Archive → February, 2012
In less than nine days the football authorities (The FA, Premier League and Football League) will have to produce a plan of introducing measures spelled out in Octobers government response to the football government report. I’m sure we’ve all looked at it but some of us like me haven’t looked at it closely enough. Many of us believed it would do nothing and was a halved arsed effort. Firstly consider this… Some of the items in the governments response refer directly back to the the report. For example we all believed the Government had passed over leveraged buyouts but that is not the case. I even said in a past blog they’d completely bottled it. This past blog shows you need to go into more detail… Leveraged Buy Outs To Be Banned
Another area which I haven’t looked at in more detail until now is covered in the governments response under point 41.
41. One option that we have considered is to specify within the new club licensing system a trigger point that would require clubs to make a seat available to one or more supporters’ representatives on the Board. Such a trigger point could be the next time the club changes hands; the point at which the officially recognised supporters organisations reach a certain size; or by a majority vote of eligible supporters. There will be other options as well.
Point 41 means within the club licensing system there will be a trigger point system for the officially recognised supporters trusts to place members on the board of football clubs. The recommendation says these will include a change of ownership, the size of a supporters trust, by a vote and that there will be others options. If this had been in place in the past, clubs over the last few years like Leeds, Plymouth and Portsmouth who have had problems could have placed a member on the board for greater power and transparency.
This trigger point system to get a member on the board for many clubs may only come about at the point when a club changes hands or gets in trouble. I think many people have passed over the other trigger points. The change of ownership has been happening since football clubs were created and for all clubs this will come around but for a club like Manchester United or Chelsea where the owners say they have a ‘long term interest’ or another club which could be anywhere in the leagues which hasn’t changed hands for 20-30 years like Wigan, that system doesn’t and won’t work. A key recommendation here is once an officially recognised supporters organisation reaches a certain size instead of changing hands. Most football clubs even in the Premier League may only have at best a few 1000 members or less, some only have 100s. Norwich City for example a Premier League club have over 600 members but own 1200 shares worth a value of £121,000 in their club. Swansea City fans already have a member on the board due to the fact they own 20% of the club. The Manchester United Supporters Trust back in 2005 had a touch over 30,000 members. They now have over 175,000 and if this trigger point for example requires 1000 or even 10,000 members, surely from day one of the new licensing rules, our supporters trust would meet the requirement triggering that point. A trigger point like this could do two things. One, trigger on the day its introduced for those who meet the criteria and two other supporters trusts would surely have a big inventive to promote themselves and grow to meet that target. If the target was 1,000 which to me seems realistic. Reading, Spurs, Arsenal and others would meet it but many wouldn’t. I believe a target of anything over 10,000 would make it impossible for most clubs to achieve and impossible for smaller clubs.
A licensing system so clubs have to talk to fan groups like IMUSA/MUST, possible members on the board, supporters trusts given first options on future takeovers via administration, leveraged buyouts banned, protection of shares in football clubs, full transparency on the ownership of football clubs and its debts is all very much on the cards. We could have done with all that in 2005 and today the next club in trouble will be Arsenal. Hopefully this will protect them from big debts and American owners. Currently this all feels like a pipe dream but if we then consider that by next Wednesday the footballing authorities have to agree a plan as set out in the response and that the government want most of the recommendations in the response in place by the start of the 2012-2013 season it becomes much more real. Of course for many of us it won’t be real until it happens.