is part of the community, and for many people it is part of the social fabric that ties us together. That is why I wrote to the Secretary of State calling for this financial support.
The financial troubles of the English Football League clubs is part of a bigger problem and a bigger story. That story is about how the beautiful game has become divided between very wealthy clubs, brought up by billionaires and often used as public relations to sanitise their public image, and poorer clubs that struggle to survive and that often face collapse, as we have seen with Bury and Bolton.
Our football clubs are too important to be left in the hands of the likes of Mike Ashley and other bad owners, and too important to be at risk of financial collapse. I call on the Government to step in and ensure that Coventry City is given financial support to weather the storm, but I also call for more far-reaching reforms. Clubs should be run in the interests of the people who sustain them, who watch them week in, week out, who stick with them when times are good and also when they are not. They should be run for their fans.
I call on the Government to give fans control and a say in how their clubs are run, to give accredited supporters’ trusts representation on club boards, and to promote fan ownership models, because that is ultimately the only way the beautiful game will work for the people who love it the most. We must put control in the hands of fans, not of the wealthy few who seek only to enjoy its spoils.
Why is the game so badly run? It is because it is so fractured. We believe that the Football Association is the national governing body of the sport, but unlike in almost any other sport, in football the national governing body is not the financially dominant player in this country. In most sports, it is the national governing body and the revenue it gets from the England national team that provide the bulk of the revenue that that sport enjoys. In football however, it is the Premier League.
When we talk about the football family, as the Minister and the Secretary of State often do, it is from a belief that these are a community of interrelated clubs; they play competitions against each other but all ultimately sit under the Football Association, so they must be interlinked. In fact, they are not: the Premier League has its own set of rules, the Football League has its own set of rules, and the FA takes responsibility for the National League. They all have their own rules and procedures, and they are run in their own way.
The revenue from broadcasting is negotiated separately by the Premier League and the Football League—it was a bad decision that the Football League made many years ago to do that, but nevertheless, that is the case. Clubs in the Premier League, particularly in the lower part of the league, consider that they are competing against clubs in the Championship, particularly clubs that might get promoted and take their place. That is why it is so difficult to get a financial settlement for football from football during the covid crisis. Football does not behave like a family. Football behaves as different entities competing against each other.
In a typical season, a Premier League club will play under Premier League rules in the Premier League, under FA rules in the FA cup and under Football League rules in the League cup, and will probably also hold a UEFA licence in case it is in or wishes to qualify for UEFA competitions. All have their own different rules and procedures. No one is bringing it together and no one is ultimately responsible.
There are certain rules that are put in place to try to ensure that clubs are run sustainably, but whenever there is a crisis, we see how ineffective those rules are. The case of Bury football club and other clubs demonstrates that. If the clubs were made to trade within the rules of the league they play in, most clubs would not go bust. The fact is that they do not do that, because no one checks. There is no requirement to produce accounts in real time; the Football Association and the Football League do not have the ability to inspect and audit the clubs to ensure they are not overspending on salaries and that they are being run in a financially sustainable way. When there is a problem, there is no regulator to step in and say, “That club is being run in an unsustainable way, in breach of the rules, and we are going to intervene to put it back on track.” The club is allowed to be run in a bad way, often by a bad owner, until such point as it goes bust. The role of the league is to then make sure that if the club does not come out of administration, that club is suitably punished. In cases such as Bury football club, the first cry of the fans is always, “Why didn’t someone intervene earlier?” The fact is that there is no body that has the power and the authority to do that.
Many times people pray in aid an owners and directors test, to keep bad owners out of the game and out of clubs. The fact is that there is really no such test. That was demonstrated by Massimo Cellino, a convicted fraudster in Italy whose conviction was considered to be spent under UK company law. The Football League had no more right to stop him being a director of the club than they had to stop him being a director of any company under UK company law. There is no special test, but even if there were, the Football League does not have the resources to enforce it. In the case of Bury when it was in the Football League, the last owner took over the club without having to demonstrate proof of funds or being subjected to any test at all.
Why are things allowed to be this bad? It is principally because there is no national governing body or regulator overseeing all these rule books and how they are enforced, so the clubs effectively do it themselves. The Premier League is run by the 20 clubs in the Premier League, plus the League itself, which has one share. They make decisions collectively, without the involvement of the Football Association. The Football League is run in the same way, by the 72 chairmen of the clubs. They are less interested in intervening to help each other than they are in competing against each other. They are run in that way, which is unsustainable. No one is ultimately in control, which is why the rules do not get enforced properly.
There is a strong argument that we should have a regulator with statutory powers—one that has the right to insist on access to financial records to make sure clubs are playing within the rules, as Ofcom has when broadcasting licences are issued. It would have a discretionary power to tell an owner who cannot demonstrate proof of funds, or who is not suitable or credible, that they cannot take over a club.
We have called for that before. The fan-led review, which was in our manifesto and which the Government are committed to, should give a view on whether we have an independent regulator with statutory powers at the centre of the game, even if all that regulator does is make sure that the leagues properly enforce their own rules and have access to clubs’ finances to make sure they are doing that.
