Finding the resources

Human resources come before financial resources so the money can be counted as it floods in!

But seriously, some thought should be given to the financial feasibility of the project before acquiring material resources which may never be needed.

"So how much are we talking about?"

"How does £100 million sound?"

"Well it sounds like a lot of money."

"Until that is you divide by 50 million. That's £2 each."

"But not everyone in the country will wish to be involved."

"Well, let's take a different figure. The size of the crowd at Upton Park for example. Say 35,000."

"That's better. But it's still about £3k each."

"Maybe we could get a few large donations or possibly a lot of small donations."

"Yes. Maybe."

"Or a loan or a mortgage? There are all sorts of possibilities. Let's see what happens. Acorns and oaks. The main thing is to get started and not miss the chance again through lack of a plan.

Now let's consider human resources. The armed forces like counting in threes; two to do the business and one in reserve. And as it's an odd number, you can't get a tied vote from two plans.

So how about three from each of the following areas: finance, the law, administration. An interest in football an advantage. Call it a committee or a working-party. Add a chairman, a secretary and a treasurer and we're in business. Each sub-group reports its findings to the whole committee. And we take it from there."

"Now we need some money."
"But first we must recruit our volunteer experts."

Why target West Ham?

This is going to be positive! I leave it to others to produce a different list if they wish.

The opportunity is there
At some time in the next two years, the current owners will be looking for a buyer.

The opportunity was there in 2003 and it was missed, mainly because the organisation was not in place. This time let us make sure it is!

The reputation of the club
For at least the last 60 years, West Ham has enjoyed and deserved a reputation for

• playing attractive football
• encouraging young players to succeed at the highest level
• having supporters who appreciate the game

These are valuable assets which should be preserved for succeeding generations.

The money can be found
Yes, even in these difficult economic times. This is the time for wise investments and long-term planning.

From a rough comparison between Greater London and Greater Barcelona, we find that there are 35 inhabitants per top-division seat in London compared with the corresponding figure in Barcelona of 20. This suggest that there is considerable scope for increasing the number of top-division seats in London to satisfy potential demand. The present high percentage occupancy of seats would seem to support this view. Certainly most Premiership matches at Upton Park are sell-outs.

Next time
Finding the resources.

Corporate structures for football clubs

There can't be much doubt about the football club which provides the best model for others to aspire to - FC Barcelona.

Examine its statutes. They are available on its website, not only in Spanish and Catalan versions but now also in English. You will see what makes this club so very special. In addition to its football record, consider the range of other sports offered, its democratic structure and its truly noble aims. They make it a shining example to the rest of the world. It is no surprise that it has an inspiring stadium and a team to match.

Also no surprise that, at the latest count, it had 173,071 members!

So what can England offer at the moment? What should we be looking for?

I would suggest that there are two essentials.

1. One share per member and hence one vote per member. This would keep control of the club in the hands of its supporters.
2. A sound policy by which the financial resources of the club are assured and can increase as the number of members increases.

The simplest example which might match these requirements is a Supporters Trust. This a democratic, not-for-profit organisation of supporters. These structures were established following a UK government initiative in 2000. In spite of the name, these bodies are not charities.

Supporters Direct helps fans to form trusts (over 140 since 2000) and pays for the legal costs of formation. The preferred type of organisation is an Industrial and Provident Society (IPS) which has limited liability of £1 per member. An IPS can own shares and property but, at the moment, the Football League does not permit its clubs to be IPSs.

Currently, Supporters Trusts have control at four Football League clubs and eight non-league clubs in England.

Another possible model is the Community Interest Company (CIC). Introduced in July 2005, there are now nearly 3,000 CICs but few are football clubs. A CIC is limited by shares or by guarantee or by a plc. It operates for the benefit of the community, rather than rewarding owners or investors. It also has a statutory "asset lock" which ensures that any transfer of assets must satisfy certain requirements. Various conversions are possible between a CIC and a variety of other types of bodies.

Could a football club qualify as a CIC? Encouragement of sport is included as an example of something which could benefit the community. So, yes, Canterbury City FC (which is a CIC) and FC Barcelona (which isn't) qualify, at least in this respect. But West Ham? The only answer would be to try it and see.

