When the Fleet Ebbs: The Case for the Football Governance Bill

During the bill's second reading last November, one football-loving peer, Lord Wood of Anfield, argued, "Clubs can be far too reliant on individual owners, who often use club assets as security on loans and debts. There is a lot of poor financing and overspending and a lot of debt in general." His concerns are echoed by many fans across the country, as well as by fellow peer, Baroness Twycross who cited “rogue owners” as casting a “shadow over too many of our clubs”.

Examples of past club mismanagement reinforce the urgent need for reform. Bury FC was expelled from the Football League in 2019 after years of financial instability and reckless ownership left them unable to meet their obligations. Similarly, Macclesfield Town collapsed in 2020 due to unpaid debts and wage disputes, leaving their fans without a club to support. Even at higher levels, clubs like Derby County and Bolton Wanderers have suffered financial crises that threatened their existence, largely due to poor financial decisions and a lack of regulatory oversight. Blackpool, under the Oyston family, saw years of underinvestment and disputes between owners and fans, while Charlton Athletic endured turmoil due to a series of unstable takeovers. Birmingham City’s ownership issues and financial mismanagement have also been a cause for concern in recent years.

The bill proposes measures such as licensing, stricter fit-and-proper ownership tests, and giving the regulator powers to challenge poor ownership practices. However, as it stands, the bill only extends to the fifth tier of English football—the Vanarama National League.

One club currently in the VNL, however, and languishing at the bottom of the table, is Ebbsfleet United. It serves as a prime example of a well-loved football club in desperate need of the protections offered by this bill.

Ebbsfleet is owned by the family of Kuwaiti businessman Abdulla al-Humaidi, the man behind the failed “Dartford Disneyland” venture, which hit the headlines again last month, most notably for Humaidi’s continued involvement in the project, despite his registered bankruptcy and, in the words of one UK judge, “utterly implausible” explanations for his actions.

Humaidi has admitted he has been facing legal action from friends and investors in Kuwait who even accused him of creating a “fictitious” project to extract money, and that he has been unable to return to his homeland for fear of being arrested and imprisoned. The Telegraph newspaper revealed his bankruptcy in December 2023, and said creditors were still pursuing him. He told the paper he had no more involvement in Ebbsfleet; nevertheless, the club announced that although he resigned as chairman “his family member model” still applied and relatives were appointed to the board.

A few years ago it was also reported that players complained that their salaries had been withheld or paid late, while medical insurance and pensions have gone unpaid. The club’s accounts show it is currently mired in approximately £3 million in debt, with half owed to related parties, and a £1.9 million operating loss.

Ebbsfleet’s unsustainable finances have inevitably impacted their on-field performance. This season, they have won just one of 29 league matches and are rooted to the bottom of the National League, facing likely relegation to the sixth tier.

Such situations illustrate why the bill should extend beyond the fifth tier to cover all professional football clubs.

Although fans rarely sympathise with their rivals, it is vital to remember that competition and rivalry are the lifeblood of football. The sport would be poorer without them. That is why Ebbsfleet is a perfect case study for the Football Governance Bill and the independent regulator it proposes.

Parliament has a duty to learn from such cases and ensure no club, no matter the level, suffers due to negligent ownership. No football supporter should endure the turmoil of one of Baroness Twycross’ bogeymen – “a rogue owner”.