MPs announce inquiry into game's finances

Members of parliament are to hold an official inquiry into football's finances, reflecting growing concern over the health of the game. The all-party initiative will probe spiralling player costs, increased debt, the impact of transfer windows, uncertainty over future television revenue and the growing gap between top clubs and the rest.

Alan Keen, who chairs the Parliamentary Football Group, said yesterday: "Football is part of the nation's heritage. The game has made great strides forward as a spectacle in recent years and broadened its supporter base from the old working-class traditions. Despite its increased popularity, there are serious financial problems at the professional end of the game. There is concern that the grass roots could be affected, as well as the long-term future of the professional game itself if the wrong decisions are made.

"We hope the all-party Parliamentary Football Group's report may assist to gather together the joint wisdom of all those involved in the game at all levels." The inquiry, whose findings will be published in the autumn, will also look at clubs listed on the Stock Market to see whether there are potential conflicts between fans and shareholders' interests.

MPs and peers on the group will include Alan Keen, Clive Betts, Lord Faulkner of Worcester, Mark Field, Roger Godsiff, Mark Hendrick, John Mann, Peter Pike, Andy Reed, Christine Russell, Lord Taylor of Warwick and Joan Walley.

Symptomatic of the issues the inquiry will examine is news that Everton have been forced to abandon plans to move to a new stadium at King's Waterfront in Liverpool city centre because of the rising costs of the project.

The club want to leave the 40,170-capacity Goodison Park for a larger stadium in order to increase revenue and said they will continue their search for an alternative site.

The club's deputy chairman, Bill Kenwright, said: "I know that everybody connected with Everton – board, shareholders and, above all, our fans – will be disappointed. It was a hugely bold, ambitious and exciting plan – one of the biggest developments of its kind taking place in Europe. We intend, however, to use the experience we have gained in this venture to help bring about our ambitions to take Everton forward."

The King's Waterfront proposal was part of a large redevelopment project that will now proceed without Everton's involvement.

The club had been given until the end of last month to prove they could raise their £155m share of the scheme, but they and the other agencies involved in the development have now accepted the costs cannot be covered.

Everton fans voted in 1997 to move from Goodison, the club's home since 1892. Their neighbours, Liverpool, are also in the process of securing a move from Anfield to a new, larger-capacity stadium in the city.