British Government to probe debt at clubs

The British Government is to investigate soccer’s debt problems and will consider "strategic intervention" in a wide-ranging inquiry into the running of the sport.

Concerns over debt levels at major clubs such as Manchester United and Liverpool and the recent court appearances of several clubs fighting administration orders have heightened concerns about structures.

The department for culture, media and sport announced details of an inquiry on Tuesday, saying it was responding not only to the high-profile coverage of Liverpool and Manchester United but also to broader concerns that supporters of clubs across the country are ill-served by current regulations.

The agreement includes an undertaking to encourage the reform of the rules to support the co-operative ownership of football clubs by supporters and the inquiry will consider the case for strategic government intervention in the administration of clubs.

“In so doing it will look at the scope for enhancing supporter involvement in decision-making processes and consider whether current regulatory processes — including fit and proper persons tests — are adequate,” the statement said.

Several issues will be examined in the inquiry, which will be held early in 2011, including whether football clubs should be treated differently from other commercial organisations and whether there is too much debt in the professional game.

“The Government has said that it will encourage the reform of football governance rules to support the co-operative ownership of football clubs by supporters, and there is widespread concern that the current governance arrangements are not fit-for-purpose,” committee chairman John Whittingdale said.

“We are keen to hear from a wide range of interested parties, including fans, as well as the clubs themselves and their own regulatory bodies.”

A Premier League spokesman welcomed the news.

“The Premier League has always recognised the importance of engaging in these types of inquiries,” he said in a statement.

“It is a welcome opportunity to highlight the numerous governance developments in our rule book over recent years, as well as enabling us to frame the challenges facing the game and how we might appropriately regulate them going forward.”

An FA spokesman said: “The FA notes the select committee inquiry, which covers a range of important issues across the game, and we will participate fully in the process.”