Supporters Trusts and the governance of football

1
Dave Boyle Deputy Chief Executive Supporters
Direct
2
History

• Strategy Unit Review in 2002
• Dissatisfaction with current models
• CLG offers no real protection
• Charity is very restrictive
• IPS has limited capital raising powers and has
  problematic regulatory framework for businesses

3
What the CIC stops

• Asset stripping
• Asset sale
• Excessive Dividends
• Excessive Salaries
• Leech through Subsidiaries
• Dispose through Conversion
• Legal cul-de-sac

4
What a CIC can do

• Raise capital
• Prevent asset stripping
• Protect community orientation
• Provide corporate flexbibility

5
What a CIC cant do

• Protect against idiocy (repossesion)
• Guarantee democracy in law
• Give tax-breaks

6
How you become a CIC?

• Special resolution
• Community Interest Objects
• CIC Name
• Regulators Office - happy with football, easy to
  use

7
What happens next?

• Each year, Community Interest Report made on top
  of annual report
• Regulator works out of Companies House
• Regulator can intervene, including removing
  directors if assets being leeched and / or
  community objects not being pursued

8
CICs and Football

• Ethical dimension - York and Wrexham
• Insolvency Club can be a CIC
• Capital raising balanced against community
  interest and asset protection
• Club majority owned / golden share by Trust?
• Less good option, but has major attractions

9
Tonka Truck FC
Trust ST holders automatic members Golden Share
rights over key decisions
3rd Party Certain rights Limited powers Limited
profits
Club CIC Protected assets, profits and community
orientation
10
A Franchise FC
Club CIC Protected assets, profits and community
orientation
11
Dave Boyle Deputy Chief Executive Supporters
Direct