Business Advantages of Supporter Community ... - Supporters Direct

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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 theclubs 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 termloans from directors or parent companies. Those short term loans are not usedto invest in the infrastructure of the club, like the ones that AFC Wimbledonhave, they are used to spend on wages. This means the operational costs ofthese clubs are obtained by short term funding from directors who may or maynot 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 wantmore than anything else, it’s to retain ownership of the club. So, [because ofthe ownership structure] even if you had someone coming to the club offeringa million pounds, all they would get in return is a parking space, so [abenefactor situation] is unlikely to happen.’In that survey, it was found that ownership ‘was the criterion aboutwhich people feel strongest’ and that a strategy to ‘remain fan owned’was preferred ‘by a very long way’ over any other non-fan ownedoption, including pursuing a ‘fast track’ to promotion.AFC Telford United – Profiting in Non LeagueSince it was established in 2004, AFC Telford United has recordeda small operating profit each year. Chairman Lee Carter sees this astestimony to the fact that they manage, monitor and control theirfinances very carefully, something they have had to because they canonly spend what they generate. The people managing the financesare acutely aware of the fact that they are guardians and have to dowhatever they can from a financial perspective to make sure thatthe club remains sustainable on a long term basis. Carter says it’s adifficult challenge due to cash flow fluctuations so they operate fromcash, so they have to monitor it very carefully. He feels that privateownership models are very much based on there normally beinga difference between income and expenditure and that differencebeing made up by the owners. Lee believes that therefore makes thefinances of privately owned football clubs a lot more unstable, becauseyou operate at the whim of the pocket of the owner/chairman.16 Supporters Direct Briefing Paper No.4
3 SponsorshipKey Question:Has community ownership helped with development of sponsorship,especially longer term/strategic support and innovative practice?Top Three Findingsi) Most of the clubs that we interviewed felt that their ownership structurewas beneficial in helping them to generate levels of sponsorship aboveand beyond what they might expect to attract given their current leagueposition. In part this is underpinned by the relatively high crowds somesupporter community owned clubs achieve relative to their league status.ii) However, there was also a sense that the relationships developed withsponsors often encompassed a broader range of activities and ‘depth’than might be seen at non-community owned football clubs.iii) In some instances sponsors were only interested in being associated withthe community profile and activities of the club, rather than the moretraditional ‘commercial’ operation and profile.In some cases sponsors are more attracted to supporter community ownedclubs because their attendances (andIt is also the reputational value of membership) far outstrip most ofsponsorship associated with a club their competitors at the same level,owned by its supporters that is the particularly among non-league clubs.added value for sponsorsThis has been true of FC United, AFCTelford United and AFC Wimbledon.Also important is the reputational value of sponsorship associated with aclub owned by its supporters and local community. In some instances thisalso helps to underpin a longer term relationship between club and sponsor,as the AFC Telford United case study illustrates.Furthermore, the CBS structure of supporters’ trusts means that they havea legal obligation to be of benefit to their communities. This strengthens theassociation of sponsors with community benefit outcomes. The activities ofclubs in their community and the desire of sponsors to be associated withthese outputs is something that has been evident in other club ownershipstructures and relates to some corporations’ social responsibility agendas.However, the added value of supporter community ownership is the closerrelationship with supporter communities and community obligations of theBusiness Advantages of Supporter Community Ownership 17
Page 2 and 3: About Supporters DirectSupporters D
Page 4 and 5: IntroductionThis paper is the fourt
Page 6: Community Benefit SocietiesThrougho
Page 10 and 11: 1 Strategic PartnershipsKey Questio
Page 12 and 13: The council took over the freehold
Page 14 and 15: the stability of the football club
Page 18 and 19: supporters’ trusts.AFC Wimbledon
Page 20 and 21: the club crest and manufacturer whi
Page 22 and 23: Supporter community owned clubs hav
Page 24: 5 ResilienceKey Question:Does commu
Page 27 and 28: 6 Co-operative ‘Added Value’Key
Page 29 and 30: community club can be an advantage
Page 31 and 32: at a “normal” football club, yo
Page 33 and 34: Exeter City - Valuing Supporter Vol
Page 35 and 36: FC United of Manchester do not curr
Page 37 and 38: the area of donations. Many clubs w
Page 39 and 40: with specific skills - in areas suc
Page 41 and 42: costs and the additional ‘buy in
Page 43 and 44: goodwill within the wider community
Page 45 and 46: Category Average Score of Average S
Page 47 and 48: ● 73% of respondents from support
Page 49 and 50: community ownership, the community
Page 51 and 52: The Supporters Direct Briefing Pape

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