British MP calls for transparency in football club ownership in Parliamentary bill

Damian Collins_09-03-12

By David Gold

March 9 – British MP Damian Collins (pictured) has tabled a Parliamentary bill which would require football clubs to reveal the identity of their owners, as well as putting an end to the football creditors’ rule.

Collins is one of the more vocal members of the Culture, Media and Sport Select Committee which has examined football governance in Britain.

Following recommendations from the Select Committee, last year the British Government ordered football authorities to reform their structures, with an emphasis on strengthening the English Football Association.

Among numerous proposals, they wanted to abolish the football creditors’ rule and called for the ownership of football teams to be transparent.

The football creditors’ rule was highlighted as a result of the plight of Portsmouth, who are currently in administration and facing the possibility of liquidation.

The rule means that their football creditors, for example players and coaches, are paid before outside creditors, such as small businesses and contractors working for the club.

Similarly, transparency regarding club ownership has been a key issue due to the ownership of Championship side Leeds United since 2005 by Forward Sports Fund, who are registered in the Cayman Islands.

Ken Bates_leeds_09-03-12
That led to a situation where technically no one knew who owned the club, though Leeds last year claimed chairman Ken Bates (pictured) had bought them.

Collins’ private members’ bill calls on teams to reveal the identity of anyone owning a significant stake in a club, as well as ensuring the owner of the playing ground and training ground is known.

Though such bills rarely become law, this particular proposal will be debated on March 13 in the House of Commons, overcoming a significant obstacle to becoming legislation.

Following a debate, it can then be passed to a Parliamentary Committee, then to a third reading before being passed to the House of Lords, following which any amendments will be considered; if it overcomes all these obstacles it will need the formality of Royal Assent to become law.

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