Business Advantages of Supporter Community ... - Supporters Direct
Business Advantages of Supporter Community ... - Supporters Direct
Business Advantages of Supporter Community ... - Supporters Direct
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<strong>Community</strong> Benefit Societies<br />
Throughout this report there are references to <strong>Community</strong> Benefit<br />
Societies (CBS). This is the standard corporate structure for<br />
supporters’ trusts registered with the Financial Services Authority.<br />
They were formerly known as Industrial and Provident Societies<br />
but new legislation means that all IPSs are either categorised as<br />
co-operative societies – mutual organisations (retail, membership,<br />
worker etc.) that exist for the benefit <strong>of</strong> their members and which<br />
ascribe to the co‐operative principles – or as community benefit<br />
societies – democratic, member-owned organisations, that have wider<br />
community benefits as core objectives <strong>of</strong> the society.<br />
Many supporter community owned clubs – especially in the Football<br />
League due to league rules 3 – are formed as limited companies.<br />
However for those that are majority supporter owned (Brentford,<br />
Exeter, AFC Wimbeldon, AFC Telford) the majority stake is held by<br />
a CBS. Others (such as FC United) are purely formed as a CBS.<br />
Methodology<br />
i) <strong>Supporter</strong> <strong>Community</strong> Owned Club Testimony<br />
The purpose <strong>of</strong> this element <strong>of</strong> the work was to provide qualitative evidence<br />
<strong>of</strong> the experience <strong>of</strong> supporter community owned clubs in running their<br />
business. It is inevitably qualitative as well as subjective, but it provides a<br />
useful corollary to the findings <strong>of</strong> the Social Value <strong>of</strong> Football research.<br />
That report indicated that supporter community ownership could help<br />
generate added social value for local communities; this report looks at<br />
the issues for clubs that are supporter community owned as businesses.<br />
The research involved in depth interviews with personnel <strong>of</strong> supporter<br />
community owned clubs (majority ownership or major shareholder).<br />
The clubs were:<br />
l Brentford FC<br />
l Exeter City FC<br />
l Lincoln City FC<br />
3 The Football League requires clubs to be limited companies and as such a Football<br />
League football club cannot be constituted as a community benefit society (although it<br />
can be owned by one). For further information see <strong>Supporter</strong>s <strong>Direct</strong> Briefing Paper No.2:<br />
Developing Football Regulation to Encourage <strong>Supporter</strong> <strong>Community</strong> Ownership in Football: p.13<br />
6 <strong>Supporter</strong>s <strong>Direct</strong> Briefing Paper No.4