The Future of the Community Ownership Movement in Scotland

Andrew Jenkin

Head of Supporters Direct Scotland

@AndrewJenkin@ScottishFans25th October, Whose Game Is It? FREE Project Conference

• 154 instances in British of clubs being placed in administrations or liquidated since 2000

• A recognition that no one type of ownership model is right and there is a need to examine different ways

• Argued by Stephen Morrow in a lecture entitled ‘The Future of the Game in Scotland’ that clubs must lose the tag of being a ‘business’ before their true value is recognised

Background & Context

• Since 2002, there has

been a turning of the tide

• In Scotland, there is a

growing movement of fan

power with increased

ownership of clubs and

representation.

• There is no longer a

“dialogue with the death”

A Growing Movement

• Scotland’s community owned

SPFL clubs in 2009

• Scotland’s community owned

SPFL clubs in 2014

• Another 2 predicted to be in

community ownership by

15/16 season

• Gaining a greater understanding of the benefits of the fan and community ownership model.

• Gaining a greater understanding of how it might grow in Scotland in the future and why.

• Learning its barriers and restrictions

What This Research Was Interested In

• Predominantly qualitative based

• Interviewees:

Methodology

The Benefits of Fan Ownership

• Financial sustainability and stability

• Run for the benefit of the community

• Democratic & transparent with fans represented

• Stability referred to in both a social and economic context by interviewees.

• Financial uncertainty the single benefactor model can cause.

• “He ran it with his heart rather than his head” – Eddie Docherty, Stirling Albion Supporters Trust

Financial sustainability and stability

• The instability of the single benefactor model the single greatest strength of the community ownership model.

• “Pattern of people coming in but then their objectives change or funding runs out” –Bryan Jackson, BDO

• The supporters groups the only thing between the club and liquidation.

Financial sustainability and stability

“When Gavin Masterton (former Chairman) put the club into administration, we were (the Supporters Trust) the ones keeping it going. We were the ones giving BDO money. We were the ones paying the

players wages. If the fans hadn't rallied together, the club would have gone”.

- Margaret Ross, Pars United

Financial sustainability and stability

• It is the motives of the owners that define their sustainability. Single benefactors may be good owners if their motives are to see the club grow sustainability, not jeopardise its future chasing success

Easier to sell to fans “because you know they don't have any alternative agenda”

– Bryan Jackson, BDO

Financial sustainability and stability

• However, the biggest hindrance of the model was its prevention of access to major funds, as potential investors put off by one member/one vote system.

• Its’ greatest strength also its’ greatest weakness?

A contradiction?

Fans are “super loyal customers and deserved to be represented”

- Paul Goodwin, Former Head of SDS

• Days of ‘dialogue with the deaf’ numbered

Democracy, Governance & Transparency

• However, the model prevented quick and streamlined decision making.

“risks of slow decision making; political influences and factionalisation; democracy!”

- Stephen Morrow, Uni of Stirling

But....

• Interviewees believed clubs should be run for the benefit of the community, not just shareholders

• Clubs are more than the team fielded on a Saturday afternoon but social institutions and should be embedded in their communities

Community Benefit

• Economic climate and failings of Scottish football – TV money has created a divide between English/Scottish football when once were equal

• Scottish culture and traditions

Reasons For It’s Growth In Scotland

Economic climate & failings of Scottish football

• Hearts, Dunfermline, Stirling Albion, Livingston, Clyde, Rangers, Dundee all suffered financially

“they (Chairmen) want out and I think in the past, in most cases, they would have sold their

shareholdings to someone else, but the reality is most of these shares are worthless”

- Paul Goodwin, SDS

• ‘White Knights' disappearing over the horizon

“go into any shopping centre and you’ll see shutters down and closing down sign and football

is in the same situation. The clubs are dying off and must stand on their own two feet. The only

option I can see is the fans themselves”

- Eddie Docherty, Stirling Albion Supporters Trust

Economic climate & failings of Scottish football

“community and corporate ownership of society has a strong tradition in Scotland. It’s

the right thing to do to and it seems to fit with the traditional political and economic models that many Scots are familiar and comfortable

with”.

- Stephen Morrow, Uni of Stirling

Scottish culture & Traditions

• Access to capital

• Opportunities to purchase clubs and mobilising supporters

Barriers to its growth

• People with capital will often (but not always) want more than one vote for their finance

Access to capital

• A lack of financial transparency means fans are often not aware of financial difficulties until too late

• Mobilising and energising trusts and fan groups can be very difficult and often fans only get involved when there is a crisis and danger to future of a club.

Opportunities to purchase

What Fans Think

• The model holds an encouraging future.

• However, it could be argued this come about because of financial troubles within the game, rather than because of the model’s other benefits.

• Research helped conclude instability is caused by the motives of owners – which are unquestionably good if supporters are in charge.

Conclusion

• A conflict between the ideology behind the model versus the pragmatism and there were many contradictions within responses. Such as:

• Democracy was occasionally a hindrance and prevented stream line decision making

• Puts off potential investors because of the democratic system in place.

Conclusion

Thank you

@ScottishFans

@AndrewJenkin