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Erik Samuelson, AFCW’s Chief Executive says that:
‘Based on a search of publicly available information as of 2009, 11 of the
clubs in this division (Blue Square Conference) were “arguably bankrupt”
and the reason that they don’t go under is that they are funded by short term
loans from directors or parent companies. Those short term loans are not used
to invest in the infrastructure of the club, like the ones that AFC Wimbledon
have, they are used to spend on wages. This means the operational costs of
these clubs are obtained by short term funding from directors who may or may
not choose to stay involved.’
Despite this uneven and unsustainably competitive environment,
AFCW’s supporters remain committed to a responsible approach:
‘In a recent survey we’ve been doing with fans, of all the things they want
more than anything else, it’s to retain ownership of the club. So, [because of
the ownership structure] even if you had someone coming to the club offering
a million pounds, all they would get in return is a parking space, so [a
benefactor situation] is unlikely to happen.’
In that survey, it was found that ownership ‘was the criterion about
which people feel strongest’ and that a strategy to ‘remain fan owned’
was preferred ‘by a very long way’ over any other non-fan owned
option, including pursuing a ‘fast track’ to promotion.
AFC Telford United – Profiting in Non League
Since it was established in 2004, AFC Telford United has recorded
a small operating profit each year. Chairman Lee Carter sees this as
testimony to the fact that they manage, monitor and control their
finances very carefully, something they have had to because they can
only spend what they generate. The people managing the finances
are acutely aware of the fact that they are guardians and have to do
whatever they can from a financial perspective to make sure that
the club remains sustainable on a long term basis. Carter says it’s a
difficult challenge due to cash flow fluctuations so they operate from
cash, so they have to monitor it very carefully. He feels that private
ownership models are very much based on there normally being
a difference between income and expenditure and that difference
being made up by the owners. Lee believes that therefore makes the
finances of privately owned football clubs a lot more unstable, because
you operate at the whim of the pocket of the owner/chairman.
16 Supporters Direct Briefing Paper No.4