Could a fan shareholding really work at Sunderland?
in their overall ownership structure.
While some clubs, such as Exeter City, are completely owned by supporters, a number of others - such as WycombeWanderersandCarlisle United-seeSupporters’Trusts take a smaller percentage of the club’s ownership, typically around 25 per cent.
Football finance expert KieranMaguire,oftheUniversity of Liverpool, says the model is one with its merits.
“Ithinkitcanwork,”hesaid. “It's part of the democratisation of the game. Exeter have been successful, but I think we'd all agree they're on a different scale to Sunderland, andMotherwellupinScotland havebeenverysuccessfultoo.”
of course, a number of crucial benefits to supporters taking a shareholding in their football club.
According to Maguire, it could help correct some of the issues which have irked supporters over recent years.
“It would allow supporters’ voices to be heard,” he explained.
“It would improve communication links and it would improve the governance of the club - all of which are issues which have not been helped overthelastfewyearsandhave led to a toxic relationship.”
Butperhapsthekeybenefit to a supporter shareholding is the crucial veto they possess. This is more prevalent at clubs where supporters hold a majority share, but can still prove key when a minority stake is taken too.
It essentially ensures that supporters have a key say in what happens at their football club - especially when there are big investment and takeover decisions on the horizon.
The best example in recent years is seen at Portsmouth who, after their well-documented financial issues, were fully-owned by their supporters. That was until 2017, when the Portsmouth Supporters Trust sold the club to former Disney CEO Michael Eisner and his Tornate group.
But while there are naturally positives, one key drawback is finance - and what happens if a big-spending investor comes into the club.
As we have seen at Wycombe Wanderers recently, fan shareholdings can be dilutedwhenaclubgoesthrough achangeofownership.Inturn, that gives the fans less of a say and could see them out-voted on key issues.
It’s unlikely given the size and stature of Sunderland that supporters wouldbeabletotakecomplete ownershipoftheclub-unlessa Supporters Trust were able to attract some significant backing.Butthereisnoreasonwhy, should the opportunity present itself, that the soon-tobe-formed Supporters Trust could take a minority stake at the club.
Itcouldleadtosomemuchneededtransparency,andgive supporters a belief that they had once again got their club back.
It’s fair to say that supporters talking a shareholding in Sunderland AFC is unlikely in the short-term - but the first steps are being taken to allow such an arrangement to materialise in the future.
The Red and White Army (RAWA) are aiming to convert to a Community Benefit Association - or, as they are more commonly known, a Supporters’ Trust.
Inthelong-term,thiswould allow them to purchase shares intheclubshouldtheybecome available.
Astatementfromthegroup, explainingtheirdecision,read: “In essence, RAWA already satisfies much of the criteria required for Trust status so actually converting would be a relativelystraightforwardprocess,” they explained.
“The Football Supporters' AssociationadvocateTruststatus as best practice and they wouldassistuswiththeadmin free of charge.
“As well as creating opportunities to raise finances for thebenefitofSunderlandsupporters and the local community, a CBS or Trust provides the platform to own shares in SAFC should the opportunity ever arise.
“The opportunity may never arise of course, but for the sake of a bit of admin and the priceofapint,wemightaswell be ready for it and make use of the other things we can do as a Trust.
“Football Clubs can be precarious entities at the best of times.Theverynatureofsport makesthemso,andaddtothat relegations, promotions (remember them?), changes of ownership and all manner of crazy things we have all seen happen over the years.
“Now we are not suggesting that SAFC is about to go bust or require a bail-out any time soon.Butlikewiththemajority offootballclubsintheland,itis a possibility and indeed it has happenedinapre-Covidworld. Remember Bury?
“Traditionally, when a club goes "pop" it's a supporters Trust that is left to pick up the pieces and rekindle the club see Portsmouth as a relatively recent example, and look at Swansea and AFC Wimbledon.”