FC United of Manchester

Manchester’s Leading Cooperative Sports Club

April 2012

Outline• Background• Approach• Future

Background

The State of the Game

• Revenue Top 4 Divisions £3.5bn • PL = 80%

• PL clubs debt = £3bn• 14/20 PL clubs made a loss• professional clubs - 56 insolvency events since 92• Portsmouth £137M debt

An Alternative?

• Fan-owned clubs• Cooperatively managed clubs• Fan Centred clubs• Community Focused clubs

Football Clubs as - CLUBS

Background

Origins

• Formed June 2005 - Glazer takeover

• Core Principles:– Democratic, not for profit, one member one vote– Creating access and participation through football– Community Commitment– Youth focus– Manchester focus– ‘Accessible & benefit to all the communities of Greater Manchester’

Development 2005-2012Fans• c.3,200+ members• Average attendance – 2,000• Up to 25% Under 18• High female participation• Accessible to low income families - £8, £2• Atmosphere – 90/90 culture• Over 1000 season tickets

Club• Elected board of 11 people• General Manager, Secretary and 4 FTE• 2 general meetings a year• Up to 300 Volunteers• Democratic decisions on name, badge, board, shirt, prices, rules

Community Commitment

• Partnerships established with City Council & other Local Auth.• Key areas: education, social inclusion, health, community cohesion• Initiatives include:

– Schools tournaments, coaching, classroom – Estate based delivery– Education initiatives – Match Day events – People United Day, Youth United Day

• Turnover 2010-2011 - £150k• Volunteer Coaches• Manchester College• Sponsored Minithon charity fun run

Facilities

• Developing own ground £4.8m• Ability to host on-site community activities • New 3G pitch and sports facilities• Junior Football Club links• Fit with local regeneration/sport development plans• Potential for health, education facilities• Club offices

Finance

• Grant Funding £2.4m

• Club Funds £2.4m– Community Shares £1.7m– Donations £0.7m

Community Shares ProgrammeTwo-year action research programme, funded by Cabinet Office & DCLG, delivered by DTA and Co-operatives UK, working with 10 organisations raising community investment completed April 2011:• Ashington Minors – childcare nursery

• Cybermoor – rural broadband services

• Brixton Green – community land trust and urban regeneration

• FC United of Manchester – building new stadium

• Hastings Pier & White Rock Trust – development trust

• Hurst Green Village Shop & Centre

• Oxford Cycle Workshop Training

• Sheffield Renewables – urban renewable energy schemes

• Slaithwaite Co-operative – community-owned greengrocers

• Tutbury Eco Power – renewable hydro energy

A unique form of capital

• Shareholder democracy: One-member-one-vote not one-share-one-vote

• Honesty not speculative gain: Withdrawable shares cannot increase in value (but they can decrease in value)

• £20,000 maximum holding of withdrawable shares: but agreements can be reached

• Flexible cap on share interest rates: No more than is “sufficient to attract and retain” the investment – 2% above base rate

Punk Football – Punk Finance

• Statutory asset lock

• HMRC – Enterprise Investment Scheme

• Support of Local Authority

• Support of grant bodies

FC United Experience

• Launched 2010 Ten Acres: £1.5m– Feb 2011 £1.3m

• Relaunched Nov 2011: £1.6m– March 2012 £1.7m

Number of FC United Members 3241Number of Adults 2810Number of shareholders 1351Average holding: Mean £1192Average holding: Median £400

Moving Forward

‘An alternative model for football club ownership that puts people and community first.’