Fan Ownership: What’s the Problem?

Fan Ownership is one of footballs biggest talking points at the present time. With dwindling attendances, rising ticket prices and teams going bust left, right and centre it is surely time to take action!

In the season 2011/2012 the then Scottish Premier League experienced a collective loss of over £10 million. Only two of the 10 teams analysed within the PWC report calculated a profit. Since then British football fans witnessed the collapse of Hearts of Midlothian and Rangers Football Club, two of Scotlands biggest names. During the football seasons from 2009 – 2014 Scottish footballs’ top tier has experience a loss of almost £40 million. Scottish Football has generated substantial losses in contrast to the other European football leagues. There have been similar cases of financial loss in England with regards to Leeds United, Portsmouth, Hereford, Wrexham and most recently Bolton Wanderers.

There are clearly problems with the ownership models largely in use at this current stage. The predominant models are split into two different types. There are ownership types; examples of this include benevolent family ownership and individual ownership, and there are company types; examples of this include public limited companies and private limited companies. These models share a common advantage towards either a single individual or a group of select individuals. There are obvious problems with the current models in place, therefore alternatives must be encouraged.

There are significant benefits to fan ownership. Fanatics, individuals who express a life long devotion to their club, and most supporters in broad terms provide stability and continuity in relation to financial backing. In most cases it is unlikely for a supporter to switch alliance to another club. Supporters, for the most part, remain constant. The benefit of this continuity is that the supporters are, for the most part, key investors in the company and have a significant impact on revenue. Supporters, and devoted fans, will not turn their back on their clubs. Private investors are known to let clubs, fans and communities down by mismanaging business; this is most notable in the case of Manchester United Football Club with the takeover of the Glazer family, similar cases have occurred at Liverpool and Rangers Football Clubs. To resolve this, supporters must be encouraged to own their clubs.

“Results don’t matter; I mean you’re always going to support

your football club no matter what.”

(Cork City fan, 2015)

Supporters influence their club massively. Even with the absence of fan ownership supporters engage in and influence all aspects of their club, including the clubs culture and identity. For most supporters the clubs stadium is the epicentre of their cultural expression and regional pride. It is within the realms of the football ground that supporters will express their undying support for their team. Importantly, the financial influence of the supporters comes predominantly from gate money. It is clear from a number of reports that supporters’ involvement is crucial to the financial gain of any football club. Supporters’ are fundamental to the process which allows football clubs to maximise their potential returns. The loyalty of supporters is often exploited to generate finance for the club. Merchandise is tailored to fan interests and supporters are given no choice but to pay extortionate ticket prices. This is not in the best interest of those who devote all their efforts to the club they love: the fans. There surely has to be a resolution.

FINANCIAL MISMANAGEMENT

A contemporary example of supporter mistreatment is the case of Leeds United Football club. The Yorkshire side have experienced financial plight for the worst part of 15 years. Despite having a unified Supporters Trust (Leeds Fans United), chairman and majority share holder Massimo Cellino has halted the supporters’ bid for their club. After agreeing to sell the club to the Leeds United Fans trust in October 2015, the controversial Chairman changed his mind a month later and withdrew his interest. The Leeds supporters were subjected to further financial and managerial mistreatment in early December 2015, when Cellino imposed a £5 increase in ticket price. This inflated price included a food voucher to be used at half time, which would be used as an incentive to encourage supporters to use the clubs catering facilities regardless of whether the loyal supporter wanted the half time pie or not. This incentive provides support for fan ownership in football. Leeds United is one case out of a multitude of others. Supporters and their clubs are experiencing a complete lack of communication and consultation. Supporters are being completely disregarded and ignored with regards to decisions that affect them. Importantly, the more fans continue to be excluded from ownership the more they become disenfranchised from their football clubs. To discourage the club from fan ownership is to discourage the club from gaining any form of stability and transparency.