If these two models fail to gain support, then it would be back to a Limited Company and devising an appropriate "Memorandum and Articles of Association".

Further reading
Types of Company
Community Interest Company (Information Pack)
Community Interest Company (Information and Guidance Notes)
Community Interest Company (Forms for Legal Changes)
Objections to IPSs
Independent European Sport Review 2006

Next time
Why target West Ham?

A little bit of social history

To understand today's problems, we have to go back to the beginning, in the case of organised football to the Victorians. The Football Association was formed in 1863 and the Football League in 1888. The FA Challenge Cup was established in 1871.

The earliest football teams were based on schools, universities and villages. However following the increase in urbanisation, it was soon found that the most successful clubs were located in the areas which could provide the greatest human and financial resources, that is the cities. Businessmen saw a financial opportunity in forming an association with the local team and this symbiosis between directors and fans continued until recent times. The directors or their descendants put in their money (for publicity, honours, love of football, standing in the community, etc) and the fans paid at the turnstiles (for entertainment, comradeship, love your team, hate the opposition, etc).

And then ....

• Some directors were unable/unwilling to continue pouring money down the football drain.
• Shareholders who had inherited their bits of paper found out that the shares could actually be sold for real money.
• Government decided that football had suffered one disaster too many and that the grounds must be changed.
• Mr Murdoch saw an opportunity to make money by showing live matches on television.
• The players (and/or their agents) decided yes, that's fine, as long as we can have most of the money.
• Wealthy businessmen bought clubs with the aim of making themslves even wealthier.
• In the top division, only a few clubs were able to compete for the prizes. For the rest, the struggle was to avoid relegation.

Le Chatelier (1850-1936) had a principle. This says (very roughly) that if there is a happy state of affairs and then someone comes along and changes the conditions under which the state exists, the state will adjust so that happiness is restored.
But then he was a 'mad' chemist!

Next time
Examining possible corporate structures for football clubs.

Introduction

This blog has a simple aim, that of promoting the return of football to its supporters. Doubtless thousands wish it could happen but are sceptical that it ever will. Quite a lot give the impression that they actually enjoy belonging to the oppressed.

No, I don't think I am a complete nutter. I am encouraged by the example of FC Barcelona and by a belief that even the most intractable of problems can be solved by breaking it down into its constituent parts and taking it stage by stage. In fact, the situation in this country is not uniformly depressing. But let's leave that for later.

At this point, you might like to learn a little of my background. The first professional football match I attended was the West Ham (6) v Arsenal (0) FA cup-tie (1st leg) on 5 January 1946. Although Arsenal won the second leg 1-0, West Ham went on to the next round in which they lost 1-2 to Chelsea.

At school, I can particularly remember the influence of a new PE teacher who, I later learned, had some professional experience with Manchester City. Before the first match of the season, he gave each team-member a card with a slogan for them to remember and apply. Mine was HALF BACKS NEVER RELAX! Even in the modern game, the equivalent still applies.

The same teacher, when listening once to the excuses of the sick, couldn't resist the crack "Got catarrh, boy? Then step inside the gym and give us a toon!"

Later at university, the difference between the aspiring professional footballer and the rest of us was made clear to me when I had the job of marking George Scanlan in an inter-college game. Never got near him!

George, who played for Pegasus from 1954-60, later found fame when, making use of his fluent French and Russian (and of course English), he was involved with the books "Cantona: My Story" and "Kanchelskis".

Since moving to the London area in 1978, I have watched West Hame home and away on numerous occasions. In 1992, I bought two B Hammers Bonds in the West Upper Stand and, in 2003 at the time of Whistle v T. Brown, 100 shares in West Hame United plc. Sadly, in my opinion, this movement towards supporter control of the club could not be maintained, leading to the problems and uncertainties afflicting West Ham and many other clubs today.

I have watched most of the first team home games for the last 17 years as well as the Youth Team on many occasions. Fortunately, the Academy continues to produce quality players, even if the Club has not been able to retain them for long once they make the senior team.

Thank you for reading this far. If you would like to express your opinions, they would be appreciated. Finally, and unfortunately necessary, if you are one of the sad few who are unable or unwilling to make your points politely, please go and inflict them on someone else.

Next time

A little bit of social history leading to today's problems.