Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Acknowledged
Department engaging with British Basketball Federation regarding franchising, funding, and loan repayment risks.
Conclusion
We asked the Department what it was doing with regard to professional basketball and the proposals by the British Basketball Federation to franchise out the running of the professional league which some have claimed is putting at risk the Department’s loans to some of the clubs. The Department replied that it was not for the government to intervene in commercial decisions, such as franchising, as these were a matter for the sport’s governing body.58 However, it would expect Sport England, as its loan agent, to be working closely with any clubs which felt they could not repay their loan.59 It highlighted that, of the 11 professional basketball clubs 52 Qq 23, 97; C&AG’s Report, paras 16 and 2.21 53 Leonard Curtis Rugby Finance Report 2024, 25 September 2024, pages 16, 34, 52 and 56 54 Q 105 55 Qq 91–93 56 Q 91; C&AG’s Report, para 16 and 2.23 57 Q 93 58 Qq 106–110, 114; Letter from DCMS Permanent Secretary, 25 February 2025 59 Qq 107–111; Letter from DCMS Permanent Secretary, 25 February 2025 16 that had received loans, seven had repaid these in full.60 The Department also told us that it was unclear as to what Sport England were doing with regard to the franchising issue other than that Sport England had an ongoing relationship with the Federation over funding and compliance with its Code of Sports Governance.61 However, in response to our request for more information, it subsequently confirmed in writing that it, UK Sport and Sport England were engaging on this issue as the British Basketball Federation was in the process of receiving government funding, and that, if it were concerned about any actions by the Federation which were detrimental to either the long–term financial sustainability of basketball or the ability of clubs to afford loan repayments, these issues would form part of discussions with UK Sport and Sport England.62 Management of a conflict of interest
Government Response Summary
The department is developing a comprehensive borrower engagement plan, building on existing strategies implemented by Loan Agents, guided by core principles that define the department’s approach to borrower engagement.
Government Response
Acknowledged
HM Government
Acknowledged
5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 5.2 Every borrower is treated in line with the department's loan book objectives. The department maintains regular communication with its borrowers through its Loan Agents. The department has tailored its approach to different borrowers to reflect their individual circumstances including the size of their loan and therefore impact on the Exchequer. 5.3 In line with the NAO’s recommendation C (page 14), the department is developing a comprehensive borrower engagement plan that builds on existing strategies already implemented by Loan Agents. The plan will be guided by core principles that define the department’s approach to borrower engagement and will help to ensure decisions are applied appropriately across the loan portfolio. It will also include medium-term strategies that link key borrower and loan characteristics to appropriate engagement methods, aligned with the loan book’s current priorities and operating model.