|
|
‘Leeds
United syndrome’ shocking clubs into action |
 |
|
25 November 2004 Football clubs are taking risk management more seriously, football governing bodies are making inroads in ensuring the game is more accountable and football pressure groups such as supporters' trusts are growing their role and influence in football by making clubs more aware and responsible of their role in their communities. These findings are part of The State of the Game 2004 report, launched by Sir Trevor Brooking CBE on 25 November 2004 and published by Birkbeck’s Football Governance Research Centre in association with leading business and financial advisers Grant Thornton. Almost eight out of ten Premier and Football League clubs continue to be concerned about their level of debt, an improvement on last year when debt represented a concern for 94% clubs. Cash flow management also appears to be improving through the adoption of more cautious procedures. In order to improve cash flow, compared to last year, fewer clubs chose to increase their overall level of debt, more clubs disposed of some assets, deferred capital expenditure and extended credit periods from suppliers. ‘Risk evaluation and Board approval of 3-year Business Plans are both up – from less than half of clubs responding to the survey last year, to almost two-thirds of clubs this year’, explained Professor Christine Oughton, Director of the Football Governance Research Centre. ‘In part this may represent a reaction to the ‘Leeds United Syndrome’ but there are other factors such as the threat of point deductions for clubs that go into administration that may have triggered greater attention to these measures. The corporate governance spotlight on clubs may also be having a positive effect, encouraging the introduction of good practice such as these risk evaluation measures’, continued Professor Oughton. Commenting on the research, Joe McLean, partner within Grant Thornton's Recovery & Reorganisation practice said: "Over the last three years, much of the football industry has moved from a 'monopoly board' style of management to one that is much more responsible, regulated and broadly under greater scrutiny than ever before. However, this does not mean that clubs are finally living within their means, as many clubs are still playing with fire when it comes to financial management. The industry as a whole is gradually moving in the right direction, but much more needs to be done to ensure that improvements are sustained.' Commenting on the improvements in the governance of the game, Kate Barker, the Chair of the FA’s Financial Advisory Committee said: the ‘Fit and Proper Person’ criteria the Football League and Premier League have adopted for the Directors of all Clubs in those leagues is, ‘Very welcome news. The FA has also introduced a new certificate, to be attached to the annual return of all football clubs, in which the directors are required to affirm: their commitment to the club’s long-term future, a reasonable expectation of adequate resources to meet fixtures over the coming season, and security of tenure for the ground for the next season.’ Professor Jonathan Michie, one of the report's authors and a committee member of Shareholders United, the football supporters’ trust currently opposing American millionaire Malcolm Glazer's attempts to take control of Manchester United said: ‘Alongside the improvement in corporate governance practices within football clubs, it is heartening to see the continued growth in the number and size of football supporters trusts, which are now in place at most clubs, and play an important role in many’. 'Since the summer, the Trust at Manchester United has grown from 9000 members to over 15,000 members highlighting the popularity and fundamental role supporters trusts are playing.', he concluded. For a copy
of The State of the Game 2004 report, contact Geoff Walters, g.walters@mbs.bbk.ac.uk Contact: |
|
 |
|
| Last updated: 25 November 2004 | |
|