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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

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