“It’s now all about the football. It’s not even the case of like; I don’t go around the place saying ‘oh I run a football club’, because you know that’s not part of it.

But just for me as a fan, who’s gone through all the shite with bad owners, for me knowing that my club will never be in that situation again because its fan owned is fantastic.”

(Cork City fan, 2015)

HAPPIER TIMES

There are certainly indications that fan ownership is met with a positive response from the majority of fans. In my opinion football will only be better when owned by its supporters. However there are certainly negatives amongst the positives. There is a huge question as to whether or not supporter associations can control, or at least affect, the power within the board room. Can the representative individual, or individuals, successfully engage in important decisions especially when these representatives are likely to be the ‘outsider’ on the board. Furthermore, supporter associations have even been accused of exploiting their own clubs by forming unfavourable alliances with board members who possess majority shares in order to strengthen their own authority. When instances like this have occurred it has naturally caused distrust amongst supporters, which has a negative effect on transparency and assurance.

However, there are too many positive examples of supporter ownership that greatly outweigh any such negatives. Hereford FC dropped out of the Football League through relegation in 2012 and since then the supporters were made to endure three seasons of financial mismanagement under two different owners in David Keyte, who refused to sell to the Hereford United Supporters Trust, and Tommy Agombar. Under Agombar’s rein Hereford was ejected from non league football due to large sums of debt and in December 2014 Hereford FC collapsed. Since 2015 under fan ownership, Hereford FC, have created a sustainable future attracting no fewer than 2,000 members, the club have acquired kit sponsorship and have even obtained possession of Edgar Street stadium, the ground the original club used since 1924. Fan ownership has brought sustainability, democracy, inclusion and continuity to the club. There are many examples of this positive change in the light of supporter ownership at other clubs, such as FC United of Manchester and Portsmouth FC, which is why I strongly believe supporters’ should be given the right to own their club.

FAN OWENRSHIP: THIS IS OUR TIME! 

Majority ownership has led to the collapse of many British football clubs. Supporters’ loyalty and devotion to their clubs have been exploited by owners, and the common aspiration for success has been employed as a rational explanation for groundless, unreasonable and unmanageable economic abuse.

There are successful cases of fan ownership at both the bottom and top end of professional football. Importantly, there are far too many cases of bad ownership.

Football, is about community. British football must regain this sentiment.  The supporters, the people who invest time and money into their club, should be the ones who own it and make decisions in regards to what is best for their club. A great man once said “Football without fans it nothing.”, and never have those words resonated more with football supporters than right now. Everyone who loves this game has a responsibility to take a good hard look at themselves and ask, ‘What am I doing to make a difference?’.

 

 

References

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BBC Sport (2015d) ‘Hereford FC shirt sponsor deal agreed for new season’, BBC Sport website http://www.bbc.co.uk/news/uk-england-hereford-worcester-33067824 accessed on 8 December 2015

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 The Guardian (2015) ‘Leeds fans up in arms at imposition of £5 pie tax in South Stand, The Guradian website http://www.theguardian.com/football/2015/dec/02/leeds-united-pie-tax-massimo-cellino accessed on 7 December 2015

The Independent (2015) ‘Massimo Cellino will not sell Leeds United until next year’, The Independent website http://www.independent.co.uk/sport/football/live-match-centre/championship/massimo-cellino-will-not-sell-leeds-united-until-next-year-a6743241.html accessed on 7 December 2015

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The Telegraph (2015) ‘Leeds United’s pie tax is an abuse of supporters’ loyalty’, The Telegraph website http://www.telegraph.co.uk/sport/football/teams/leeds-united/12032063/Leeds-Uniteds-pie-tax-is-an-abuse-of-supporters-loyalty.html accessed on 7 December 2015

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Copa90 (2015) Cork City FC – The Rise of the Rebel Army, YouTube website https://www.youtube.com/watch?v=9t-Iq-2uiTU accessed on 19 January 2016

 

 

 

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