Some people say, “Well, you can’t have a statutory regulator, because FIFA rules don’t allow it,” but that is not true. In 2015, the FIFA rules allowed the Spanish Government to legislate to say that Barcelona and Real Madrid could not sell their TV rights separately. In France, the country of the current world football champions, the national governing body is a statutory body, effectively given a licence by the French Government to carry out its responsibilities. In Germany there are rules on club ownership that require 50% plus 1% to be owned by the fans and the community. All clubs are licenced by the German football league, which can withdraw the licence if the club is trading in breach of the rules. Other countries do this already, so there is no reason under FIFA rules why we would be sanctioned if we created a regulator with statutory powers. I believe that is what we should be looking at in this review.
The Government have a great deal of leverage at the moment because football needs their help. There is still no deal between the Premier League and the Football League to provide financial support for clubs. As many Members know, the Football League has warned that clubs will go bust. I know the Minister and his colleagues say that the Premier League has guaranteed to bail out clubs that go bust, but at the moment there is not enough money available to do that. Indeed, the tax liabilities of the Football League clubs are now around £100 million owed to the Treasury, so the Government already have skin in the game. They are owed money, as are other people.
The Government are in a position where, if they were to put money on the table alongside money from the Football League, they could do so with strings attached. They could demand reform, such as proper financial accountability overseen by an independent regulatory body. That should be at the heart of the proposal considered in the fan-led review, and it is what football needs now. Rather than having a series of warring competitors, competing and fighting against each, we would have a structure with a proper governing body at its heart that has power to take action against clubs that are being run badly and unsustainably. The covid-19 crisis has challenged many aspects of our life and exposed the systemic weaknesses in the governance of football in this country. We now have the opportunity to put that right.
The money does not reach the fans either. It does not manifest in cheaper entrance tickets or support for other clubs. One only needs to look at my team, Manchester United, to see where a lot of the money goes. Since they took over in 2005, using money to buy the club that they subsequently attached to it as a debt, the Glazers have taken over £1 billion out of that club in dividend interest and finance costs. If ownership models are to be reformed, I would like to see that model of ownership banished for ever. That £1 billion did not have to leave the game. Perhaps some of the struggling clubs we have discussed would have survived if the money had been more equitably distributed.
We need to think about the wider health of the game. A few clubs at the top are getting richer and richer, or, as in the case of my club, the owners are getting richer and richer, but at the other end we hear of clubs that are struggling just to survive day to day.
I fear that the proposed change in voting rights would ultimately have meant that the domestic game would have become subservient to the interests of the 20 or so clubs that would have been part of the European super-league. Entry to that super-league would, of course, be by invitation only. The massive financial imbalance that already ensures that the biggest clubs tend to participate in the champions league each year would also have had an additional lock on it to make sure that the biggest clubs could never fall out of it. I could, of course, be wrong about that. The Premier League could offer the support without any strings attached. Discussions are ongoing so let us see what happens.
There is no doubt that a new strategic review is under way, and that may result in some of the benefits without some of the downsides. The concern highlighted in the debate demonstrates the reason we need an independent body to regulate football and ensure that all decisions made are in the interests of the game as a whole. We have all expressed that concern. As my hon. Friend the Member for Coventry South (Zarah Sultana) said, every team is a big part of the community. The owners are transient, but fans and supporters are there through thick and thin, in good times and bad, whoever is the owner. Football clubs need to be treated much more as a community asset and less as a business as they have been for far too long.
My final point, Ms Fovargue, relates to agency reform and control. A study of agency fees paid by Premier League clubs between October 2015 and January 2016 revealed that £46.5 million was paid to agency intermediaries. That is money that is leaving the game altogether. Frankly, I would like to outlaw agency fees altogether, but I am sure that will not happen. Those figures demonstrate there are huge sums in the game that do not benefit even the highly paid players; the money certainly does not benefit the clubs or the wider community. Let us do something about that as well when we reform football governance, which I hope we are going to do.
As with everything else, the pandemic has had a huge effect on EFL and non-league clubs—I will leave the premier league to one side for a second. I agree with everything my hon. Friend the Member for Folkestone and Hythe (Damian Collins) said. Although I am tempted to read out his comments about Bury football club from when he was Chair of the Digital, Culture, Media and Sport Committee, I will restrain myself from doing that, because I think we all know what they are. However, football clubs in the lower leagues have been run in an incredibly bad manner. There were players at Bury football club earning £10,000 a week when the crowds were 3,000 or 4,000, which simply is not sustainable.
We have a badly run model that has not been regulated. Indeed, I wonder why the EFL exists if it cannot step in and question these business models, which it knows are unsustainable, including before the pandemic. Half the clubs are running at monumental losses. I mention Rochdale football club only because prior to the pandemic, or certainly at the start of it, it had to have a £1 million loan from its local council, while issues with the ownership of Wigan, Ms Fovargue, have clearly come to the fore in recent months. These are ongoing issues.
We therefore have to be clear that the EFL, or whoever the regulator is, needs to take a strident and stringent approach and must have access to the financial records of a football club and also the financial background of the owner. Cursory examination of the business history of Steve Dale, the current owner of Bury football club, may well have rung some alarm bells with any regulator. In a normal, functioning system, Mr Dale would clearly not have been allowed to take over Bury football club.